2.2.1 Key Features

Oracle Financial Services ALMCS is designed to model balance sheets under a variety of rate environments. Oracle Financial Services ALM functionality uses several key concepts and has evolved from the continual iterations of building simulated management processes. The basis of Oracle Financial Services ALMCS functionality includes:

• A wealth of output information. OFS ALMCS calculates and stores a variety of financial risk indicators including, VaR, EaR and related probability distributions; static and dynamic market value, duration and convexity; static and dynamic Gaps based on both repricing and liquidity bucket definitions; income simulation capabilities.
• Rigorous Calculations. OFS ALMCS is designed to operate on transaction-level data, using Oracle's highly accessible and flexible financial services data model. Each account, as well as all forecasted new-business activity, is modeled independently on a daily cash flow basis.
• A flexible time horizon and free-form timing bucket increments for reporting are critical to meeting the wide range of forecasting requirements of financial institutions. Unconstrained chart of accounts definition is a basic requirement of effective modeling.
• A structured process for defining and controlling assumptions is critical to any successful modeling process.
• An unconstrained batching of scenarios, with flexible assumptions sets, is required to achieve an effective and efficient analytical process.