FRP from Financial Architects (FinArch) is gaining rapid and world-wide recognition as the definitive future platform for integrated risk and finance solutions for financial institutions. A fact now recognized by leading industry analyst, Chartis Research.
The future of risk and finance solutions is to provide them from a single technological platform, based on a single source of truth, or common data layer, according to Chartis Research in its report Risk & Finance Integration ( December 2009).
Financial Studio, FinArchs integrated risk and financial solution not only conforms to this paradigm, but is a market leader in terms of the vision and breadth of its functionality, says Peyman Mestchian, managing partner at Chartis. This makes the FinArch platform a key enabler for breaking down the organizational and data silos that contributed to the recent financial crisis.
To be the proud recipient of this accolade demands focus and dedication to understanding the needs of the financial services market. There are 4 cornerstones to delivering integrated risk and finance solutions and, if to lead such a market, a vendor has to demonstrate excellence in all 4 domains and an a seamless integration of these 4 domains. FinArch clearly achieves this.
FinArch is a market leader in the provision of Accounting solutions:
Real-time event based accounting
IFRS, with embedded accounting rules
Multi-GAAP accounting from event to disclosure
Sub-ledger and trading ledger at contract level
Comprehensive calculation engine
oFair Value
oAmortised Cost, etc.GL functionality
FinArch is a market leader in the provision of Integrated Risk Management:
Modeling and measurement of a comprehensive array of risk types
Coverage of all regulatory drivers:
oBasel II, all pillars
oLiquidity RiskMaturity curve and strategic framework for the management of Risk and Capital
oEconomic Capital – Aggregation and Allocation
oRisk Adjusted Performance Measurement
The 3rd and 4th cornerstones are Internal Reporting and External Reporting. FinArch provides integrated Compliance Reporting in more than 15 countries. More importantly, FinArch recognizes the importance of internal reporting. Their solution is fully equipped with Budget and Control functionality along with Cost Allocation, Fund Transfer Pricing, Profitability (multi-dimension). The solution also comes with a sophisticated reporting tool for the creation of ad-hoc reports and a complete set of reporting on the dimensions of Accounting and Integrated Risk Management.
The true value of Integrated Risk and Finance solutions comes in the synergies proffered across all 4 of the above dimensions. Liquidity Risk demands Cash Flow generation (contracted and forecast), Amortised Cost demands PD modeling results, Risk Adjusted Performance Measurement demands comprehensive profitability analysis based on sound accounting results combined with a comprehensive assessment of Economic Capital and a variety of other risk types. It is, therefore, increasingly essential to provide these functions in a seamless and integrated fashion based on a single source of the truth in terms of data.
With the deluge of regulatory change it makes sense to select a platform solution that leverages all previous investment in meeting new requirements. This drives down the cost of regulatory change and greatly increases time to compliance while freeing up the organization to focus on more value add initiatives.
Such a platform provides sound management reporting critical in the measurement of an institutions performance and the performance of its people serving as an ideal platform for the measurement of remuneration packages for key personnel.
Another core value of this paradigm is the economy of scale it offers. It is important that financial institutions can leverage investments in new technologies. Financial Studio is modular and can be implemented as building blocks tactically but in line with a strategic transformation
D.C.