ACT, Hewlett-Packard Offering Global Risk System
Tucker, Tracey, American Banker
ACT Financial Systems Inc. has teamed up withHewlett-Packard Co. to launch a new product called OpenLimits, which monitors exposure to credit and market risk, capital adequacy, and compliance with regulatory requirements.
An ACT spokesman said OpenLimits is the first in-house global risk-management system for large financial and corporate institutions.
The company decided to develop OpenLimits with Hewlett-Packard, Palo Alto, Calif., to address a "black hole" in the financial marketplace - namely, the lack of any in-house systems designed to measure credit risk, said William Payne, chief executive officer of London-based ACT.
Most systems, Mr. Payne said, are service bureau-based and are restrictive in terms of responding to market or organizational changes. OpenLimits addresses these problems by providing flexibility and giving control back to an organization.
"Banks and financial institutions need to control their own destinies," Mr. Payne said.
ACT officials said the system is also less costly than a bureau-based solution.
OpenLimits is a global system that works with all kinds of currency and provides information in real time.
It allows an organization to calculate the risks of a business activity and monitor those risks at will.
The product focuses on credit risks. A company can monitor exposure to credit risk and monitor capital adequacy on a daily basis to comply with regulatory rules. Users are able to set limits on acceptable levels of risk and perform monitoring through system inquiries and periodic reports.
The system also alerts the appropriate personnel when there is a possibility of breaching set limits - before the limits are exceeded.
OpenLimits performs what-if analyses too.
The system was developed with HP 9000 servers and workstations, but it can run in any environment, including equipment from Digital Equipment Corp. …