New Cognos and IBM Performance Solution Helps Banks Integrate Risk Management and Profitability Planning Across Core Systems: Risk Adjusted Profitability Blueprint mitigates risk, enables greater financial planning accuracy, and builds stronger alignment between finance and risk organizations

Share Article

Cognos (NASDAQ: COGN; TSX: CSN), a world leader in business intelligence and performance management solutions, and IBM (NYSE: IBM) today launched a new financial services solution that includes hardware, software and services designed to help banks more effectively integrate critical risk information with revenue and expense planning data to maximize risk-adjusted return on capital.

IBM and Cognos share a common vision for providing cost-effective solutions that enable banks to identify, report on and analyze the costs of trade, performance, risk management, compliance and profitability, among others

    The Cognos-IBM Risk Adjusted Profitability Blueprint provides a performance management framework that helps bank executives build precise multi-dimensional, product-level profitability plans and forecasts that are aligned with risk management strategies, enabling greater financial planning accuracy and building a critical connection between the finance and risk organizations.

"Banks today are challenged with striking a delicate balance between aggressively growing their business while controlling and minimizing their risk exposure. Risk adjusted financial reporting provides another dimension to traditional financial metrics, and requires the integration of domain expertise and software capabilities to develop an automated solution. The co-developed blueprint embeds this expertise and delivers the opportunity for a quick-time-to-value implementation that should jumpstart risk adjusted profitability reporting integrated with much needed planning and forecasting capabilities," said Kathleen Wilhide, research director, GRC and Financial Performance Management Solutions, at IDC.

Anchored on Cognos 8 Planning, Cognos 8 BI and coupled with IBM's Banking Data Warehouse, the Cognos-IBM Risk Adjusted Profitability Blueprint capitalizes on the financial services domain expertise provided by IBM Global Business Services to deliver an intuitive planning and reporting environment including:

-- Integrated risk-adjusted planning and forecasting at the product level, across multiple dimensions, with risk measures including risk adjusted return on capital (RAROC), economic capital, probability of default, loss given default and expected loss

-- Activity-based management and costing for key customer, product and business segments, providing the most accurate, reliable profitability planning and reporting data

-- Multi-dimensional scenario planning incorporating activity costs, allowing users to compare the financial impact of several business options and take action on the most profitable course

-- Multi-dimensional risk management and profitability reporting and analysis, leveraging the IBM-Cognos Risk Cockpit, a risk management reporting and analysis solution that combines the power of the IBM Banking Data Warehouse with Cognos 8 Business Intelligence

-- Optimized support for IBM System p and System x servers running IBM Information Server and DB2 Datawarehouse software

-- Full integration with System z mainframes to extend core banking functionality

Available immediately, the Risk Adjusted Profitability Blueprint is the latest in a series of profitability planning solutions launched by Cognos, including Blueprints for branch performance, corporate and retail banking customer segment performance, and insurance product profitability. For more information, visit http://www.cognos.com/innovationcenter/blueprint_bankfin.html.

The Blueprint also represents yet another collaborative offering between Cognos and IBM. In March 2006, the two companies announced a global strategic alliance to help customers integrate their business processes across the enterprise and gain greater insight into business performance. The alliance agreement included joint development, marketing, and sales of SOA-based solutions to help customers optimize their analytics capabilities leveraging industry-specific best practices. For more information, please see http://www.cognos.com/news/releases/2006/0307.html.

"Banks require core banking systems that are integrated, open, flexible, scalable and secure," said June Yee Felix, general manager, banking solutions and strategy, IBM. "The integration of IBM's Banking Data Warehouse with Cognos 8 Planning and BI will help customers achieve a comprehensive, integrated view of their core banking business in order to drive increased profits and shareholder value. Together with Cognos, we have delivered a solution that can break down the traditional silos between risk and finance reporting to drive more value from existing information assets."

"IBM and Cognos share a common vision for providing cost-effective solutions that enable banks to identify, report on and analyze the costs of trade, performance, risk management, compliance and profitability, among others," said Francis McKeon, financial services industry director, Cognos. "Through this joint offering, banks will finally be able to synchronize profitability plans with relevant risk scenarios, minimizing discrepancies between projected and actual financial results. This new Blueprint offers a significant head-start in helping banks boost profitability with a complete understanding of the credit and operational risks at play."

NOTE TO EDITORS: Cognos and IBM will be showcasing the new Cognos-IBM Risk Adjusted Profitability Blueprint at the Gartner Financial Services Technology Summit, Booth K, Westside Ballroom, Marriott Marquis Hotel, New York City, August 27-29, 2007.

ABOUT COGNOS PERFORMANCE BLUEPRINTS:

Cognos offers a full suite of Performance Blueprints to address planning and performance management process areas that directly impact an organization's ability to create business value. Both functional and industry-specific process areas can now be automated, streamlined and transformed to help organizations quickly create more business value. Developed by the Cognos Innovation Center for Performance Management, the Cognos Performance Blueprints are a key component within the Cognos Performance Management System, which combines technology, best practices, analytical applications and solutions, and a broad network of partners into a single performance management solution. For further information on the Cognos Performance Blueprints see http://www.cognos.com/innovationcenter/blueprint.html.

ABOUT COGNOS:

Cognos, the world leader in business intelligence and performance management solutions, provides world-class enterprise planning and BI software and services to help companies plan, understand and manage financial and operational performance.

Cognos brings together technology, analytical applications, best practices, and a broad network of partners to give customers a complete performance system. The Cognos performance system is an open and adaptive solution that leverages an organization's ERP, packaged applications, and database investments. It gives customers the ability to answer the questions -- How are we doing? Why are we on or off track? What should we do about it? - and enables them to understand and monitor current performance while planning future business strategies.

Cognos serves more than 23,000 customers in more than 135 countries, and its top 100 enterprise customers consistently outperform market indexes. Cognos performance management solutions and services are also available from more than 3,000 worldwide partners and resellers. For more information, visit the Cognos Web site at http://www.cognos.com.

ABOUT IBM

For more information about IBM, visit http://www.ibm.com.

Cognos and the Cognos logo are trademarks or registered trademarks of Cognos Incorporated in the United States and/or other countries. All other names are trademarks or registered trademarks of their respective companies. Note to Editors: Copies of previous Cognos press releases and Corporate and product information are available on the Cognos Web site at http://www.cognos.com.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

David DeRosa
Cognos
613-738-1338 ext. 33
Email >
Visit website