Algorithmics and Second Fl. Shortlisted for Risk Management Project with ING

The risk management solution ECAPS, built by Algorithmics and SecondFloor for ING Corporate Insurance Risk Management (CIRM), has been shortlisted for the 2008 Financial Innovation Awards for the Most Innovative Financial Services Solution. The results will be announced on Wednesday, November 19th, in London. ECAPS is a common platform for risk management, implemented across the 30 plus countries on five continents in which the global insurance organization of ING operates. The solution was built using Algo Risk, Algorithmics' portfolio construction and risk management solution and a SecondFloor intranet application that collects and processes data and produces risk management reports. This joint effort was designed and built within exceptionally short timelines (nine months) and resulted in an improved market risk and economic capital calculation engine with more advanced techniques and an enhanced reporting system.

”Together with Algorithmics and ING we delivered a solution that provides better insight and improved performance for ING CIRM”, said Martin Knook, general manager business development of SecondFloor, in a press release. “Being shortlisted for this Financial Innovation award is an indication that the outside world definitely recognizes the added value of this solution,” he added. Doug Caldwell, ING CIRM's manager, added in the release, “Between SecondFloor, Algorithmics, and ING we have come up with a terrifically innovative system, especially in the area of mass producing replicating portfolios of insurance liabilities for use in risk management.”

”We are delighted to have been recognized as a finalist in the Financial Innovation Awards. Algo Risk provides complete replicating portfolio capabilities including scenario generation, asset modeling, optimization and risk reporting, while SecondFloor has delivered the data integration platform that makes the risk analysis possible. This innovative solution is helping ING to combine its asset and liability management within a single, 'fair value' consistent framework, and I believe it will prove to be a solution that has wide implications for the insurance sector,” said Curt Burmeister, Algorithmics' senior director of risk solutions, in the release. The Financial Innovation Awards are for financial services organizations that have demonstrated excellence in one of the award categories. The Most Innovative Financial Services Solution category is for the innovative development of a software solution for the financial services industry.