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Administration & Maintenance

System support, user management, and configuration tools.

Automated Backup Scheduling: Schedule and execute regular full/system backups.
Automated Uptime Reporting: Automated calculation and alerting for system availability.
Average System Downtime: Average downtime per month during maintenance or outage.
Bulk User Administration: Add, edit, or remove multiple users simultaneously.
Change Management Logging: Full audit of all configuration and maintenance changes.
Cloud or On-prem Deployment Option: Available for either on-premises or cloud environments.
Health Monitoring Dashboard: Live view of system health and component status.
Role-based Administration Controls: Limits admin function access by role.
Scheduled Maintenance Tools: Tools for system updates, backups, and maintenance windows.
Self-healing Infrastructure: Automated system recovery and failover capability.

Collateral Management

Facilitates the valuation, allocation, and optimization of collateral required for margin and securities lending activities.

Collateral Coverage Ratio: Measures percentage of exposure covered by collateral.
Collateral Valuation Engine: Real-time calculation of collateral values and haircuts.
Dispute Management Workflow: Tracks and manages margin/collateral disputes.
Eligibility Checks: Enforces collateral eligibility and concentration limits.
End-of-day Margin Call Volume: Number of margin calls processed per day.
Margin Call Automation: Automated calculation and issuance of margin calls.
Multi-asset Collateral Support: Supports cash, securities, and non-cash collateral types.
Optimization Algorithms: Suggests optimal allocation of collateral across portfolios/counterparties.
Real-time Collateral Shortfall Alerts: Instant notification of insufficient collateral.
Substitution Processing: Facilitates collateral substitution and tracking.

Counterparty Assessment

Evaluates the creditworthiness of counterparties, managing exposures and supporting onboarding decisions.

Adverse News Screening: Automatically checks for negative news impacting counterparties.
Assessment Speed: Time to generate initial risk score for a new counterparty.
Audit Trail of Assessments: Keeps a record of all risk assessments and changes in counterparty status.
Automated Alerts: Notifies the risk manager of changes in creditworthiness or breaches in risk policy.
Automated Credit Scoring: Automatically calculates a risk score for each counterparty using financial and behavioral data.
Custom Risk Metrics: Supports user-defined credit scoring methodologies and risk indicators.
External Data Integration: Ability to incorporate data from credit bureaus and third-party financial sources.
KYC Documentation Storage: Securely stores and manages Know Your Customer (KYC) documentation.
Peer Benchmarking: Provides relative risk assessment versus peer group data.
Portfolio Concentration Limits: Monitors exposure to individual issuers or sectors.

Credit Limit Setting

Tools for calculating, assigning, and managing credit limits for clients and trading counterparties.

Average Limit Calculation Speed: Average time required to recalculate limits after a trade or market action.
Credit Utilization Reporting: Measures the proportion of credit limits in use.
Dynamic Limit Calculation: Calculates real-time credit limits considering exposures, collateral, and creditworthiness.
Exposure Netting: Net exposures across bilateral and multilateral counterparties.
Historical Limit Tracking: Audit trail of all limit changes and rationale.
Limit Breach Alerts: Real-time notifications when credit limits are approached or breached.
Limit Hierarchies: Supports group- and entity-level limit aggregation.
Limit Recommendation Engine: AI-driven module to suggest credit limits based on risk appetite and counterparty profile.
Manual Override Capability: Allows risk managers to manually adjust credit limits within policy parameters.
Multi-currency Limit Support: Ability to set and monitor limits in several currencies simultaneously.
Proposed vs. Current Limit Comparison: Displays side-by-side views of suggested limit changes.

Exposure Tracking

Provides continuous monitoring and real-time calculation of exposures to counterparties and portfolios.

Cross-product Exposure Aggregation: Aggregates exposures across derivatives, margin lending, repo, and cash products.
Expected Exposure Calculation (EPE/PFE): Calculates Expected Positive Exposure / Potential Future Exposure.
Exposure Aging Analysis: Analysis of how long exposures have been held.
Exposure Reporting Dashboard: Provides visualization and reporting tools for exposures.
Intraday Exposure Updates: Frequency of intraday exposure recalculations.
Intraday Peak Exposure Recording: Records and reports on peak exposures during the day.
Multi-asset Support: Tracks exposures across equities, fixed income, FX, and derivatives.
Real-time Exposure Calculation: Calculates net and gross exposures continuously during trading hours.
Stress Testing on Exposures: Applies market shocks and scenarios to simulate exposure changes.
Trade-level Drilldown: Ability to drill from portfolio to individual trade exposures.

Integration & Interoperability

Capabilities for integrating with trading, settlement, and market data systems.

API Availability: Exposes RESTful and/or SOAP APIs for data exchange.
Batch Import/Export: Handles large data imports/exports on a scheduled or ad-hoc basis.
Cloud-native Support: Ready for use in public/private/hybrid cloud environments.
Custom Integration Toolkit: Provides tools for building custom connectors or adapters.
Data Transformation Utilities: Automated translation/mapping between external and internal data formats.
FIX Protocol Support: System supports FIX messages for trading and credit checks.
Latency of Integration: Minimum time delay for real-time data synchronization.
Plug-ins for Major OMS/EMS: Pre-built interfaces to most major Order/Execution Management Systems.
Real-time Data Feed Integration: Integrates with market data, reference data, and clearing services.
Single Sign-On (SSO): Seamless authentication integration via SSO protocols.

Margin Management

Enables calculation and enforcement of margin requirements for customer accounts and secured transactions.

Automated Liquidation Triggers: Auto-initiates asset liquidations if margin calls are not met.
Client Notification Workflow: Automated communications for margin requirements.
Historical Margin Utilization Reporting: Tracks margin utilization trends over time.
Intraday Margin Calculations: Frequency of updating margin requirements within the trading day.
Margin Requirement Analytics: Visual analytics and reporting for margin set, called, and posted.
Minimum Margin Enforcement: System enforces predefined minimum margin requirements.
Multi-currency Margin Support: Handles margin calculations across multiple currencies.
Portfolio Margining: Margin calculation considers risk offsets at the portfolio level.
Real-time Breach Notification: Detects and notifies about margin breaches as they occur.
Scenario Margining: Margin requirements can be run under stress or ‘what-if’ scenarios.

Monitoring & Alerting

Provides real-time surveillance and notification of key risk events and breaches.

24/7 Monitoring Capability: Around-the-clock surveillance of critical risk metrics.
Alert Delivery Methods: Methods supported (email, SMS, push, system inbox).
Alert Escalation Workflow: Escalates unaddressed alerts to higher-level management.
Alert Prioritization: Ranking and color-coding of alerts by criticality.
Automated Remediation: Initiates workflow actions (e.g., block trades) when breaches persist.
Average Alert Delivery Latency: Time to deliver and acknowledge alerts.
Configurable Alerting Rules: Users can define custom alerting logic and thresholds.
Historical Alert Log: Full history of triggered alerts and user responses.
Real-time Breach Alerts: Instant notifications of exceeded credit limits, margin shortfalls, or other key thresholds.
User Acknowledgement Tracking: Requirement and tracking of user acknowledgement on critical events.

Risk Analytics & Reporting

Delivers advanced analytical tools and comprehensive reporting for credit risk exposures and limit utilizations.

Access and Permissions Management: Controls report access by user, group, or role.
Custom Report Builder: Enables users to design customized credit risk and exposure reports.
Drill-down/Drill-through Reporting: Interactive exploration from summary to detail in reports.
Exception and Outlier Detection: Flags exposures or limit utilizations that deviate from historical norms.
Export to Multiple Formats: Supports data export in XLS, PDF, CSV, XML, etc.
Real-time Dashboard Widgets: Allows for live visualization of exposures and limit statuses.
Regulatory Reporting Templates: Predefined templates for BASEL, EMIR, and other regulatory regimes.
Report Generation Speed: Time taken to produce standard risk reports.
Scheduled Report Automation: Automatic generation and distribution of risk reports.
Trend Analysis Tools: Analyze trends in exposure, margin, and limit breaches.

Security & Compliance

Ensures data integrity, privacy, and regulatory compliance.

Access Control: Robust, configurable permissions down to the field level.
Audit Logging: Full logs of user activities and system events.
Automated Compliance Checks: System runs policy checks on all risk and limit actions.
Configurable Data Retention Policies: Ability to set data archival/scrubbing rules for regulatory retention.
Data Encryption: Uses strong encryption for data at rest and in transit.
GDPR/CCPA Compliance: System facilitates compliance with privacy regulations.
Incident Response Time: Expected time to respond to security/compliance alerts.
Penetration Testing Status: Whether the product undergoes regular penetration tests.
Secure API Authentication: Supports OAUTH2, SAML, or similar protocols.
Segregation of Client Data: Prevents access to one client’s data from another client’s users.

User Experience & Customization

Ensures system usability, configurability, and accessibility for various user roles.

Accessibility Features: Supports accessibility standards for visually or physically impaired users.
Average Screen Load Time: Time to load standard user interface screens.
Custom Theme/Branding: Allows organizations to apply their own branding and style.
Help and Training Modules: Built-in training and contextual help documentation.
Multi-language Interface: System provides UI in multiple languages.
Notification Preferences: Users can define how and when to receive alerts (email, in-app, SMS).
Role-based Dashboards: Tailors presentation and data access by user role (risk, sales, operations, etc.).
Self-service Configuration: Users can customize workflows, alerts, and reports without IT intervention.
User Feedback Mechanism: In-app submission of suggestions, feature requests, or issues.
Web and Mobile Access: Available via both web browser and mobile applications.

Credit Risk Management Systems features explained

for Risk Management