Enterprise Risk Management Technology Guide 2023

OTCFin - PATOne EDM

Type of System

  • Analytics
  • Data management
  • Solvency II solution
  • Internal/external reporting
  • Portfolio analysis/hedging
  • Climate risk management
  • Stress and scenario testing
  • Economic / risk scenario generator
  • End-to-end ERM
  • Governance, risk, compliance (GRC)
  • Operational risk management

Type of platform

Cloud

Other features - does your offering facilitate

  • Solvency II internal model
  • Solvency II standard formula

What are the typical implementation costs?

Implementation of our risk and regulatory data and risk management platform is quoted on a case-by-case basis, depending on the client’s requirements and scope of need. OTCFin can help accelerate the build and productionalization of the platform.

On the asset/liability side, OTCFin builds and machine learning based models to generate CF and AV for existing and reinvestment hard to model assets (ABS, RMBS, CMBS, Real Estate, Private Equity, Infrastructure) under multiple economic scenarios provided by an economic scenario generator (ESG).  The CF and AV are automatically uploaded into the firm’s Asset-Liability system such as Milliman.  Our approach is effective and can be implemented in a short time frame at a reasonable cost.

How long does your software take to implement on site?

  • Time to implement the risk and regulatory data and risk management platform or CF/AV models depends on the problems the client is experiencing but it takes between 6 to 12 months.
    Below is an example of a road map and time frame for implementation for CF/AV systems.

    Asset-Liability software applications used by Insurance Companies and Pension funds do not model all assets natively, mostly because of a lack of subject matter expertise (SME) in some asset classes. Yet, these firms do require models to better simulate line item cash flows and values over multi-period time horizons for these asset classes. The need is particularly acute for structured fixed income and alternative asset classes, which are not sufficiently well-modeled by standard offerings
    OTCFin’s Approach and Solution;

Build and implement models that supply long-range projections of cash flows (CF) and asset values (AV) for both existing and reinvestment assets for non-traditional asset classes, including Commercial RE, Commercial Mortgage Loans (CML) and Single Asset CMBS, Private equity (PE), Natural Resources and Infrastructure (NRI), and Structured Fixed Income (ABS, CMBS, CDO, CLOs, RMBS).

Implementation Components Time 

  • Collect data:  3 months

Collect a variety of macro-economic data, including Bloomberg, Barclays and other economic indices on a historical basis: Yields, Spreads and Total Returns, Treasuries, LIBOR curves, Corporate Spreads, Unemployment, GDP, Leveraged Loans, CRE Indices and High Yield Bond Spreads, Stock indices large, mid and small cap, Capital Calls and Distributions historical data, etc.

  • Build the CF and AV models for various asset classes:  4 months

Economic Scenario Generator (ESG) projected future scenarios are used for simulations of cash flows and asset values.

  • Test and deploy: 2 months

Please name companies that use the system/solution

Insurance companies, asset managers, banks, hedge funds, fund of funds (Confidential).

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OTCFin delivers cost-effective, timely data management services to risk, regulatory and ALM requirements.

Contacts

[email protected]

Guide entries by OTCFin