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Toronto, London (UK PRWeb) 3 October 2010

Algorithmics, the world’s leading provider of risk management solutions, today released the first comprehensive assessment of all elements of Basel III and found that the defect in their conceptual approach to capital and liquidity.

series of proposals by the Basel Committee headlines Tier 1 capital ratio, building pads, and the ratios of debt and liquidity, all important in their own right. However, after evaluation of all legal documents from a global perspective rather than risk silo Algorithmicsâ? Research titled “Basel III :? ??????? What’s new? Â? Business and Technology Challengesâ ????, identifies the fundamental flaw of ignoring the true relationship between liquidity and capital.

reports? s authors, Dr. Mario Onorato, Chief Assessment & Capital Management at Algorithmics and Honorary Senior Lecturer, Cass Business School in London, said: â? Next to capital as the primary factor mitigating liquidity risk does not recognize the comprehensive nature to see the liquidity risk. If a situation of liquidity and the resulting bank will use reserves set aside to absorb losses and meet obligations, the companies value and capital are also likely to decrease as the bank began to be perceived as? ? Risky? ?. Liquidity risk and capital are inextricably linked and can not be treated as “significant silos.â ????

Basel III is only partially corrected the weaknesses of the approach adopted silo-based risk management. The division of the mandatory nature of the coverage rate for liquidity and stable net financing in Basel III is useless because they do not reflect the play of the capital liquidity. This SUMMERA? S stress test of the European Bank has not touched on liquidity, exactly what has paralyzed the markets during the recent crisis. The invalidity of a relapse is one of the main objectives of Basel III.

Besides regulatory deficiencies, Dr. Onorato stakeholdersâ? changing demands for better governance in the banks their risk processes and systems to visualize the overall risk for all their legal entities, both bottom-up and run top-down perspective.


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system truly effective risk management is a holistic approach to measuring and reporting, display and management of risk, the relationships between all risk factors, so their potential impact on the balance sheet and stakeholdersâ? ? Interests are properly taken.? Explains Dr. Onorato

To download a copy of the document search Algorithmics Basel III, a Basel III :? ??????? What’s new? â? Business and Technology Challengesâ ????, visit: http://www.algorithmics.com/EN/media/pdfs/Algo-WP0910-LR-Basel3-Exd.pdf

For further information on the award-winning solutions and patented under Algorithmics: www.algorithmics.com

For more information please contact:

Heather Smith

, Senior Communications Manager, Algorithmics (UK) Ltd.

Direct Line +44 (0) 20 7392 5820 Mobile: +44 (0) 7515 974 223

E-mail Heather (dot) Smith (at) algorithmic (dot) com

Notes for editors

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A summary of the full media research is available. Liquidity risk? The monitoring by supervisors in Basel is a summary and explanation of the results of the research. http://www.algorithmics.com/EN/media/pdfs/Algo-WP0910-LR-Basel3.pdf

: It can be found at

Algorithmics is the world’s leading provider of risk management solutions. Financial organizations from around the world use Algorithmics’ software, analysis and advice to help them so aware of the risks of business decisions, maximize shareholder value, and the legal requirements. Supported by an international team of experts, the risk in all major financial centers located, Algorithmics offers proven, award-winning solutions for market, credit and operational risks as well as collateral and capital management. Algorithmics is a member of the Fitch Group. www.algorithmics.com

Basel III

:? ??????? What’s new? â? Business and Technology Challengesâ? is a research document to help practitioners understand all elements of the proposals for Basel III, whose impact on the business and technology needs, and gaps between the requirements and best practices in risk governance. http://www.algorithmics.com/EN/media/pdfs/Algo-WP0910-LR-Basel3-Exd.pdf

: It can be found at

Fitch Group is the parent company of Fitch Ratings, a global rating agency that provides global markets with independent credit ratings, timely and prospective. With 49 offices worldwide, Fitch Ratingsâ? Expertise in the global capital markets in over 150 countries. Fitch Ratings in New York and London.

Fitch Group also includes Fitch Solutions, a distribution channel for Fitch Ratings products and a provider of data, analytics and related services. and Algorithmics, the world’s leading provider of Enterprise Risk Solutions

The Fitch Group is a majority-owned subsidiary of Fimalac, SA, Paris, France.

For more information, please visit www.fitchratings.com www.algorithmics.com and www.fimalac.com

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