Our solution for ALM is the essential foundation for efficient and dependable risk analysis. With its easy to understand interface and analyses, it reduces complexity and makes accurate compliance with reporting requirements painless.

Why choose Empyrean ALM?

• Results are measured in seconds vs. hours.
• Intuitive, easy to learn interface built by practitioners.
• Create “What if” scenarios faster than you thought possible.
• Easily identify risks associated with rate changes, decay rates, beta modifiers, prepayments, new volumes, macro-economic variables, and an unlimited number of user defined factors.
• Transaction level calculations support additional granularity for reporting and analysis.
• Comprehensive audit trails track user behavior and changes to the system.

Banks with assets of more than $10 billion must conduct annual stress tests to ensure capital planning processes that account for unique risks and ensure sufficient capital. Our stress testing solution provides the ability to define and execute any banks specific scenarios to support what-if model sensitivity and capital planning analyses.

Why choose Empyrean Stress Testing?

• Integrate credit assumptions to analyze balance sheet from a ‘top-down” or “bottom-up” approach.
• Credit models can be in the form of regression equations, migration tables, or simple loss rates.
• Start with basic inputs and easily evolve over time to more sophisticated analyses.
• Provide an unlimited number of macroeconomic variables driving balance sheet behavior. Quantify which variables have the greatest impact.
• Sophisticated equation capabilities create desired balance sheet drivers and dependencies.
• Create multiple reporting hierarchies to dynamically support ALM and DFAST/CCAR submissions.
• System is used as primary aggregator model or as feeder of PPNR (Pre-provision Net Revenue).

Banks that successfully manage liquidity can make better tactical and strategic funding decisions, comply with regulatory requirements and make sensible retail pricing decisions. Our liquidity modeling solution ensures that these stress tests are flexible enough to allow banks to integrate and quickly modify business strategies.

Why choose Empyrean Liquidity Modeling?

• Leverage consistent cashflows to support full liquidity stress testing.
• Integrate Contingency Funding Plans to drive the analysis and creation of various business strategies.
• Fast cashflow generation to support required input of reporting such as 2052 a/b and LCR.
• Total control of all assumptions to isolate and manage liquidity risk.

FTP provides a representation of the profitability of each funding source based on its operational needs and the functions of the two primary divisions: lending and deposits. Our Funds Transfer Pricing solution recognizes and accounts for risk exposures, individually and in combination, by calculating the risk-adjusted costs and income from an institution’s various activities.

Why choose Empyrean Stress Testing ?

• Calculate Cost of Funds (FTP) at transaction level for entire balance sheet.
• Apply appropriate data tags for granular reporting and segmentation.
• Ensure consistent assumptions and calculations by using the same set of cashflows that drive the ALM and Stress Testing analysis for the FTP calculations.
• Pre-defined audit reports outline every assumption and calculation that supports calculation of FTP rate.
• Supports commonly used methodologies. Leverage equations to create custom defined requirements such as rolling averages or multiple spreads.
• Open reporting supports the integration with internal budgeting/profitability systems.
• Calculate pro-forma FTP rates to analyze profitability of forecasted business and drive pricing behaviors/discussions.

The Current Expected Credit Loss Accounting standard (CECL) represents the biggest change to bank accounting ever. CECL isn’t just an accounting change—it’s a change to how all banks manage their business. Our CECL solution will aid compliance with expected credit impairment loss calculations and key risk driver reporting.

Why choose Empyrean Current Expected Credit Loss?

• Supports transaction and pool level calculations for FASB CECL calculations.
• Centrally orchestrate CECL and stress testing processes.
• Create models and run scenario- and simulation-based analyses.
• Streamline management of complex, granular models.
• Quickly process large data sets in near-real time.

Our solution caters for all three areas of the IFRS 9 standard:

• Classification & measurement
  - Automates both the classification and the valuation of your financial instruments given their contract characteristics.
• Impairment & Expected credit loss:
  - Determining base PD and LGD information
  - Creation of forward-looking, scenario-based term structures for PD, LGD and EAD
  - Probability-weighted ECL computation
  - Stage assessment tracking for every contract
  - IFRS 9 impairment reporting and disclosures
  
• Hedge accounting:
  - Hedge designation, fair value computation of the hedged item and hedging instrument, as well as hedge effective test are fully automated.
  

Why choose Empyrean IFRS 9?

• Fast implementation based on your existing infrastructure.
• Intuitive interfaces to easily create forward-looking scenarios, new classification and stage assessment logic as well as updated hedge strategies.
• Built-in what-if analysis capabilities around instrument valuation and provision forecasting provide management insight into your future P&L impact.
• Calculations at the most granular level allow users to decide their own level of aggregation and report layout.
• Fully auditable and reconcilable.

Why restrict the analysis of your balance sheet to pre-defined rate shocks or deterministic scenarios? The speed of Empyrean enables banks to apply hundreds of possible outcomes to accurately forecast their Net Interest Margin (NIM) for any given time horizons. Provide senior management with the ability to quantify the likelihood of meeting budget objectives based on hundreds or even thousands of variables. Advance your ALM and Forecasting abilities to the next level.

Why choose Empyrean Stochastic Income Simulation?

• Easily enhance existing ALM framework to support hundreds of scenarios.
• Intuitive interface guides clients through creation of stochastic models.
• “Out of the box” reports that senior management and ALCO will use and understand.
• Empyrean stochastic scenarios compute faster than other model’s deterministic scenarios.