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Capital Analytics
Change the dynamic
For many business lines within financial services firms, conversations about regulatory capital and economic capital can sometimes feel one way. Each year they are simply told the capital assigned to their business, and they can have little understanding as to how they might lower that capital number for the following year. This often happens because risk teams don’t have the tools they need to provide additional insight. aCCelerate GRC Capital Analytics enables firms to have more business value-centred conversations around capital.
Enable proactive conversations
aCCelerate GRC’s Capital Analytics enables the operational risk team to give the business the ability to see clearly why their capital numbers are what they are, and have informed discussions with operational risk teams about the impact of changes to risk exposure and control effectiveness. With aCCelerate GRC Capital Analytics, organisations can:
- Calculate and allocate operational risk capital to business lines, leading to fully risk-adjusted return on capital (RARoC) values.
- Align capital with the organisation’s risk appetite and operational risk framework.
- Compare regulatory and economic capital charges across multiple user-set business lines and user-set loss event types.
- Measure business line performance based on capital allocation.
- Enable the business to better understand the relationship between risk and capital. Identify areas for risk environment enhancement and incentivise the business towards better risk management.
- Choose how much data to use to calculate capital from internal losses, external losses, RCSAs and scenario analysis.
- Calculate easily the capital to be allocated to each business line by loss event type.
- Provide the board and C-suite with “what if” scenarios to help them understand how strategic decisions or potential loss events could impact capital.
Additional support for calculating capital
Many organisations seeking to learn better ways to approach regulatory capital and economic capital calculations have partnered with RiskLogix Consultancy and RiskLogix Training. Both of these services have enabled hundreds of financial services firms around the globe to discover new approaches, and implement them fast and efficiently.
