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SAS and Coalition launch software that correctly incentivises City bankersRapid Risk Profiling aligns risk to remuneration05 February 2009 - SAS, the leader in business analytics software and services, and Coalition, the financial services business intelligence provider, today announced the UK launch of its new software offering to Capital Markets - Rapid Risk Profiling. The software enables financial services organisations to better align employee remuneration to the firms appetite for risk. By implementing Rapid Risk Profiling, risk can be managed more effectively across the enterprise whilst ensuring staff members are incentivised appropriately, according to the risk levels of their individual activity and in-line with the levels of risk accepted by the company. The current regulatory environment increasingly focuses attention on the potential misalignment of staff remuneration with corporate and shareholder interests. Rapid Risk Profiling aims to help financial services organisations get ahead of regulatory requirements and turn current non-prescriptive regulatory suggestions into a concrete mechanism for safety, balanced risk aversion and transparency to stakeholders and regulators alike. The software creates a direct correlation between the remuneration of each staff member and the financial risks associated to their activity, especially maturity, as recorded on the company’s risk systems. It enables firms to profile those people across the organisation who are responsible for taking or managing risk and creates a highly visible display that links them directly with the risks that they are taking, the methods they are using and the remuneration they are receiving. Rapid Risk Profiling, based on Enterprise Risk Management software and Coalition’s DNA platform, provides companies with a fast and dependable approach to understanding what type of risk they are facing, where this risk lies, how credible their risk evaluations are, and most importantly, who is responsible for that risk. Ian Manocha, Managing Director of SAS UK, states: “The current credit crisis is partly a result of irresponsible lending and borrowing and remuneration structures that rewarded extreme risk taking. What SAS is looking to provide is a connection between how much of a bonus is paid to individuals, based on how much risk they are having to manage, but also, this has to be in line with the level of risk the company is prepared to take on; discouraging the extreme risk taking that we’ve become accustomed to and behaviour that has led to our current economic situation.” Benjamin Schoff, CIO and co-founder of Coalition, describes the partnership with SAS UK: “For over 6 years Coalition has been supporting financial services firms to profile their staff and performance by creating information-rich organisational models that can be analysed using our DNA technology. Our partnership with SAS has allowed these maps to be enriched by including all important risk measures that alert management to enterprise risks and staff responsibilities.”
About Coalition Coalition Development is a business intelligence provider with a core skill in creating dynamic, data information-rich maps of market places. Our clients include leading investment banks globally who use our processes and technology to be better informed about their place in the market. Our DNA technology is highly effective in revealing the key elements that make up any organisation, its people, products and performance. www.coalition.com
SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions delivered within an integrated framework, SAS helps customers at more than 45,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world
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