Solution Brief
Risk Platform Transformation
Sharpen risk assessment capabilities for consistent, transparent and explainable real-time decision making.
The issue
Emerging technologies are transforming every aspect of financial services, and the pressure on banks to implement their digitalization strategies has only increased. From the way customers complete transactions to how financial services firms make decisions, digital tools are bringing greater speed, efficiency and transparency to many aspects of financial workflows.
As banks implement new digital tools and processes, the approach to risk management evolves as well – and in a way that can adapt as regulations and customer expectations change. Banks need a way to sharpen risk assessment capabilities for consistent, transparent and explainable real-time decision making. By modernizing and optimizing the approach to risk management in these ways, banks can maintain resilience, meet business objectives and regulatory requirements, and increase competitiveness.
The challenge
Increasing regulatory pressure
Domestic and global compliance requirements are intensifying as new, stricter regulatory standards are released. SAS solutions enable banks to meet their regulatory capital calculation needs.
Fragmentation of the banking system landscape
This increases transformation costs and reduces IT agility. SAS allows solutions for stress testing, ALM, IFRS 9, CECL and regulatory capital to share common components.
A complex macroeconomic environment
Banks need to innovate ways to improve balance sheets and ratios. SAS delivers a modern, cloud-based approach to balance sheet management.
Fintech and technology developments
AI, GenAI, new risk methodologies and cloud adoption are causing banks to rethink how to use customer data. SAS delivers a modern risk modeling and governance framework in the cloud.
Fragmented views of risk and finance
Banks need a holistic view to reduce risk, streamline compliance, and accelerate risk and finance decisions. SAS’ integrated platform enables this holistic view and a pathway to the cloud.
“Following a thorough evaluation of a wide range of available solutions, ABN AMRO opted for a truly integrated approach that will complement the FRAAI (Finance and Risk Architecture Alignment Initiative) objectives. The partnership with Wolters Kluwer, along with SAS and its strength in credit risk and stress testing, means we will have a powerful software solution to comply with current and future reporting requirements. We will be well-positioned to ensure increased data granularity and transparent data lineage.”
Kees Visser
Finance Director, ABN AMRO
Our approach
Financial institutions need a controlled and unified environment for fast and efficient implementation and execution of complex risk systems.
SAS approaches the problem by providing software and services that help:
Improve performance and efficiency
SAS’ centralized risk platform supports all risk solutions and enables significant operational efficiencies for greater scalability, faster deployment times, and simplified configuration setup and version tracking.
Unify the user experience
Optimize it for each business user’s perspective and organizational role. Our user interface includes forms for analytical runs, models, master risk scenarios and more that are common across all risk solutions.
Integrate risk and finance processes
Use the same data and IT infrastructure to improve operations and profitability. SAS’ streamlined, process-oriented approach to risk, supported by risk and finance content, can adapt to changes in your business as they occur.
SAS difference
SAS has a vision for an “integrated balance sheet” that optimizes returns, regulatory compliance and product strategy and is delivered through a cutting-edge technology offering that includes:
Common business objects
- SAS’ integrated risk and finance approach centralizes all business objects common to all risk solutions, so they only need to be defined once.
Common data repository
- Use a common area to store data input and output results, resulting in a single source of truth that is accessible to all Stratum (SAS’ integrated risk management platform) risk solutions.
Model consistency
- Ensure consistency across different types of risk and finance projections by building, developing, and managing all models on a single, unified platform.
Workflow consistency
- Use a common process to define and execute workflows.
Reporting
- SAS has centers of excellence around the world that are staffed by subject-matter experts who can provide support at all stages of your journey.