Solvency II Compliance achieved with Risk Integrated's Specialized Finance System

New York / London – April 12, 2016 – Risk Integrated, the leading technology firm focused on risk measurement for commercial real estate, today announced that a leading global insurer has gained regulatory approval to use the Specialized Finance System as their internal model to calculate regulatory capital requirements under Solvency II. Risk Integrated's Specialized Finance System (SFS) is also being used for gathering detailed data on its commercial real estate loans, reporting on the assets' risk profile and structuring new loans.

At a time of increasing regulatory and risk management pressures, the client is using the SFS to strengthen the reporting of its commercial real estate (CRE) assets to give management, the board and regulators an increased understanding of the portfolio. They are also using the SFS to provide a competitive advantage when originating new transactions by gaining deeper insights into the sources of risk. A senior executive risk manager in the organisation commented that 'We see the SFS as providing both regulatory compliance and a competitive advantage. This tool is a key factor for integrating all the aspects of risk management across the business'.

At the core of the SFS there is a set of highly detailed cashflow simulation models. The models are transparent and under the control of the client's analysts to incorporate its business expertise. The resulting reports allow users to see the interaction of the risk factors within each deal's structure. Examples of detailed cashflow risk reports are shown at this link: Dissecting CRE Loan Risks

Dr. Yusuf Jafry, Risk Integrated's CTO, commented that 'I am delighted that they have selected the SFS. From a technical point of view, our system's architecture and Cloud-based implementation platform made this a straightforward deployment to all their the globally-distributed business units.' All of Risk Integrated's deliveries are now made using the Cloud, often as a pioneer application for the clients, being one of the client's first applications to be run on the Cloud.

Risk Integrated's CEO, Dr. Chris Marrison noted that from the beginning the architecture of the SFS was designed as an integrated platform to go beyond compliance to be a competitive advantage supporting deal origination, portfolio reporting, and fundamentally better management of the business: 'It is satisfying to see this client extract the full business value out of the risk measurement systems that were originally put in place for compliance'.


About Risk Integrated

Since 2001 Risk Integrated has focused on developing and delivering the most comprehensive risk measurement and reporting tools for specialized finance. The Specialized Finance System (SFS) includes detailed cashflow simulation models in a robust secure system for managing the models, data and users. Risk Integrated's objective is to give each client a clear view of their current risk on outstanding loans, to properly assess the 'riskiness' of new deals in the pipeline, and to show how the risks can be profitably mitigated. The SFS is compliant with Basel III, CCAR and Solvency II.

Risk Integrated's Generalized Finance System (GFS) provides a transparent, easily modified platform for implementing advanced simulation risk models for individual assets and complete portfolios. With GFS clients can grade and price individual assets, stress portfolios, and calculate multi-year economic capital with a single risk engine and central database.

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