Arab Banking Corporation is to implement an enterprise wide risk management system using technology supplied by Canadian vendor Algorithmics.
The initial market risk implementation of the Algo Suite solution at ABC is to include value at risk, stress testing, concentration risk, liquidity risk, back testing and sensitivity analysis. The project will aim to consolidate a wide variety of currencies and instruments, including foreign exchange, equities, fixed income, money market instruments, commodities, options, mutual funds and Islamic products.
ABC says it intends to progressively extend the solution with the ultimate aim of giving the bank's treasury group a complete view of how market, credit, liquidity risk and asset liability management interact across the enterprise.
Ron Dembo, president and CEO of Algorithmics says: "ABC is our first client in the Gulf States, and an important partner for our future growth in that region. The ability of Algo Suite to incorporate banking products and ALM into the mark-to-future enterprise-wide risk framework are important features for banks within the Gulf States."