The implementation of new templates of LCR, NSFR, and AMM are coming into effect in 2018, and challenges that existed are reappearing. First of all, a lot of data is sourced from disparate source systems and the key challenge for liquidity management lies in implementing a data management solution, to integrate source systems across multiple jurisdictions and business lines, to meet the demands of a highly complex regulatory environment. 

Another challenge faced by many institutions is the fact that they rely too much on manual processes for reporting and monitoring. Again, data is sourced from a spider-web of standalone tools, and manually aggregating that data is not only time-consuming but also vulnerable to human error. The fact that reports are produced from multiple data systems also means that validation is difficult. Hence, for example, the new set of validation rules (DPM 2.7) from ECB takes more time than just adding or subtracting some validation rules should take. The use of XBRL as the standard submission language can lead to problems as well. 

Risksols can help you tackle these challenges with a fully automated, data-driven solution. The LCR and NSFR are forecasted and simulated on a daily basis for efficient liquidity management for treasury. It also means full control on your entire risk management process, from data sourcing to reporting, including XBRL submission. The system has a dynamic dashboard with a clear audit trail and a drill down functionality supporting instant verification of aggregate numbers, down to contract level in just 5 clicks. The system is easy to understand, as the only required skill is MS Excel. 

On the validation side of it, our system has integrity checks and error handling where details of automated processes are recorded in a database, with a logbook functionality that quickly highlights the calculation issues for easy resolution. All validation rules are based on updated data point models from the regulator and there are separate roles and permissions for report creator, approver, and users. And naturally, Risksols offers continuous support for the system.