Asset Liquidity Risk

Manage asset liquidity risk and compliance more effectively.

The recent financial crisis revealed significant weaknesses in the way banks assess and predict risk. Where banks had assumed easy access to asset liquidity prior to 2008, the financial crisis left even the most conservative banks overexposed to risk and unable to predict their liquidity. Consequently, in the wake of the crisis, there is a great deal of pressure on treasurers, compliance officers and CFOs to ensure more transparency in asset and liability management and in how their institutions manage and define their appetite for risk. Regulators, boards of directors and even customers want a clearer understanding of how banks are judging their asset liquidity. To satisfy these concerns and remain competitive, banks need an asset liquidity risk management solution that can deliver the rigorous stress testing and transparency that the market demands. For banks seeking reliable and innovative banking risk management solution, SunGard has the answer.

Learn more about asset liquidity and SunGard.

SunGard’s Ambit Liquidity Risk Management helps banks manage asset liquidity risk.

As a leading provider of IT solutions to banks the world over, SunGard provides a solution for managing asset liquidity risk in Ambit Liquidity Risk Management. The solution gives banks a prepackaged stress testing solution to help identify and simulate strategies for reducing exposure to asset liquidity risk, and minimize the cost of managing risk. SunGard’s solution offers a proven scenario engine that can handle the needs for stress testing today and in the future. The solution includes pre-defined extensible key risk indicators, and supports and measures the impact of countermeasure activities.

Improve asset and liability management, improve compliance and track liquidity more easily.

SunGard’s Ambit Liquidity Risk Management solution enables banks to:

  • Enhance compliance efforts by staying ahead of regulation, satisfying complex regulations before they become requirements.
  • Ensure transparency into the balance sheet and into asset and liability management, to meet the needs of regulators and demands for public disclosure.
  • Understand asset liquidity risk and assess potential liquidity gaps, enabling better contingency planning and improving overall preparedness.
  • Increase efficiency by automating business processes, freeing up staff resources to focus on tasks that improve profit margins and customer service.

SunGard’s liquidity risk solution provides advanced reporting capabilities and cash flow simulation to help banks understand the weaknesses in their balance sheets when it comes to funding source concentrations. And banks can use stress testing scenarios to accurately forecast the impact of realistic stress scenarios on the balance sheet.

Learn more now about SunGard’s asset liquidity solutions, as well as solutions for fund transfer pricing, RORC, and more.

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. Ambit Asset & Liability Management provide funds transfer pricing and solutions to help manage asset liquidity risk, as well as tools for gauging return on equity capital to get an accurate view of return on risk capital (RORC), and help manage increasingly complex regulatory compliance standards.