About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Bayer Implements SunGard Adaptiv Solutions to Support Risk Management

Subscribe to our newsletter

Germany’s Bayer AG has implemented a selection of SunGard’s Adaptiv solutions for risk management to ensure it meets the fair value accounting mandates of the International Financial Reporting Standards (IFRS 13) and is ready to comply with European Market Infrastructure Regulation that is expected to come into force later this year.

The German enterprise that specialises in healthcare, agriculture and high-tech materials on a global basis, went live with the SunGard solutions late last year and has completed first quarter reporting with the risk calculation systems.

The company is using SunGard Adaptiv 360 for trade capture, position keeping and to calculate sensitivities. It is also using Adaptiv Analytics to support Monte Carlo based calculations of risk measures such as value at risk, potential future exposure, credit valuation adjustment (CVA) and debt valuation adjustment (DVA). Adaptiv Risk Cube provides Bayer’s risk managers with the means to drill down and analyse risk results, while Adaptiv Operations integrates risk results with back-office functionality and the company’s treasury platform.

The SunGard solutions provide an automated approach to risk calculation and management, replacing a pragmatic method that included manual short cuts and inherent operational risk.

According to Alexander Burck, head of corporate financial control at Bayer, “To help mitigate risks, Bayer decided to use the same risk management methodologies used by some of the largest and most advanced global banks. SunGard’s Adaptiv solutions enable Bayer to determine, monitor and steer its counterparty risk accurately and consistently across its counterparties. With the automated Adaptiv Analytics solution in particular, we are able to calculate Monte Carlo based CVA and DVA and attribute the results accurately to the trade level, even within netting sets, helping us to comply with regulations such as IFRS 13.”

For SunGard, Bayer is a good win in the corporate market. Sven Ludwig, director for risk, SunGard Adaptiv, says: “We see most demand for Adaptiv solutions in capital markets, but more demand is coming from corporate markets where companies are focussing on risk to meet increasing regulation.” Reflecting the corporate sector’s slight lag behind the banking sector in terms of automated risk management, Bayer is reporting on an end-of-day basis on many of its risk measures, but is expected to work with SunGard to meet the emerging banking standard of real-time reporting.

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Streamlining trading and investment processes with data standards and identifiers?

3 June 2025 10:00am ET | 3:00pm London | 4:00pm CET Duration: 50 Minutes Financial institutions are integrating not only greater volumes of data for use across their organisation but also more varieties of data. As well, that data is being applied to more use cases than ever before, especially regulatory compliance and ESG integration....

BLOG

Unstructured Data Webinar: Taming the New Frontier of Data Management

How can institutions get an edge from their data when much of the information they use has become commoditised? That’s one of the questions driving efforts to extract the most meaning and value from unstructured sources of data, pools of information that have until recently been largely out of reach for all but the biggest...

EVENT

TradingTech Summit London

Now in its 14th year the TradingTech Summit London brings together the European trading technology capital markets industry and examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

Enterprise Data Management, 2009 Edition

This year has truly been a year of change for the data management community. Regulators and industry participants alike have been keenly focused on the importance of data with regards to compliance and risk management considerations. The UK Financial Services Authority’s fining of Barclays for transaction reporting failures as a result of inconsistent underlying reference...