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Oracle Financial Services Analytical Applications recently released the 8.0.2 upgrade.  Below are some major enhancements for Financial Crime and Compliance Management.

 

Behavior Detection Pack

  • Threshold Editor “what if” Enhancements
    • Can now execute scenario test runs to validate and review results of threshold and threshold set changes from the Admin Tools Scenario Threshold Editor
  • New Scenario Wizard Templates
    • Additional templates added to Scenario Wizard library to support creation of ML, FR and BC class scenarios
    • All Transactions, Account Summary (CIB), FO Trxns
  • UI enhancements
    • Introduction of 4 eyes approval workflows for Promote to Case and Alert Suppression actions
    • Users have ability to conduct a free text search of comment entries across alerts or cases
    • Trade Finance alert building blocks
  • FSDF Staging Data integration
  • TC Scenarios
    • Front Running Large Customer Orders or Trades
    • Trading Ahead of Market Moving Events
  • Enhancements to integration with IPE
    • UI to support further definition of IPE scenario as an FCCM alert
  • CIBC FATCA Enhancements phase I

 

Compliance Regulatory Reporting Pack

  • Philippines STR
  • Kenya STR
  • Indonesia STR
  • Uganda STR
  • Nigeria STR

Oracle Financial Services Analytical Applications recently released the 8.0.2 upgrade.  Below are some major enhancements for EPM.

 

Asset Liability Management

  • New T2T for Stg Correspondent Accounts to CASA and Credit Line Instrument tables
  • New T2T for Stg Repo Contracts to Borrowings and Loan Instrument tables.
  • Rate Management - Term Structure Parameter Estimation
  • Exchange Rate Validation: UI inputs for FROM/TO dates
  • Limit Management

 

Funds Transfer Pricing

  • Support for Management Ledger table
  • New User Role for FTP Rate Card users
  • FTP Web Service: Accrued Interest toggle
  • FTP Web Service support for Payment Schedules
  • Rate Management - Term Structure Parameter Estimation
  • Exchange Rate Validation: UI inputs for FROM/TO dates
  • Breakage Charge Calculation (Economic Loss) no longer considers Product ID to determine current/prior record match

 

Balance Sheet Planning

  • Modifications to the existing 'Maturity Mix default' and Addition of a new 'Maturity Mix Default - Single Mix' form
  • Addition of a new 'Maturity Mix Default - Read Only'

 

Profitability Management

  • No new enhancements
  • Misc. bug fixes

 

Enterprise Financial Performance Analytics

  • Modifications to the Income Statement and Balance Sheet structure
  • Visualization and addition of new reports

Oracle Financial Services Analytical Applications recently released the 8.0.2 upgrade.  Below are some major enhancements for Customer Insight.

 

Price Creation and Discovery

  • Re-optimization against profitability parameters where the deal profitability is less than the floor rate.
  • Support for new pricing methodology for Cards (UI based) and what-if analysis enabled with all eligible rates for Carded methodology.

 

Retail Customer Analytics

  • Big Data Enablement for Weblogs
  • Modeling enhancements with addition of Weblog data

Oracle Financial Services Analytical Applications has recently released the 8.0.2 upgrade.  Below are some major enhancements for Data Management.

 

Data Foundation

  • Capital Adequacy
    • Model enhancement to support Forecasting of RWA
  • LLFP
    • Model Support for Purchase or Originated Credit Impaired Asset for the IFRS 9 Guidelines for
    • Model Support for Effective Interest Rate (EIR) and Effective Interest Spread (EIS) as per the new IFRS 9 guidelines.
  • LRM
    • Model Enhancement to determine Intraday Liquidity Usage
    • Model Enhancement to Forecast Balance and Cash flow Forecasting to estimate forecast LCR
    • Model Enhancement for RBI LRM Regulatory Reports
  • FCCM
    • Model enhancement to support Trade Finance for AMLTF
    • Model support for CTR and FATCA enhancements

 

Regulatory Reporting

  • US FED Reports:
    • Call Reports: FFIEC 031
    • Others: FFIEC 101, FR Y 7N/S
    • CCAR: FR Y 14Q
  • RBI Reports:
    • DBS 4 (Report on Asset Quality)
    • DSB 5 ( Report on Large Credits)
    • DSB VIII ( Statement on Structural Liquidity, Section II and Section III)
    • BSR I
    • BSR II
    • IRS Under TGA
    • IRS Under DGA
    • RBS Tranche 1, Tranche 2, Tranche 3
    • RBS 1 – Details of Credit Card Business carried out by the Bank
    • Distribution of Standard Advances- Rating-wise
    • Distribution of Non-SLR Investments- Rating-wise
    • Report on Large Credits (CRILC)
    • Leverage Ratio
    • Loan Sales and Securitization
    • Details of the Credit Card Business carried by the Bank or through its Subsidiaries
    • Housing Finance (Domestic Operations)
    • Infrastructure Finance (Domestic Operations)

 

Data Governance Studio

  • Will help banks comply with BCBS 239
  • Expected to enable automation of Regulatory Process significantly
  • Will function as a broader data management and process governance tool for OFSA Applications
  • Key features
    • Framework for governance
    • Content for Data Quality Rules as Quality Controls
    • Content for Operational Control through process plans
    • Key Indicators for effective monitoring of Performance Indicators
    • Fully automated workflow for Issue and Action plans

Oracle Financial Services Analytical Applications recently released the 8.0.2 upgrade.  Below are some major enhancements for ERM.


Liquidity Risk Management

  • Intraday liquidity risk management
    • Intraday liquidity metrics computation and reporting
      • Regulatory templates based on BIS and RBI guidelines
      • Stress Testing of payments and intraday positions
    • Real- time monitoring of Intraday liquidity positions
  • Forward date forecasting
    • Forecasting of liquidity gaps and calculation of LCR for forward date/s
  • LCR calculations for the following jurisdictions:
    • Reserve Bank of India


Model Risk Management

  • Model Management
    • Ability to link upstream & downstream models with usages and upstream and downstream usages with models
    • Ability to create usage from model details
  • Integration
    • Planning & Scoping integration for scheduling assessments, attestations and full Review
    • MRM integration with EMF and RRF to seamlessly capture model details into MRM for tracking
  • Assessments & Full Review
    • Full review of models or usages based on material changes to model/usage. Ability for the administrator to setup full review of all associated models and usages or only notify such stakeholders
  • Attestation
    • Questionnaire integration for bulk attestation with a single task for bulk attestation rather than multiple tasks
    • Attestation questionnaire specific to KBD instead of global questionnaire
  • Reports & Dashboards
    • New Reports in Models & Usages dashboard providing a holistic view of all the associated models and usages
    • Reports of models and usages dependent on a selected input & output variable
  • Others
    • Flexible KBD related enhancements which allows managing the business dimensions as per organization specific requirements
    • Configuring the default business restructuring in MRM
    • Rationalization of input and output variables (single set of reference data for input and output variables given that output of a model can be an input for another downstream model)
    • New set of reference data for stages and actions added in RDM
    • Association of review cycle against the document associated to each model development stage


Loan Loss Forecasting & Provisioning

  • Product enhancements to address IFRS 9 final guidelines on Credit Impairment by means of introducing new set of pre-built runs
    • Stage Determination
      • Rule based stage determination supported by pre-built rules
      • Flexibility to enhance the rules as per organization specific requirements
      • Exhaustive Product Coverage
      • Loans, Loan Commitments, Overdrafts, Cards, Guarantees, Investments
    • Multiple Methodologies
      • Cash Flow based
      • Forward Exposure based
      • Provision Matrix & other methods
    • Stage Manual Reassignment
      • Workflow based process (optional) to reassign/override stages considering qualitative and judgmental factors
      • GUI based with search & filter options
    • Risk Measure Estimation
      • Calculation of Expected Credit Loss - Allowance & Provision (both “12 Month” and “Lifetime” ECL)
    • Treatment for POCI accounts
      • Specific treatment and calculation for Purchased or Originated Credit Impaired (POCI) accounts
    • EIR & EIS
      • Computation of Effective Interest Rate (EIR) or EIS
      • Computation of Credit Adjusted EIR or EIS for POCI accounts
    • Probability of Default
      • Calculation of  “12 month” and “Lifetime” Probability of Default values
    • BI Analytics
      • Pre-configured dashboards and reports
      • Point in time and trend reports
      • Reports with drill down options to enable detail analysis


Market Risk

  • Valuation and risk calculations
    • Integration with 3rd –party vendor for valuation and risk calculations
    • Enhancements to address CVA calculations including EPE and PFE
    • Enhancements to incremental and marginal VaR
  • Market Risk Framework
    • Compliance with new market risk framework issued by BIS
  • Dashboards enhancements


Basel Regulatory Capital Calculation

  • New Jurisdictions
    • CRD IV  (STD)
    • CBRC (B III)
  • Regulatory updates
    • Central Counterparty Exposure (BCBS282)
    • Equity Investment (BCBS266)
    • Securitization (BCBS269)
    • Market Risk Standardized  Approach (BCBS265)
  • RWA Forecasting
    • Simplified Approach

 

Operational Risk Economic Capital

  • Support for ‘R’
    • OREC will leverage on platform ‘R’ capabilities to deliver statistical algorithm
  • Additional Statistical techniques
    • G-H distribution
    • Inter arrival plot
    • Auto-correlation plot, etc.
  • Sensitivity Analysis
    • Left tail losses
    • BEICF factor, etc.
  • Back testing
  • Enhanced Scenario modeling
    • Individual Scenario Approach
    • Percentile based Approach
    • Parameter based Approach
  • Severity Modeling
    • Support for shifted Distribution
  • Scaling: inflation, ticket size
  • Integration with OR
  • Enhanced Data management and Data Visualizations

Oracle Financial Services Analytical Applications recently released the 8.0.2 upgrade.  Below are some of the major enhancements to the Platform.

 

Big Data Processing

  • New option to AAI
  • Enables OFSAA applications on AAI to perform analytics on Big Data
  • Core AAI frameworks enhanced to accommodate data on Apache Hadoop /Hive:
    • User Security & Access
    • Metadata Management
    • Data Management and Data Quality
    • Run Rule Framework
  • Uniform analytics experience across Big Data and Data Warehouse settings
  • Cloudera Certified

 

Enterprise Modeling

  • MATLAB support: Modelers can register and execute MATLAB models in addition to R models
  • Support for Multiple R execution venues: Open R, Revo R, Scale R
  • Introduction of departmental workspaces (as a more flexible replacement for sandboxes) for better enterprise modeling capability (continuing into 8.1)
  • Stress Testing framework
    • Redesign of centralized Scenario Management
      • Stochastic rules for shocks, variable-variable dependencies etc.
    • Stress run management redesign
      • Create general purpose baseline and stress run comparison F/W
      • More generally applicable what-if modeling (for use with liquidity, pricing and other apps)

 

Analytical Applications Infrastructure

  • Integration with OFSAA Model Risk Management
    • Tighter integration of Enterprise Modeling with MRM

Oracle, Lombard Risk Partner on Automated Reporting

Oracle Financial Services and Lombard Risk have launched a new automated regulatory platform aimed at improving regulatory-reporting efficiency.

 

Poor Quality Data Impairing Bank Regulatory Reporting Capabilities

Regulatory reporting requirements in the financial services industry are proliferating.

 

Oracle Moves on Regulatory Reporting

The cost and resource burden of regulatory reporting has soared in recent years, and financial firms seek ways to meet deepening data requirements more efficiently and accurately while strategically evolving data architecture to improve performance and drive growth.

In Saloni Ramakrishna's second video blog, the Senior Director at Oracle and Author of Enterprise Compliance Management - An Essential Toolkit for Banks & Financial Institutions discusses what's driving compliance in the 21st century.  The classes of compliance drivers she reviews are Direct Drivers and Indirect Drivers.  Do watch Ms. Ramakrishna's second video blog of the Compliance Risk Management Series.

 

Introducing Saloni Ramakrishna, Senior Director at Oracle and Author of Enterprise Compliance Management - An Essential Toolkit for Banks & Financial Institutions, in her debut video blog series.  In her first post, Ms. Ramakrishna discusses interesting shifts in the compliance landscape.

 

The 10th annual Chartis RiskTech100 report was just released.  It ranks the Top 100 Risk technology providers in the world.  Oracle was named a Category Winner in the following categories:

  1. Core Technology
  2. Risk Data Aggregation & Reporting
  3. Geographical sector: Americas

 

In addition, Oracle moved up to #4 in the overall ranking from #6 the last 2 years.

 

The RiskTech100 is globally acknowledged as the most comprehensive study of the world's most significant risk and compliance technology companies.  This risk and compliance space is continuing to intensify.  Chartis estimates the global expenditure on risk and compliance technology to being excess of $100bn in 2016 and growing rapidly; Oracle continues to prove our ability to support financial institutions in this endeavor.

 

This report is public and can be downloaded from the RiskTech Forum.

We are pleased to announce that OFSAA has won the “Best Regulatory Reporting Platform or Service” Award from Operational Risk and Regulation Magazine. This is a great endorsement of our strategy; we have been selected based on our Innovation and how we have differentiated ourselves in the market with our new offering for Regulatory Reporting and our integration with Lombard Risk.

 

OFSAA’s solution was highlighted in an article featured on risk.net.

 

Part of the reason regulators are clamping down on global systemically important banks (G-Sibs) is to address a crucial weakness exposed in the financial crisis – the fact that many firms were unable to aggregate their risk exposures to Lehman Brothers and other stricken counterparties at group level and across business lines in a timely manner.

 

Oracle Financial Services, this year's winner of best regulatory reporting platform or service, is addressing this problem by automating the data management process – from data input to aggregation and reporting – at G-Sibs.

 

To learn more, visit the Oracle Financial Services Regulatory Reporting Solution page.

Oracle Financial Services Analytical Applications release the 8.0.1 upgrade on July 31, 2015.

 

PLATFORM

AAI Framework

  • New Platform Framework: Process Modeling Framework
    • Visual workflow (Run) definition framework

 

ENTERPRISE RISK MANAGEMENT

Liquidity Risk Management

  • LCR calculations - Updates to NPR rules to address changes introduced by Final Rule
  • 2052a (5G) reporting - Regulatory updates to classification rules and templates for 2052a reporting

 

Model Risk Management

  • Bulk Attestation - Provide ability for senior executives to bulk-attest models

 

DATA MANAGEMENT

Data Foundation

  • Physicalization of Staging on HDFS/Hive

 

Data Integration Hub & Connectors

  • OFSAA-FAH/GL Connector
  • OFSAA-OBP 2.4 Connector upgrade
  • OFSAA Inbound and Outbound data services for Staging and Results Area
  • Complete linkage to OFSAA Metadata Repository for Metadata Lineage & Traceability
  • Ready for Hive Deployment

 

Data Governance Studio (NEW)

  • Will help banks comply with BCBS 239
  • Expected to enable automation of Regulatory Process significantly
  • Will function as a broader data management and process governance tool for OFSAA
  • Key Features:
    • Framework for governance
    • Content for Data Quality Rules as Quality Controls
    • Content for Operational Control through process plans
    • Key Indicators for effective monitoring of Performance Indicators
    • Fully automated workflow for Issue and Action plans

 

Regulatory Reporting

  • 8.0.1.0.1 (September 1, 2015)
    • Scope: Key BHC/IHC reporting in the US
      • FR Y9C, FFIEC 031
      • FR Y14 Annual, Quarterly, Monthly
      • FR Y9LP, FR Y 12, FR Y2314, FR Y15, FR Y 20, FFIEC 009/a, FR 2052a/b and many others
      • Total: FED Schedules - 240
  • 8.0.1.0.2 (end of September 2015)
    • RBI (India) - DSB Returns, Liquidity Coverage Ratio, RCA III, Basic Statistical Returns

 

FINANCIAL CRIME & COMPLIANCE MANAGEMENT

Behavior Detection Pack

  • Trade Finance Data Model Extension
    • Platform extension to accept Trade Finance data
    • Model is based on Flexcube's TF model
  • Alert creation using Inline Processing Engine
    • Leverage IPE to run in batch to create alerts
  • Network Visualization support
    • Restore v5.9 Network visualization (NetViz) capabilities by allowing visuals for non-Network of accounts alerts
  • Integrated Data Model - FSDM Integration/Schema Consolidation
    • Consolidate 14 schemas into 1 so that AAI can point all FCCM data as a single infodom

 

Compliance Regulatory Reporting Pack

  • Philippines STR

 

GRC

  • IT Risk
    • Capture and manage IT risks for various assets and calculate return on the security investments
  • Business Restructure
    • Facilitate organizational restructures and move underlying data due to restructure
  • RiskSpotlight Integration
    • Data model and Application extension to provide integration with RiskSpotlight (content partner)

 

CUSTOMER INSIGHT

Price Creation and Discovery

  • Enable Workflow
    • Approval workflows to enable a maker-checker process for a deal price to be locked in before presentment to the customer
  • Pricing Analytics
    • Deliver dashboards and reports to track both deal and banker performance

 

Institution/Retail Performance Analytics

  • Enhance Visualization
    • More professional visual representation of data. Exploit all the advanced features of OBIEE to deliver better visual representation of key performance measures.
  • Enhance What-If
    • Predicts impacts to P&L by establishing inter-relationships across KPIs and determine the impact of change in one KPI to another to arrive at the overall impact to the business
  • Customer Driven Changes
    • Productize some mutually agreed enhancements to the product that have been delivered to the customer currently in collaboration with OFSAA consulting

 

Retail Customer Analytics

  • Marketing Triggers
    • A suite of product level triggers which will flag accounts which will have higher conversion rates
  • Modeling Enhancements
    • Enhanced definitions with more flexibilities for banks for selection of data

 

OPERATIONAL SIMPLIFICATION

  • Upgrade and patch utilities
    • Provide comprehensive utilities to patch and upgrade customized implementations
  • Continuous Performance Testing
    • Continuously benchmark against Oracle hardware for a variety of realistic use cases
  • Forms Manager Enhancements and Usability
    • Provide configurable Forms Designer to reduce customization
  • 100% Test Cases Automation

With the constant threat of financial crime, financial institutions must respond and adapt to changing market and consumer demands to solve regulatory, compliance, and fraud issues.  Chartis, a leading provider of research covering the global market for risk management technology, recently released the 2014 Chartis Financial Crime Risk Management Report, a study on financial crime risk management systems, and ranked Oracle as a top provider of the solutions firms need to solve these critical issues.

 

The report, conducted by a leading team of analysts and advisors from the risk management and financial services industry, surveyed 120 respondents globally.  For this study, Chartis considered six specific areas of financial crime risk management including:  anti-money laundering (AML), know your customer (KYC), sanctions and watch-list monitoring, counter fraud, trade surveillance, and cyber security.  Chartis used these six areas of focus to evaluate 28 financial institutions, including Oracle, in four categories including: enterprise fraud technology solutions, AML and transaction monitoring solutions, KYC and client on-boarding solutions, and watch list monitoring solutions.  Oracle ranked as a category leader in all four divisions based on the highest market potential and completeness of its offerings.  This report follows the Chartis Model Risk Management vendor report, which also ranks Oracle as a category leader, and overall RiskTech 100 rankings where Oracle made the top 10 list (ranked number six).

 

The study evaluated Oracle Financial Services financial crime solutions including anti-money laundering, enterprise fraud management, know your customer, behavior detection, advanced analytics, enterprise case management, energy and commodities trading compliance, and more.  The findings revealed the strength of Oracle’s technology – the OFSAA Financial Crime and Compliance portfolio of applications deliver high-volume and low-latency suspicious transaction detection.  Further, OFSAA’s Inline Processing Engine can evaluate and assess transactions in real-time, near real-time, or batch to make quick decisions to hold or release a transaction.  Packaged scenarios enable users to match transactions against known fraud patterns – including first party fraud (application, mortgage, or loan fraud), third-party fraud (employee, identity theft, or account takeover), or merchant fraud.  All of this information can augment and enable the detection and prevention of financial crime in real-time, saving financial institutions time and money.

 

These rankings prove Oracle’s commitment to being the market leader and optimal technology partner for financial services institutions when they need solutions to solve specific regulatory, compliance, and fraud issues.  We are pleased to be recognized by Chartis as one of the top providers of Financial Services Analytical solutions in the market today.  Click here to learn more out our financial services solutions and offerings. 


Oracle Financial Services Financial Crime and Compliance Management

*New features and updates for the 8.0 release

 

Oracle Financial Services Enterprise Fraud Management

  • Enterprise Fraud Management will be leveraging the Inline Processing Engine (IPE) of AAI to monitor activity in real-time or near real-time.
  • IPE will have assessments configured which can score the activity based on activity data and profiles generated from the activity
  • Based on the score values, actions can be configured such as:
    • Send a response to the source system to interdict the transaction
    • Generate an alert to be investigated by an analyst
    • Send an SMS message to the customer
    • Send a message to Oracle Real-Time Decisions for downstream processing
  • The type of channels and formats that can be supported include:
    • Wires (SWIFT, ACI-MTS formats)
    • Point of Sale authorizations, ATM withdrawals and deposits (all ISO 8583 format)
    • Web Sessions
    • Online transactions
    • Automated Clearing House (NACHA format)
    • Any custom format where the activity is received:
      • an asynchronous manner from JMS compliant queue or
      • through a call to our exposed RESTful API

Oracle Financial Services Operational Risk

*New features and updates for the 8.0 Release

 

  • Stronger operational risk methodology with closer alignment to COSO guidelines.
  • Integrated Risk and Compliance workflows
  • Change Risk and Project Risk management capabilities
  • Ability to integrate Key Risk and Control Indicators with other source systems
  • Business Unit Risk Profile for senior management reporting.
  • Comprehensive set of reports and dashboards
  • New user experience with a lot of embedded dashboards in screens
  • New administrative capabilities, application preferences and UI based configuration options

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