PeopleSoft Deliver New Risk Management Solutions
PeopleSoft to Deliver New Risk Management Solutions to Address Basel II Accord
- Enables Banks to Develop
Complete View of Risk -
- Provides complex risk capital calculations in response to Basel II issues -
PeopleSoft Inc. (Nasdaq: PSFT) today announced version 8.8 of its Enterprise Performance Management (EPM) solution. The new version will enable companies to prepare for upcoming regulations being proposed under the new Basel Capital Accord (Basel II). The new version features powerful risk management capabilities to enable banks to more easily measure the full spectrum of risk, including credit and operational. PeopleSoft EPM 8.8 is built on PeopleSoft’s robust, banking-specific data model.
Basel II establishes a framework for banks, using internally generated risk assessments to measure risk and determine sufficient capital requirements to cover losses. The new regulations, expected to be implemented by 2006, will affect virtually every bank in the world. Complying with strict new requirements to document and report market, credit, and operational risk exposures will be a significant challenge for banks.
“An industry-specific data model, coupled with analytic applications like PeopleSoft EPM, can provide banks with a strong foundation for measuring their risk profile under Basel II guidelines,” said Ed Hagan, managing director with BearingPoint, Inc. (NYSE:BE), one of the world’s largest business consulting and systems integration firms. “If banks have the tools to successfully manage risk at the detailed level, they can benefit from a lower cost of capital and improved profitability.”
As part of PeopleSoft’s EPM suite of solutions, the Risk-Weighted Capital application provides complex risk capital calculations in response to Basel II issues. In addition, the solution delivers new Basel II algorithms and detailed data structures to capture the full granularity of historical loss events. The PeopleSoft EPM solution suite is designed to enable customers to maintain a complete view of risk across the enterprise and manage for profitability.
“PeopleSoft continues to lead in financial management best practice, and enabling our banks to meet Basel II in a cost effective way is further demonstration of this,” said David Webster, Managing Director, PeopleSoft Australia and New Zealand. “Accountability and visibility is key in a time when solid corporate governance is critical.”
The introduction of PeopleSoft EPM 8.8 will further strengthen PeopleSoft’s position as the leading provider of enterprise software solutions to financial institutions, with more than 640 customers worldwide.
“Risk management is a priority for financial services firms due to continuing industry consolidation and competition, new capital regulations, and the need to manage for value,” said Renee Lorton, senior vice president and general manager, PeopleSoft Financial Management Solutions. “PeopleSoft is delivering solutions to help our customers ensure regulatory compliance and maximise business performance.”
PeopleSoft EPM 8.8 will be available in the first quarter of 2003.
PeopleSoft (Nasdaq: PSFT) is the world’s leading provider of application software for the real-time enterprise. PeopleSoft pure Internet software enables organisations to reduce costs and increase productivity by directly connecting customers, suppliers, partners and employees to business processes on-line, in real time. PeopleSoft’s integrated, best-in-class applications include Customer Relationship Management, Supply Chain Management, Human Capital Management, Financial Management and Application Integration. Today more than 4,900 organisations in 140 countries run on PeopleSoft software. For more information, visit us at www.peoplesoft.com.
PeopleSoft and the PeopleSoft logo are registered trademarks. All other company and product names may be trademarks of their respective owners. Copyright © 2002 PeopleSoft, Inc. All rights reserved.
Statements made in this press release that state the Company’s or management’s intentions, beliefs, expectations, or predictions for the future are forward-looking statements. Readers are cautioned that these statements are only predictions and may differ materially from actual future events or results. Factors that may bear on the accuracy of these predictions include economic conditions in the U.S. and abroad, the ability to complete and deliver products and services within currently estimated time frames and budgets, market response to product announcements, and other risks referenced from time to time in the Company’s filings with the Securities and Exchange Commission. Please refer to the Company’s periodic reports to shareholders (Forms 10-K and 10-Q) for more information on the risk factors that could cause actual results to differ.