SAP’s solution for Basel II helps banks meet the legislation’s requirements for calculation of risk exposure and capital, supports the supervisory review and disclosure process and provides a historical database to calculate and validate credit risk parameters. Nordea, already well-advanced in its preparations for implementing Basel II, evaluated multiple offerings before choosing SAP as the best match for its overarching credit-risk strategy. Nordea will implement the SAP solution for compliance with Basel II regulations as well as utilize the solution to consolidate processes and enhance reporting standards. As the result of applying the Basel II regulations, Nordea will improve its risk-management standards and increase efficiency in its credit process.
Basel II compliance and more
Enacted for banks and financial service institutions in 2004, Basel II requires banks worldwide to meet stringent standards for identifying risk and allocating adequate capital to cover potential losses. SAP’s solution for Basel II is part of SAP’s expanding set of analytical applications for banks. Designed to support financial analysis, profitability analysis and risk management, these applications are based on a common infrastructure and architecture and feature a robust financial database as well as common processes and methods. With this strong analytical foundation, the SAP solution for Basel II provides banks with more transparency and enhanced information for better decision-making in addition to driving their Basel II compliance. The solution is based on Basel II best practices and is continuously updated as the regulations change.
“Basel II compliance is one of the biggest challenges facing banks today, yet many companies still do not have a complete global picture of their risks,” said Thomas Balgheim, senior vice president, Financial Services, SAP AG. “Our view is that Basel II can be more than an obligation, but also a driver for organizational, technological and business innovation.”
Source: SAP AG