Basel II
BrainMatics’ Basel II solution is based on the following key elements:
Credit Risk
- Segmentation (Pooling)
- Solution incorporates Standardized and Model Based approaches
- Risk engines for Application, Behavioral and Collections life stages of the retail customer
- Risk MIS, a comprehensive MIS Suite for reporting
- Including a proprietary way to model Corporate, SME and Agriculture risk
Market Risk
- Solution incorporates Standardized and Model Based approaches
- World’s most advanced VaR engine – BMVaR using “RiskVeda” – specifically designed for emerging markets such as India
- Incorporates Non-Gaussian distributions and dynamic volatilities
- Complete Market Risk platform including reporting engine
Operational Risk
- Solution incorporates Basic Indicator Approach, Standardized Approach and Advanced Measurement Approach
- Comprehensive operational risk framework design to work with sparse data availability
- Includes RiskVeda assessment and readiness study
- Identification of key indicators and risk factors
- Operational policy design
Risk Calculators
- BASEL II guidelines for co-relations are conservative for Risk aggregation which leads to a significant capital requirement
- BrainMatics uses a proprietary way to models these correlations which can relate to “lower” capital requirement using dynamic copulas to model changing distributions
- Proprietary Risk Aggregators for computing economic capital for the Bank (credit market and operational risk aggregation pan bank)