Oracle has unveiled Oracle Regulatory Capital Manager, a new offering designed to help financial services providers comply with Basel II, which is scheduled to take effect from 1 January 2007.
Oracle Regulatory Capital Manager aims to enable financial services organizations to capture and analyze the data required under Basel II, and subsequently calculate regulatory capital using any of the methods prescribed by the Accord.
Financial services institutions can also analyze, edit and review calculations and data to help them in pursuing their optimal regulatory capital strategy. In addition to ad-hoc reporting capabilities, the offering provides reports that let institutions view key regulatory capital data and help them meet mandatory external reporting requirements.
“Our vision for Oracle Regulatory Capital Manager extended beyond delivering a basic tool to help financial services organizations achieve baseline Basel II compliance,” says Steven Miranda, vice president, Application Development at Oracle. “Instead, we designed a broad, highly flexible product that enables financial institutions to incorporate risk management into their daily business processes as a driver for improved business intelligence and performance. For example, out-of-the-box integration with other Oracle E-Business Suite applications, such as Oracle Performance Analyzer and Oracle Funds Transfer Pricing, allows financial institutions to use regulatory capital results to determine account, customer, business unit and product profitability measures on a risk-adjusted capital basis. The integration with Oracle Internal Controls Manager, another Oracle E-Business Suite application, allows financial services companies to leverage their regulatory investment to decrease regulatory capital and compliance costs even further.”
Oracle also announced that Oracle Consulting Services, as well as Deloitte MCS Limited in the United Kingdom (Deloitte Consulting-UK) and Deloitte Consulting LLP in the United States (Deloitte Consulting-US), are Oracle’s preferred implementers of the Oracle Regulatory Capital Manager.
“Deloitte Consulting-UK and Deloitte Consulting-US are uniquely positioned to help Oracle bring its Basel II offering to the U.K. and U.S. markets,” says John Keane, Principal of Deloitte Consulting-US. “The combination of the recognized experience of Deloitte Consulting-UK and Deloitte Consulting-US in risk management, regulatory compliance and technology solutions, and Oracle’s leadership in data management and applications for risk and business management raises the bar for competitors in this market.”
Oracle Regulatory Capital Manager is built on Oracle’s comprehensive Enterprise Management Foundation, which incorporates enterprise wide data into a single data store. Oracle says this approach facilitates making enterprise information internally consistent and readily accessible. The platform also enables independent software vendor (ISV) applications running on Oracle technology to receive and update information to maintain its accuracy.
Oracle says it significantly enhanced its Enterprise Management Foundation to help companies address Basel II requirements. Enterprise Management Foundation collateral tables, for example, now hold all necessary information for incorporating adjustments to Risk Weighted Assets (RWA) under the Basel II framework. In addition, Oracle has seeded the platform with required Basel II data categorizations, such as operational risk business lines, product and transaction types, rating types, customer types and asset classes.
Oracle Regulatory Capital Manager complements Oracle’s other risk management products – including Oracle Internal Controls Manager, which enables executives, controllers, internal audit departments and external auditors to document and test internal controls and monitor ongoing compliance. It also enables financial organizations to simultaneously track and monitor risks from multiple compliance environments, such as Sarbanes-Oxley and ISO 9000, in addition to Basel II.
Oracle Regulatory Capital Manager will be available by early 2005.