IMValue™ as an industry first will capture, predict and intervene potential risks
Information Mosaic, the world’s most trusted post-trade software company, announced today it has launched IMValue™ -a set of industry endorsed KPIs and tools that allow financial institutions to capture, predict and intervene on potentially risky situations in their post-trade environment before they happen.
Industry commentators are coming out in support of the model, as analytics and outsourced services become increasingly hot topics.
Roger Harrold, securities services industry expert and advisory council member for the Chartered Institute for Securities and Investment (CISI), enthusiastically supports the need for predictive risk analytics. “It is refreshing to see the process that Information Mosaic is engaging in, creating real thought leadership around next generation analytics,” says Harrold. Historically, considerable focus has been given to the risk management process in the front-office or within the portfolio.
“Information Mosaic is thinking through the post-trade operations and the function holistically, bringing the same type of thinking that we know from the front-office to the all important operational risk oversight process. The classic operational risk process that outlines historic events together with the actionable items from audit and regulatory reports or indeed client complaints are important,” observes Harrold. “However, Information Mosaic is going much further in developing solutions around optimal models for operational processes. Using in-line analytics through a management dashboard – IMValue™ can capture, predict and intervene on potential risks before they happen. This focus on using efficient and accurate post-trade data plus current trend and analysis is market leading”.
Harrold identifies the three elements that he believes many organisations will have to address in order to significantly improve the ability to enhance operational risk management and reporting:
1. The ability to process transactions only once. Sounds simple, but it is extraordinarily hard for organisations to do, especially those that operate in multiple geographies and with multiple business lines. This has obvious cost, time and potential risk implications, and Information Mosaic’s predictive analytics can provide intelligent, scalable solutions in this space.
2. Creating a golden data record. Data used in multiple processes doesn’t always come from the same source, so isn’t necessarily reliable. Organisations keep client, counterparty, securities, location data and collateral limits in multiple places which simply increases the huge effort to maintain consistency. The need for reliable, accurate and current data is paramount for an organisation, especially for operational risk reporting. By definition, the ‘devil is in the detail’ and the details must be accurate. Information Mosaic has embraced this concept and the model provides robust solutions to address this critical requirement.
3. Timely reporting. The above, directly impacts the quality of information and ultimately the client and regulatory reporting. The sheer volume of reporting and the complexity demands very efficient structures to execute the automation. This is turn has a direct impact, not only on regulatory reporting with the associated financial and reputational risk of errors, but also directly impacting balance sheets for collateral and liquidity (capital requirements).
The concept of off-shoring has undoubtedly brought scale benefits to organisations. But the many fragmented processing locations, often different for the separate business lines, create additional challenges. The human end-to-end process knowledge and the in-depth securities foundation necessary to process securities effectively have become more diluted. Therefore the need for superior operational risk tools has become ever more important.
Harrold concludes, “I have been impressed with Information Mosaic’s proactive, predictive approach and holistic framework.”
About Roger Harrold
Roger Harrold is a securities industry professional for the past 25 years. Based in Singapore, Harrold is an advisory council member for the Chartered Institute for Securities and Investment (CISI). An experienced commercial (transaction) banker, he has managed both global and regional business within a multi market environment to provide securities services, treasury and cash management to leading institutional clients worldwide. His past experience includes Product Executive at JP Morgan Chase and Managing Director of Deutsche Bank.
About Information Mosaic
Information Mosaic is the world’s most trusted post-trade software company. As an international team of industry experts we architect and deliver intelligent post-trade software applications to the capital markets globally. We have a proven history transforming business models for the world’s premier financial institutions, enabling them to enter new markets, reduce risk, increase profitability and improve service standards.
We do this by seamlessly managing the huge volume and complex processing of all core post-trade services. These include asset servicing, securities and cash processing, portfolio administration and post trade analytics. Information Mosaic supports the post-trade operations of over 60 financial institutions worldwide.
Our team of experts supports our global customer base from offices in Dublin, London, Melbourne, New Delhi, Singapore, Kuala Lumpur and New York.