Basel II Risk Management
Core Banking Dimensions
Islamic Banking Dimensions
Basel II - Risk management
CRM Dimensions
Other Integrated Products



FRM (Financial Risk Management) is a suite of Risk Management Solutions from Dimensions Financials. This suite caters to managing of risks in exposures on using financial instruments. FRM Dimensions is structured to keep in line with Basel II Accord signed in Switzerland in 2000.

Basel II - the second of the Basel Accords, are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision.

The main purpose of Basel II when initially published in June 2004, was to create an international standard that banking regulators could use when creating regulations on how much capital banks need to put aside to guard against types of financial and operational risks banks face.

The latest of which (the Basel II accord) is an international standard that shows how much capital should banks need to put aside to guard against credit, market and operational risks it needs to secure.

Financial Risk Management from Dimensions Financials covers 3 types of risks:


CREDIT RISK

MARKET RISK

OPERATIONAL RISK


We provide unique solutions for effective Risk Management within our software application. Solutions can be customized as per user’s business applciations and implemented at your end. Trained professional consultants in the areas of finance and banking in areas of Risk Management and Core Banking Solutions conduct systems study for implementation of these programs.


Features of our Risk Management Suite:
  • Features inherited from eFin.
  • Modular implementations.
  • Uses open standards Java/J2EE.
  • Interactive Training.
  • Database Independent.
  • Works with other core banking systems thru web services (SOA)
  • Audit trails and reports in PDF, EXCEL or HTML.
According to Basell II, there are three lines of defense represented by the three pillars for effective Financial Risk Management. Dimensions Financials provide these solutions through their FRM Software.


The three pillars are:
  • Pillar I where Bank assesses and measures minimum capital requirements based on regulatory guidelines.
  • Pillar II that deals with regulatory overview, and
  • Pillar III is all about disclosure of risk information.

    Elucidating on the above, Dimensions Financials have ready solutions customized to Basel standards on three types of Risks that are classified.

Credit Risk

Credit risk management is the process of assessing risks in an investment. When the risk has been assessed, investment decisions can be made and the risk vs. return balance considered from a better position. There exists a three fold approach in calculation and evolving on the risk percentage.

Standardized Approach

Internal Rating Based Approach and

IRB Foundation & Advances Approach.

The main way to reducing credit risk is by monitoring the behaviors of clients who wish apply for credit in the business. These clients may be businesses, individuals or sovereigns. Dimensions Financials provides the right information on these sources as also calculation methodologies.

Contact us for a Free Credit Risk Assessment document.


Market Risk

Market risk is the risk that the value of an investment will decrease due to fluctuations or the upward and downward moves in market factors. The five standard market risk factors are:

Equity risk or the risk that stock prices will change.

Interest rate risk , or the risk that interest rates will change.

Currency risk or the risk that foreign exchange rates will change.

Commodity risk , or the risk that commodity prices (e.g. grains, metals) will change.

Credit risk Credit (finance) , or the risk that credit prices/spreads will change.

Dimensions Financials provides the right information on these sources as also calculation methodologies.

Contact us for a Free Market Risk Assessment document.


Operational Risk

Basel II defines operational risk as the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events. Although the risks apply to any organization in business, this particular way of framing risk management is of particular relevance to the banking regime where regulators are responsible for establishing safeguards to protect against systemic failure of the banking system and the economy. To calculate the risk factor a three fold method is adhered. They are:

Basic Indicator Approach

Standardized & Alternative Standardized Approach

Advanced Measurement Approach

Contact us for a Free Operational Risk Assessment document.

 
Home | Company | Technology | efin | Projects | Services | News | Contact Us | Site Map
© 2008, Designed and Developed by Dimensions Financial Software Consultancy Services Pvt. Ltd.