BASEL-II Suite
A Complete Credit, Market and Operational Risk Solution

The Bank for International Settlements’ (BIS) Basel Committee on Banking Supervision has been in discussion with the world’s Central Banks and others to adopt a New Basel Capital Accord that, once finalized, will replace the current 1988 Capital Accord. Each country will implement its own set of compliance requirements consistent with the New Accord with new rules governing the capital adequacy of banks. Most countries will require their banks to be in compliance starting in 2007.

The new Accord establishes a Framework for the calculation of minimum required capital that is more complex than the current accord in the area of Credit Risk and a new requirement has been added for capital related to Operating Risk.

While there is considerable discussion in the industry and in certain political circles on the costs and benefits of the New Accord, there is no debate that the ability of most banks to achieve the new measurement methods will require a considerable change in their organization and management of data and the technologies that must be deployed.

Since 1989 Axiom has been delivering leading edge solutions in data management, warehousing and decision support applications in all areas of Risk Management, Regulatory Reporting and Compliance Monitoring.

The Axiom SL Basel II Solutions Values:

· Architecture to allow calculations on the client's native data
· Tailored to suite unique requirements
· Easy to integrate, efficient to operate
· People who know how to gain profit values beyond compliance
· Technology that fits into any environment
· User defined functional flexibility for life cycle suitability
· Preserve investment in existing technology

Basel II Solution Highlights:

· A complete Credit, Market and Operational risk solution or individual modules
· Provides all BASEL II approaches and coverage for Wholesale and Retail Credit
· Covers all aspects of the process:
    · Data Collection
    · FinETL™
    · Source Data Storage
    · Visual Business Rules for Data Analysis
    · Measurement Engine for Capital Requirements
    · Work Flow Management & Process Automation
    · Results Reporting, Storage and Monitoring Dashboard
· Operational Risk – alter Source Data and model to suite user defined requirements
· Functions and Processes for Strategic and Tactical Users
· Multi-tier components that provide high performance, flexibility, scalability and easily integrates into any bank’s heterogeneous environment
· Axiom SL suite of products (see table of coverage and product description bellow).

The key aspects of implementation involve a 4 step process:

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1. Data Collection

Operating from Native Source Data vs. Conversion to a Data Model, Enriching and Transforming Source Data, Organizing Source Data including: (Market Data, Reference Data, Transactional data, KRI, Loss Events, LGE, Loss Exposures, PD, LGD, etc.)

2. Business Rules

Applies Basel II approach selected methodology and handles following functions:

·Consolidation of data from multiple Data models
· Segmenting of data by prescribed Basel II categories and Internal Corporate and Organizational Hierarchy (entities, business units, credit related categories and time maturity buckets, etc.)
· Applying “action” function of the business rule for calculated field
· Ability to define, store and maintain business rules on demand

3. Calculations

This layer performs required analytical calculations, simulations and aggregation.

·Execution of aggregation computation
    · Credit Risk Exposure and Capital
    · Operational Risk Capital
    · Combined Risk Capital
    · Enterprise McDonough ratio

· Execution of risk computation
    · ALM analysis
    · Historical Market VAR
    · Monte Carlo VAR
    · Credit VAR
    · Cash Flow Generation
    · Op Risk Loss Distributions
    · Risk factor statistical engine
    · Stress testing scenario analysis

4. Display / Monitor / Report

This is the presentation layer and provides access to calculated results for internal and regulatory governance and use. Products provide full transparency in reporting and analysis and are tailored to meet each country’s Central Bank Basel II specifications.

·Interactive drill down display of results
· Interactive graphs
· User defined tabular report
· Excel like customized report
· Limit management and alert

Basel II – Suite of products

Products Description:

IntegrationCenter™ - Data Management and warehousing platform for all Axiom and third party risk and reporting applications. Uniquely combines Dynamic Data Modeling, ETL, Source Data Integration, Reference-Market Data cleansing, Meta Data, Work-Flow Management and Reporting.

RiskMonitor® - is the risk and analytical engine and visualization tools for all assets classes and instruments, covering Market, Credit, Liquidity and Operational risks. Other features include ALM, Benchmarks, Stress testing, Limits management and Bootstrapping.

ControllerView® - a Regulatory reporting solution for all Central Bank requirements with full coverage of financial and capital adequacy reports (BOE, FSA, FRB, Swiss Regulators, Japan, Singapore, etc.)

ComplEye® - Trade surveillance and compliance monitoring and reporting including Front-running, intra-day manipulations, trading along, etc.
Anti-Money Laundering, USA Patriot Act, OFAC, anti-terrorist provisions.
Real-time Concentration and Criteria testing analysis across integrated data sources internal systems and external data providers.