Italian Bank Selects SunGard’s Risk Engine

Interbanca S.p.A., an Italian banking group, has selected SunGard’s Reech RiskHedge, a risk management engine, for the valuation of its complex portfolios. Reech RiskHedge will help Interbanca’s risk department compute the Value at Risk (VaR) of its positions. Delivered on an application service provider (ASP) basis, Reech RiskHedge will help Interbanca keep entry and support costs low, while maximizing the speed of implementation.

As regulatory demands increase, SunGard’s Reech RiskHedge will enable Interbanca’s risk department measure the risk of incurring loss due to fluctuation in security prices, option volatility and credit spreads. It will also help the bank produce various market risk reports that reflect market sensitivities or the complete VaR of the portfolio.

In a company release, Andrea Liso, head of information systems at Interbanca, said, “Interbanca’s risk department decided to find a single risk management platform able to aggregate risk positions in accordance with industry best practices. We were looking for high quality of results, quantitative expertise and sophistication. After a short selection process,SunGard’s Reech RiskHedge was considered the appropriate solution and will help simplify our whole risk management process.”

David Hassell, head of sales for SunGard’s alternative investments business, added in the release, “Interbanca was looking for a transparent and innovative risk engine that could help it manage the risk of its complex portfolios which include a broad range of asset classes, such as interest rate, credit, foreign exchange, equity and structured bonds. SunGard’s Reech RiskHedge will help Interbanca better manage its portfolio risks.”

Reech RiskHedge has been designed to give customers access to risk technology at a cost tailored to accommodate different portfolios and fund structures, the release states. This service can accommodate virtually any trade structure on a broad range of asset classes, making it suitable for a wide variety of portfolios and/or funds, irrespective of strategy and size. The ASP delivery method of SunGard’s Reech RiskHedge allows users to access the service through a browser, with no investment in technology or infrastructure.