Presentation on theme: "“creating a community among its current and future global clients where best practices, ideas and joint ventures can be shared and discussed.”-----Vision."— Presentation transcript:
“creating a community among its current and future global clients where best practices, ideas and joint ventures can be shared and discussed.”-----Vision
Black Ice Partners is a global risk management consultant firm with over 20 years experience in the financial services industry, and with clients ranging from large global financial institutions, to small domestic banks. Experience We have a comprehensive understanding of best risk management practices, and continually update our services to cover constantly evolving regulations and demands. Knowledge We are a practical and experienced team of industry veterans who have been part of at least ten Basel implementations around the world, and our partners are industry recognized experts. Implementation We offer a wide range of services pertaining to risk management, and are constantly revaluating and adding to our suite of products and services. Solutions
ICAAP Risk & Capital Solution Governance & Compliance Database Consulting Services Board & Snr. Mgt. Training Black Ice Partners
Idea of full fledged business was conceived with providing ‘Silverlake’ on the design and development of a complete Data Model for Basel II /III Risk Management for all levels of Regulatory Reporting. Is a complete suite of end-to-end solution for institutions that is comprehensive, practical, and proven. It is the foundation of the Black Ice Partners ICAAP, Risk and Capital (BRC) Solution – an integrated solution that addresses all levels of Basel and Dodd Frank compliance with all relevant analytic engines and comprehensive reporting. An integrated solution that consists of 4 risk data models (wholesale, retail, market, and operational) that work together with powerful analytic and reporting engines. The solution is database agnostic and has been implemented on both IBM Netezza and Microsoft SQL. The BRC solution is sold as a complete product, and in separate pieces according to a clients need. Virtually allows all risk management analytics can be done in database – eliminates data movement Permits the client to have complete control of analytics, eliminating the need to buy multiple and over- engineered analytical applications. One stop solution that would meet the credit/market/operational risk and Basel requirements, it is potentially a simpler solution to implement and therefore obtain management approval Is a single point of integration from core to data warehouse. Capable of integrating data from source systems to the reports. Includes a Regulatory and Economic Capital Engine capable of calculating compliant capital requirements for exposures as required by Basel, OSFI, MAS, BNM (Including Islamic), FSA, Austria, APRA & FED. A solution that provides Enterprise risk management and Basel reporting something which SAS cannot do out of the box – this functionality is usually built in house
The Black Ice BRC Solution is based on the Philosophy “DATA FIRST ANALYTICS SECCOND.” Make the Analytics come to the data and keep the Data stable – Avoid data movement. We built 4 comprehensive Risk and Capital Data models that cannot only allow for the Capital calculations but also feed data required for over 40 Risk Data Models by Asset and sub Asset classes and their accompanying Risk Rating Systems. We then consolidated and built several analytical functionality to work inside the database. We mapped wrote the code for the results and reference data to regulatory and management Reports. Once the core operational systems data is mapped to the solution’s data models and the database populated everything else in terms of analytics and report creation is handled in the one database. We ended up creating a Database Agnostic solution that allows a bank to have a single point of integration from core to DW. These data models and accompanying analytical calculation engines are database agnostic and can be implemented on any platform. The solution is uniquely architected, in that it eliminates most issues arising from constant data movement due to siloed risk solutions. It has true cradle to grave data lineage, ensuring auditability and traceability as required by the regulators. All the regulatory and economic capital calculations and all other risk measurement calculations are handled in the solution as well as generation of all the regulatory and management reports. Further since the user owns source code, it enables them to create any analytical engines they can conceive.
WholesaleOperationalMarketRetail Data Models Analytic Engines Reports RWA Economic Capital Stress Testing RAROC Liquidity Risk Risk Rating Models RWA Economic Capital Stress Testing RWA Economic Capital Stress Testing RWA Economic Capital Stress Testing Risk Rating Models eVaR Concentration Risk Management + Regulatory Reports Liquidity Risk WORK FLOW (BRC– Components)
CAPITAL RISK WEIGHTED ASSETS CAPITAL RISK WEIGHTED ASSETS EC Economic Capital EC Economic Capital RC Regulatory Capital RC Regulatory Capital AC Accounting/A ctual Capital AC Accounting/A ctual Capital Pressure to increase with EW Stress Testing Basel III & Dodd Frank Pressure to decrease with RRS & Models Basel II Forcing use of Tangible Capital and increasing level of Liquid Assets Forcing use of Tangible Capital and increasing level of Liquid Assets More prescriptive, forcing full disclosure, standardized Risk Models/Risk Weights/Stress Testing ICAAP RISK APPETITE WORK FLOW- Cont..
EDW Analytical Applications Liquidity Risk Analytics (Basel III) RWA and Capital Requirement Calculation Engine Economic Capital Engine Wholesale Risk Rating Model Retail Risk Parameter Estimation Retail Pooling Enterprise Stress-Testing (ICAAP) ETL SQL / DataStage Risk Data Models provide data to perform calculation, reporting and modeling Mapping exercise and ETL from Source Systems and EDW to Data Models SQL Credit Risk Retail/Wholesale Operational Risk (AMA) Market Risk (B2.5) Basel II Basel II.5 Basel III Reporting Credit Risk Reporting Basel II Reporting Basel II.5 Reporting Basel III Reporting Write results back to the data models FOUR INTEGRATED DATA MODELS Source Systems ETL WORK FLOW (Cont.) : IRC Solution - High Level Business Architecture Diagram
Corporate and Commercial Banking Systems Risk Rating Systems Credit Approval Systems Credit Servicing Systems Collections and Workout Systems Trading Systems Trading Exposure Systems Retail Banking Systems Small Business Credit Credit Card Products Mortgages Retail Portfolio Management Analytics and Decision Support Trading Room Credit Risks Facility Apportionment Ratings Systems Exposure Measurement Collateral Management and Valuation Securities Finance Special Products SecuritizationNon-Traded Equities Finance Systems Detailed GL Postings Financial Hierarchies Source Systems Concentration Risk Analysis Risk Adjusted Pricing & RAPM Regulatory Capital Calculation RAROC & Economic Capital Stress Testing and Back Testing In Database Analytic Engines Source Systems Feed into Warehouse/mart (note: some systems may be aggregators that process source data and generate derived inputs to warehouse/mart Regulatory Reports- OSFI,FED,BNM,MAS,FS C,FSA,CBRC Management Risk/Capital Reports ICAAP/Dodd Frank, Board Reports DASHBOARD Retail Pool Definition Stress Scenario Development Users Financial Data A number of user-centric analysis functions operate directly off data in the warehouse to deliver business value The data warehouse/mart has 4 integrated data model to ensure business level data consistency. SQL / DataStage Analytic Engines (including Reg. Cap.) operate on data and save derived data back to warehouse Metadata Repository Internal Audit Metadata repository captures information from the entire organization – including administrative metadata. FOUR INTEGRATED DATA MODELS Credit Risk Retail/Wholesale Operational Risk (AMA) Market Risk (B2.5) Basel II Basel II.5 Basel III GL Data Financial Reconciliation
Based on our experiences and observations of several global Basel Implementation engagements: A bank could save anywhere between 60%+ of their Basel budget if they used a centralized data approach with centralized in-database analytics vs. using a conventional Basel Implementation approach that uses a distributed data management and analytics Solution that not only meets the regulatory requirements but also allows the bank to run a risk intelligent business. The savings come from lack of data movement and cost of multiple analytical data bases. A bank could reduce implementation time by 60%+. Total cost of ownership savings are realized compared to a conventional solution. The financial and work effort to implement future compliance requirements is reduced and could potential be realized at a marginal cost. Consolidated and Integrated Data in one Data Store.
Basel II, which improved the measurement of credit risk and included capture of operational risk, was released in 2004 with implementation from year-end The implementation of Basel II was re-affirmed by the G20 Leaders, who committed to complete, the adoption of Basel II by Basel 2.5, agreed in July 2009, enhanced the measurements of risks related to securitization and trading book exposures. Basel 2.5 is to be implemented no later than 31 December In December 2010, the Basel Committee on Banking Supervision released Basel III, which has set higher levels of capital requirements and introduced a new global liquidity framework. The regulatory members agreed to implement Basel III from January 2013, according to the transitional and phase-in arrangements. The importance of full and timely implementation of Basel III has also been underscored by the G20 Leaders.
Soiled Risk and capital data, analytics (i.e. multiple applications and data marts) Fragmented and costly in terms of analytics and reporting. Opportunity cost of time. Less trust in reports and analytics. Possible regulatory non compliance penalties. Unexpected Losses like the recent JPMC loss due to lack of Comprehensive Reporting. Lost business opportunities. Very Costly in terms of money and people.
While some countries (e.g., in Asia-Pacific and Japan) were initially content with implementing basic and standardized approaches to Basel II, the trend towards more complex approaches to credit risk and market risk management have evolved as the Basel Committee on Banking Supervision has continued to enhance its guidance. The majority of the countries listed on the next slide have only implemented the standardized approach to Basel II. In order for these countries to implement Basel III, they will have to first implement the IRB approach to Basel II since Basel III is mostly about capital and an AIRB approach would reduce the capital required.
COUNTRYBASEL IIBASEL 2.5 RULESBASEL III RULES ArgentinaNOT IMPLIMENTEDNOT PUBLISHED AustraliaCOMPLETEDIN FORCENOT PUBLISHED BelgiumCOMPLETEDIN FORCEDRAFT PUBLISHED BrazilCOMPLETEDDRAFT PUBLISHEDNOT PUBLISHED CanadaCOMPLETEDIN FORCENOT PUBLISHED ChinaIN PROCESSIN FORCEDRAFT PUBLISHED FranceCOMPLETEDDRAFT PUBLISHED GermanyCOMPLETEDFINAL PUBLISHEDDRAFT PUBLISHED Hong KongCOMPLETEDDRAFT PUBLISHEDNOT PUBLISHED IndiaCOMPLETEDIN FORCENOT PUBLISHED IndonesiaIN PROCESSNOT PUBLISHED ItalyCOMPLETEDDRAFT PUBLISHED JapanCOMPLETEDFINAL PUBLISHEDNOT PUBLISHED KoreaCOMPLETEDDRAFT PUBLISHEDNOT PUBLISHED LuxembourgCOMPLETEDIN FORCEDRAFT PUBLISHED MexicoCOMPLETEDNOT PUBLISHED The NetherlandsCOMPLETEDFINAL PUBLISHEDDRAFT PUBLISHED RussiaIN PROCESSNOT PUBLISHED Saudi ArabiaCOMPLETEDFINAL PUBLISHED SingaporeCOMPLETEDFINAL PUBLISHEDNOT PUBLISHED South AfricaCOMPLETEDDRAFT PUBLISHEDNOT PUBLISHED SpainCOMPLETEDDRAFT PUBLISHED SwedenCOMPLETEDIN FORCEDRAFT PUBLISHED TurkeyIN PROCESSNOT PUBLISHED United KingdomCOMPLETEDDRAFT PUBLISHED United StatesIN PROCESSNOT PUBLISHED
The solutions, provide critical advantages to the client in the areas of: Platform agnostic, enterprise-wide risk infrastructure covering Market, Operational, Credit Risk (across retail & Wholesale asset classes). Cost effective solution available as measured in Total Cost to Acquire and Cost to Maintain. Rapid time to deploy (typically between 3 to 8 months to implement and achieve full compliance) Compliant with regulator requirements for end-to-end data lineage Supports disparate data and reporting requirements across: ▪ Management reporting; ▪ Board of Directors reporting; ▪ Regulatory reports; and ▪ Regulatory audit processes. Provides a foundation for future risk requirements (e.g., by BCBS or by the regulator) through the enterprise risk data foundation schema, resulting in a reduced effort to assess and meet new requirements. Single point of integration from core to data warehouse. Our solution that provides Enterprise risk management and Basel reporting out of the Box. Unlimited scalability and flexibility as it is a solution and not an application The solution can be easily integrated with a CRM system to perform RAROC calculations, campaigns and Risk Based Pricing All the models were developed from first hand experience inside the worlds foremost financial institutions ensuring they are industry proven and tested. Consolidated analytical functionalities. Better,Faster and Comprehensive enterprise wide analytics and reporting.
True Single View of Customer, Bank, Risk and Capital Information in a Single Location ✔ Modules ✖ Compliant with June 24 Basel Risk Data Aggregation Requirements ✔ Complete User Control over Scalability, Functionality and Flexibility ✔✖✖ Ability for User to conceive and add to included analytics and reporting libraries ✔ Rigid Structure/fee involved ✖ Extensive analytics/ Reports Library Included ✔ User Dependant/Feeinvolved ✖ Basel III/ICAAP/Dodd Frank Compliant ✔✖✖ Cost and Time<50% ✖✖ Open Source code ✔✖✖ Support for Basel II.5/IRC ✔✖✖ Platform Agnostic ✔✖✖ Data Management Framework Policies Included ✔ ✖✖
To Popularize the Black Ice BRC presence across the globe, and manage the variety of partners (the approach, selection, enablement and sales productivity). To educate the target market about the shortcomings of not complying with regulatory reforms. To educate the potential market, how BRC could make their life easy. How it can reduce their workload etc. To Present BRC as an Better,Faster and Comprehensive enterprise wide analytics and reporting tool.
All countries require adequate governance and compliance capabilities to ensure adherence to evolving Basel paragraphs and principles. Countries where potential opportunities may exist due to the infancy of their implementation COUNTRYNUMBER OF REGULATED BANKS Argentina57 China (2)1001 Eastern Europe India634 Indonesia (3)119 Mexico47 Philippines (5)74 Russia (4)1000 Thailand23 Turkey43 United States (1) Eastern European countries included: Belarus, Bos. Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Poland, Romania, Slovak Republic, and Slovenia
COUNTRY NUMBER OF REGULATED BANKS Albania15 Argentina57 Armenia22 Austria848 Bahrain50 Bangladesh44 Belarus32 Belgium49 Boliva11 Bosnia – H31 Botswana15 Brazil174 Bulgaria25 Cambodia30 C. Af. Rup.4 COUNTRY NUMBER OF REGULATED BANKS Chad9 Chile25 China1001 Colombia53 Comoros4 D. R. Congo7 Rep. Congo7 Costa Rica18 Croatia41 Cuba9 Curacao37 Czech Rep.26 Djibouti8 Egypt37 Eritrea4
COUNTRY NUMBER OF REGULATED BANKS Estonia8 Ethiopia16 Fiji2 Gabon8 Ghana29 Guinea9 Haiti10 Hong Kong63 Hungary170 India634 Indonesia119 Iran28 Iraq24 Israel27 Japan1274 COUNTRY NUMBER OF REGULATED BANKS Kazakhstan42 Kenya41 North Korea12 South Korea23 Kuwait13 Kyrgyzstan23 Latvia22 Lebanon55 Liberia7 Lithuania10 Madagascar10 Malaysia92 Mexico47 Moldova22 Mongolia16
COUNTRY NUMBER OF REGULATED BANKS Montenegro12 Morocco18 Mozambique16 Myanmar20 Nambia6 Nepal149 Oman10 Pakistan49 Philippines74 Poland630 Qatar13 Romania33 Russia1000 Rwanda12 Saudi Arabia14 COUNTRY NUMBER OF REGULATED BANKS Senegal19 Sierra Leone18 Singapore49 Slovakia15 Slovenia23 South Africa23 Taiwan67 Tajikistan16 Thailand23 Togo14 Tongo4 Tunisia28 Turkey43 Turkmenistan11 Uganda28
COUNTRY NUMBER OF REGULATED BANKS Ukraine192 U.A.E30 USA6932 Uruguay25 Uzbekistan30 COUNTRY NUMBER OF REGULATED BANKS Venezuela36 Viet Nam54 Yemen14 Zambia20 Zimbabwe30
SALES MARKETFINANCIAL INSTITUTION INFORMATION BankAsset Size CRO CONTACT …US Bank National$330.5B…Richard J Hidy POTENTIAL MARKET RATIONALE Sales markets OPPORTUNITY >…THERE ARE 86 INSTITUTIONS WITH TOTAL ASSESTS OVER $10 BILLION >19 BANKS > $100B >15 BANKS >$50B < $100B >16 BANKS >$20B < $50B >36 BANKS >$10B < $20B >…BASEL II IMPLEMENTATION IS IN PROGRESS FOR LARGER BANKS >…BASEL 2.5 HAS NOT STARTED AS THE RULES ARE BEING FINALIZED IN CONJUNCTION WITH DODD FRANK COMMENTS …PNC Bank$263.3B…Enrico Dallavecchia …State Street Bank$212.3B…Andrew Kuritzkes …SunTrust Bank$171.3B…Thomas E Freeman …Branch Banking & Trust$168.9B…Clarke R Starnes III …Regions Bank$123.4B…C Matthew Lusco …POSITION BANKS FOR BASEL II, 2.5 AND III … ICAAP AND DODD FRANK (WHICH HAVE OVERLAP) …LARGE NUMBER OF BANKS WITH VARYING ASSET SIZE AND SOPHISTICATION
SALES MARKETFINANCIAL INSTITUTION INFORMATION BankAsset Size CRO CONTACT …Charles Schwab Bank$66.1B…Patricia Kenny POTENTIAL MARKET RATIONALE Sales markets OPPORTUNITY >…THERE ARE 16 SAVINGS AND LOAN INSTITUTIONS WITH TOTAL ASSESTS OVER $10 BILLION COMMENTS …USAA Federal Savings$52.2B…Joe Robles, Jr (CEO) …Hudson City Savings$45.4B…Ronald Marcus (VP, Risk) …American Express Bank$35.4B… …Citizens Bank of Pennsylvania $32.3B…Stephen D Steinour (CEO) …OneWest Bank$26.2B…Joseph Otting (CEO) …TO POSITION BANKS FOR BASEL IMPLEMENTATION AND ICAAP
SALES MARKETFINANCIAL INSTITUTION INFORMATION BankAsset Size CRO CONTACT …Navy FCU$46.9B…Cutler Dawson (CEO) POTENTIAL MARKET RATIONALE Sales markets OPPORTUNITY >…THERE ARE ONLY THREE SAVINGS INSTITUTIONS WITH TOTAL ASSESTS OVER $10 BILLION >…THERE ARE ONLY THREE CREDIT UNIONS WITH TOTAL ASSESTS OVER $10 BILLION COMMENTS …State Employee CU$23.7B…James Blaine (CEO) …Pentagon FCU$15.1B…Frank R Pollack (CEO) …TO POSITION BANKS FOR BASEL IMPLEMENTATION AND ICAAP …New York Community$39.5B…Barbara Ann Tosi (EVP, Risk) …People’s United Bank$27.3B…Chantal Simon (EVP, CRO) …Investors Banks$10.7B …Salvatore Gianvecchio (VP, Risk)
SALES MARKETFINANCIAL INSTITUTION INFORMATION BankAsset Size CRO CONTACT …Agriculture Bank of China$1,568.0B …Chaoliang Jiang (CEO) POTENTIAL MARKET RATIONALE Sales markets OPPORTUNITY >…64 BANKS HAVE ASSETS GREATER THEN $10B >…21 BANKS >100B >…17 BANKS 30B – 100B >…26 BANKS 10B – 30B >…48 BANKS 5B – 10B COMMENTS …Bank of Communications$ 599.4B…Dongping Yang …Postal Savings Bank$585.1B…Liming Tao (President) …China Merchants$364.4B…Weihua Ma (CEO) …Shanghai Pudong Dev.$332.4B…Jn Jieyu …Industrial Bank Co.$280.5B…Renjie Li (President) …TO POSITION BANKS FOR BASEL II COMPLIANCE FOR ADVANCED APPROACH AND ICAAP …LARGE BANKS WILL HAVE TO DO AIRB, INADDITION TO BASEL 2.5 …MOST INSTITUTIONS HAVE NOT STARTED THEIR BASEL IMPLEMENTATION, OR ARE IN THE INFANCY
SALES MARKETFINANCIAL INSTITUTION INFORMATION BankAsset Size CRO CONTACT …Bank Indonesia$77.6B…Miranda Goeltom (Chair) POTENTIAL MARKET RATIONALE Sales markets OPPORTUNITY >…SIX BANKS HAVE ASSETS GREATER THEN $10B >…THREE BANKS HAVE ASSETS $5B - $10B COMMENTS …Bank Mandiri$41.9B…Sentot Sentausa …Bank Rakyat$35.4B…Randi Anto …Bank Central Asia$28.1B…Subianto Rustandi …Bank Negara$27.3B…Felia Salim …Bank Danamon$11.9B…Kee Choe (President) …TO POSITION BANKS FOR BASEL ADVANCED AND ICAAP …PILLAR III (ICAAP) TO BE IMPLEMENTED BEGINNING 2013
SALES MARKETFINANCIAL INSTITUTION INFORMATION BankAsset Size CRO CONTACT …Banco Central de la Rep$95.2B…Pablo L. Carbajo POTENTIAL MARKET RATIONALE Sales markets OPPORTUNITY >…NINE BANKS WITH ASSETS GREATER THEN $5B COMMENTS …Caja de Credito$68.1B…Leon Alberto (Chairman) …Banco de la Nacion$35.8B …Juan Carlos Fabrega (Chairman) …Banco de la Provincia$9.8B…Eduardo Mutagh …Banco Macro$7.8B …Jorge Horacio Brito (Chairman) …Banco de Galicia$7.6B …Antonio Roberto Garces (Chairman) …TO POSITION BANKS FOR BASEL II AND ICAAP …BASEL PILLAR II REQUIREMENTS PUBLISHED …BANKS MIGRATING TO BASEL II …REGULATIONS CURRENTLY BEING DRAFTED FOR 2.5 AND III
SALES MARKETFINANCIAL INSTITUTION INFORMATION BankAsset Size CRO CONTACT …Bangko Sentral$50.1B…Amando Tetangco (Chairman) POTENTIAL MARKET RATIONALE Sales markets OPPORTUNITY >…THERE ARE 12 BANKS WITH ASSETS GREATER THEN $5B COMMENTS …Central Bank of Philippines $49.6B…Amando Tetangco 9Chairman) …Metropolitan Bank and Trust $20.1B…Bernardito Lapuz …Bank of Philippine Islands $15.7B …Jaime Augusto Zobel De Ayala (Chairman) …BPI Family Savings$15.7B…Alfonso Salcedo (President) …Land Bank of Philippines$11.4B…Rodrigo Supena …TO POSITION BANKS FOR BASEL II and ICAAP …BANKS HAVE TO BE BASEL II COMPLIANT BY 2014
SALES MARKETFINANCIAL INSTITUTION INFORMATION BankAsset Size CRO CONTACT …Turkiye Cumhuriyet$109.7B…Durmus Yilmaz (Chair) POTENTIAL MARKET RATIONALE Sales markets OPPORTUNITY >…THERE ARE 20 BANKS WITH ASSETS OVER $5B COMMENTS …TC Ziraat Bankasi$97.9B…Can Akin Caglar (CEO) …Turkiye Is Bankasi$85.4B …Riza Ihsan Kutlusoy (Mgr. Risk) …Turkiye Granti Bankasi$77.7B…M Cuneyt Sezgin …Akbank TAS$70.8B…Sevilay Ozsoz …Yapi ve Kredi Bankasi$57.3B…Mehmet Guray Alpkaya …TO POSITION BANKS FOR BASEL II ADVANCED AND ICAPP …BANKS ARE IN PARALLEL RUN FOR STANDARDIZED APPROACH …BASEL II AND 2.5 REGULATIONS TO BE PUBLISHED IN MID-2012
SALES MARKETFINANCIAL INSTITUTION INFORMATION BankAsset Size CRO CONTACT …Bank Negara$125.4B…Chung Chee Leong POTENTIAL MARKET RATIONALE Sales markets OPPORTUNITY >…THERE ARE 24 BANKS WITH ASSETS GREATER THEN $5B COMMENTS …Malayn Banking$97.4B…John Hin Hock Lee …Public Bank$59.9B…Then Fui Lim …CIMB Bank$54.9B…Wee Beng Gan …RHB Bank$33.8B…Justin Jia Seng Soong …Hong Leong$28.9B… …TO POSITION BANKS FOR BASEL II ADVANCED …BANKS HAVE TO COMPLY TO BASEL II ADVANCED BY 2014 AND ICAAP
SALES MARKETFINANCIAL INSTITUTION INFORMATION BankAsset Size CRO CONTACT …Bank of Thailand$96.9B…Nopawan Mahamusik POTENTIAL MARKET RATIONALE Sales markets OPPORTUNITY >…THERE ARE 14 BANKS WITH ASSETS GREATER THEN $5B COMMENTS …Bangkok Bank Public$65.6B…Chatsiri Sophonpanich (Pres) …Krung Thai Bank$63.2B…Somgiat Sangsrane …Kasikornbank$48.6B…Banthoon Lamsam (CEO) …The Siam Commercial$38.9B…Vichit Suraphongchai (CEO) …Bank of Ayudhya$25.4B…Chandrashekar Subramanian Krishoolndmangalam …TO POSITION BANKS FOR BASEL II advanced and ICAAP...ANKS ARE REQUIRED TO COMPLY TO BASEL II ADVANCED BY 2014
Conduct Basel II /III lectures and workshops for ALL OSFI/FED Basel reports. Provide report templates, definitions and business rules for each elements in each cell of each of the reports. Publishing articles in leading Journals about BASEL compliance. A Direct Sales Strategy will be based on three meeting styles: -Meeting 1: Eight to 12 initial meetings with key individuals at the financial institution run by Black Ice Partners, or Partners. -Meeting 2: A ½ day meeting where a larger audience comes together from the financial institution, Black Ice and strategic partners. -Meeting 3: A full day workshop where Black Ice demonstrates the complete solution to the point that the client is faced with a decision: RFP or unsolicited proposal.
Customized Strategy for each Institution can be devised after getting answers to following questions: At what stage of your Basel Program are you currently at and what is your timetable? Are you aiming to comply with the Standardized or IRB approach? What analytics are your preparing for each risk area and thus what is the status of your data and analytic preparations? Have you considered integrating your Basel Program with your current Risk Management practices and capabilities? If you are pursuing complying with the Standardized Approach do you have plans to move to the IRB Approach? If you have chosen a vendor are they able to do Data Management, Risk Management Analytics and Basel Analytics and reporting in the same Database or will there be multiple Data bases and therefore significant Data Movement be involved? Where and from whom are you getting advice on implementation and how are you linking risk management issues with data and technology requirements?
Market or Operational Risk SolutionCredit or Wholesale Solution Full Risk Solution Data Warehouse technology, including hardware, software and storage from Microsoft PDW or IBM/Netezza Black Ice Risk Data Flow Consulting & Schema Deployment Services -Basic Calculation engine and Reports incl ICAAP metrics -Either IRC-compliant Market or AMA- compliant Operational Risk solution Black Ice Risk Data Flow Consulting & Schema Deployment Services -Basic Calculation engine and Reports incl ICAAP metrics -Retail & Wholesale asset classes ONLY Black Ice Risk Data Flow Consulting & Schema Deployment Services -Advanced Calculation engines and Full Report Library incl ICAAP metrics -ALL asset classes SI required to build ETL/ELT environment leveraging Banks Data Dictionary Black Ice Data Schema for Market or Operational Risk ONLY, Support & Audit Services contract Black Ice Data Schema for the Wholesale asset class, Support & Audit Services contract Black Ice Data Schema for ALL asset classes, Support & Audit Services contract $USD 150,000 Licensing + $USD 90,000 Implementation IP Payments in advance Support & Audit Svc $50,000 pa $USD 600,000 Licensing + $USD 150,000 Implementation IP Payments in advance Support & Audit Svc $50,000 pa $USD 900,000 Licensing + $USD 195,000 Implementation IP Payments in advance Support & Audit Svc $50,000 pa To simplify the sale, the negotiation and the implementation of the solution, we have defined a simple pricing model for the 3 core solutions available. The contracting process will have the Black Ice contract signed to protect IP directly between the end client and the Black Ice Partners Canadian parent company. The reseller rebate will be paid by Black Ice after receiving the money from the client.
STRENGTHS - Over 20 years experience in the financial services industry - The BRC solution is sold as a complete product, and in separate pieces according to a clients need - Capable of calculating compliant capital requirements for exposures as required by Basel, OSFI, MAS, BNM (Including Islamic), FSA, Austria, APRA & FED; from a single Database WEAKNESS -Results depends on quality of data. - Timely delivery depends on feedbacks from clients. - The solution is a process that could take few months, so any changes in regulation, might delay. - Dependence on vendors OPPORTUNITIES - Huge untapped market. - We can easily incorporate future reforms, with foundation already in place. THREATS - Competition from already established Brand names. - Business depends a lot on Regulatory Reforms, any changes will render the model obsolete. - Sunk costs.
THREAT OF NEW ENTRANTS - High as there is a huge market for the service. -However there few barriers to entry like: 1. Sunk costs 2. Brand equity. 3. Capital requirements 4. Technical requirements THREAT OF SUBSTITUTE PRODUCT OR SERVICES - Not much, but there are few established brands. - Not much switching cost for clients. BARGAINING POWER OF CUSTOMERS - Since there are not many players providing the service, bargaining power for consumers is less. - Also our service is much comprehensive than the competitors. BARGAINING POWER OF SUPPLIERS - We are dependant on couple of vendors for very important processes. -it wont be easy to find replacement as the services required are quite specialized. INTENSITY OF COMPETITIVE RIVALRY - Is not much intense, as few players are there. - Also since every player’s services can be differentiated, rivalry in not so intense.
Particulars Fixed Assets Cost 20,000 55,000 Other Cost 12,000 Less:Depriciation ,183 23,583 NBV Current Assets Cash 6,600 4,472,723 11,937,939 Total Current Assets 6,600 4,472,723 11,937,939 Total Assets 37,817 4,529,540 11,981,355 Current Liabilities Total Current Liabilities Long Term debt Loan 200, ,000 - Others Total Debt 200, ,000 - Equity Investment Net Profit (162,183) 3,679,540 11,981,355 Total Owners Equity (162,183) 3,679,540 11,981,355 Total Liabilities 37,817 4,529,540 11,981,355 For monthly Projections
Black Ice Partners is a global risk management consultant firm with over 20 years experience in the financial services industry, and with clients ranging from large global financial institutions, to small domestic banks. Better,Faster and Comprehensive enterprise wide analytics and reporting. Other solutions such as BRC exist, but are expensive and often are in-house bespoke solutions built by financial institutions themselves that focus on Integrated Enterprise Wide Risk and Capital Data. Client gets to leverage own staff – no need to hire consultants or wait for application upgrades