Earnings at risk
Calculate earnings at risk more easily with solutions from SunGard.
As banks strive to manage risk more effectively, dynamic modeling and net interest income simulation have become important tools for asset/liability management (ALM) professionals. The ability to calculate earnings at risk requires sophisticated and scalable tools to model customer behavior, interest rate scenarios, economic valuation and a broad array of other variables. With the right tools, banks can better understand the potential impact of market changes on their balance sheet and make more informed decisions to limit risk exposure and manage earnings at risk. When ALM professionals worldwide want a proven solution for estimating expected earnings, measuring earnings at risk, defining hedging strategies, and improving risk management for banking, they turn to SunGard.
Learn more about SunGard’s tools for evaluating earnings at risk.
SunGard Ambit Focus delivers comprehensive tools for measuring earnings at risk.
SunGard Ambit Focus has integrated risk management solutions that enables financial institutions to measure and manage interest rate risk, earnings at risk, foreign exchange risk and liquidity risk more effectively and efficiently. With SunGard’s solution, banks can more precisely model customer behavior and market movements to increase and stabilize earnings, forecast future earnings and return on equity capital, calculate profitability and improve regulatory compliance. Ambit Focus provides a simulation process that is faster than any other commercial ALM solution, enabling banks to assess earnings at risk more quickly and make decisions faster. More than 160 financial institutions worldwide rely on Ambit Focus to measure return on risk capital (RORC) and make more informed and strategic business decisions every day.
Manage risk and increase earnings with static and dynamic ALM tools.
Ambit Focus offers both static and dynamic asset/liability management. Ambit’s static module provides an intuitive user interface that allows institutions to measure earnings at risk and interest rate risk using the economic value perspective. With this tool, banks can quantify the market changes off assets, liabilities and the economic value of capital resulting from interest and exchange rate movements.
The dynamic ALM module provides banks with the ability to fully quantify potential impacts of interest rate and exchange rate fluctuations on future earnings and cash flow streams, calculating earnings at risk and providing scenario results based on interest income/expense, balance, market values, sensitivities, cash flows, gap profiles and more. With this sophisticated analytics tool banks can evaluate the impact of changing business strategy, market rates and customer behavior, and measure earnings effects, future liquidity risk and product-inherent optionality risk.
Learn more about tools for analyzing earnings at risk, as well as other SunGard solutions for evaluating return on risk-adjusted capital (RORAC) and credit risk assessment.
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.