«The RiskTech Quadrant is copyrighted July 2012 by Chartis Research Ltd. and is reused with permission. No part of the RiskTech Quadrant may be ...»
Quadrant™ for Data
Management and BI
for Risk 2013
The RiskTech Quadrant is copyrighted July 2012 by Chartis
Research Ltd. and is reused with permission.
No part of the RiskTech Quadrant may be reproduced,
adapted, stored in a retrieval system or transmitted in any
form by any means, electronic, mechanical, photocopying,
recording or otherwise, without the prior permission of
Chartis Research Ltd.
RiskTech Quadrant is a registered trademark of Chartis Research Ltd.
This RiskTech Quadrant graphic was published by Chartis Research Ltd. as part of a larger research report and should be evaluated in the context of the entire report. The Chartis report is available upon request from Chartis Research Ltd.
Chartis Research accepts no liability whatever for actions taken based on any information that may subsequently prove to be incorrect or errors in our analysis.
© Copyright Chartis Research Ltd 2013. All Rights Reserved August 2013 In this research paper
This Chartis research paper covers the following:
• Chartis RiskTech™ Quadrant for Data Management and BI for Risk • SAS Data Management and BI for Risk Capabilities and Market Position • RiskTech Quadrant™ methodology © Copyright Chartis Research Ltd 2013. All Rights Reserved Chartis RiskTech QuadrantTM for Data Management and BI for Risk Figure 1: Chartis RiskTech Quadrant™ for Data Management and BI for Risk High Best-of-Breed Category Leaders WKFS IBM Markit EDM Numerix
MARKET POTENTIALSAP GoldenSource OpenLink Quartet FS SAS Panopticon Misys Oracle YarcData Empowered Systems Moody’s
Figure 1, above, describes Chartis’s view of the vendor landscape for Data Management and BI for Risk. The RiskTech Quadrant™ is a proprietary methodology developed specifically for the risk technology marketplace.
It takes into account product and technology capabilities of vendors, as well as their organizational capabilities.
Appendix A sets out the generic methodology and criteria used for the RiskTech Quadrant™. Appendix B sets out the detailed Vendor Evaluation Form used by Chartis to assess the capabilities of DM and BI vendors with respect to risk aggregation and reporting. Specifically, we have considered the following criteria as particularly
© Copyright Chartis Research Ltd 2013. All Rights Reserved 1 Completeness of offering • Standards, support, integration • Data quality management (query optimization, exception resolution, mapping, taxonomies) • Big Data strategy • Performance and scalability of the core technology (use of high performance computing and analytics capabilities, advanced database technologies, in-memory analytics, grid computing, cache, on the fly) • Flexible analytics and integration (applicable to liquidity risk, CVA/DVA, counterparty credit risk, operational risk, capital and collateral optimization, and integrated stress testing) • Flexible reporting (report types, filtering, formatting, self-service, MS Integration) • Visualization and end-user experience, usability, and strategy • Data model • Mobile capabilities • Strength of the offering within a stack or functional area • Risk data aggregation and data quality management • Out-of-the-box features and functions for Basel 3, liquidity risk, counterparty credit risk, regulatory capital calculations, stress testing, and reporting • Risk governance BI capabilities, including interactive dashboards, reports, alerts, workflows, etc.
2 Market potential:
• Existing overall client-base • Basel 2, Basel 2.5, Dodd-Frank, Basel 3 implementations • Customer satisfaction and organizational strength • Brand recognition • Uniqueness in market place and innovation • Barriers to entry • Implementation, post-sales implementation and support capabilities • Domain knowledge and thought leadership in risk and finance • Potential volume of Basel 3, Dodd-Frank, and EMIR related wins • Scalability of business model (i.e. repeatable sales, delivery, markets) • Geographical reach • Financial strength © Copyright Chartis Research Ltd 2013. All Rights Reserved SAS Data Management and BI for Risk capabilities and market position Founded 37 years ago, SAS is one of the largest software companies in the world, with over 13,500 employees and customers in 135 countries. Its solution set covers a range of enterprise risk management needs including credit risk, market risk, asset liability management, operational risk/GRC, liquidity risk and financial crime. Last year, it saw risk technology sales grow by 23%, and 24% of revenue was invested in R&D.
SAS’s roots are in data management and analytics, and they have built solutions for capital markets, encompassing data integration, data quality, and master data management. SAS solutions include DataFlux, acquired in 2000, which is a general purpose data and end-user tool for data management/integration, quality, and analytics. It has been subsumed into SAS and expanded for governance. DataFlux has a business rule manager that supports the non-technical end-user persona in a clear interface, and will display process and lineage. SAS’s banking industry data model can take data from a wide variety of sources and the logical model is extensible and configurable. The data model is articulated to function as both an analytical and transaction level data store, e.g. for pricing and VaR/CVA calculations, providing a single source of truth for SAS’s enterprise risk management framework. The system includes lineage management to provide an end-to-end audit trail, including configuration information. SAS’s strengths in data management and its detailed banking data model are key differentiators that allow it to provide a consolidated view of risk.
SAS ESP (Event Stream Processing), their complex event processing engine, is embeddable in all applications.
It can process a high volume of continuous queries with SAS analytics and strong visualization tools to support price discovery. SAS is geared towards the self-service environment, with dynamic updates, and a drag-anddrop front end leveraging in memory processing to support on-demand risk management.
SAS’s BI capabilities include transactional and operational reports, ad hoc reports, analytical reports, and dashboards. The flexible front end is geared towards replacing end-user spreadsheets, for added enterprise control and performance, and supports easy access to SAS visual analytics. A key differentiator is the incorporation of Big Data/Hadoop functionality within the environment to support statistical data analysis using their Visual Data Builder. Ad hoc visual exploration is possible and result sets can be sent to other users to enable collaborative risk management.
In addition to lower level pricing and capital markets functions, which can be generated and aggregated across the board with their solutions templates, SAS also provides integrated banking book functions with ALM, Liquidity, COREP, and CCAR solutions, with integrated workflow, scenario analysis (such as liquidity buffer for internal and regulatory reporting) and export capability. In the last year, SAS has had key wins in the marketplace.
Independence Chartis is a research and advisory firm that provides technology and business advice to the global risk management industry. Chartis provides independent market intelligence regarding market dynamics, regulatory trends, technology trends, best practices, competitive landscapes, market sizes, expenditure priorities, and mergers and acquisitions. Chartis’s RiskTech Quadrant™ reports are written by experienced analysts with hands-on experience of selecting, developing, and implementing risk management systems for a variety of international companies in a range of industries including banking, insurance, capital markets, energy, and the public sector.
Chartis’s research clients include leading financial services firms and Fortune 500 companies, leading consulting firms, and risk technology vendors. The risk technology vendors that are evaluated in the RiskTech Quadrant™ reports can be Chartis clients or firms with whom Chartis has no relationship. Chartis evaluates all risk technology vendors using consistent and objective criteria, regardless of whether or not they are a Chartis client.
Where possible, risk technology vendors are given the opportunity to correct factual errors prior to publication, but cannot influence Chartis’s opinion. Risk technology vendors cannot purchase or influence positive exposure.
Chartis is authorized and regulated by the Financial Services Authority (FSA) in the UK for providing investment advice and adheres to the highest standards of governance, independence, and ethics.
Inclusion in the RiskTech Quadrant™
Chartis seeks to include risk technology vendors that have a significant presence in a given target market. The significance may be due to market penetration (e.g. large client-base) or innovative solutions. Chartis does not give preference to its own clients and does not request compensation for inclusion in a RiskTech Quadrant™ report. Chartis utilizes detailed and domain-specific “vendor evaluation forms” and briefing sessions to collect information about each vendor. If a vendor chooses not to respond to a Chartis vendor evaluation form, Chartis may still include the vendors in the report. Should this happen, Chartis will base its opinion on direct data collated from risk technology buyers and users, and from publicly available sources.
The findings and analyses in the RiskTech Quadrant™ reports reflect our analysts’ considered opinions, along with research into market trends, participants, expenditure patterns, and best practices. The research life cycle usually takes several months, and the analysis is validated through several phases of independent verification.
Figure 2, below, describes the research process.
Identify research topics
• Market surveys
• Client feedback
• Regulatory studies
• Academic studies
• Conferences • 3rd party information sources Select research topics
• Interviews with industry experts
• Interviews with risk technology buyers
• Interviews with risk technology vendors
• Decision by Chartis Research Advisory Board
• Develop detailed evaluation criteria
• Vendor evaluation form
• Vendor briefings and demonstrations
• Risk technology buyer surveys and interviews
• Demand and supply side analysis
• Apply evaluation criteria
• Survey data analysis
• Check references and validate vendor claims
• Follow-up interviews with industry experts Publication and updates
• Publication of report
• On-going scan of the marketplace
• Continued updating of the report Chartis typically uses a combination of sources to gather market intelligence. These include (but are not limited
• Chartis Vendor Evaluation Forms – A detailed set of questions covering functional and nonfunctional aspects of vendor solutions, as well as organizational and market factors. Chartis’s vendor evaluation forms are based on practitioner level expertise and input from real-life risk technology projects, implementations, and requirements analysis.
• Risk Technology User Surveys – As part of its on-going research cycle, Chartis systematically surveys risk technology users and buyers, eliciting feedback on various risk technology vendors, satisfaction levels, and preferences.
• Interviews with Subject Matter Experts – Once a research domain has been selected, Chartis undertakes comprehensive interviews and briefing sessions with leading industry experts, academics, and consultants on the specific domain to provide deep insight into market trends, vendor solutions, and evaluation criteria.