Germany’s KfW teams with FIS to transform risk management operations
28 May 2020 Berlin
Image: ChrisRedan/Shutterstock.com
KfW, one of the largest banks in Germany, has completed a multi-year project to transform its risk management operations using advanced technology from FIS.
The state-owned bank, which boasts more than €508 billion in assets, had been using different systems to report and manage market and liquidity risk.
With the aim of enhancing the risk controlling processes across the enterprise, based on a system with an integrated IT architecture, the bank chose the FIS Ambit Focus asset and liability management platform for its market and liquidity risk controlling.
The new FIS solution aims to provide the development bank with a central data source for measuring, monitoring and reporting on market and liquidity risk.
According to KfW, the new platform also provides it with “advanced tools” for assessing the market risk of its financial instruments and enhancing stress testing capabilities, as well as enabling it to comply with regulatory requirements including Interest Rate Risk in the Banking Book and Asset Liability Management.
“With its advanced functionality, our new centralised risk management platform vastly improves our ability to manage risk and provide timely, consistent reports to management and key decision-makers,” says KfW’s Michael Schulze, first vice president and head of market price risk controlling and operational risk. “Equally importantly, the new platform facilitates the implementation of evolving regulatory requirements.”
Martin Boyd, president of capital markets solutions at FIS, adds: “KfW has taken a bold step to transform and standardise its enterprise-wide risk management function through advanced technology.
“We are confident this new platform will provide the bank with the functionality, flexibility and visibility to support its business well into the future.”
The state-owned bank, which boasts more than €508 billion in assets, had been using different systems to report and manage market and liquidity risk.
With the aim of enhancing the risk controlling processes across the enterprise, based on a system with an integrated IT architecture, the bank chose the FIS Ambit Focus asset and liability management platform for its market and liquidity risk controlling.
The new FIS solution aims to provide the development bank with a central data source for measuring, monitoring and reporting on market and liquidity risk.
According to KfW, the new platform also provides it with “advanced tools” for assessing the market risk of its financial instruments and enhancing stress testing capabilities, as well as enabling it to comply with regulatory requirements including Interest Rate Risk in the Banking Book and Asset Liability Management.
“With its advanced functionality, our new centralised risk management platform vastly improves our ability to manage risk and provide timely, consistent reports to management and key decision-makers,” says KfW’s Michael Schulze, first vice president and head of market price risk controlling and operational risk. “Equally importantly, the new platform facilitates the implementation of evolving regulatory requirements.”
Martin Boyd, president of capital markets solutions at FIS, adds: “KfW has taken a bold step to transform and standardise its enterprise-wide risk management function through advanced technology.
“We are confident this new platform will provide the bank with the functionality, flexibility and visibility to support its business well into the future.”
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