 "FlexFinance Basel II Credit Risk")
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FlexFinance Basel II determines the capital requirements for market risk, credit risk and the operational risk. It also covers the calculation of solvency ratios using available equity. Its comprehensive drilldown functionalities enable the analysis of all results starting with freely-definable portfolio hierarchies and extending to individual exposures.
Market Risk
Market risk can be determined either through standard methods or using a VaR-based internal model. The splitting concept for structured products, which is in compliance with regulatory standards, ensures an exact presentation of modern, innovative financial instruments.
Credit Risk
FlexFinance Basel II determines all the ratios necessary for regulatory reports and enables their detailed analysis. The solution makes it possible to calculate various regulatory approaches in parallel whereby a partial use definition can still be utilised on the portfolio level. Country-specific requirements are, of course, also properly presented in FlexFinance Basel II. The Calculation Kernel for credit risk comprises an optimisation algorithm for the equity-conserving assignment of credit risk mitigation instruments to the prescribed claims.
Operational Risk
FlexFinance Basel II ensures that the determination of capital requirements for operational risk complies with regulatory guidelines. Loss databases from operational risk management systems can also be easily connected to FlexFinance Basel II.
