Oracle Launches Solution for Enterprisewide Stress Testing

Redwood Shores, Calif.-based Oracle Financial Services has released Oracle Reveleus, an enterprisewide stress testing solution delivered via an advanced analytics infrastructure, the company announced on Tuesday. The solution enables institutions to centrally develop, define and manage scenarios and shocks to help provide a transparent and auditable means of performing regulatory and economic capital estimation, according to a press release.

"There is unprecedented regulatory pressure on financial institutions to comply with enterprise stress testing requirements and ensure that the lessons of the financial crisis have been learned and will not be repeated," S. Ramakrishnan, CEO of Oracle Reveleus and Oracle Mantas products, Oracle Financial Services Software, said in a press release.

The solution, which is delivered via the Oracle Reveleus Advanced Analytics Infrastructure, aims to enable institutions to overcome the recently exposed flaws in the traditional, siloed approach to stress testing by enabling banks to share and reuse their existing, calibrated risk models with shocks and stress scenarios that are common and consistent across the entire enterprise, the vendor says.

"Modeling and analytics have been applied in silos," Guillermo Kopp, executive director and global research fellow at TowerGroup, commented in the release. "And silos have allowed the concentration of credit, counterparty, liquidity and systemic risks to go unchecked. The ability to perform enterprise stress testing using an integrated platform and applying data in a consistent and timely manner to analyze the interdependencies between risk types is a big hurdle that banks are seeking to overcome."