Accurate and Timely Access
A fundamental component of successful exposure management is accurate and timely credit exposure information. ROME Corporation's Exposure Management capabilities enable enterprises to gain a coherent and comprehensive view of the full spectrum of risks across their business by gathering information from other ROME functional areas as well as data from all existing enterprise systems.
The Challenge of Disparate Systems
In order to deliver a meaningful assessment of risk exposure, credit managers face several challenges. First, the data needed to calculate credit exposure is located in multiple disparate systems across the enterprise. Synthesizing this information for increasing reporting requirements from the SEC, FERC, NAESB, S&P, Moody's and other agencies is, at best, time consuming.
Second, the market is volatile. Many organizations do not have the tools to accurately track these changes and incorporate them into their risk evaluations in a timely fashion.
Finally, there is the lack of actionable information necessary to optimize trading strategies.
Know Your Risks
As depicted in this screen shot, the ROME solution employs sophisticated calculations to provide a real-time, composite view of current and future exposure.
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Risk Calculation Engine
The enabling technology for ROME's Exposure Management capability is an underlying Risk Calculation Engine, used to calculate all exposure and collateral obligations based on consolidated contractual data housed within ROME or other enterprise systems.
This superior engine provides unmatched contractually accurate calculations and allows for maximum scalability, configuration and integration options. The Risk Calculation Engine also encompasses a history engine that allows users to store exposure calculations for future comparative analysis.
Turn Risks Into Opportunities
Real-time accuracy in assessing all potential risks combined with a full understanding of the impact past activities may have on future transactions allows users to make intelligent risk-adjusted decisions. With ROME, users are able to discover untapped opportunities that result in increased credit limits, create new opportunities by responding quickly to market changes, improve external credit ratings, and optimize capital allocation among business units, commodities and deal types.
The Exposure Management capability allows business users to define multiple exposure calculation models to fit their unique business objectives, and then automate calculations while taking into account actual contract terms, including netting and setoff.
Customers have the information and tools to allow corporate managers to gather a composite view of all interactions and the magnitude of their risks, and then to turn those risks into opportunities.
Contract-Based Optimization
The ROME solution employs a contract-based methodology that provides:
- Multiple concurrent, highly flexible exposure calculation models (i.e. margining, counterparty default, available credit management, etc.)
- Ability to compute counterparty level credit risk, allowing users to optimize trading and margining activities
- Credit costing, reserve calculations and other risk measurement and planning activities
- Unmatched contractually accurate exposure calculations based on real contracts, credit support annexes and credit policies
- Support for Master Netting Agreements
- Drill-down into exposure concentrations by industry segment, commodity, geography, legal jurisdiction, etc.
Find out more about how ROME may benefit your organization.
Contact us at info@romecorp.com. |
