NEW YORK–(BUSINESS WIRE)–Sept. 4, 2003–
ERisk Abacus 4.0 delivers broad new customer-driven enhancements; advances ERisk enterprise risk management offerings
ERisk, the premiere provider of risk and capital management software solutions, today announced it has significantly strengthened its best-selling economic capital analytics software with the release of ERisk Abacus 4.0 – the newest generation of its ERisk analytics product. This release expands ERisk’s role in providing the easiest and most cost-effective way for banks of all sizes to adopt a “best practice” approach to measuring risk, quantifying capital needs and determining risk-adjusted performance enterprise-wide.
“Economic capital analytics and risk-adjusted performance metrics have become essential tools for senior managers at banks that want to improve and streamline their strategic capital management processes. As bankers face growing complexity from fierce competition, new financial instruments and intensifying external scrutiny, a more sophisticated approach to risk and capital management is definitely in order. With ERisk Abacus 4.0’s powerful analysis and reporting features, banks of all sizes can utilize enterprise risk management techniques that have a proven ability to boost ROE,” stated Peter Nakada, company co-founder and executive vice president.
ERisk Abacus 4.0 Drives Improved Capital Decision-Making
With ERisk Abacus 4.0, senior bank managers can enhance their understanding of the link between risk and capital in the following ways:
Improve ROE by Enhancing Strategic Capital Allocation
To successfully maintain ROE, banks need to evaluate the risk-adjusted performance of individual business units. ERisk Abacus 4.0 provides advanced economic capital reports that senior managers can use to reallocate resources to grow businesses that create shareholder value and overhaul/divest businesses that dilute shareholder value.
Introduce Risk-Based Pricing for Lending Products
New features in ERisk Abacus 4.0 support greater precision in pricing loans to reflect the quality of the borrower, the strength of the collateral, the size of the loan and the industry concentration. By introducing ERisk Abacus, a bank’s pricing policies can be aligned to provide strong incentives for loan officers to create value for shareholders.
Deliver a Comprehensive Risk Profile of The Bank’s Risk Types
ERisk Abacus 4.0 quickly identifies where a bank’s risk is generated – by risk type and line of business – allowing senior managers to allocate capital to reflect the risks of their business. The software’s advanced models analyze the risk profile associated with each type of risk and incorporate the correlations across different risk types to determine economic capital.
Better Communicate Risk & Capital Position
U.S. banks are increasingly turning to economic capital measurement as the way to communicate their financial risks and report key risk indicators to external sources. ERisk Abacus 4.0 provides banks the analytical reporting tools they need to bring this disciplined approach to their communication with bank regulators, stakeholders and rating agencies.
A Growing Client List of Innovative Banks
“Over the past two years, ERisk has built up an impressive list of client banks that have licensed our economic capital analytics solution. This new ERisk Abacus 4.0 release has been developed with significant input from such innovative banks as Bank of Oklahoma, CoBank, First Commonwealth Financial, Greater Bay Bancorp, Irwin Financial, Laurentian Bank, SouthTrust, Susquehanna Bancorp and Union Planters. We look forward to working with all our clients to continue advancing our solution and helping them tackle their most critical risk and capital management issues,” stated Phil Dinsmore, ERisk vice president of sales.
For more information about ERisk Abacus 4.0, including detail on product features, implementation procedures and training options, visit the ERisk web site at http://www.erisk.com/products or call 212-819-0170.
About ERisk
ERisk is a full-service provider of strategic risk management solutions, including economic capital analytics, consulting, the ERisk Report newsletter, and the ERisk.com portal. The company’s flagship product, ERisk Abacus, is the first complete, integrated enterprise risk management software solution designed to improve a bank’s understanding of the link between risk and capital by providing crucial insights regarding capital adequacy, capital consumption, risk-adjusted profitability and shareholder value.
