The implementation of the software is part of the bank’s major transformation project, the Finance and Risk Architecture Alignment Initiative (FRAAI), which is designed to better meet increasing requests internally as well as from regulatory bodies for ever more granular or different data within shorter time lines.
Better management of high-quality data and improved risk analytics are key pillars to meet the increasing need for control, intelligence and insight in the bank’s performance. At the same time the bank aims to optimize its IT maintenance costs, promote automation and increase the efficiency and agility of the finance and risk processes.
Together, Wolters Kluwer and SAS will provide the software component ABN AMRO needs to achieve these goals.
ABN AMRO finance director Kees Visser, “Following a thorough evaluation of a wide range of available solutions, ABN AMRO opted for a truly integrated approach that will complement the FRAAI objectives.
“The partnership of Wolters Kluwer, with its excellent reputation in regulatory reporting, ALM and finance, along with SAS and its strength in credit risk and stress testing, means we will have a powerful software solution to comply with current and future reporting requirements. We will be well positioned to ensure increased data granularity and transparent data lineage.”
As part of integrated application landscape, ABN AMRO will use SAS risk and finance capabilities including:
Data management and visualization: This will ensure that all risk and finance data is properly sourced, processed, governed and available for self-service analysis and reporting. Maintaining end-to-end data lineage across the entire FRAAI landscape will be crucial.
Finance and risk analytics: Whether it is estimation of risk parameters, or handling all FRAAI forecasting activities for scenario-based capital planning, IFRS 9, stress testing and Pillar 2 capital requirements, SAS risk solutions will make these processes more efficient and more valuable to the Bank.
Enterprise model risk management and process orchestration: SAS risk governance capabilities will be used across the bank, promoting transparency, traceability, and automation of the various FRAAI processes.
ABN AMRO will also use Wolters Kluwer’s OneSumX for Regulatory Reporting, along with OneSumX for Finance and OneSumX Asset and Liability Management (ALM), ensuring an integrated approach to all finance, risk and reporting processes at the bank.
OneSumX for Regulatory Reporting uses a single source of data to ensure consistency, reconciliation and accuracy and includes the firm’s Regulatory Update Service which actively monitors regulation in approximately 50 countries.
OneSumX for Finance, meanwhile, provides financial institutions with fully integrated finance functionality, from event to disclosure, with built-in content and expert support to flexibly address the finance challenges in this fast-moving business and regulatory environment.
OneSumX ALM is a centralized data repository combining contract data, balance sheet structures, counterparty and market data complements the ALM solution and is an integral part of the overall system.
To ensure seamless integration and efficient integration of information, SAS and Wolters Kluwer will create an Exchange Layer to connect their respective software components.
SAS senior vice president and risk management division head Troy Haines is committed to the success of the FRAAI project. He said: “We recognize the importance of strategically combining our data management, visualization and finance and risk analytics capabilities with the finance and regulatory reporting strengths of Wolters Kluwer.
"Together, we are uniquely positioned to provide a truly integrated finance and risk application ecosystem that will help ABN AMRO to effectively tackle the increasing regulations, promote automation, as well as become more agile and cost-efficient. A true win-win across the board.”
Wolters Kluwer executive vice president and finance, risk and reporting business, general manager Clive Pedder said: “ABN AMRO, like all major banks, is acutely aware of the trend for increased data granularity and transparent data lineage. Its FRAAI project seeks to ensure one central data storage, based on a truly integrated regulatory compliance and reporting solution.
"ABN AMRO rightly has exacting standards and, following a robust competitive tender process, I am delighted our team of experts has been chosen to work with the bank and our partners at SAS to provide ABN AMRO with a transformational software solution. Implementation of this platform will be crucial for ensuring the bank’s finance, risk and reporting obligations are achieved.”
