The shift by the financial regulators and the increased focus on risk management along with the implementation of regulation such as Basel III and Solvency 2 places an increased level of responsibility on senior management to be able to demonstrate both to the board and to regulators that they have sufficient systems and controls in place to identify, report on, and manage risk.
Firms with efficient and demonstrable risk management systems in place are less likely to fall foul of the regulatory requirements and will benefit from significant cost savings both in terms of monitoring and managing risk, and satisfying their regulatory obligations.
Aptius is a framework for the complete design, analysis and management of the enterprise risk process; from modelling a business in terms of its risks including controls, through to multi-dimensional analysis, and the calculation of estimates of the levels of risk to which an organisation is subject and the level of capital that is required to support such risks. The framework can link to multiple data sources (credit, market, operational, and strategic, including any ODBC database source or Excel spreadsheet) that may then form part of the analysis.
Aptius also provides full management for both regulatory requirements and risk programme implementation. It provides the ability to centrally store both requirements and associated documentation, and to link them flexibly to actions and project plans. This provides the ability to manage the risk implementation and management programme effectively while giving senior management the ability to demonstrate transparently to the regulators, the effectiveness of their organisations’ risk implementation in line with the Pillar 2 requirements of the Basel III Accord and local regulatory frameworks such as those implemented by the UK's FSA.
Aptius can be used at every stage in the risk process, from the identification of business hotspots and availability and quality of data at a high level, down to providing a detailed view of the risks, controls and actions required to optimise the business. The framework is designed to be completely scalable, allowing for rapid easy deployment while providing the ability to grow seamlessly as the risk environment of the organisation changes. Ongoing management and regulatory reporting is simplified by requirements management and full audit tracking of objects within the framework.
The solution is modular in nature and comprises a Windows based components for the design and modelling of a risk framework, as well as for the analysis and ongoing management of risk within the organisation. In addition, it contains a full operational management framework including a suite of web-based applications for the collection and management of loss event data and the deployment of scorecards.
Aptius includes predefined templates for risk scorecards, risk models, comes with a Basel III compatible loss database and is easily customised so as to meet the specific requirements of each client.
