Misys has developed the risk aggregation tool and interactive dashboard it introduced as a component of Misys Global Risk in November 2012 to deliver Misys Risk Insight, a broader solution with dynamic functionality aimed at meeting the needs of both risk officers and business managers.
Misys Global Risk, a modular enterprise risk platform, was the first solution that combined former Turaz and Misys technologies after Vista Equity Partners completed the acquisition of Misys and merged it with Turaz, formerly Thomson Reuters Trade and Risk Management business in June 2012. The solution included Risk Transparency, a component of Turaz’s Kondor Global Risk software that focused on standard risk questions and reporting screens for risk managers.
Recognising the desire of executives other than risk managers to question and understand risk data, Misys has developed Risk Transparency into Risk Insight. The software continues to provide a real-time view of enterprise risk, but adds key risk indicators and what Misys calls watch points that can be created and used by executives to follow specific situations that could affect their areas of business. As risk priorities change, the watch points can also be changed by users without recourse to the IT department and a request for new risk reports.
Risk Insight also includes a social media style capability that allows users to ‘follow’ colleagues monitoring particular watch points and comment on them in a communication stream that looks something like Twitter. The software can be accessed from smartphones, tablets and other mobile devices with users having the same experience regardless of the device.
The solution works across Misys Global Risk modules as well as third-party applications and in-house systems, using open representational state transfer application programming interfaces (Rest APIs) to support data aggregation. This means Risk Insight could be sold as a stand-alone application – Risk Transparency could only be used as part of Misys Global Risk – but the company does not expect significant take-up on this basis as the software will not provide optimal performance when combined with installed risk systems that do not compute in real time. Instead, it expects banks that are already using some Misys Global Risk real-time modules to derive better value from the software as it will help them follow risk exposure in real time.
Thierry Truche, head of product management, Misys Global Risk, explains: “Misys Risk Insight provides senior management with full and immediate transparency on the risks taken by all business units. Whether looking at long-term risks, such as asset liability management, or more time-critical risk, such as market risk, critical exposures can be more easily identified, followed and addressed. Risk Insight also provides chief risk officers and senior managers with continuous assurance that all business units are operating within the defined risk appetite and risk strategy.”
Existing users of Risk Transparency will be upgraded to Risk Insight free of charge, with new clients paying a licence fee for the software. Truche says the company is close to a deal with one new customer and is discussing upgrading to Risk Insight with four Risk Transparency users. He suggests changes to accommodate the software will be minimal as it will sit on top of the components that compute risk within Misys Global Risk and aggregate data through the Rest APIs.
Risk Insight was released to the market last week, but development is ongoing with capability to optimise hedging at the enterprise risk level due to be available late this year.