Teradata

Enterprise Risk Management (ERM) has come to the forefront of modern investment banking. Commensurate with and critical to meeting the challenge of accurate risk and pricing analysis is effective risk information management. To maintain their reputations and competitive edge, modern financial institutions must optimize their policies and methodologies for ERM with truly fit for purpose risk information management platforms.

While the need for accurate, complete, and timely data for on-demand risk, pricing, and executive decision making is well understood, many firms still struggle with building an authoritative, comprehensive and cost-effective risk data environment.

Teradata has proved that with effective data integration, firms can achieve breakthrough capabilities in analysis, insight, speed and accuracy of decision making – all facets of an optimal risk management function. Compare the typical federated data infrastructure with the Teradata Risk Information Management solution.

Teradata’s risk solution provides financial organizations with unprecedented insight into counterparties, positions, and trades. Our solution enables an end-user computing environment where business users can perform ad hoc analysis, as well as produce periodic reports. The Teradata solution effectively aligns people, processes, data, and technology in all its facets.

Data spread across organizational silos need to be integrated quickly to create a unified view of the firm’s positions so that risks can be calculated with confidence.

Relevant risk measurements must then be distributed in a timely manner to all constituents including senior management, risk managers, and traders on the desk. Adequate security must be maintained so that individuals can only see positions and risks for which they’re responsible and ensure that information can’t be inadvertently or maliciously modified. And all this must be done as efficiently and cost effectively as possible.

In many implementations at some of the world’s largest companies, Teradata has combined insights with innovation to develop five principles upon which we’ve built our solution:

• Significant, relevant, timely – Data about your firm’s and customers’ positions and trades from across the organization can be aggregated quickly and efficiently to ensure timely risk measurement. Relevant measures can then be conveyed in real time to traders, risk managers, and senior management.
• Single view – We’ve built our reputation on creating a single, in-depth, and up-to-date view of all your relevant information.
• Modular – Because all large companies already have a risk management infrastructure, our customizable solution is designed to integrate into and enhance existing systems and processes.
• High-quality information – Teradata’s technology ensures that data quality is a prime focus of the organization.
• Scalable – The Teradata solution grows easily and cost effectively as your organization and its needs grow.

The cornerstones of our solution are the Teradata® Platform and Teradata Database, which house all the information risk management needs from across the organization, including positions, trades, market data, securities master, and customer information. The Teradata Financial Services Logical Data Model organizes that information using best practices for risk management – including credit, market, and funding liquidity risk.

Teradata provides an end-to-end consultative solution to develop a process for data management across the organization, so that your risk measurement engines of choice can draw from consistent underlying data sets. Teradata technology also allows you to distribute the resulting risk measures as required to users across the organization with the appropriate amount of detail.

Teradata enables you to apply analytical power to risk measurement and enables a sophisticated understanding of risks, capital needs, and attribution. Teradata Warehouse Miner, our in-database data mining tool, offers sophisticated data statistical analysis capabilities, as well as a means to link other statistical software (such as SAS®) and perform analyses including stress tests, back tests, and strategic analysis for pricing and performance measurement.

The Teradata Financial Services Logical Data Model, enhanced with credit and market risk management extensions and business line functional views, offers firms a blueprint to structure their organizational data.

Reference data – the management of security masters, a common-customer file, or a consistent organizational and legal entity hierarchy for risk rollups – is a major problem for risk management. The Teradata Master Data Management solution has helped address these and other reference data problems holistically for many customers.

There is increasing need to ensure that risk measurements are reconciled to the firm’s financial records. Teradata’s data and application technology has been used to develop best-in-class reconciliation solutions to ensure that not only are firm-wide risk measurements calculated consistently, but can also be verified with the firm’s financial statements on an ongoing basis.

Most firms already have risk information management infrastructure in place which must be transformed through a series of careful, calculated steps. Teradata’s experienced, data-focused consultants are armed with patented consulting tools developed during hundreds of engagements with customers across many industries. Our consultants enable you to not only achieve quick and measurable successes, but also lay the foundation for long-lasting and robust risk management data infrastructure.

Teradata consultants can offer end-to-end support in a risk information management program, from designing the information management architecture, modeling the firm’s data within the risk management environment, mapping and loading data from source systems, and giving executives across the organization access to the data.

Risk management software application vendors typically focus on a specific aspect of the firm’s risks, such as credit, market, or asset-liability related risks. Teradata enables these applications by providing them with high-quality, relevant, and timely data. We’ve developed relationships and integrated Teradata technology with many prominent risk management software vendors, including Algorithmics™, SunGard®, and SAS.

Teradata has also developed special technology interconnects with leading providers of business intelligence software, such as MicroStrategy®, Oracle, and Microsoft® allowing you to continue using familiar enterprise software.

Why choose Teradata for your capital markets industry challenges? Because Teradata is the technology leader in high availability systems with a proven track record of delivering maximum availability to some of the world’s largest data warehouses. That’s why organizations around the globe rely on the power of Teradata’s award-winning solutions to get a single, integrated view of their business to enhance decision making, customer relationships, and profitability. Teradata Corporation, the global leader in data warehousing and analytic technologies, provides solutions that help make smart companies smarter.

To learn more about the benefits of Teradata’s risk information management solution for the securities industry, contact your Teradata representative.