Financial Intermediaries continue to seek avenues to deploy funds in maturing markets, whereby they are exposed to various risks in the marketplace. KASTLE Risk Management is a multi-entity, Web-based, Basel II compliant comprehensive Market Risk Management tool to identify, measure (Value at Risk) and control market risks for banks and financial institutions. It provides:
- An understanding of risks taken by an institution
- Measure risk exposure of the organization at various levels
- Control risk by implementing suitable strategies
- Capital charge (Market Risk) computation as per Basel II norms (both ’SA’ standardized approach and ‘IMA’ internal model approach)
KASTLE Risk Management is one of the sophisticated risk management solutions in which transactions entered or cash flow components are used as a base to arrive at a risk measure, known in the industry as the VaR number, covering most markets, including, Forex, Fixed Income, Money, Equities and Derivates.
This feature-rich risk management solution computes VaR using best practices of the industry, for Linear positions as in Plain Vanilla Spot Deals, or for Non-Linear deals such as Futures and Options.
The methodologies (VaR), as per industry standards, include:
- Risk Metrics (as suggested by JPMorgan)
- Historic simulation
- Monte Carlo variation of the simulation methodology
- Hull-White Model
Powerful features of this risk management solution include parameterization and VaR computation at varying confidence levels for varied time horizons. It can monitor the effect of hedge transactions, calculate incremental VaR, and undertake Back Testing and Stress Testing.
KASTLE Risk Management allows organizations seeking risk management solutions to take premeditated decisions pertaining to current exposures, while optimizing profits and minimizing costly errors due to lack of understanding of risk issues.
3i Infotech offers complete Basel II compliant solution for ‘Credit Risk’ and ‘Operational Risk’, in association with business partners.