Bank of Montreal Financial Group (BMO) is implementing SunGard Trading and Risk Systems' credit risk management system, Adaptiv Credit Risk, on an application service provider (ASP) basis.
SunGard says the hosted service will enable BMO to implement consistent credit risk management processes and measurement methodologies in order to reduce costs and improve transparency.
The system provides tools for portfolio analysis and exposure modelling, as well as global and real-time, pre-deal limit checks for control of credit risks. Adaptiv Credit Risk will consolidate the full range of credit risk information at BMO through Web-based reporting, including exposures, mitigation, ratings, credit loss and portfolio analytics. The bank will also use the system to manage the counterparty, settlement, country and issuer risks associated with its financial markets activities, and to reduce its portfolio risk through collateralisation, netting and diversification.
Steve Husk, president, SunGard Trading and Risk, says: "The solution delivers accurate, global limits and exposure information in real-time, for increased transparency across the organization, greater operational efficiency and utilisation of capital."
SunGard Availability Services will host the system its data centre, and will also provide business continuity services.