Of s a a Adjustments

Oracle Financial Services Analytical Applications

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.The development, release, and timing of any features or functionality described for Oracles products remains at the sole discretion of Oracle.

2009 Oracle Corporation Proprietary and Confidential2

3 2009 Oracle Corporation Proprietary and Confidential

Unified Platform:Analytical Applications Infrastructure

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Oracle Analytical Applications InfrastructureCommon Platform Across Applications

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FINANCIAL SERVICES ANALYTICAL APPLICATIONS DATA MODEL

FINANCIAL SERVICES ANALYTICAL APPLICATIONS INFRASTRUCTURE

FINANCIAL SERVICES BUSINESS INTELLIGENCE

Data

Sources

Reports Alerts Dashboards Embedded

Computations Common Tools Business Rules Stochastic Modeling

Common Objects Common DimensionsPre-Integrated/

ExtensibleHigh Volume

2010 Oracle Corporation Proprietary and Confidential 4

FTP ALM Corporate

Credit Risk

Basel II

5

Leveraging the Building BlocksShared Components across Applications

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FINANCIAL SERVICES ANALYTICAL APPLICATIONS DATA MODEL

FINANCIAL SERVICES ANALYTICAL APPLICATIONS FRAMEWORK

FINANCIAL SERVICES BUSINESS INTELLIGENCE

Data

Sources

Reports Alerts Dashboards Embedded

Purpose Built Engines Common Tools Business Rules Stochastic Modeling

Common Objects Common DimensionsPre-Integrated/

ExtensibleHigh VolumeBalances, Transactions, Rates, PD, LGD, Exposures, Mitigants

Financial Statements, Reg. Reporting, RAPM, Reg. Capital, Economic Capital, ICAAP

RiskFinance

Allocations, NII, Income Stmt., Variance, EAD, RWA, Reg. Capital, Eco. Capital

Application-specific processing Area Results Area

Information Process Stages

2009 Oracle Corporation Proprietary and Confidential

Staging Area

Profitability

Market Risk

FTP/ALM

Credit Risk

ICAAP

Basel II

Results for consumption

Common input area

for analytical

apps

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Application-specific processing Area Results Area

Information Process Stages


Staging Area

Profitability

Market Risk

FTP/ALM

Credit Risk

ICAAP

Basel II

Results for consumption

Common input area

for analytical

apps

Feature

Function Common, granular

model of source data

Working store for analytical applications Multi-grain data (stars,

cubes) designed &

conformed for reporting

Organization Source-aligned

Customer, Product,

Instrument,

Transaction, Contract,

Calendar etc.

Solution-aligned

Market Risk, Retail Credit Risk, Profitability,

ALM etc.

Consumption - aligned

RAPM, ICAAP

Credit Quality Reporting

etc

Detail Granular to

event/transaction level

Depends on application needs Depends on consumption

needs

Staging Area Results AreaProcessing

Area

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Risk Management Functional View of

Architecture

Enterprise Wide Analytics: Risk MIS & Regulatory ReportingRisk Dashboards & Reporting

Advanced Solutions

Portfolio Models ICAAP

RiskMeasurement &

Management

Credit Risk Economic Capital

Corporate & RetailCredit Risk

Risk Modeling

DataPreparation

PD Modeling

G/L Reconciliation, Data Quality, Manual Adjustments

Common Data Repository

Cash Flow Modeling

LGD Modeling

VaR Models

Banks Data Sources

Credit Rating Systems Operational Systems Enterprise Data Warehouse

Stress Testing

Risk Based PricingRAPM - RAROC / SVA

Market Risk (VaR)

Operational Risk Economic Capital

Operational Risk Management

Instrument Pricing Models

Frequency & Severity Models

Basel II Credit Risk Asset LiabilityManagement


Unified Business Intelligence Across Analytical Applications

Ad-hoc Analysis

ProactiveDetectionand Alerts

MS OfficePlug-in

Reporting & Publishing

Interactive Dashboards

DisconnectedAnalytics

WebServices

Oracle Financial Services Analytics

Supply Chain

Financials

HumanResources

Oracle BI Apps built onOracle Business Intelligence

Enterprise Edition Suite

Common Enterprise Information Model & Abstraction Layer Pre-built Hierarchies, Drill Paths, Security, dashboards, reports Based on industry and analytic best practices Completely pre-wired to OFS Analytical Applications Metadata

OLTP ApplicationsOracle ERP, SAP, FLEXCUBE, Siebel

Analytical ApplicationsOFS

Custom AppsFilesExcelXML

BusinessProcess

FSI Risk AnalyticsBASEL II, ICAAP, Operational Risk, ALM,

Market Risk

FSI Performance AnalyticsProfitability, Transfer Pricing

Oracle Cross-Industry Analytics

FSI Customer Insight AnalyticsSales, Marketing, Service, Institutional & Retail


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Unified Business Intelligence


1111

Risk Solutions Process Flow

ReportingRun

Framework

Common Metadata Layer

Rules Framework

Common Reclassification

Rules

Basel II Computation Rules

Advanced Analytics Infrastructure - Stress Testing

Scenario 1

Downgrade PD/LGD

Data Model

Wholesale/ Retail

Exposures

Common Hierarchies LOB, Asset Class etc

GL Data

MitigantInformation

Asset Correlation

Info

Reconciliation Rules

Advanced Analytics Infrastructure - Modeling

PD/LGD Models

Market Risk VaR

Credit Risk EC Models

Monte Carlo Simulation

Stochastic Processes

Logistic Regression

Partial Differentiation Equations

Distribution Fitting

CashFlow Modeling

Techniques Models

Scenario 3Scenario 2

Mild Recession

Credit Crisis Dashboards -

Stress Testing

Risk Factor Data

Other Historical

Data

Scenario 1

Scenario 2

Scenario 3

Data

Qu

ali

ty C

hecks,

GL

Reco

ncil

iati

on

, A

dju

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en

ts

So

urc

e S

yste

ms D

ata

Feed

sM

an

ual D

ata

A

dju

stm

en

ts

PD, LGD

Customer Info

Securitized Exposures

Basel II Runs

Stressed Basel II Runs

Capital Forecast Runs

Baseline EC Runs

Stressed EC Runs

Dashboards -ICAAP, RAPM

FFIEC 101, Pillar 3, Mgt.

Reporting


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Performance

Management

Customer

Insight

Governance

& Compliance

Risk

Management

Treasury Risk

Credit Risk

Governance and ComplianceRegulatory Compliance (Financial Crime)

Channel Insight

Analytical CRM

Anti-Money Laundering

Trading ComplianceBroker Compliance

Fraud DetectionOperational Risk

Retail Credit Risk

Corporate Credit Risk

Portfolio Analytics

Marketing Analytics

Service Analytics

Channel Usage

Channel Performance

Customer Profitability


Product Profitability

Economic Capital

Regulatory Capital

Liquidity Risk Stress Testing

Economic CapitalAdvanced (Credit Risk)

Operational Risk

Economic Capital

Performance Management

Accounting Hub

Activity-Based Costing

ConsolidationProfitability

Oracle Financial Services Analytical Applications

Budgeting and Forecasting

Hedge ManagementIFRS 9 IAS 32/39

ICAAP


Stress Testing

Asset Liability Management

Market Risk

Basel II

Retail PortfolioRisk Models and Pooling

Funds Transfer Pricing

12 2010 Oracle Corporation Proprietary and Confidential

Loan Loss Forecasting

Pricing Management

Balance Sheet Planning

RAPM

Balance Sheet Planning

Jennifer

Risk Based Pricing

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