In less than 10 years BANORTE has grown from a regional bank to become one of the largest institutions in Mexico, with nation-wide coverage. But with that growth has come the problem of managing a diverse and complex set of portfolios acquired through mergers, as well as the challenge of...
When Scotia Capital set up a financial engineering group to support its capital markets activities, it insisted that any new business or product included full risk management right from the start. To achieve this, the bank required a risk system that was open and flexible to allow the rapid development...
In the year 2000, FleetBoston Financial was created as a result of a merger between Fleet Financial and BankBoston. At its inception, the new institution faced the daunting task of introducing a single risk management solution to meet the needs of the new, much larger corporation. The implementation of Algo...
The Capitalia bank holding company is responsible for setting the strategy and developing the business plan for the subsidiaries, with the aim of creating better, more efficient services and products for its clients, thereby increasing shareholder value. A key part of the Capitalia's strategy has been the improvement of its...
The Societe Generale Group SocGen is the sixth largest bank in the euro zone. It is impossible to be successful in such competitive and sophisticated markets without proper tools for analyzing opportunities and managing risks. Recently, SocGen has implemented Algorithmics' Algo Credit solution to provide what it believes is a...
Halifax, the UK's biggest mortgage bank, decided to proactively build the new regulatory requirements into the early stages of its risk management program, recognizing that these would evolve and additional requirements would follow over the coming years. As a part of this strategy, Halifax chose to partner with Algorithmics to...
The Companhia Brasileira de Liquidacao e Custodia or Brazilian Clearing and Depository Corporation, commonly known as CBLC, is the clearing house for all the Brazilian equity and equity derivative markets. In the past, the organization used a number of disparate systems to manage its risk. Today, CBLC uses Algorithmics' Algo...
Erste Bank, based in Vienna and a leading bank in Central Europe, set out to find a state-of-the-art limit management system that would allow it to increase the volume of business it could do without extending its credit limits. The bank chose Algorithmics' Algo Credit, including its global limits functionality...
Robeco, a leading European investment specialist, had four separate risk management systems - one for each specific type of risk measured in their funds. Although individually these systems operated satisfactorily, the set-up could not provide scalability to support the firm's growth. Therefore, Robeco set about looking for an alternative. Robeco...
Koch Industries, Inc. is a large, privately held company, active internationally across a host of industry sectors. Koch's approach is to intelligently, take risk as it seeks to create long-term value for customers and the marketplace as a whole - a strategy that it has pursued with outstanding success. To...
Banca Intesa, Italy's largest banking institution, is a world leader in financial risk management. The breadth, scope and complex nature of the new corporate entity meant that Banca Intesa required a truly unique and enterprise wide solution to satisfy all of its growing risk management requirements. The bank turned to...
ALGO RISK, an asset class and risk factor agnostic risk solution, provides hedge funds with a robust portfolio-modeling and risk management environment that enables users to measure, manage and optimize risk and return across all long-short and long-only investment strategies. Algo Risk provides hedge fund traders, portfolio managers, risk managers...
Algorithmics provides an advanced, market proven, enterprise-wide risk management solution. By integrating different risk functions with a single, unified, scalable architecture, Algorithmics helps financial institutions reduce costs, improve the quality of risk information, meet regulatory requirements and allocate capital more efficiently. Algorithmics' suite of solutions meets the challenges of financial...
To meet today's heavy regulatory burdens - from anti-money laundering and International Accounting Standards IAS to the Basel Capital Accord Basel II - banks must increasingly integrate their operations with their finance and risk management practices, bringing capital reserves in line with real risk. At the same time, banking executives...
Together, HP and Algorithmics provide proven risk management solutions for the worldwide financial services industry, built on cost-effective, industry-leading technologies. HP servers and services, Algorithmics risk management solutions, and Linux operating system software deliver the agility, efficiency, and return on investment that today's leading financial institutions demand. The accelerated adoption...
Widespread regulatory arbitrage, turbulent financial markets, the increasing complexity of instruments, and the growth in global derivatives markets, combined with a number of high profile global financial disasters have led to the demand, from regulators and shareholders alike, for more robust ways of measuring and managing risk. The new Basel...
In January 2001, The Basel Committee on Banking Supervision issued a proposal for a new Capital Accord commonly referred to as BIS II that will supersede the current 1988 Capital Accord. This new comprehensive regulatory capital framework intends to foster a strong emphasis on risk management practices, and to encourage...
Weather derivatives, a new breed of financial assets, allow firms to manage climatic risk that disturbs their activities and may lead to variability in earnings and costs. This paper, introduces a new approach in the design of these derivatives. This work has been motivated by the recent development of derivatives...
This paper presents a general option-valuation framework for loans that provide valuation information at loan origination and supports mark-to-market analysis, portfolio credit risk and asset and liability management for the entire portfolio. It describes the main structures found in commercial loans and the practical assumptions required to model the state-contingent...
Real options theory is an increasingly popular tool for valuing physical assets such as power generation plants. This paper describes a model for power plant valuation that accounts for such important operating characteristics as minimum on- and off-times, ramp time, non-constant heat rates, response rate, and minimum electricity dispatch level.
