Riskalculator is an integrated, flexible, modular Basel II and Basel III Regulatory Capital calculator. It operates on a single platform with a single underlying data model, insulated from a bank's information architecture. It adopts a lightly normalised but subject-oriented data
modeling approach to create a 360 degree view of bank's risk profile. It creates risk regulatory reports as per national regulator's format. There are also various MIS reports based on risk computations. Apart from having a regulatory capital computation engine, Riskalculator has modules for ALM and other regulatory compliance reporting engine.
Banks are looking for an Integrated Basel II / Basel III solution that directly interfaces with transactional databases and generates Basel II Regulatory and MIS Reports seamlessly. The challenge that a Bank faces in implementing a Basel II and Basel III solution is data. The credit data may be available in the Core Banking System (CBS), treasury data may be available in the Treasury system and the data on collateral may again be on another system. But calculation of Regulatory Capital requires integration of all the data to generate various Regulatory and MIS reports for Regulatory Authorities and for Management.
Riskalculator accepts Data from Core banking and other applications which a bank can put into a designated area, called staging area, from where our application picks up data without any manual intervention in a batch mode. We have a fixed data format through which a bank generates data from its CBS and provides the same to the application in different ways like database views, text files etc. The application allows a bank to meet all the standards prescribed in the Basel II (including Pillar 1, Pillar 2 and Pillar 3) and Basel III accords.
Integrated Basel II and III Solution
That supports complete Pillar 1 & Pillar 2
calculations and Pillar 3 reporting
Web Based Solution
For centralised hosting and easy access to
For complete Regulatory and Management review
A dashboard like user interface that allows
users to provide data items that are missing
from bank's production systems with
Staging Area for Data Transformation and Loading
The system accepts data from Core Banking System and any other banking application directly through a generic format but customised
to handle bank-specific data definitions
Risk Dashboard and Reporting
With in-built Regulatory and Management Reports in graphical formats with drill down facility to provide a macro view that can be customised
as per client requirements
To provide access to modules depending on the authorisation
granted to each user
Modular and parametric
To easily accommodate the Regulatory and
Business Environment changes
It is an integrated, flexible, modular Risk Management application for the banking sector that
covers all types of risks.
The application computes Regulatory Capital as per Basel I / Basel II / Basel III norms prescribed by a regulator.
Riskalculator operates on a single platform with a single underlying data model, insulated from a banks information architecture.
Various modules of Riskalculator work on that same database. A bank may choose to subscribe any portfolio of modules as per its preference.
a. Credit Risk
i. Standardised approach
ii. Foundation IRB Approach
iii. Advanced IRB Approach
b. Market Risk
i. Standardised duration-based approach
ii. Internal Model (VaR) based approach
c. Operational Risk
I Basic Indicator approach
ii. Standardised approach
iii. Advanced Measurement Approach
• Key Risk Indicator - identication, measurement and monitoring
• Risk control and self-assessment process
• Loss Data Capture
• VaR computation by compounding frequency and severity distribution
d. BASEL III (Liquidity Reports)
e. ICAAP Process
I Credit Risk Stress Testing
ii. Market Risk Stress Testing
iii. Strategic and Reputation Risk
iv. Credit Concentration Risk
v. Liquidity Risk
vi. Interest Rate Risk on Banking Book (IRRBB)
i. Regulatory Capital Adequacy Reports
ii. MIS Reports for various risk categories
iii. ALM reports
g. Regulatory Compliance Reporting Solution
It accepts Data from Core banking system which a bank can put into a designated area, called staging area, from where our application picks up data without any manual intervention in a batch mode.
The application requires data in a fixed format through which a bank can generate data from its CBS or any other structured production system (treasury, loan origination, etc.). Data validation and data quality assessment are carried out in the staging area. Thereafter, data goes directly into Riskalculator’s own database seamlessly.
Riskalculator provides a customisable Graphical user interface(GUI) through which a bank can input such missing data. Excel upload is also possible. The application provides maker-checker, rectification and modification facilities for such user inputted data.
Riskalculator uses the following information security standards for maintaining high level of security and confidentiality of data
User management is based on user role-rights
For e.g. Role called Maker have an access to GUI Forms functionality. Similarly, Checker has an access to Approval of GUI Forms functionality.
Maker / Checker functionality helps to authenticate transactions
For e.g. role called Maker of the Bank can submit data for verification to Checker, how can review / authenticate the data.
Audit Trail reports are available to verify and track any previous transactions
For e.g. admin user can verify the login history with IP address of users through Audit Trail Report functionality.
Password Management with encryption to authenticate the users
For e.g. User cannot see the password during the login and also the password saved in the database is in encrypted format.
User-friendly interface for ease of the end-user
For e.g. user can log onto the Riskalculator application with the same login credential of his organisation. No need to maintain different login credentials for different activities/applications.
Maker / Checker functionality helps to authenticate transactions
For e.g. the help file is provided on all the menus, also tool tips are provided for formulas for easy reference of the end-users.
Application gets information from upstream production system and loads those using database utilities and / or scripts. In case of any failure to load extracted data from the production system to the application database, the fact of failure is logged and user can see the exact reason behind the rejection and can re-invoke the scripts or utilities post remedy. Also, a daily backup is scheduled on database server. In case, the whole database needs to be restored, a whole month backup would be available.