ICAAP

Internal Capital Adequacy Assessment Process

Optimisation of risk management

With FlexFinance Analytix, FERNBACH provides a comprehensive solution to support banks in the Supervisory Review and Evaluation Process (SREP) and to aid a bank in instituting and maintaining its internal capital adequacy assessment process ICAAP. FlexFinance Analytix is a high performance modelling tool for implementing and optimising internal risk models and analyses. The ICAAP solution can be integrated in a variety of existing applications.

Stress tests for optimisation of company-wide risk structure

FlexFinance Analytix includes a library of “off-the-shelf” internal risk models that banks can deploy immediately. Alternatively they can be modified to suit their specific business or scenario needs e.g. stress testing. Stress testing complements traditional risk management models such as those based on value at risk VaR, particularly in assessing the effect of events and economic factors on a bank’s portfolio. FlexFinance Analytix enables banks to run stress tests on a regular basis or to run ad-hoc stress tests and creating an holistic view of the impact of stresses across the bank.

• Easily integrate data from a variety of sources.
• Aggregate, enrich or transform data by combining high-performance, flexible calculation engines.
• Build and run internal risk models or calculations based on internal methodologies or standard models from FERNBACH (e.g. credit portfolio model or value at risk VaR models).
• Distribute reports to a larger audience online or export in a variety of formats including PDF, Microsoft Office formats (DOC, XLS, PPT), etc.
• Quick and easy respond to changing market conditions or preparation for the possibility of adverse changes through ad-hoc stress testing capabilities.