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Oracle Financial Services Analytical Applications

The following is intended to outline our general

product direction. It is intended for information
purposes only, and may not be incorporated into
any contract. It is not a commitment to deliver
any material, code, or functionality, and should
not be relied upon in making purchasing
decisions.
The development, release, and timing of any
features or functionality described for Oracles
products remains at the sole discretion of
Oracle.

2009 Oracle Corporation Proprietary and Confidential

Unified Platform:
Analytical Applications Infrastructure

2009 Oracle Corporation Proprietary and Confidential

Oracle Analytical Applications Infrastructure

Common Platform Across Applications
FTP

ALM

Corporate

Basel II

Credit Risk

Unified Analytical Metadata

FINANCIAL SERVICES BUSINESS INTELLIGENCE

Data

Reports

Alerts

Dashboards

Embedded

FINANCIAL SERVICES ANALYTICAL APPLICATIONS INFRASTRUCTURE

Computations

Common Tools

Business Rules

Stochastic Modeling

FINANCIAL SERVICES ANALYTICAL APPLICATIONS DATA MODEL

Common Objects

Common Dimensions

Pre-Integrated/
Extensible

High Volume

Sources

2010 Oracle Corporation Proprietary and Confidential

44

Leveraging the Building Blocks

Shared Components across Applications

Unified Analytical Metadata

FINANCIAL SERVICES BUSINESS INTELLIGENCE

Data

Financial
RAPM, Reg.
Capital, Economic Capital,
ICAAP
ReportsStatements, Reg. Reporting,
Alerts
Dashboards
Embedded

FINANCIAL SERVICES ANALYTICAL APPLICATIONS FRAMEWORK

Business
RulesCapital, Stochastic
Modeling
Common
Tools
PurposeAllocations,
Built EnginesNII, Income
Stmt.,
Variance, EAD,
RWA, Reg.
Eco. Capital

FINANCIAL SERVICES ANALYTICAL APPLICATIONS DATA MODEL

Pre-Integrated/
Common Objects
Common
Dimensions
High Volume
Balances,
Transactions,
Rates, PD, LGD,
Exposures, Mitigants
Extensible

Sources

Finance

Risk

Information Process Stages

Staging Area

Application-specific processing Area

Results Area

Profitability

Common
input area
for
analytical
apps

Market Risk
FTP/ALM

Results for
consumption

Credit Risk
ICAAP
Basel II

2009 Oracle Corporation Proprietary and Confidential

Information Process Stages

Staging Area

Application-specific processing Area

Results Area

Profitability
Feature
Function

Organization

Detail

Staging Area

Common
input
area
Common,
granular
for data
model of source
analytical
apps

Processing
Area

Market Risk
Working store for analytical applications

FTP/ALM
Credit Risk

Source-aligned
Customer, Product,
Instrument,
Transaction, Contract,
Calendar etc.

Solution-aligned
Market Risk, Retail Credit Risk, Profitability,
ALM etc.
ICAAP

Granular to
event/transaction level

Depends on application needs

2009 Oracle Corporation Proprietary and Confidential

Results Area

Multi-grain
data for
(stars,
Results
cubes)
designed &
consumption
conformed for reporting

Consumption - aligned
RAPM, ICAAP
Credit Quality Reporting
etc

Basel II
Depends on consumption
needs

Risk Management Functional View of

Architecture
Risk Dashboards &
Reporting

Advanced
Solutions

Risk
Measurement &
Management

Enterprise Wide Analytics: Risk MIS & Regulatory Reporting

RAPM - RAROC / SVA

Portfolio Models

Basel II Credit Risk

Corporate & Retail
Credit Risk

PD Modeling

Risk Modeling

Asset Liability
Management
Market Risk (VaR)

Cash Flow
Modeling

LGD
Modeling

Risk Based Pricing

Credit Risk
Economic Capital

ICAAP

Operational Risk
Economic Capital

Operational Risk
Management

VaR Models

Instrument
Pricing Models

Frequency &
Severity Models

Stress Testing

G/L Reconciliation, Data Quality, Manual Adjustments

Data
Preparation

Common Data Repository

Credit Rating Systems

Operational Systems

Enterprise Data Warehouse

Banks Data Sources

2009 Oracle Corporation Proprietary and Confidential

Unified Business Intelligence

Across Analytical Applications
Interactive
Dashboards

Reporting &
Publishing

Ad-hoc
Analysis

FSI Risk Analytics

BASEL II, ICAAP, Operational Risk, ALM,
Market Risk

Proactive
Detection
and Alerts

Human
Resources

Oracle Cross-Industry
Analytics

Common Enterprise Information Model & Abstraction Layer

Pre-built Hierarchies, Drill Paths, Security, dashboards, reports
Based on industry and analytic best practices
Completely pre-wired to OFS Analytical Applications Metadata

Analytical Applications
OFS

2009 Oracle Corporation Proprietary and Confidential

Web
Services

Financials

Supply
Chain

Oracle Financial Services Analytics

OLTP Applications
Oracle ERP, SAP, FLEXCUBE, Siebel

MS Office
Plug-in

FSI Performance Analytics

Profitability, Transfer Pricing

FSI Customer Insight Analytics

Sales, Marketing, Service, Institutional & Retail

Oracle BI Apps built on

Oracle Business Intelligence
Enterprise Edition Suite

Disconnected
Analytics

Custom Apps

Files
Excel
XML

Business
Process

Unified Business Intelligence

2009 Oracle Corporation Proprietary and Confidential

10

Risk Solutions Process Flow

Common Metadata Layer
Data Model
Common
Reclassification
Rules

GL Data

Mitigant
Information
Asset
Correlation
Info
Risk Factor
Data
Other
Historical
Data

Manual Data
Adjustments

PD, LGD
Customer
Info
Securitized
Exposures

Data Quality Checks, GL Reconciliation, Adjustments

Source Systems Data Feeds

Wholesale/
Retail
Exposures
Common
Hierarchies
LOB, Asset
Class etc

Run
Framework

Rules Framework
Basel II
Computation Rules

Reporting
FFIEC 101,
Pillar 3, Mgt.
Reporting

Reconciliation
Rules
Basel II Runs

Advanced Analytics Infrastructure - Stress Testing

Downgrade
PD/LGD

Scenario 1

Credit
Crisis

Mild
Recession

Scenario 2

Stressed
Basel II Runs

Dashboards Stress
Testing

Scenario 3
Scenario 1

Advanced Analytics Infrastructure - Modeling

Techniques

Models

Capital
Forecast Runs

Scenario 2

Monte Carlo Simulation

Stochastic Processes

Credit Risk EC
Models

Logistic Regression
Partial Differentiation
Equations

2009 Oracle Corporation Proprietary and Confidential

Baseline EC
Runs

Market Risk VaR

Distribution Fitting
CashFlow Modeling

Scenario 3

PD/LGD Models

Dashboards ICAAP, RAPM

Stressed EC
Runs

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Oracle Financial Services Analytical Applications

Performance Management
Jennifer

Profitability

Funds Transfer Pricing

Consolidation

Accounting Hub

Activity-Based Costing

Budgeting and Forecasting

Balance Sheet Planning

Pricing Management

Credit Risk

Analytical CRM

Retail Credit Risk

Loan Loss Forecasting

Performance

Risk Based Pricing

Portfolio Analytics

Corporate Credit Risk

Hedge Management
IFRS 9 IAS 32/39

Management

Customer Profitability

Marketing Analytics

Treasury Risk

Service Analytics
RAPM

Market Risk
Asset Liability Management

Balance Sheet Planning

Channel Insight

Liquidity Risk Stress Testing

Regulatory Capital

Risk

Customer

Management

Insight

Channel Usage
Channel Performance

Basel II
Retail Portfolio
Risk Models and Pooling

Customer Profitability

Stress Testing

Economic Capital

ICAAP

Economic Capital
Advanced (Credit Risk)

Governance

Customer Profitability

& Compliance

Product Profitability

Operational Risk
Economic Capital

Regulatory Compliance (Financial Crime)

Anti-Money Laundering

Fraud Detection

Broker Compliance

Trading Compliance

Governance and Compliance

Operational Risk

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2010 Oracle Corporation Proprietary and Confidential

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