FRSGlobal

24/08/2009

FRSGlobal introduces RiskPro Contingent Gap Analysis to strengthen liquidity risk insight

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Brussels - August 24 2009: FRSGlobal, the only global provider of risk and regulatory compliance solutions on a unified platform with coverage for over 40 countries, today announced that it has introduced Contingent Gap Analysis. This functionality is part of the Liquidity module within FRSGlobal's unified risk and profitability analysis solution, RiskPro, and will enable the banking, insurance and corporate sectors to thoroughly assess the source of contingency of future cash flows.

The Contingent Gap Analysis functionality considers customer behaviour under both 'normal' and 'stressed' market conditions, and qualifies anticipated cash flows according to the source of contingency, which means that users can assess the firm's liquidity with higher degree of accuracy.

The Contingent Gap Analysis separates:

• Market contingent flows: Cash flows that are subject to the evolution of market risk factors. The market risk factors encompass exchange rates, interest rates, indices and volatilities. These risk factors impact any foreign currency contract, variable rate contract, stock/index contract, derivative and option contract
• Behaviour contingent flows: Cash flows that are subject to counterparty behaviour (such as pre-payments, roll-overs and replications) and counterparty characteristics (including credit enhancements such as collateral, guarantees and close-out netting)
• Deterministic flows: Cash flows that are not subject to any expected market, behavioural or counterparty influence

Thomas Brouwer, Head of Product Management, FRSGlobal, commented: "The global financial services industry is faced with a call for better risk management so that the market may become stable again. The addition of Contingency Gap Analysis to RiskPro means that managers can have a more transparent view of the type of liquidity risk they are exposed to, which is vital for financial institutions to make highly-qualified strategic decisions with confidence."

FRSGlobal's RiskPro solution covers a broad scope and depth of financial analysis ensuring consistency of results and reduction in the costs of analysis. It includes:

• Easy-to-use and highly flexible modular software platform satisfying the internal and external analysis requirements in financial risk analysis - for small to large organisations
• Extensive financial product coverage - from savings accounts, complex loans and insurance instruments to exotic options and structured products
• Experienced and talented implementation and support resources - providing quality services and complete knowledge-transfer to ensure effective solution implementation, use and support
• This covers worldwide accessibility and global delivery capability through local presence and international teams.

About FRSGlobal

FRSGlobal is the only provider of risk management and regulatory compliance reporting solutions on a unified platform with a single data model.

FRSGlobal solutions are a combination of modules from RegPro and RiskPro, sharing a single DataFoundation and CalculationEngine:

• RiskPro provides profitability analysis across the following risk types: Asset Liability Management (ALM), Liquidity, Market, Credit, Basel II, IFRS/IAS32 and 39, Solvency II, Funds Transfer Pricing and Economic Capital.



• RegPro enables financial institutions to address major regulatory and compliance requirements locally and globally - with reports for more than 30 countries.



• Subscribing clients benefit from the FRSGlobal Guarantee, which ensures the regulatory reports are maintained in line with the Regulators' requirements.



• FRSGlobal Centre of Risk & Regulatory Excellence monitors risk and regulatory activities in 100+ countries.