The Global Treasury Division of AIB has deployed technology that will enable it to centralise pricing data and curves for risk management, siliconrepublic.com has learned. The technology could prove vital in preventing future crises at the bank such as the Alfirst scandal in 2002, which saw rogue trader John Rusnak attempt to hide €691m in losses from the bank.
The banking group has deployed a system by UK-based technology company Asset Control, a leading provider of centralised data management solutions to the financial sector.
It is understood that a turnkey solution was developed and deployed by Asset Control over a five-week period.
The system has passed an initial user acceptance test and now services as a platform that AIB can further customise.
AIB expects to be in full production with the full solution by September this year.
The risk solution will interface with internal and external data sources and will manage foreign exchange, fixed income and derivatives data for AIB.
It will provide managers and analysts with the ability to create risk factors by converting data into curves, surfaces, volatilities and covariance matrices for the thorough analysis needed in risk management, portfolio evaluation and pricing, Asset Control said.
With a centralised database in Dublin, AIB users in New York, Poland and London will access the solution via a desktop developed by Access Control called Contour.
“Many institutions have multiple databases and a mix of systems which need to be centralised in order to achieve a more auditable, controlled environment,” observes Ger Rosenkamp, CEO of Asset Control.
“With AIB’s fast implementation we demonstrated how we could centralise their data management without the uncertainty that typically comes with complex risk management solutions.”
By John Kennedy