IBM Algo Credit Manager V5.3 helps optimize credit management, decision making, and ...

16 Pages·2015·0.12 MB·English

IBM United States Software Announcement
215-287, dated August 4, 2015
IBM Algo Credit Manager V5.3 helps optimize credit
management, decision making, and operational
efficiency across business lines
Table of contents
1 Overview 6 Technical information
2 Key prerequisites 8 Ordering information
2 Planned availability date 11 Terms and conditions
2 Description 14 Prices
5 Program number 15 Order now
6 Publications
At a glance
IBM(R) Algo Credit(R) Manager V5.3 enhancements include:
• Improved decision support and user experience with major enhancements to
credit application functionality and workflows
• Alternative option for configuring workflows through IBM Business Process
Manager (BPM)
• Delegated authority functionality with configurable approval mandates and paths
through the user interface or with scripts
• Enhanced what-if analysis on potential transactions across positions, which
include both banking book and trading book transactions, with support for draw-
down requests and limit reservations
• Enhanced pricing for profit capability that enables banks to embed Risk-Adjusted
Return On Capital (RAROC) calculations within the credit approval process, and
price loans in risk-cost terms to optimize revenue
• Improved performance of the functional reporting library database
• A new mobile application, Algo Credit Officer, that alerts designated approvers to
remotely review and take action through mobile devices
• Support for IBM Power(R) 8 processor architecture
For ordering, contact your IBM representative or an IBM Business Partner. For more
information, contact the Americas Call Centers at: 800-IBM-CALL (426-2255).
Reference: YE001
Overview
Algo Credit Manager enables banks to effectively identify, price, control, monitor,
and ultimately reduce credit risk. With advanced data management that spans
multiple business lines and products across both banking and trading books, this
end-to-end, credit lifecycle solution provides managers with risk-informed, decision
support at every stage of the credit lifecycle. This helps mitigate potential losses and
allows managers to develop the most profitable client relationships.
Featuring role-specific interfaces and mobile support, Algo Credit Manager provides
decision makers with the capabilities they require:
• Dynamic operational controls
• Enterprise-wide, credit risk aggregation and limits management
IBM United States Software Announcement 215-287 IBM is a registered trademark of International Business Machines Corporation 1
• Insight for risk-based pricing to grow commercial loan portfolios and increase
return on capital
Key prerequisites
Supports AIX(R) and Red Hat LinuxTM platforms.
For additional information, refer to the Technical information section.
Planned availability date
• August 4, 2015. Electronic delivery
• August 11, 2015. Media delivery
Description
Algo(R) Credit Manager V5.3
Algo Credit Manager Foundation delivers a consolidated view of credit risk
exposures across both banking and trading book at points within a customer
portfolio hierarchy. Customer portfolios relate to the ownership hierarchies of
customers, for example, banks and corporations have branches, subsidiaries, and
holding companies. Private customers are grouped into family units and company
ownership. The solution also groups customers into country and industry portfolios
and supports relationships such as suppliers and agents of customers.
New features in Version 5.3
• Enhanced user experience through automation that provides instant access to
the most relevant data and results throughout the credit application process.
• Enhanced what-if analysis on potential transactions across positions. This
includes both banking book and trading book transactions with support for draw-
down requests and limit reservations. A draw-down occurs when a customer
makes explicit use of a lending facility, for example, an overdraft facility.
• New workflow functions on banking book transactions, such as draw-down
actions with facility level approval, and delegated authorities with approval
mandates and paths configurable through the user interface or scripts.
• Algo Credit Manager Foundation includes the functions provided in earlier
releases by Algo Credit Manager Asset Register.
Key features
• Capture of credit related static data and creation of counterparty, facility, limit,
and mitigation structures
• Automated generation of risk appetite limits that are in accordance with policy-
based metrics
• Aggregation engine that provides powerful and consistent framework for
consolidation of exposures from multiple sources and transaction systems across
an organization
• Exposure navigation from highest portfolio levels down to individual transaction
records
• Support for mitigation at facility level individually or on a multiple basis
• Support for mitigation through legal master agreement netting
IBM United States Software Announcement 215-287 IBM is a registered trademark of International Business Machines Corporation 2
Algo Credit Manager Foundation Reporting Library Add-on provides an
integrated, historical reporting database to support reporting requirements.
Extensive changes were made to the design of the reporting database to incorporate
new features and improve performance.
New features in Version 5.3
• New tables that represent limit and consolidated exposure combinations to
improve ease of use.
• Support for drill-down and data navigation capabilities that allow users to move
easily between consolidated data and fine detail data in all dimensions.
• Full support for transaction results and structure consolidation in any reporting
dimension.
• Improvements in the method that is used to configure the contents of the
reporting database to allow optimization that is based on customer business
focus.
Algo Credit Manager Credit Origination and Workflow Management Add-on
simplifies the packaging of the standard option for business process management
and now contains the functions that were provided in the following components of
earlier releases:
• Algo Credit Manager Credit Origination and Application Management Base
• Algo Credit Manager Credit Application Management Workflow Add-on
Algo Credit Manager Credit Origination and Workflow Management Add-on requires
Algo Credit Manager Foundation.
New features in Version 5.3
• New inbox design and improved activity management screens
• Improved reminders coverage to improve decision support for users waiting for
the completion of workflow activities
• Improved navigation options between workflow tasks
• Algo Credit Manager integration with IBM BPM
Clients who are interested in supporting business process management through IBM
BPM, instead of the standard option of Algo Credit Manager Credit Origination and
Workflow Management Add-on, can separately license IBM BPM.
The integration of Algo Credit Manager with IBM BPM requires Algo Credit Manager
Foundation, and does not require the Algo Credit Manager Credit Origination and
Workflow Management Add-on.
Key features
• Origination and enrichment of credit data beyond that required for consolidation
• Integrated workflow management and control for all aspects of the credit process
• Inbox and reminders support workflow task management
• Data and functional controls to ensure user data access
• Automated data validation and decision making
• Document management with generation and content management available
directly from counterparty, limit, facility, mitigant, and application proposal
records
• Automatic document creation from any point in business process
• Support for multiple rendition template types
IBM United States Software Announcement 215-287 IBM is a registered trademark of International Business Machines Corporation 3
Algo Credit Officer mobile application
Algo Credit Officer, a mobile application, allows credit officers to make approval
decisions on credit applications while away from the office. The application allows
users to approve or decline a credit application, or escalate decision making to a
higher authority, or ask the requestor to provide more information. The application
is free and is available for download from the app stores for Apple iPhone and
Android.
This application requires Algo Credit Manager Foundation and integration with
a business process management component, either Algo Credit Manager Credit
Origination and Workflow Management or IBM BPM.
Access to the license agreements for Algo Credit Officer are provided in the Terms
and conditions section.
Algo Credit Manager Pricing for Profit Add-on enables users to generate
multiple risk versus reward scenarios at the company, group, or subsidiary level,
supporting the credit application approval process for individual firms and groups of
companies.
New features in Version 5.3
Risk Adjusted Return on Capital calculations are fully embedded in the credit
approval process. This supports the standard Basel methodology and approaches for
standardized, IRB foundation and full IRB that include calculations at all appropriate
points with consideration for facilities, counterparties, limits, and the transfer of risk
to third parties. The methodology includes the ability to utilize pricing records for
both existing and proposed transactions, and the importing of Loss Given Default
and Exposure at Default data from external models
Calculations support multiple scenarios for each object where the inputs can be
changed or stressed per scenario, and configured for facilities, (for example, by type
and seniority), and for counterparties, (for example, organization type and rating
type).
Key features
• Risk Adjusted Return on Capital calculator
• Ability to utilize pricing records for both existing and proposed transactions
• Entity and facility data uploads for selected customer groups
• Creation and saving of multiple future scenarios including assumptions and
results to credit applications
• Import Loss Given Default and Exposure at Default data from external models
Algo Credit Manager Pricing for Profit Management requires Algo Credit Manager
Foundation and Algo Credit Manager Credit Origination and Workflow Management
Algo Credit Manager Default and Recoveries Management Add-on provides
support for the management of counterparties and associated facilities, exposures,
and mitigants in, or near, default.
Key features
• System that can be configured so that ratings can automatically change the
classification of counterparties who are at risk or impaired.
• Estimation, timing, amount, and cost of recoveries.
• Recording of milestone exposure values for the debtor in recovery for subsequent
analysis.
• Specific provisions are calculated for the Debt in Recovery.
• Cash flows that are attached to forecast recoveries and that are dated and
identified as the due dates occur.
IBM United States Software Announcement 215-287 IBM is a registered trademark of International Business Machines Corporation 4
• Configurable, parallel calculation methods that support the BEEL and IAS39
accounting standards are provided. Typically, BEEL is used to calculate the
specific provisions in the bank financial statements, profit and loss, and balance
sheet, while IAS39 is provided as a comparison in the financial statement notes.
Algo Credit Manager Default and Recoveries Management Add-on requires Algo
Credit Manager Foundation and Algo Credit Manager Credit Origination and Workflow
Management Add-on.
Algo Credit Manager Dashboard Manager provides a support infrastructure
through which dashboard controls can be implemented and deployed to Authorized
Users.
Key features
• Dashboards can be configured and deployed to meet the specific requirements of
Authorized Users and have available to them the full set of data supported by the
Algo Credit Manager operational and business process database.
• Dashboards are embedded within the Algo Credit Manager, web-based user
interface and make use of underlying IBM Cognos(R) Business Integration
technologies to support data access and presentation.
Cognos Framework Manager is required so that clients can build the required Cognos
Framework to transform the required data.
Algo Credit Manager Dashboard Manager requires
• Algo Credit Manager Foundation
• Cognos Business Intelligence
• Cognos Framework Manager
Accessibility by people with disabilities
A US Section 508 Voluntary Product Accessibility Template (VPAT) containing details
on accessibility compliance can be requested at
http://www.ibm.com/able/product_accessibility/index.html
Program number

Program Program
number VRM name
5725-H49 5.3.0 IBM Algo Credit Manager
Education support
IBM training provides education to support many IBM offerings. Descriptions of
courses for IT professionals and managers are on the IBM training website
http://www.ibm.com/services/learning/
Call IBM training at 800-IBM-TEACH (426-8322) for catalogs, schedules, and
enrollments.
IBM United States Software Announcement 215-287 IBM is a registered trademark of International Business Machines Corporation 5
Offering Information
Product information is available via the Offering Information website
http://www.ibm.com/common/ssi
Also, refer to the Passport Advantage(R) website
http://www.ibm.com/software/passportadvantage
Publications
Product documentation will be provided as part of the software installation.
Services
Software Services
IBM Software Services has the breadth, depth, and reach to manage your services
needs. You can leverage the deep technical skills of our lab-based, software services
team and the business consulting, project management, and infrastructure expertise
of our IBM Global Services team. Also, we extend our IBM Software Services reach
through IBM Business Partners to provide an extensive portfolio of capabilities.
Together, we provide the global reach, intellectual capital, industry insight, and
technology leadership to support a wide range of critical business needs.
To learn more about IBM Software Services or to contact a Software Services sales
specialist, refer to
http://www.ibm.com/software/sw-services/
Technical information
Specified operating environment
Hardware requirements
Algo Credit Manager V5.3
A detailed software product compatibility report can be found at
http://www.ibm.com/software/reports/compatibility/clarity/
softwareReqsForProduct.html
Red Hat Linux
Hardware requirements
These requirements are for a typical medium size implementation of 500,000
counterparties.
IBM United States Software Announcement 215-287 IBM is a registered trademark of International Business Machines Corporation 6
• Application server: Intel XeonTM Processor E5 family or its equivalent
– 16 cores
– 256 GB RAM
– 410 GB disk space
• Database server: Intel Xeon Processor E5 family or its equivalent
– 8 cores
– 32 GB RAM
– 300 GB disk space
The hardware required for the application depends on the amount of input data,
risk model configuration, and overall system usage. A service engagement is
recommended to determine the requirements for your system. Contact your IBM
representative.
Software requirements
• Operating system: Red Hat Enterprise Linux 6.6 or 7.1 (x86 or64 architecture)
• Database server: Oracle Database 12c Release 1 (12.1.0.2.0) Enterprise Edition
• WindowsTM desktop: Windows 7 SP1 64-bit
• Browser: MicrosoftTM Internet Explorer 10 or 11
• Web application server. One of the following:
– WebSphere(R) Application Server V8.5.5.5 (recommended)
– WebSphere Application Server Liberty Profile V8.5.5.5 (included)
• Messaging middleware (optional). One of the following:
– WebSphere MQ V7.1.0.1
– Glassfish MQ V4.5.2
• Document content management (optional): One of the following:
– IBM Filenet P8 V5.2.0
– EMC Documentum 7.1 (requires 64-bit Oracle client and 32-bit Oracle client
library files)
• Dashboard Manager support (optional): IBM Cognos(R) Business Intelligence
V10.2.2.1
• Foundation Reporting Libraries support (optional): IBM Cognos Business
Intelligence V10.2.2.1
AIX
Hardware requirements
These requirements are for a typical medium size implementation of 500,000
counterparties
• Application server: POWER(R) 7 or POWER 8
– 16 cores
– 256 GB RAM
– 410 GB disk space
• Database server: POWER 7 or POWER 8
– 8 cores
– 32 GB RAM
– 300 GB disk space
The hardware required for the application depends on the amount of input data,
risk model configuration, and overall system usage. A service engagement is
IBM United States Software Announcement 215-287 IBM is a registered trademark of International Business Machines Corporation 7
recommended to determine the requirements for your system. Contact your IBM
representative.
Software requirements
• Operating system. AIX 7.1 TL3
• Database server. One of the following:
– IBM DB2(R) Advanced Workgroup Server Edition 10.5.0.5
– DB2 Advanced Enterprise Server Edition 10.5.0.5
– DB2 DB2 Enterprise Server Edition 10.5.0.5
– DB2 Workgroup Server Edition 10.5.0.5
– Oracle Database 12c Release 1 (12.1.0.2.0) Enterprise Edition
• Windows desktop: Windows 7 SP1 64-bit
• Browser: Microsoft Internet Explorer 10 or 11
• Web application server. One of the following:
– WebSphere Application Server V8.5.5.5 (recommended)
– WebSphere Application Server Liberty Profile V8.5.5.5 (included)
• Messaging middleware (optional): One of the following:
– WebSphere MQ V7.1.0.1
– Glassfish MQ V4.5.2
• Document content management (optional). One of the following:
– IBM Filenet P8 V5.2.0
– EMC Documentum 7.1 (requires 64-bit Oracle client and 32-bit Oracle client
library files)
• Dashboard Manager support (optional): IBM Cognos Business Intelligence
V10.2.2.1
• Foundation Reporting Libraries support (optional): IBM Cognos Business
Intelligence V10.2.2.1
Software requirements
Not applicable. The program's specifications and specified operating environment
information may be found in documentation accompanying the program, if
available, such as a readme file, or other information published by IBM, such as an
announcement letter. Documentation and other program content may be supplied
only in the English language.
Planning information
Packaging
The following media packs are available:
• Algo Credit Manager 5.3.0 English Media Pack
• Algo Credit Manager Dashboard 5.3.0 English Media Pack
This program, when downloaded from a website, contains the applicable IBM
license agreement and License Information, if appropriate, and will be presented
for acceptance at the time of installation of the program. For future reference, the
license and License Information will be stored in a directory such as LICENSE.TXT.
Ordering information
This product is only available via Passport Advantage. It is not available as
shrinkwrap.
IBM United States Software Announcement 215-287 IBM is a registered trademark of International Business Machines Corporation 8
These products may only be sold directly by IBM or by authorized IBM Business
Partners for Software Value Plus.
For more information about IBM Software Value Plus, refer to
http://www.ibm.com/partnerworld/page/svp_authorized_portfolio
To locate IBM Business Partners for Software Value Plus in your geography for a
specific Software Value Plus portfolio, refer to
http://www.ibm.com/partnerworld/wps/bplocator/
Product Group: Business Analytics
Product: IBM Algo Credit Manager 5725-H49
Product Category: Customer solutions
Passport Advantage
Program name/Description Part number
IBM Algo Credit Manager V5.3 (5725-H49)
IBM Algo Credit Manager Foundation per
Currency Value Unit
License and Subscription & Support 12 Mo D0UQ6LL
Subscription & Support Renewal 12 Mo E0F0KLL
Subscription & Support Reinstatement 12 D0UQ7LL
Mo
IBM Algo Credit Manager Foundation
Reporting Library Add-on per CVU
License and Subscription & Support 12 Mo D0UQCLL
Subscription & Support Renewal 12 Mo E0F0NLL
Subscription & Support Reinstatement 12 D0UQDLL
Mo
IBM Algo Credit Manager Credit
Origination and Workflow Management
Add-on per Authorized User
License and Subscription & Support 12 Mo D0UPSLL
Subscription & Support Renewal 12 Mo E0F0DLL
Subscription & Support Reinstatement 12 D0UPTLL
Mo
IBM Algo Credit Manager Pricing for Profit
Add-on per CVU
License and Subscription & Support 12 Mo D0UPDLL
Subscription & Support Renewal 12 Mo E0F06LL
Subscription & Support Reinstatement 12 D0UPELL
Mo
IBM Algo Credit Manager Default and
Recoveries Management Add-on per CVU
License and Subscription & Support 12 Mo D0UPJLL
Subscription & Support Renewal 12 Mo E0F09LL
Subscription & Support Reinstatement 12 D0UPKLL
Mo
IBM United States Software Announcement 215-287 IBM is a registered trademark of International Business Machines Corporation 9
Program name/Description Part number
IBM Algo Credit Manager Dashboard
Manager Authorized User
License and Subscription & Support 12 Mo D128ULL
Subscription & Support Renewal 12 Mo E0IRQLL
Subscription & Support Reinstatement 12 D128VLL
Months

Passport Advantage customer: Media pack entitlement details
Customers with active maintenance or subscription for the products listed are
entitled to receive the corresponding media pack.
Media packs description Part number
IBM Algo Credit Manager V5.3.0 English B505SEN
Media Pack
IBM Algo Credit Manager Dashboard 5.3.0 B505TEN
English Media Pack
Charge metric
Program name PID number Charge metric
IBM Algo Credit 5725-H49
Manager
IBM Algo Credit Manager Currency Value Unit
Foundation
IBM Algo Credit Manager Currency Value Unit
Foundation Reporting
Library Add-on
IBM Algo Credit Manager Authorized User
Credit Origination and
Workflow Management
Add-on
IBM Algo Credit Manager Currency Value Unit
Pricing for Profit Add-on
IBM Algo Credit Manager Currency Value Unit
Default and Recoveries
Management Add-on
IBM Algo Credit Manager Authorized User
Dashboard Manager
Authorized User
Authorized User is a unit of measure by which the program can be licensed. An
Authorized User is a unique person who is given access to the program. The
program may be installed on any number of computers or servers and each
Authorized User may have simultaneous access to any number of instances of
the program at one time. Licensee must obtain separate, dedicated entitlements
for each Authorized User given access to the program in any manner directly or
indirectly (for example, via a multiplexing program, device, or application server)
through any means. An entitlement for an Authorized User is unique to that
Authorized User and may not be shared, nor may it be reassigned other than for the
permanent transfer of the Authorized User entitlement to another person.
Note: Some programs may be licensed where devices are considered users. In that
case, the following applies. Any computing device that requests the execution of
or receives for execution a set of commands, procedures, or applications from the
program or that is otherwise managed by the program is considered a separate user
of the program and requires an entitlement as if that device were a person.
Currency Value Unit
Currency Value Unit (CVU) is a unit of measure by which the program can be
licensed. A conversion unit (CU) is a currency independent measure of monetary
IBM United States Software Announcement 215-287 IBM is a registered trademark of International Business Machines Corporation 10