Post on 14-Jan-2015
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Lera Technologies
Basel II Risk Compliance Solution
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Basel II Risk Compliance Solution
“The purpose of Basel II is to create an international standard that banking regulators can use when
creating regulations about how much capital banks need to put aside to guard against the financial
and operational losses. The Basel II recommendations help banks to follow international standards
by creating regulations in risk and capital management.”
Lera Technologies has expertise in understanding the geography-specific Basel II implementation
requirements and the associated challenges. We can help your bank gain from the implementation through
our Tasso - Basel II Implementation Framework. With an experience in implementing Basel II and other risk-
based solutions across global banks, we developed a robust framework for enterprise risk management.
Through it, we accelerate your compliance efforts and aid in meeting your stringent timelines and industry
requirements.
Lera Technologies has worked with leading banks world wide in meeting their specific needs around various
regulations such as Operation Risk and Credit Risk to implement Basel II guidelines in their banks.
Banks face huge challenges while implementing Basel II Standards. The major challenges include:
Inadequate data spread across the organization and disparate systems & processes.
Multinational Banks face huge challenges to implement Basel II, as their branches and subsidiaries are
subjected to varied home/ host regulatory requirements.
Adopting an advanced approach to get benefits from Basel II is a challenge to banks because of
infrastructure scalability and data credibility.
Lera Technologies helps banks to
overcome these challenges and
provides complete guidance for Basel
II implementation process. Our
framework is based on industry best
pract ices and addresses key
c h a l l e n g e s i n e n d - t o - e n d
implementation.
Lera's Basel II Risk Compliance
Solution enhances banks enterprise
risk management processes, models
& systems, and integrates them with
the rest of the organization, providing a
complete view of bank's risk exposure.
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Challenges in implementing Basel II - 3 Pillars
Overview
Pillar-IMinimum Capital Requirement
Pillar-IISupervisory Review Process
Pillar-IIIMarket Discipline
Capital Requirement for...... Credit Risk
?Standardised Approach.?Foundation IRB
Approach.?Advanced IRB
Approach.
Operational Risk
?Basic Indicator Approach.
?Standardised Approach.?Advanced
Measurement Approach.
Regulatory Framework for Banks
?Internal Capital Adequacy Assessment process.
?Risk Management.
Supervisory Framework
?Evaluation of internal systems of Banks.
?Assessment of risk profile.
?Review of compliance with all regulations.
?Supervisory Measures.
Disclosure requirements of Banks
?Transparency for market participants concerning the bank’s risk position.
?Enhanced comparability of banks.
Solvency - II
Basel-II three pillars
Fig: Three Pillars of Basel-II
Basel II Risk Compliance Solution
With a vast domain experience in developing solutions to Banking and Financial Services firms especially in Risk
Management, Lera Technologies has developed a dedicated team comprising of Basel II specialists.
Lera Technologies framework helps banks attain greater benefits from our:
Modeling expertise & Risk Assessment process which comprises various risk measuring techniques like KRI,
Scorecards, Risk matrix etc followed by Risk Monitoring, Communication and reporting.
Strong data management capabilities are supported by robust framework. Lera can handle complex and large
data management programs, and also have a Center of Excellence (CoE) dedicated for data
management and business intelligence technologies.
Independent Testing Services that focuses on providing dedicated Quality Assurance services which help you
build test strategies that align well with business strategies.
M
S
I
odeling Expertise & Risk Assessment
trong Data Management Capabilities
ndependent Testing Services
Why Lera Technologies?
Our comprehensive framework comprises the following:
includes minimum capital requirements for operational, credit and
market risk.
includes Risk Identification, Risk Assessment,
Risk Mitigation, Risk Monitoring and Risk Reporting. The key functionalities that includes in ORM
Framework are Key Risk Indicators, Audit Trails, Issue Tracker, Loss Event Management, Action
Plans, Quality Control Check, Heat Maps and Scorecards.
includes Collecting Borrower & Loan data from
external system through integration, computing credit risk, Monitoring and managing risk rating,
Portfolio Management and Risk reporting. The key functionalities that includes in CRM Framework
are data quality, rating models, stress testing and back testing.
includes supervisory review & approval process, key performance
indicators, internal capital adequacy assessment, risk capital performance assessments, alerts
management etc..
includes reporting capabilities, ad hoc reporting etc. which is used
to enhance the degree of transparency in banks' public reporting to shareholders and customers.
Pillar I Implementation Framework
Operational Risk Management(ORM) Framework
Credit Risk Management(CRM) Framework
Pillar II Implementation Framework
Pillar III Implementation Framework
Risk Compliance Solution Framework
Basel II Risk Compliance Solution
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Improved capability for setting and monitoring risk limits.
Effective Utilization of capital with reduced risk.
Lower operational losses resulting from better controls and monitoring.
Experience increased market reputation and investor confidence.
Facilitates seamless integration with your systems
Solution can be customized to suit the efforts of your bank across the globe.
Framework allows banks to follow industry best practices, standards and processes to meet
industry benchmarks.
Benefits of Basel II Risk Compliance Solution
Lera Technologies is a global IT Solutions and Services Company that offers a
wide array of solutions especially for Banking and Financial Services. Starting
from providing solutions for Risk and Compliance, Business Intelligence,
Spend Data Management, Business Process Management, elearning to
implement IT solutions for clients, Lera straddles this entire space. Our
innovative solutions deliver measurable value through increased process
efficiency thus helping businesses to take faster and better decisions.
About Us
Clientele
Contact Us
Lera Technologies Inc 146, Briar Lane,Norwich,Connecticut - 06360. Tel: +1 (646) 915 - 0640
Email: info@leratechnologies.com
Lera Technologies229 Arc, Makarios,3rd Avenue, Meliza Court, 4th Floor, Limassol 3105.Cyprus.
Email: info@leratechnologies.com
Lera TechnologiesPlot #1, New SBH Colony, West Marredpally, Secunderabad-26, India.
Tel: +91 40 27700000 Email: info@leratechnologies.com
INDIAEUROPEUSA
www.leratechnologies.com
Basel II Risk Compliance Solution