PeopleSoft weighs in with Basel risk application

PeopleSoft weighs in with Basel risk application

PeopleSoft has released the latest version of its Enterprise Performance Management (EPM) solution, featuring explicit support for upcoming regulations proposed under the new Basel capital Accord.

The new version of the software is designed to help banks to more easily measure the full spectrum of risk types, including credit and operational risk.

Basel II establishes a framework for banks, using internally generated risk assessments to measure risk and determine sufficient capital requirements to cover losses. It has led to a feeding frenzy among technology vendors, keen to tap in to a booming market for banks to document and report market, credit, and operational risk exposures.

Ed Hagan, managing director with consultancy BearingPoint, believes an industry-specific data model, coupled with analytic applications like PeopleSoft EPM, can provide banks with a strong foundation for measuring their risk profile under Basel II guidelines. "If banks have the tools to successfully manage risk at the detailed level, they can benefit from a lower cost of capital and improve profitability," he says.

As part of PeopleSoft's EPM suite of solutions, the Risk-Weighted Capital application provides complex risk capital calculations in response to Basel II issues. In addition, the solution delivers new Basel II algorithms and data structures to help capture historical loss events.

PeopleSoft EPM 8.8 is expected to be available in the first quarter of 2003.

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