MID OFFICE AND RISK MANAGEMENT
BTS Vision offers an unparalleled selection of management and analytical tools so you can monitor and examine risk in many ways. It gives you the power to examine risk at every level and allows clients to analyse profit and loss in real time.
Middle office trading tools include real-time dealer positions and profitability analysis, while risk management tools include limit checking, interest rate sensitivity analytics, value at risk and credit risk. All your information is linked; everything from accounting to cash flow to trading positions thanks to the following features:
- Configurable counterparty limits structure
- Mark to market credit limits
- Consolidated interest rate risk analysis
- Real time performance details by trader
- Real time positions by trader
- Analysitcal reports
- Earnings at risk
- Net present value
Credit Risk
In recent years, credit risk departments have faced many new challenges. Consider the press coverage devoted to failures at financial institutions; the increased use of derivatives, CMOs, and other new instruments; and the wide acceptance of new risk management techniques, such as Value at Risk (VaR). Increasingly, the evaluations of credit risk and market risk are using similar techniques.
BTS Vision adopts a two-tier approach to managing credit risk. Traditional, position-based exposure management is utilised to provide the dealers with quick and easy access to available limits and available dealing amounts. The real-time credit risk module features a limit configuration toolkit to provide a high degree of flexibility and configurability to the credit department. Meanwhile, with a high volume of daily transactions for each dealer, counterparty credit limits by position provide useful, easily accessed information. In addition to the traditional, position-style limits, this software offers online mark to market credit analysis which provides useful information for the total exposure to the counterparty.
Market Risk Management
One of the unique advantages of the BTS Vision is the ability to consolidate data from many different deal types into standard, easy to use reporting structures. This consolidation provides the senior management of the bank with the opportunity to review market exposures and manage risk for all areas of the treasury.
Risk management reports, including our interest rate risk calculations, encompass each of these deal types. All reports are available at the detail level, by profit centre or legal entity, as well as on a consolidated basis. Report settings can be geared for:
- Interest rate risk analysis
- Interest rate sensitivity analysis
- Profit and loss
- Position summary analysis
- FRA revaluation
- IRS revaluation
- Cash flow
