Misys FusionRiskSolution overview

Act with greater insight

Grow with risk intelligence

Enabling a risk-aware business strategyHow do you make sure risk adds value to your business?

What is preventing banks from improving risk management capabilities?

Source: Celent research

66.7% 58.3%

Misys FusionRisk makes risk-minded thinking a reality

For Chief Risk Officers, a comprehensive, top-down and enterprise-wide view of risk is essential — yet risk systems are largely unable to create the required perspective.

Better risk identification is no longer just about disaster prevention — it has become a mission critical enabler for maintaining a sustainable long-term strategy.

Financial institutions that can aggregate and connect essential risk data can use this insight to compete more effectively.

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Fragmentation of systems/IT complexity

Lack of a single aggregated view of risk

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An integrated risk management approach enables banks to respond to evolving regulations and produce a more comprehensive view of risk

Misys FusionRisk takes inputs from multiple systems so risk managers can analyse risks and limits in one place.

“The solution has enabled us to draw a full circle between ALM, cost management, our commercial strategy and credit risk management.”Jean-Christophe PlossignacCost Management, Financial Department, Banque Socredo

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An integrated risk management approach enables banks to respond to evolving regulations and produce a more comprehensive view of risk

Misys FusionRisk offers a rapid route to compliance, with a unique solution that combines credit, market and liquidity risk and supports assessment of regulatory capital, calculation of liquidity coverage ratios and the conduct of stress tests.

“Misys FusionRisk provides responsive risk dashbards to ensure risk transparency at any level of the organization.”Pravat DashHead of Market Risk Management, Axis BankBanque Socredo

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“Gains have been impressive. As 30% productivity improvement in reporting isn’t even the most impressive gain. The greatest is in that we can now do analysis we couldn’t do before, enhancing the contribution of ALM to the bank’s business.”ALM Operational Director

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When the bank decided its existing Asset Liability Management (ALM) system approached the end of its life, it chose an advanced, scalable solution to cater for its growing business.

With a legacy system unable to cope with the large volume of data generated by its growing business, this regional leader needed to aggregate information before analysis could take place.

Introducing FusionRisk helped store and manage large volumes of data down to contract level, the bank can now drill down into far more detailed information to investigate any aspect of its business, at any level of granularity required.

Better operational oversight and a 30% reduction in reporting time

Selecting FusionRisk Balance Sheet Management and Regulation, a French bank discovers dramatic productivity benefits from its rapid integration, seamless processes and powerful analytical features.

Success stories

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We understand that connecting knowledge from every part of a financial institution is a strategic risk management imperative. FusionRisk takes a holistic, “top down” approach that provides the complete picture of exposures that regulators, shareholders and boards demand. It leverages existing IT investments at a time when banks need to focus on cost control and productivity gains.

Misys FusionRisk empowers financial institutions to address two interconnected goals:

• to meet short-term regulatory demands and • to embed risk in the business—from day-to-day operational oversight to long-term strategic business planning.

The Misys approach to risk

Risk management is all about insight. This is the driving force behind the Misys FusionRisk solution.

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Fusion solutions can fit seamlessly into your existing infrastructure, or create a brand new platform that will start delivering value within months.

And because FusionRisk is flexible and agile, you remain perfectly placed to overcome changing market conditions and new challenges.

FusionRisk gives you the single, global risk view you need. It’s designed to be easy for any organisation to adopt.

Misys FusionRisk comprises five modules that can be combined to suit each financial organisations’s specific needs.

Regulation

Bank-wide limit measurement and monitoring

Shared componentsScenario generation, pricing and calibration, real-time reporting, data management,

high performance risk analytics and task-oriented workflows

Limits Advanced Measures

Balance Sheet Management

FusionRisk Insight

FusionBankingLoan IQFusionBankingLoan IQ

FusionBankingEssenceFusionBankingEssence

FusionInvestFusionInvest

Non-Misystrading systemsNon-Misystrading systems

Non-Misysbanking systemsNon-Misysbanking systems

Data sourceData source

FusionCapitalFusionCapital

› Market risk (VaR)

› Advanced credit (PFE/CVA)

› Basel capital

› Regulatory reporting

› National discretions

› Asset liability management

› Liquidity management

› Fund transfer pricing

› Global cross asset limits

› Multiple limit types

› High performance pre-deal check

FusionFab

ric Co

nnect

FusionRisk

9Misys FusionRisk | Solution overview

FusionRisk Insight provides centralised, strategic risk intelligence and optimisation tools across the enterprise. From here, risk across the organisation can be understood and analysed. In addition, risk managers can drive the risk appetite and optimise the global risk exposures to match the risk strategy of their financial institution.

FusionRisk Advanced Measures helps capital market institutions to make risk-based business decisions in the front office and gain a competitive edge by actively managing the short-term sensitivities and long-term vulnerabilities of Potential Future Exposure (PFE), Credit Value Adjustment (CVA) and market risk.

Misys FusionRisk

Misys FusionRisk comprises five modules that can be combined to suit each financial organisations’s specific needs.

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FusionRisk Limits supports global exposure and counterparty management and allows you to develop a single, consistent view of exposure and limit utilisation, with out-of-the-box integration with Misys solutions for lending, transaction banking, payments, treasury, and capital markets, coupled with easy integration with other third party or in-house software.

FusionRisk Balance Sheet Management dynamically manages the risk exposures of assets and liabilities. By providing dynamic simulation capabilities, it allows banks to understand risk-return profiles of all banking activities and then take risk-based decisions to optimise the financial margin in the chosen risk appetite framework.

FusionRisk Regulation provides continuing scrutiny of the determinants of regulatory reporting figures. From capital adequacy ratios in different jurisdictions, to credit, market, operational, liquidity and concentration risks, this module helps financial institutions stay compliant with changing regulatory reporting requirements.

The FusionRisk advantage • Improved regulatory compliance and reporting: FusionRisk helps organisations become more flexible and detailed in measurement and reporting so they can remain compliant even as regulations change. • Act on risk: FusionRisk is allowing banks to embed risk awareness top down in daily tasks with agile risk information. CRO’s can monitor risk across the bank more effectively and business lines can execute faster on new strategies. • Control risk appetite and sharpen decision-making: FusionRisk is helping banks to optimise their capital allocations by offering comprehensive measures to gauge risk, guide capital allocation and ensures they are creating long term value.

• Complete risk information in one place: By taking inputs from multiple front-office and other banking systems, FusionRisk enables a unique and comprehensive view of risk across the trading and banking books. • Cost effective strategy: FusionRisk can gather data across different risk engines and sources, which are then aggregated into one place for easy analysis and sharing. • Proven technology: FusionRisk offers high performance risk analytics to cope with the flexibility required to “risk measure” all essential risk data in a bank. High parallelisation of data computation is now available at very low cost and provides multiple possibilities of intraday re-runs, including real-time pre-deal computations.

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Seeking better control of risk data across platforms and faster reporting and reconciliation, the bank implemented the Market and Credit Risk components of Misys FusionRisk

With the new solution, the bank can aggregate risk data at any level, from individual traders up to group-level reporting. Now it can generate intra-day and on-demand views of all its trading portfolios and view its entire market risk exposure in real time.

When two middle-eastern banks merged to create a regional leader, their integration meant the new bank inherited several different front-office systems for their Capital Markets division. The merged organisation found it difficult to analyse information in real time, particularly in the light of growing demands from the board and regulators.

A clear perspective on risk Post-merger, a large retail and corporate banking group achieved the holistic, real-time picture of risk it needs.

Success stories

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“Misys solution also enables us to deliver market risk reports to our board and senior management much more quickly than ever before, giving them rapid access to the information they need to make the best business decisions.”Head of Group Market Risk

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“We received good technical support from Misys during the implementation and we are delighted that FusionRisk works exactly as expected.”Fuad MohamedVice President Applications, Group IT,Emirates NBD Group

Customer supportMisys clients benefit from the expert knowledge of 1000+ resources worldwide whose primary function is to provide professional, scalable software support and maintenance.

Deep domain expertise Our technical and application support people have strong industry and product knowledge with continuous technical and industry training programs to ensure that Misys support teams can meet your evolving business needs.

Scalable support model As a Misys client, you can choose from a standard, professionalised support model or a specialised, premium support package depending on your needs. Because Misys support has a broad, global footprint that operates in all time zones and regions, Misys teams can scale to your requirements.

Valuable advisory services Our Systems Advisory Group (SAG) provides system reviews to help clients understand how to use their Misys systems more effectively and derive maximum value from their applications.

Professional servicesBest-practice deliveryThe Misys delivery model is incorporated into our entire product lifecycle. We leverage best practice business processes in the design, development and quality assurance of all of our products. While we acknowledge that one size doesn’t fit all in financial software, we know that a delivery approach that focuses on industry proven best practice process models helps our clients to save costs and benefit from the institutional knowledge Misys has developed across thousands of successful implementations. It means:

• Faster implementation: Repeatable delivery means projects are shorter and more predictable. • Reduced TCO: Clear focus avoids unnecessary expenditure. • Less risk: A standard, proven approach means many risks have already been mitigated.

Centre of excellenceCo-located with our development teams, the 200-strong Misys Service Delivery Centre ensures that we share best practice both internally and with partners. It enables us to refine implementations offsite before taking them back to the client.

SAG reviews have helped more than 80% of participating customers to identify ways to utilise their Misys software more effectively and use more system functionality.

An industry proven best practice approach – that’s the guiding principle of our professional services and support model. Misys clients benefit from our long track record of successful implementations.

Professional services and customer support

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Proven award winning solutions

Risk Technology Rankings 2014Misys FusionRisk – a proven, award-winning solution

CIR Risk Management Awards 2014FusionRisk wins “Best use of technology in risk management” in November 2014

FS Tech Awards 2013Misys FusionRisk wins the “Risk management software of the year” award in April 2013

Risk Technology Rankings 2013Misys wins enterprise-wide risk management category andseven others in the 2013 Risk Technology Rankings

AsiaRisk Technology Rankings 2013Misys wins overall category and 7 others in the Asia Risk Technology rankings 2013

Risk Technology Rankings 2012Misys wins overall category and 7 others in the 2012 Risk Technology Rankings

AsiaRisk Technology Rankings 2012Misys wins overall category and 7 others in the Asia Risk Technology rankings 2012

Structured Products Technology Rankings 2012Misys wins Risk Management – Collateral Management and 4 others in the Structured products 2012 Awards

About Misys Misys is at the forefront of the fi nancial software industry, providing the broadest portfolio of banking, capital markets, investment management and risk solutions available on the market. With more than 2,000 customers in 130 countries our team of domain experts, combined with our partner eco-system, have an unparalleled ability to address industry requirements at both a global and local level. We connect systems, collect data and create intelligent information to drive smarter business decisions. To learn more about how our Fusion software portfolio can deliver a holistic view of your operations, and help you to solve your most complex challenges, please visit misys.com and follow us @MisysFS on Twitter.

Misys and the Misys ‘globe’ mark are trade marks of the Misys group companies.

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