Capital Analytics: Greater Transparency in Capital Use

Turn static allocations into informed decisions – with clear insights into risk, capital requirements, and optimisation potential.

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Change the dynamic

For many business lines within financial services firms, conversations about regulatory capital and economic capital can sometimes feel one way. Each year they are simply told the capital assigned to their business, and they can have little understanding as to how they might lower that capital number for the following year. This often happens because risk teams don’t have the tools they need to provide additional insight. Aryza Comply – Capital Analytics enables firms to have more business value-centred conversations around capital.

Enable proactive conversations

Aryza Comply – Capital Analytics enables the operational risk team to give the business the ability to see clearly why their capital numbers are what they are, and have informed discussions with operational risk teams about the impact of changes to risk exposure and control effectiveness.

Benefits

With Aryza Comply – Capital Analytics, organisations can:

Risk-Adjusted Capital Allocation

Calculate and allocate operational risk capital to business lines, leading to fully risk-adjusted return on capital (RARoC) values.

Strategic ‘What If’ Scenarios

Provide the board and C-suite with “what if” scenarios to help them understand how strategic decisions or potential loss events could impact capital.

Capital by Loss Type

Calculate easily the capital to be allocated to each business line by loss event type.

Performance by Capital Use

Measure business line performance based on capital allocation.

Capital-Risk Appetite Alignment

Align capital with the organisation’s risk appetite and operational risk framework.

Flexible Data Inputs

Choose how much data to use to calculate capital from internal losses, external losses, RCSAs and scenario analysis.

Capital Charge Comparison

Compare regulatory and economic capital charges across multiple user-set business lines and user-set loss event types.

Risk-Capital Relationship Insight

→ Enable the business to better understand the relationship between risk and capital. Identify areas for risk environment enhancement and incentivise the business towards better risk management.