Deutsche Postbank AG (Postbank), a leading German retail bank, has gone live with SunGard's Adaptiv Analytics for fast calculation of Monte Carlo Value at Risk (VaR), supporting its entire on- and off-balance sheet capital markets activity.
The implementation follows the bank's adoption of SunGard's Adaptiv Risk Cube in 2009 for quick access to risk analysis.
Banks and financial institutions of all sizes need to adopt simulation-based methodologies to help improve how they measure and manage risks associated with OTC trading and traditional banking activities. With that in mind, Postbank launched a project to create a best practice risk infrastructure that would help drive better risk decision making across the business. It chose Adaptiv Analytics to help it harness the computing power required to manage its enterprise-wide trading volumes and increase the performance and transparency of its valuation calculations, analysis and models.
The bank is using Adaptiv Analytics in conjunction with Adaptiv Risk Cube to manage its group-wide market risk reporting and help create a complete picture of market risk data across the enterprise, including customer business and affiliates. The solutions also help the bank gain greater detail on sources of risk and immediately access risk data from an enterprise level down to the individual trade and Monte Carlo scenario level.
Dr. Guenter Fiebach, head of market risk and risk analytics at Deutsche Postbank, said, "Our aim is to have full transparency and an in-depth understanding of the sources of risk, including extreme event scenarios. The combination of SunGard's Adaptiv Analytics and Adaptiv Risk Cube has helped us improve our risk management with the ability to calculate and analyze over 30,000 risk simulations per trade across our risk factors. This transparency and the openness of Adaptiv Analytics will help us meet the challenges of regulatory and market changes. In addition, having a consistent view on the relevant positions and the associated market risks across the enterprise helps us assess, monitor and act upon market risks and opportunities quickly, thereby enhancing productivity."
Dr. Sven Ludwig, regional manager of bbusiness development at SunGard's capital markets business and head of PRMIA's German chapter, said, "Deutsche Postbank has established a clear and structured approach for risk management in order to place its business in a competitive position. SunGard's continuous investment in risk calculation and analysis technology helps Deutsche Postbank stay abreast of the latest regulatory requirements while improving its understanding and control over risk."