RORC - Return on Risk Capital

Improve profitability with a clear picture of RORC.

The recent financial crisis changed many priorities for banks, and return on risk capital (RORC) has become a critical metric for banks seeking to improve profitability in the wake of the crisis. Banks are measuring RORC to determine which aspects of the business are most profitable, driving more informed decisions and helping to increase profitability. Regulatory changes have made RORC more important as well, as regulators require banks to be more transparent in showing how they are managing asset liquidity risk and performing credit risk assessment. To effectively gauge RORC, banks need a highly effective solution that enables analysis of all areas of activity, giving banks a clear picture of how to increase profitability and a strategy for driving performance at all levels of management. When it comes to providing banks with an industry-leading RORC solution, SunGard can help.

Learn more about RORC and SunGard.  

SunGard’s Ambit Profitability delivers tools for measuring RORC more accurately.

As a leading provider of risk management solutions for corporate, private and retail banks, SunGard provides a highly effective way to evaluate RORC. SunGard’s Ambit Profitability gives banks a complete, risk-adjusted picture of profitability by measuring RORC of customers, products, branches, managers and business units. By measuring profitability down to the level of individual accounts, SunGard’s RORC solution helps banks understand where and how existing staff, business units, customers and capital can help contribute to profitability and growth. When banks use Ambit Profitability to make their business more transparent, they can more easily identify and retain their most profitable customers and products, setting optimal pricing structures, increasing net margins, and boosting RORC.

SunGard’s RORC solution delivers powerful business benefits.

When banks use SunGard’s Ambit Profitability to gauge RORC throughout the organization, they can:

  • Analyze mergers to identify which areas of the newly merged business are the most profitable and are worth retaining.
  • Make well-informed decisions with a clearer picture of profitability.
  • Ensure regulatory compliance by delivering greater transparency into how the organization manages risk.
  • Improve analysis with flexible reporting functionality.
  • Improve trend analysis with a solution that stores large amounts of detailed historic information.
  • Allocate overhead costs to cost centers and profit centers more accurately.
  • Set budgets for strategic goals and monitor progress toward goals.

Learn more about SunGard’s RORC solutions as well as solutions for earnings at risk, risk management software 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. 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.