Introduction to Financial Risk Management (FRM)

The FRM application is built on Analytics, Transact Data Hub (TDH) and Temenos Data Lake (TDL) platforms. It is integrated with Temenos Transact and delivered as a pre-packaged and upgradeable risk management software. It enables the clients to:

Navigate complex regulatory and compliance landscape
Run sophisticated risk models
Ensure profitable and risk-informed decisions for greater efficiency and transparency

The FRM application consists of three modules and they are:

Risk and Reporting Dataset Overview

FRM product’s architecture is built on Analytics platform to interact with Temenos Transact on near-real-time basis using DES/TDE as shown below:

Regulatory frameworks such as Basel III/IV and Capital Requirements Regulation 2 (CRR2 - issued by European Banking Authority) impose strenuous compliance and reporting requirements that create many challenges for financial institutions. Only organizations that can leverage the data available in their core banking platform and seamlessly integrate with downstream Risk and Reporting systems will be able to navigate complex regulatory and compliance requirements.

The Risk and Reporting Dataset (RRD) module offers specifically developed and a curated centralized Risk Reporting data repository that banks can leverage. The banks can also use out of box API endpoints that provide required data for downstream Risk systems. RRD comes with a set of thirty two (32) pre-configured data-flows and thirty (30) APIs.

RRD is part of Temenos’ Financial Risk Management (FRM) solution and underpinned by the Analytics, Temenos Data Lake (TDL) and Transact Data Hub (TDH) platforms.

By utilizing the Temenos Data Lake platform, FRM harness real-time structured data from Temenos Transact and curates, ingests and blends large volumes of data required for Risk modelling and other regulatory calculations and reporting. Banks can now implement a single, governed, data hub for any downstream Risk and Compliance reporting systems.

The below table lists the data flows available in the RRD module:

Data Flows	Description
Organisation	Indicates the data required for classification purposes. For example, data such as Company, Country, Rating, Product Types, and so on
Customer	Indicates the key customer information such as CIF, Name, Address, Residence, Status, Target, Segment, Rating and so on
Limit	Indicates the customers’ Limit information such as total limit granted, utilized limit, unutilized limit, Limit expiry, and so on
Account	Indicates the Exposure data and Deposits information from all Temenos Transact modules and any third party source (for example, Credit Cards)
Cashflow	Indicates the cash inflows and outflows data required for Basel III and Liquidity Risk modelling
Collateral	Indicates the collateral information as well as exposure and customer linkages
Provision	Indicates the provision data along with exposure and customer linkage
Balance Sheet	Indicates the Balance Sheet and Profit and Loss balances to derive operational losses as well as capital accounts
Portfolio	Indicates the portfolio information and securities linkages
Securities	Indicates the all securities related information including rates and prices

Following are benefits of RRD module:

All data elements required for BASEL III risk calculations and regulatory reporting in terms of financial risk management provided through data sets.
Data elements needed for COREP reporting are provided through data sets
Data Set is compliant with BCBS239 (Basel Committee on banking Supervision regulation number 239 – Principles for effective risk data aggregation and risk reporting)

List of Risk and Reporting Dataset APIs

Risk and Reporting Dataset APIs are the API end-points exposed through Analytics API services for third-party applications to consume. Output of these APIs are in JSON format.

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