November 16, 2009

Chicago-based Aleri's Liquidity Risk Manager (LRM) has been selected by Swedbank (Stockholm) as its liquidity risk management tool, which will be used by the bank's Group Risk, Compliance & Finance, and Treasury departments. By implementing LRM, the bank will have a single solution that will deliver an enterprise-wide view of its liquidity risk exposure, enhancing capabilities in managing and minimizing liquidity risk and meet regulatory demands, according to Aleri.

"Aleri LRM will provide us with a flexible management, reporting and a stress testing environment that will enable us to model stress events and gain insight into how different scenarios impact the bank's liquidity exposure and assets value," said Erik --hman, Head of Operations, Swedbank Markets, Swedbank, in a press release. "We feel LRM will provide us with the tools to successfully manage and limit our exposures to risk as we move forward beyond the crippling effects the global financial crisis has had on the industry."

Aleri LRM allows banks to analyze, global operational liquidity risk over a short- to medium-term time horizon at a high level of granularity, looking at projected liquidity by product, business line, location, and currency under different economic scenarios. According to the vendor, it provides insight into the effects of stress events on enterprise liquidity, enabling more effective contingent liquidity risk management practices and allowing banks to analyze and act on fast moving data by: calculating forward liquidity exposure (FLE) positions ; identifying periods at risk; defining and storing liquidity scenarios and parameters by end users themselves; running on-demand stress scenarios against FLE positions; intelligently applying and recommending use of counterbalancing capabilities to FLE positions; and improving liquidity mismatch reporting to regulators and bank's management.

Katherine Burger is Editorial Director of Bank Systems & Technology and Insurance & Technology, members of UBM TechWeb's InformationWeek Financial Services. She assumed leadership of Bank Systems & Technology in 2003 and of Insurance & ...