Adenza’s AxiomSL to automate AIB’s credit risk calculations and regulatory reporting

By Joy Dumasia

Adenza, the new company formed by the merger of Calypso Technology and AxiomSL to provide customers with end-to-end trading, treasury, risk management and regulatory compliance platforms, announces that it has been selected by Allied Irish Banks, p.l.c. (AIB) to support the bank’s credit risk, securitization, leverage ratio and significant exposure risk reporting throughout Europe and the UK.

Adenza’s AxiomSL risk solutions, which are used by the majority of the world’s Global Systemically Important Banks (G-SIBs), deliver a consistent, automated approach to capital and credit calculations, data management and analytics. The solutions enable banks to manage a wide range of global regulatory risk requirements based on a common data dictionary that harmonizes the intricacies of multi-jurisdictional reporting requirements, national discretions and agency-specific divergences. These include international and cross-regional compliance with the rules developed by the Basel Committee on Banking Supervision (BCBS), such as internal ratings-based approaches (IRB) and standardized approaches for counterparty credit risk (SA-CCR).

Jim Smyth, Head of Regulatory Reporting, AIB, said: “Adenza’s AxiomSL centralized and highly scalable approach to both standard and advanced credit risk calculations enables AIB to meet risk calculations and reporting requirements without the need to reinvent and rebuild new technology each time regulatory obligations change. We felt it was important to work with a firm that can deliver high powered reporting solutions across the regulatory reporting suite for today and in the future.”

Adenza’s AxiomSL risk calculation solutions have allowed AIB to improve efficiency and minimize overhead while providing traceability across all complex calculations. Adenza’s risk calculation engine is part of the AxiomSL ControllerView data integrity, data lineage and control platform, which allows institutions to ingest external model results, add source data and transform disparate data points into a Basel-driven data dictionary that supports advanced regulatory calculations, reporting and submission from a single source. This approach allows users to address multi-jurisdictional regulatory calculations and reporting requirements with a data-focused, consistent process that facilitates explanation of changes in risk exposure and also helps to identify what caused those changes and where they occurred.

Ed Probst, Head of Strategy Regulatory Solutions Adenza, said: “Banks are expected to not only produce risk capital reporting results but also be able to show a clear audit trail. Our data dictionary-led approach to credit risk is allowing AIB and other leading banks to automate risk calculations, drawing on data from across the entire institution, without compromising auditability.”