IBM’s suite of solutions combines risk management software, services, advice, and content to help financial institutions and corporates gain an integrated, enterprise-wide view of risk, meet regulatory requirements, and make better business decisions. IBM provides analytics engines and risk-aware business application solutions to meet the need to measure risk and to better manage an enterprise through the use of risk intelligence.
In the past four years, the computing giant has made several acquisitions with a view to enhancing its risk management software and consulting offerings and adding to its Cognos and SPSS software offerings. Recent notable acquisitions include OpenPages and Algorithmics. OpenPages, which was acquired by IBM in October 2010, offers a single system that helps companies identify and manage risk and compliance activities across the enterprise, thus promoting integrated risk management solutions. It allows firms to develop a comprehensive compliance and risk management strategy across a range of domains including operational risk, financial controls management, IT risk, compliance, and internal audits. The acquisition brought 200 clients to IBM from various industries.
Algorithmics became an IBM company in October 2011. It provides solutions for market, credit, and operational risk, as well as collateral and capital management. Users of its software include 25 of the world’s top 30 banks and more than two-thirds of the CRO Forum of leading insurers.
Its products include:
- Market risk solutions – providing a scalable integrated risk platform to measure, manage, and control capital market exposures across asset and liability functions;
- Credit and capital solutions – delivering real-time access to accurate, integrated credit data and enabling regulatory compliance, enhanced decision-making, and improved financial performance;
- Collateral management solutions – providing timely access to accurate collateral related data, reducing operational risk, and increasing business opportunities;
- Operational risk solutions – providing an integrated approach to the identification, management, and measurement of operational risk in support of GRC programs;
- ALM and liquidity risk – providing a simulation-based framework to handle sophisticated products, address regulatory requirements, and support advanced calculations, such as stochastic scenarios;
- Actuarial modeling – providing key decision makers of insurance firms with critical business information for managing risk, meeting regulatory requirements, and protecting shareholder value.
Both acquisitions have broadened IBM’s advanced analytics capabilities for the financial services industry and continue its long term strategy to expand its business analytics and optimization software services.