Toronto, London – April 14^th 2011 – For the third year running, Algorithmics has been ranked first overall in the ORR 20 – the Operational Risk & Regulation software rankings of the top 20 firms in operational risk management. Algorithmics’ operational risk software, Algo OpVar, also received additional first places for Scenario analysis functionality, Oprisk loss data collection and for Key risk indicators in the 2011 survey of Operational Risk & Regulation magazine’s readers.

Operational Risk & Regulation reported: “For the third year in a row, Algorithmics tops the ORR 20. The results of this year’s Operational Risk & Regulation software survey reflect that most banks have their op risk management frameworks in place, and are now looking into how they can add value to their business. Insurance companies, however, still need to invest in implementation to meet the upcoming Solvency II requirements.”

John Winter, Senior Vice President, Operational Risk Solutions, Algorithmics, said: “We are proud that Algo OpVar has been ranked first overall by Operational Risk & Regulation for the third year in a row. To keep the top slot again is a testament to our clients, who continue to guide us on their changing requirements and market developments, and to our development and product teams, who continue to play such an important role in the evolution of Algo OpVar.”

Commenting on the current market for operational risk management, Winter added: “We see demand from institutions interested in the steps necessary to move to the advanced modeling approach (AMA) for Basel II/III, looking to expand the operational risk infrastructure already in place, rather than fundamentally overhauling their systems. Algorithmics was recently granted a patent for capital modeling frameworks for operational risk, covering the framework for calibrating, simulating and measuring operational risk, and combining it with other risk classes. The patent means Algorithmics is free to push forward into the more holistic risk modeling that clients are starting look at, particularly in the insurance area with the advent of Solvency II.”

He continued, “The past year has seen an evolution in client requirements as operational risk has come into the sights of the regulators. Firms are seizing the opportunity to meet the ‘use test’ requirement, to prove to regulators that operational risk is being considered in business-level decisions. To help our clients we’ve been widening the use of external data from Algo First and pushing it out through our loss event data (LED) and risk control and self-assessment (RCSA) processes, making sure they have good examples they can learn from for best practice operational risk management.”

For more information about Algorithmics' award winning and patented solutions, visit: http://www.algorithmics.com/

For information about Algo OpVar, please see: http://www.algorithmics.com/EN/services/22-prodserv.cfm

ENDS 

For further information please contact:

Heather Smith, Senior Communications Manager, Algorithmics (UK) Ltd
Direct line +44 (0) 20 7392 5820  Mobile+44 (0) 7515 974223
E-mail Heather.smith@algorithmics.com

Notes to Editors:

Operational Risk & Regulation magazine’s ranking methodology
These rankings were compiled from a survey conducted over four weeks in March. The survey was sent to readers of Operational Risk & Regulation from around the world and was also promoted through www.risk.net. Respondents were asked to rank their top five companies across five categories. The results were compiled by Incisive Research, a subsidiary of Incisive Media.

Algorithmics is the world's leading provider of risk solutions. Financial organizations from around the world use Algorithmics' software, analytics and advisory services to help them make risk-aware business decisions, maximize shareholder value, and meet regulatory requirements. Supported by a global team of risk experts based in all major financial centers, Algorithmics offers proven, award-winning solutions for market, credit and operational risk, as well as collateral and capital management. Algorithmics is a member of the Fitch Group. http://www.algorithmics.com/

Algo OpVar is a fully integrated, pre-configured software solution for identifying, managing, measuring, and mitigating operational risk, which helps institutions successfully meet their regulatory, governance, and compliance goals.  Designed to capture a virtually unlimited number of operational risk and compliance factors, Algo OpVar Standard Edition provides a transparent system that helps business units and risk officers enhance operational risk management. Individual users can analyze, monitor, and report any of these factors, individually or in context of their associated relationships. The software integrates proven methodologies through a flexible, user-friendly interface. As an 'out-of-the-box' offering, Algo OpVar Standard Edition enables firms to bypass lengthy customization phases and quickly provide management with a comprehensive, enterprise-wide operational risk framework.

Algo FIRST, utilizing a unique real-life case study approach, is designed to assist institutions with their analysis of risk, governance and compliance events. The Algo FIRST database is used as a qualitative tool, providing information on control breakdowns, event triggers, insight into why the losses occurred and lessons learned. Algo FIRST contains case studies on more than 10,000 loss events and is unrivalled in its depth of analysis and coverage of the industry. 

Algo OpData Nearly 12,000 publicly-reported operational risk losses populate the Algo OpData quantitative loss database, making it the most complete operational loss resource available today. Algo OpData is a key component of the capital modeling process, supplementing internal loss data in order to populate 'tail' (high severity, low frequency) events so that firms may gain insights into risks they have yet to experience.

Fitch Group is the parent company of Fitch Ratings, a global ratings agency committed to providing the world's markets with independent, timely and prospective credit opinions. With 49 offices worldwide, Fitch Ratings’ global expertise spans across capital markets in over 150 countries. Fitch Ratings is headquartered in New York and London.

The Fitch Group also includes Fitch Solutions, a distribution channel for Fitch Ratings products and a provider of data, analytics and related services; and Algorithmics, the world's leading provider of enterprise risk solutions.

The Fitch Group is a majority-owned subsidiary of Fimalac, S.A., headquartered in Paris, France.

For additional information, please visit http://www.fitchratings.com/  http://www.algorithmics.com/ and http://www.fimalac.com/

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