Governance, Risk & Compliance

Governance, Risk & Compliance

October 26, 2011

Oracle Debuts Oracle Financial Services Pricing Management, Capital Charge Component

Oracle (News - Alert), a provider of database solutions, asserted that its newly released Oracle Financial Services Pricing Management, Capital Charge Component is designed to help financial institutions actively manage portfolios based on risk-adjusted return and optimize capital use.

The company explained that the new application is built on the common Oracle Financial Services Analytical Applications platform and allows institutions to leverage existing regulatory and economic capital approaches already in use like Oracle Financial Services Basel II and Oracle Financial Services Economic Capital Advanced or applications developed in-house or with third-parties.

Using the app banks get to realize active management of credit portfolios based on risk-adjusted returns, optimize utilization of capital and get a detailed insight about the risk and exposure via on-demand pricing reports and dashboards.

Some of the benefits of the new application are: holistic application to address both profitability and risk calculations; enables active management of credit portfolio based on risk adjusted return; ensures optimal utilization of capital; provides on-demand information for accurate and timely decision making; improves turn-around times for addressing customer inquiries; and more.

Officials with the company commented that Oracle Financial Services Pricing Management, Capital Charge Component provides front-line managers with on-demand access to the information they need to assess the costs and risks associated with each new exposure and then determine an optimal price for transactions. Banks can now manage their portfolios based on risk-adjusted returns and optimize the allocation of capital by distinguishing between low- and high-risk customers.

According to the company, the Oracle Financial Services Pricing Management, Capital Charge Component supposedly covers all products on the assets side of the balance sheet, including amortization loans, bullet loans, and structured products, and calculates the risk-adjusted performance measures, risk-adjusted return on capital (RAROC), and shareholder value added (SVA).

In other news, Oracle recently released the results of performance tests demonstrating that Oracle Financial Services Revenue Management and Billing 2.2 running with Oracle Exadata Database Machine X2-2 can deliver performance and scalability for financial services organizations seeking to implement real-time relationship pricing, consolidate multiple billing engines within business divisions, process transaction volumes and render bills, whether online or in printed form to customers.

Nathesh is a contributing editor for TMCnet. To read more of Nathesh's articles, please visit his columnist page.

Edited by Jennifer Russell

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