SunGard will create a centralised operational framework for credit and market risk management, including initial margin and potential future exposure, as part of a strategy to modernise risk capabilities.
The solution should help SNS to adopt market standards, particularly around principles of Basel and other regulatory bodies, while adapting to change and maintaining profitability.
It will integrate with SunGard’s existing treasury platform, providing a framework across treasury, trading and risk activities and driving improved valuation and control processes.
It is hoped that the upgraded platforms will provide one central platform, consolidating all valuations for an integrated intra-day view of risk across the trading and banking book. This could lead to are more accurate and holistic insight in to real risks, and therefore more efficient risk management.
SunGard’s hosted and managed services could also help SNS’s financial markets division to retain a focus on core competencies.
Bart Toering, managing director of SNS Bank, said: “As part of our strategy to transform SNS’s risk operations and improve regulatory compliance, upgrading our technology is vital. We are taking a proactive approach to modernising our infrastructure across treasury and trading, so we can not only fully meet regulatory requirements, but drive business advantage from the benefits of new technology.”
“Having a complete view of risk will help ensure better management, mitigation and overall business performance. Our long and successful relationship with SunGard played an important role in our choice”
Craig Costigan, president of risk and compliance at SunGard, added: “Market standards are increasing in complexity for treasury, trading and risk management, leading banks to steer more accurately and profitably.”
“Our market and credit risk functionality will help SNS Bank meet requirements in this area, as well as laying the foundations to support other regulations that come into effect this year and beyond. As a company that delivers risk solutions to customers worldwide, SunGard is well placed to help SNS navigate the complex regulatory landscape and build a risk platform that aids competitive performance.”