Cognos, IBM Team Up on Bank Risk Management

IBM and Cognos are collaborating on a business intelligence package for the financial services industry.

IBM and business intelligence software developer Cognos have teamed up to create a package of software and hardware aimed at the financial services industry.

The Cognos-IBM Risk Adjusted Profitability Blueprint, announced Aug. 22, is geared toward helping companies—mainly banks—better integrate risk information with revenue and expense planning data.

The goal: to help banks maximize risk-adjusted return on capital, striking a better balance between aggressively expanding their businesses and controlling risk exposure.

Risk factors for banks include risk-adjusted return on capital and economic capital, probability of default, loss given default, and expected loss.

Essentially a performance management framework, the Profitability Blueprint is designed to enable banks to build "precise multidimensional product-level profitability plans and forecasts that are aligned with risk management strategies," according to a release describing the new bundle.


Click here to read about the Cognos Customer Segment Performance Blueprint for the banking industry.

The co-developed blueprint combines Cognos 8 Planning and Cognos 8 Business Intelligence with IBM Banking Data Warehouse. It also brings in financial services expertise garnered through IBM Global Business Services.

Overall, the combined reporting environment includes functionality for integrated risk-adjusted planning and forecasting across multiple dimensions with built-in risk factors. Also included are activity-based management and costing for customer, product and business segments, which provide profitability planning and reporting data.

A multidimensional scenario-planning module incorporates activity costs—data that allows users to compare the financial impact of several business options and take action.

The Profitability Blueprint, available now, is not the first bank-related Blueprint Cognos has developed. The company also developed blueprints for branch performance, corporate and retail banking, customer segment performance, and insurance product profitability


Check out eWEEK.coms for the latest news, reviews and analysis about productivity and business solutions.