Ambit Credit Risk Management
One of the biggest challenges affecting retail and commercial banks today is the need to balance exposure to credit risk with sustainable profitability while at the same time meeting a host of increasingly demanding regulations. In fact, failure to do this was one of the leading triggers of the recent financial crisis. As a result of this breakdown in the system, regulators are placing additional pressure on banks to meet higher capital requirements and increase liquidity buffers. This is expected to increase the cost of doing business and therefore directly impacts a bank’s ability to maintain risk adjusted profitability.
Banks must be able to assess the expected risk/return profile of a transaction during its underwriting, analyze and manage the ongoing risk of its credit portfolio in order to determine the most efficient use of its capital. To maintain an accurate view of risk adjusted return on capital (RAROC), it is important for a bank to continuously identify important trends or relationships within its business to determine factors that are impacting the profitability of products, customers or operating units.
SunGard can help. SunGard's Ambit Credit Risk Management solution suite is comprised of category-leading software and specialized risk consulting that helps commercial and retail banks increase their risk adjusted performance through better lending decisions with components for:
SunGard’s Ambit Risk & Performance Management solution provides banks with a suite of software to improve risk management for banking. An Ambit liquidity risk solution helps banks minimize the exposure to risk and the cost of liquidity risk. Ambit’s risk management solutions help banks to better manage risk-adjusted performance. Credit risk management solutions provide tools and intelligence for better lending decisions. Additional solutions help manage asset liquidity risk, provide tools for gauging return on equity capital, get an accurate view of return on risk capital (RORC), and help manage increasingly complex regulatory compliance standards.