CARY, N.C.--(BUSINESS WIRE)--As software providers vie for the risk and compliance marketplace, SAS, the leader in business analytics software and services, is recognized as a leader in five competitive landscape reports from Chartis Research. The reports include Financial Crime Risk Management 2011, Liquidity Risk Management Systems 2011, Market for Solvency II Technology 2011, Operational Risk & GRC Software Solutions 2011 and Risk and Finance Integration.
“A consistent leader in past reports, SAS is no surprise as performing well in five risk and compliance market evaluations,” said Peyman Mestchian, Managing Partner at Chartis Research. “SAS understands and addresses the emerging needs of the risk and compliance marketplace by developing new and innovative risk management software.”
Financial crime risk management
Chartis forecasts the global market for financial crimes risk management technology to grow to $4.3 billion by 2013.
Chartis expects “winning solutions will incorporate features such as integrated AML/anti-fraud platforms and centralized management and reporting systems, as well as real-time transaction monitoring.” Chartis believes real-time analytics will enable companies to “predict accurately and successfully prevent the first criminal attack on a financial institution, rather than the second or third.”
The SAS Enterprise Financial Crimes Framework for Banking provides a technology infrastructure for preventing, detecting and managing financial crimes across lines of business, including anti-money laundering, card fraud, fraud rings and ACH/peer-to-peer and wire fraud. Chartis says SAS solutions “feature strong capabilities in the important areas of analytics, business intelligence, case management and data management,” highlighting advanced analytics, configurability, data management and reporting/dashboards as key differentiators.
Liquidity risk management
Chartis’ liquidity risk management systems report forecasts that the market for liquidity risk management and ALM (Asset and Liability Management) solutions will grow to $223 million in 2013, “fuelled in part by new expenditure in the emerging markets of Asia Pacific, Latin America, the Middle East, Eastern Europe and Africa.” The report noted an “increased demand for insurance ALM and integrated risk and finance platforms.”
The report recommends reviewing and restructuring traditional methods and systems for managing liquidity risk, calling standalone point solutions ineffective. Chartis expects more institutions will implement liquidity risk and ALM as part of an ERM strategy.
Facing challenging new requirements, a “conventional silo-based approach does not support enterprise-wide cash-flow based analysis,” Chartis warns. The research firm pins success to “openness of the architecture and ability to interface and co-exist with other systems.”
Chartis felt “vendors [like SAS] with a strong pedigree in business intelligence, analytics and data integration have been able to add the required integration layers on top of their existing point-solutions to provide a more seamless enterprise solution.” With SAS Risk Management for Banking, institutions benefit from the flexibility and power afforded by an end-to-end linkage with data integration, business analytics and reporting.
Solvency II
Chartis sees the Solvency II software market growing to $269 million by 2013. According to Chartis, “the software market has been fuelled by an increased demand for enterprise risk management and financial modeling technology to support Solvency II,” with operational risk management software another key growth area.
Chartis identifies a “definite shift towards the management of the Solvency II process and a growth in confidence in the process regarding risk management and risk reporting as much as in the data.”
The firm recommends insurers “create an integrated enterprise-wide risk management system, a consistent data management platform and good quality risk and finance information to support informed decisions making.” Chartis encourages insurers “to provide assurance of the completeness, appropriateness and accuracy of their data,” including “a centralized infrastructure with the data repository as the key element and a detailed data model.” Chartis recommends “a single consistent analytical environment using common technology components and tools.”
SAS Risk Management for Insurance is a comprehensive solution enabling life and P&C insurance companies to implement the Solvency II standard model approach for calculating risk-based capital. The robust data management and reporting platform includes an insurance-specific data model for complex risk analytics and a reporting repository containing more than 60 prebuilt Solvency II reports.
Operational risk and governance, risk and compliance (GRC)
Chartis forecasts the worldwide financial services operational risk and GRC market will grow to just over $1.5 billion by 2013. Chartis believes worldwide regulatory activity will spur convergence of ERM, GRC and operational risk.
Chartis predicts the next generation of GRC solutions will embed BI to generate real-time risk reports. Leading the way are vendors like SAS, who already offers new-breed solutions using high-speed, in-memory technology that can process analytical computations distributed across blade servers. Improved business decision making will come from the deeper understanding of GRC issues and connections to evolving regulations, internal controls, emerging risk exposures and operational constraints.
A noted Chartis leader, SAS Enterprise GRC builds a reliable view of risk compliance, facilitates collaboration between GRC teams and reduces the cost of risk management through automation.
Risk and finance integration
Chartis sees integration of risk and finance being driven by the needs of both parties calculating risk-adjusted figures. To ensure correct pricing, “organizations are recognizing the need to measure risk more accurately and calculating risk-adjusted returns on new products.” Emphasis on risk-adjusted returns requires a more sophisticated, ultimately more secure, approach.
Chartis believes “the successful integration of risk and finance will lead to an increased capacity to recognize and respond to trends and events and to make the most of opportunities that appear along the way.” An integrated, single-source environment will help institutions “promote efficiency, improve data quality, and take advantage of the commonalities that already exist between risk and financial data.”
The report cites “the creation of a common data model for risk and finance” as critical to successful integration and deployment. Risks hidden in inaccurate data undermine understanding and hamper proper integration.
Chartis recommends integrated risk and finance solutions that have functionality and flexibility with system architecture, ease of integration and a “tool-kit” approach to modeling, analytics and reporting.
Combining SAS Risk Management for Banking with SAS Financial Management meets the needs of global banking CROs, CFOs and treasurers now addressing new requirements related to Basel III.
SAS’ record of leadership
SAS has earned many analyst accolades for risk and compliance solutions this year. In July, Gartner ranked SAS No. 1 in software market size in Market Trends: No Escaping BI and Analytics in Insurance in 2011 and placed SAS in the Visionaries quadrant of its Magic Quadrant for Enterprise Governance, Risk and Compliance Platforms. SAS Anti-Money Laundering was ranked the top provider in Aite Group's Global Anti-Money Laundering Vendor Evaluation: A Reinvigorated Market in June. In February, SAS was evaluated in A Banker's Guide to Credit, Market and Operational Risk Management Software Functionality by Gartner in terms of relative vendor size and target market. Also, SAS was a leader in Chartis Research's 2010 RiskTech100 rankings, an annual international listing of top risk technology vendors.
About Chartis Research
Chartis is the leading provider of research and analysis on the global market for risk technology. Its goal is to support enterprises as they drive business performance through better risk management, corporate governance and compliance. Chartis helps clients make informed technology and business decisions by providing in-depth analysis and actionable advice on virtually all aspects of risk technology. Chartis is authorized and regulated by the Financial Services Authority (FSA) for providing investment advice – (www.chartis-research.com).
About SAS
SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions, SAS helps customers at more than 50,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world THE POWER TO KNOW®. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies. Copyright © 2011 SAS Institute Inc. All rights reserved.