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Managing collateralised trading. Enabling regulatory compliance. The relentless demand for regulatory compliance is a global challenge for financial institutions. Basel III, COREP/FINREP, Dodd-Frank, EMIR, MiFID 2 and many other regulations implementing new minimum standards are reshaping the landscape and redefining best practices. Firms are demanding a strategic reporting solution which not only delivers essential minimum regulatory reporting, but also supports fully reconcilable internal management reporting from a single unified source of information. Lombard Risk delivers this as an embedded process, eliminating manual intervention, calculating and delivering all regulatory submissions while creating a single repository of reliable data for flexible reporting. www.lombardrisk.com Automated regulatory compliance solution Regulatory Compliance

Lombad Risk Automated Regulatory Compliance

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Page 1: Lombad Risk Automated Regulatory Compliance

Managing collateralised trading. Enabling regulatory compliance.

The relentless demand for regulatory compliance is a global challenge for financial institutions. Basel III, COREP/FINREP, Dodd-Frank, EMIR, MiFID2 and many other regulations implementing new minimum standards are reshaping the landscape and redefining best practices.

Firms are demanding a strategic reporting solution which not only delivers essential minimum regulatory reporting, but also supports fully reconcilable internal management reporting from a single unified source of information.

Lombard Risk delivers this as an embedded process, eliminating manual intervention, calculating and delivering all regulatory submissions while creating a single repository of reliable data for flexible reporting.

www.lombardrisk.com

Automated regulatory compliance solution

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Page 2: Lombad Risk Automated Regulatory Compliance

Features at a glance

A proven solution: reviewed by regulators; approved by our clients' internal and external auditors; trusted by hundreds of users internationally.

Automatic generation of regulatory reports, according to local, regional and/or global regulators’ requirements, including form-based and transaction reporting

Extensive computation engines deliver capital, liquidity, and large exposures calculations direct from raw data

Instant-click drill down/up capabilities saves time and enables users to drill down from any line within a regulatory report to a comprehensive audit trail to show each individual deal and/or balance alongside detailed related information held in the data repository

Reconciliation processes at data load and report computation levels save approval time and help to ensure accurate submissions

Security-controlled adjustment facilities at all data levels, all fully audited

Validation and cross-validation tests ensure report quality, and user-defined own validations enable firms to carry out internal checks prior to submission

Automated electronic report submission (e.g. XML, XBRL, IESUB and other local regulators' standards)

Reduction of report preparation time enables users to quickly generate reports in advance of the mandated due dates allowing for proper analysis before submission

Powerful variance and trend analysis tools enable differences and emerging developments to be tracked, audited, reported and made part of the sign-off and approval process

Efficient interfacing ensures that valuable detailed and verified data may also be used to meet other types of reporting such as management information and stress testing

Powerful data management functionality

Detailed security and system administration facilities allow user access and management sign off to be assigned and controlled across all the features and functions of the system

Straight-through-processing.

Professional support provided via Lombard Risk’s local business matter experts and global network of offices.

Leave the regulatory reporting burden to us… and the data challenge too

Firms try to solve the regulatory reporting requirement by using reports from various banking systems, or by surviving on spreadsheet jungles. But banking systems are not reporting systems: they are designed for processing transactions and producing accounting entries. Spreadsheets can never be properly controlled. Furthermore, this unsatisfactory situation is further complicated by multiple data sources, on different platforms, from various vendors or from legacy in-house systems, and by the pressure of constant regulatory change. This approach is high risk, cumbersome and costly to maintain.

It is not only the increasing complexity, volume and frequency of regulatory agencies’ reporting requirements which is adding to the industry reporting burden. New and more detailed reporting mandates requires more granular data, exposing data sources to a new level of scrutiny which may have never been tested in detail before. The data challenge is now a crucial part of the problem, and has made more of an issue with not only multiple and varied sources of data, but with increased reliance on lower levels of higher quality data. The result is a more complex and time-consuming process to prepare accurate reports. This creates a pressing need for a strategic solution for regulatory and risk reporting.

Now, Financial Institutions are having to spend even more time compiling reports and do not have sufficient time to analyse them for accuracy or meaning - and this all at a time where greater scrutiny of reporting, and of senior management involvement, is arising from regulators, - adding to the risk of substantial penalties for avoidable inaccuracies or late submission in addition to reputational risk. Furthermore, as firms grow, merge and change shape - including across boarders - a robust integrated strategic solution with minimal manual intervention and maximised straight through processing is now becoming the only acceptable standard: firms need a solution where a single reconciled source of information for regulatory and management reporting is available as an embedded part of the production process.

The Lombard Risk regulatory compliance solution

Lombard Risk’s market-leading strategic regulatory compliance and reporting solution, is recognised globally for automating a firm’s regulatory requirements, for both foreign and domestic institutions, big and small. It addresses reporting requirements by automating compliance with the mandated reports to key global regulatory agencies.

Recognised by the Institute of Foreign Banks as ‘leading solution provider’, Lombard Risk is the single largest

www.lombardrisk.com

Page 3: Lombad Risk Automated Regulatory Compliance

Ongoing support: keeping pace with regulatory requirements

Lombard Risk recognises that a vital element of providing an automated regulatory reporting solution is the on-going maintenance of the software as regulations change.

Keeping up with the regulators: Lombard Risk business matter experts are constantly monitoring regulators’

demands – and incorporating changes into the software to ensure client firms can be kept compliant. In respect of regulatory change, Lombard Risk provides both business impact reports, white papers and seminar/webinar updates, detailed data impact analysis and other professional services information, and of course software updates for any of the calculations, reports, templates or transmissions we maintain.

installed brand from the population of automated solutions in the UK, and is also installed in multiple international locations. Lombard Risk has had local solutions available in the European, Americas and Asia Pacific markets for over a decade, and deals with international banks from over 50 countries.

The Lombard Risk solution helps ensure the accuracy and integrity of financial reports while increasing the efficiency of reporting and mitigating associated risks. It also increases the level of transparency and straight-through-processing that regulatory agencies are demanding. Lombard Risk’s solution works easily with multiple sources of information as it standardises the financial institution’s data and automates report production including computation, validation and transmission.

Ease of integration, straight-through-processing, management approval and other features

The Lombard Risk solution is easy to install: firms may choose to either meet the generic input data requirements or use the powerful ETL (Extraction

Transformation Loading) data management tool to overcome data deficiencies.

All source data is reconciled and made available for computation. Providing raw data computation coverage for hundreds of instruments and product types, the solution calculates all regulatory risks and statistical reporting required. The results are compiled into the report formats defined by your regulatory agency and made available for validation and transmission.

The Analysis Centre provides total transparency into source data and gives vital management information regarding key trends, for example in capital utilisation or liquidity data. This may be presented graphically or in report format.

Workflow automation tools ensure processing is straight-through and automatic unless human intervention is needed. Automation enables multiple processes to be saved and scheduled (e.g. daily liquidity processing, monthly statistical reporting, and scheduled preparation of data for management information).

Highly scalable to suit any size firm’s operations – for branch to head-office reporting with global coverage.

COLLINE® - collateral management

LISA® - liquidity analysis

Other systems (non-Lombard Risk)

MIS - management reporting

Firm’s multipledata sources

Lombard RiskDATABASE

REPOSITORY

Regulatorycomputation andreturn generation

Single/multiple-entitiesand regulators supported

Returns deliveredin electronic

format(s)

Lombard RiskETL TOOL

Automated regulatory compliance

Information in the Lombard

Risk DATABASE REPOSITORY

can be re-used by other systems

Streamlined data acquisition and transformation process to create central ‘veri�ed’ source of data for any reporting

Country C

Country B

Country A

Regulator 1

Regulator 2

Regulator 3

XMLXBRL

Page 4: Lombad Risk Automated Regulatory Compliance

For more information:

visit our website: www.lombardrisk.com

email: [email protected]

www.lombardrisk.com

Lombard Risk – www.lombardrisk.comLombard Risk is a leading provider of integrated collateral management and liquidity, regulatory and MIS reporting solutions – enabling firms in the financial services industry to significantly improve their approach to managing the risk in their businesses.

Founded in 1989 and headquartered in London, Lombard Risk has offices in New York and New Jersey in the US; Hong Kong, Mumbai, Shanghai, Singapore and Tokyo in Asia Pacific, and service centres in Atlanta, Cape Town, Luxembourg and Miami.

Our clients include banking businesses - over 30 of the world’s “Top 50” financial institutions - almost half of the banks operating in the UK, as well as investment firms, asset managers, hedge funds, fund administrators, insurance firms and large corporations worldwide.

Managing collateralised trading - Enabling regulatory compliance with clarity and confidence in the ‘new world’

The Lombard Risk solution suite is developed and supported by an extensive team of risk, regulatory and financial experts and includes:

COLLINE® - collateral management and clearing. State-of-the-art, web-based solution designed by experienced business practitioners for end-to-end, cross-product (OTC derivatives, repo and sec lending) collateral management. COLLINE provides a consolidated solution for mitigating credit risk while satisfying the growing demand for multiple/global entities, cross-product margining, clearing, optimisation, master netting, MIS reporting, dispute management and electronic messaging.

REFORM™ - pre and post trade solutions and transactional reporting for the derivatives reform initiatives such as Dodd-Frank and EMIR. Other modules of the REFORM engine provide connectivity and message transformation, for example enabling COLLINE to connect to exchanges and to messaging systems.

REPORTER - global regulatory reporting. Fully scalable regulatory compliance solution for branch or head office, with global coverage. Fully supports key supervisory computations and integrates with LISA for stress testing and REPORTER MIS for ad-hoc and management reporting. Straightforward and streamlined integration to multiple source systems; built in reconciliation and trends and variance reports.

REG-Reporter - US and Canadian regulatory reporting. A regulatory solution addressing financial reporting requirements by automating compliance with the mandated reports to all US regulatory agencies and the Office for the Superintendent of Financial Institutions (OSFI), Canada.

LISA® - scenario analysis and stress testing. LISA satisfies the latest liquidity risk management requirements and supports growing regulatory demands for timely and reliable information.

REPORTER MIS - business and management reporting. A flexible and easy-to-use module for reporting across the Lombard Risk product range AND with external sources. Provides valuable BI by combining risk and regulatory information in reports or on-screen dashboards, enabling well-informed business decisions to be made with confidence.

The Lombard Risk software solution suite also includes OBERON® trade capture and valuation and FIRMAMENT® credit and equity valuation.