Temenos Transact – Core Banking

Financial Risk Management

Temenos Financial Risk Management provides financial institutions the ability to comply with complex regulatory requirements and ability to run sophisticated risk analytics. Temenos’ Risk solution delivers results that ensure greater efficiency, optimized cost of compliance and enable better risk-informed decisions. 

The Market View 

The 2008 Global Financial Crisis brought compliance into sharp focus. At financial institutions worldwide, failures related to compliance led to fines and losses topped $300 billion in the ensuing years.

Institutions have heavily invested in compliance over the past ten years. Costs increased to unsustainable levels, so banks are now seeking to improve the efficiency as well as the effectiveness of their compliance departments. They face existential threat from the new age Fintech firms that are disrupting the way traditional banks were being operated. Till now Risk domain was shielded from the digital wave by being viewed as a cost-centre. However, this has come in full circle with Risk function now playing key role in the overall digital transformation of Financial Institutions. This started even before the COVID-19 hit and now due to the pandemic this has only accelerated.

Digitizing the risk, treasury and compliance function will facilitate automated regulatory reporting and enable decision makers to focus more on managing firm wide risks and providing predictive insights to C-level stakeholders. FIs are increasingly looking to digitize their Risk Modelling capabilities by utilizing state-of-the-art data architecture. 

Why Temenos Financial Risk Management

Cybersecurity and Compliance

Compliance with BCBS 239 Principles 

By delivering a single centralized Risk Dataset with pre-configured data models, populated by complete, accurate and timely data that is available in real-time and on-demand we help you to accelerate compliance with BCBS 239 principles. 

Integrated and Scalable Platform 

Built on Transact Data Hub (TDH) / Temenos Data Lake (TDL) and Analytics Platform that is integrated with Temenos Transact. Provides flexibility to be connected by any downstream Risk and Compliance system using standard out-of-the-box APIs. A single governed data hub to cater different Regulatory and Compliance obligations that is extensible based on regional regulatory requirements. 

Optimize Cost of Compliance

By providing an integrated Risk Data model we alleviate the need for banks to engage in lengthy and expensive System Integration (SI) projects and eliminate the cost of 3rd party ETL and Data Engineering Tools. This ultimately help banks in reducing operational cost of compliance.

Product Overview

Temenos Financial Risk Management solution includes a robust dataset that harnesses real-time risk data from Temenos Transact and powerful analytical tools for credit risk and market risk. This provides our clients with an out-of-the-box modeling capability for computing Probability of Default (PD) and Loss Given Default (LGD) required under Basel and IFRS9 guidelines and advanced Market Risk Modelling capability required by Risk Managers.

Risk and Reporting Dataset

Out-of-box curated real-time Risk dataset that any downstream Regulatory Reporting system can connect using APIs

Credit Risk Modelling

Provides Probability of Default (PD) and Loss Given Default (LGD) models required for IFRS9 Expected Credit Loss (ECL) calculations

Market Risk Modelling

Out-of-the-box portfolio Value at Risk (VaR) and pricing capability built on advanced Transact Data Hub (TDH) / Temenos Data Lake (TDL) and Analytics platform that provides tools necessary for measuring and monitoring portfolio market risk in real-time

You’re in Good Company

Supporting Products

Temenos Analytics

A comprehensive Reporting, Analytics and Business Intelligence product allowing banks to be more efficient and profitable by providing robust, banking specific, financial, profitability, customer, and digital analytics.

Temenos Transact – Treasury

Designed to meet the complete needs of a modern international treasury operation. A real-time flexible end-to-end solution, Temenos Transact Treasury helps banks of all sizes reduce risk and improve profitability whilst ensuring regulatory compliance.