CD Financial Technology Ltd (CDFT) has released a new generation integrated risk, valuation and planning system, the R/V Platform. The R/V Platform is designed to provide a fully integrated, yet fully modular system platform for risk and valuation analyses and financial and corporate planning. On this platform a variety of different applications have been and can further be implemented.

The underlying idea about the modular integrated system is twofold. On one hand, it recognizes and addresses the fact that the various tasks of risk management, valuation and related analyses are - when properly done - so extensive and overwhelming that it is not practical and realistic to internalize these tasks in general front, middle or back office systems. On the other hand, the architecture also supports partial solutions based on equally powerful methodology, where there is no need for a large application set.

The users of all the applications implemented in the R/V Platform will benefit from any upgrade and development work related with the calculation server, as all the applications share the core components of the server.

By its fundamental design the R/V Platform is a genuine multiple users' multiple applications system. It fully replaces and in many areas extends the functionalities of CDFT earlier generation products. It also introduces several new applications.

The main features and properties of the R/V Platform version 1.0 are:

• All functions and reports of the existing VAR+, ACES+, SWAP+, ZERO+ and DATA+ systems are available and supported in the R/V Platform, with many of them having been considerably improved and extended.
• The system supports one-step and path Monte Carlo and historical simulation techniques, advanced stress tests and scenario analyses, VaR type and coherent risk measures and other tools and analytics.
• The calculation engine is capable of dealing with very large Monte Carlo simulation and other elaborate analysis tasks. Simulation problems with thousands of risk factors have been processed in actual customer cases using the system. Both MS Windows and Linux/Unix implementations are supported.
• With built-in powerful scalable system architecture the R/V Platform can be implemented in hardware configurations capable of delivering near-real-time performance even in largest of applications.
• The system's user interfaces support multiple simultaneous users of multiple different applications.
• The application database can be implemented on virtually any RDBMS. The database is used for the storing of position data, market data and calculation results, which supports easier and more rigorous back-testing.
• The R/V Platform is developed to interface flexibly with external databases and data warehouses.
• The R/V Platform is an integrated risk analysis system, in which modular and potentially very different applications can be performed simultaneously and independently of each other. The analyses of these applications are based on the same simulations and market/estimate/transaction data and a single set of interfaces. They also share the same pricing and valuation rules. Consequently, where this is relevant, the risk measures, analysis results and capital requirements (for regulatory or internal purposes) produced by different applications of the system are consistent and comparable with each other.

The following applications are available on the system:

1. Extended Basel II Internal Models type one step market risk analysis.
2. Extended general market risk analysis including one-step and path simulation analytics.
3. Extended credit risk analysis with market and counterparty credit risk variables being simulated as time-paths, and with netting and credit risk mitigation enabled. The system supports Basel II Advanced Approaches for credit risk capital requirement calculations.
4. Simulation based operational risk analysis. The system supports Basel II Internal Measurement approaches.
5. Economic capital analysis with market risk, credit risk, operational risk and, where relevant, underwriting risk simultaneously included.
6. Alpha testing of counterparty credit risk trading book derivatives positions.
7. Cash flow analysis and NPV simulation based approach for advanced probability of default and rating migration forecasting and analysis.
8. Cost at Risk analysis of government financing policies.
9. IFRS 36 risk-adjusted discount rates for impairment testing.
10. IFRS 39 validity testing for hedge accounting.
11. Cash flow simulation based Enterprise Wide Risk, valuation and ALM analysis for strategic planning, M & A, investment and Value Based Management applications.
12. Cash flow simulation based rating outlook analysis.

The R/V Platform can and is planned to be extended further in different and advanced application areas. These extensions are implemented either in customer-driven projects or in the on-going CDFT in-house development work.

For all our products, full demonstrations along with case studies are available on an individually tailored basis. For more information please contact:

CD Financial Technology Ltd
Aikatalo
Mikonkatu 8
FIN-00100 HELSINKI
FINLAND

E-mail: sales@cdgroup.fi
Tel: +358 9 612 3322
Fax: +358 9 278 2335