Online Real Time Risk Management (ORMSV6)

In its 1999 debut,  Online Real-Time Risk Management version 6 (ORMSV6) became prominent to the broker and investment banking community with a  significant number of brokerages and investment banks in Asia adopting the solution. Real-time risk was pioneered as an alternative to "post ante", a term DSS refers to as after-the-event. Real-time risk created a new way of managing risk through active response and feedback in real time. This operational engagement in real-time resulted in better outcomes and reduces overall risk while widening opportunities. Together with workflows, ORMSV6 essentially provided a platform where experts from credit, operational, market and liquidity risk cooperate through workflows and alerts to navigate risk events.

The evolution and successful transformation of investment banks have given rise to a more complex and borderless capital market environment. The heightened borderless environment brings about not only stiffer competition locally and regionally, but also leads to linkages of multiple market exchanges and derivation of more innovative and exotic financial products.

In order to remain relevant in the financial scene, investment banks need to constantly evolve to adapt and remain competitive but at the same time regulators will continue to ensure that compliance is not compromised. Hence, the existence of both competition and regulation within the same framework has prompted regulators to push for a robust and resilient risk management infrastructure to withstand shocks at an appropriate and timely manner.

ORMSV6 allows the investment banks to monitor the activities of local as well as global network of branches in a single view and in real-time, where risk management workflow can be extended to all relevant parties within the network. Time lag can be eliminated for required actionable tasks with systematic event workflow in place. This allows ORMSV6 to become a common platform for management and regulatory reporting.

With the merger and consolidation of financial houses into investment banks, there would be risks of duplicating clients within a single entity which adds up to the institution's exposure unknowingly. On top of that, regulators are also increasingly concerned over syndicated groups transacting as separate individuals to avoid being traced for various offensive reasons. ORMSV6 evolves together with this trend where it is able to consolidate and identify single clients, single exposure within the investment bank. Money laundering module, another serious concern of Regulators, has also been made available in ORMSV6 with records of blacklisted entities and suspicious transactions.

Financial Risk Management