China Merchants Bank, a financial institution, has gone live with an advanced market risk and portfolio management solution from Misys, a provider of application software and services.
Implementing Misys Opics Risk Plus at its head office in Shenzhen will enhance risk management, enabling the bank to identify further growth markets. Misys Opics Risk Plus is a complete risk management tool which will allow China Merchants Bank (CMB) to create historical simulation and set a complex range of risk limits to cover all trade situations. The solution will help the bank reduce treasury costs and increase returns through improved accuracy of market valuations within the bank’s portfolio. It will also help CMB’s users to better manage cash flow analysis, interest rate sensitivity and risk value exposure on foreign exchange, money market, securities and derivatives transactions, enabling better risk control.
Liu Xiao-La, assistant general manager & senior vice president of treasury at China Merchants Bank, said: With continued growth in the markets, accurately managing risk, both in terms of modeling and risk limit management is essential. This solution enables us to process a much wider range of instruments and the increased flexibility will help us evaluate risk in real-time. We are growing with the market to become more valuable to our customers. This is the first step in a multi-phase project with further applications to be added in the new year including Monte Carlo VaR and return attribution that will allow us to cover even more complex trades as the market advances.