Swedbank signs for Aleri liquidity risk manager

Source: Aleri

Aleri Inc., a leading provider of enterprise-class complex event processing (CEP) technology and CEP-based solutions, announced today that Swedbank has selected Aleri's Liquidity Risk Manager (LRM) as its liquidity risk management tool which will be used by the bank's Group Risk, Compliance & Finance, and Treasury departments.

By implementing LRM, the bank will have a single solution that will deliver an enterprise-wide view of its liquidity risk exposure, enhancing capabilities in managing and minimizing liquidity risk and meet regulatory demands.

"Aleri LRM will provide us with a flexible management, reporting and a stress testing environment that will enable us to model stress events and gain insight into how different scenarios impact the bank's liquidity exposure and assets value," said Erik Öhman, Head of Operations, Swedbank Markets, Swedbank. "We feel LRM will provide us with the tools to successfully manage and limit our exposures to risk as we move forward beyond the crippling effects the global financial crisis has had on the industry."

Aleri LRM allows banks to analyze, global operational liquidity risk over a short- to medium-term time horizon at a high level of granularity, looking at projected liquidity by product, business line, location, and currency under different economic scenarios. It provides insight into the effects of stress events on enterprise liquidity, enabling more effective contingent liquidity risk management practices and allowing banks to analyze and act on fast moving data by:

- Calculating forward liquidity exposure (FLE) positions
- Identifying periods at risk
- Defining and storing liquidity scenarios and parameters by end users themselves
- Running on-demand stress scenarios against FLE positions
- Intelligently applying and recommending use of counterbalancing capabilities to FLE positions
- Improving liquidity mismatch reporting to regulators (EMR) and bank's management.

"Because of the economic crisis and emerging regulatory compliance requirements, banks have started to implement better tools and processes for managing liquidity risk with a new sense of urgency," said Don DeLoach, CEO & president, Aleri. "We are pleased to see that Swedbank, along with many others, are benefifiting from Aleri's risk management solutions. As the growing need for and adoption of CEP technology continues, Aleri will continue to provide its customers with invaluable solutions to give them the competitive advantage they need to succeed."

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