Big Data at the service of financial risk management

The financial crisis of 2007-2009 updated a certain number of shortfalls in the approaches of regulatory capital based on internal rating-based models (IRB) of credit risk. ALTEN supports a global banking leader in the development of IRB analysis engines with a Big Data approach (on Hadoop platform), in accordance with the new Basel III agreements.

This international regulatory measure requires banks to develop systems and tools capable of measuring the credit risk on a client by client basis, by “personalising” the calculation of capital to devote to covering unexpected losses.

A multidisciplinary team of about a dozen ALTEN engineers (C++ and Java developers on Hadoop, Data Scientists, Data Architects, etc.) is mobilised to develop:

  • High-speed calculation engines (Cloud Computing) for establishing a financial rating of enterprises and institutions, combining huge volumes of data (e.g.: financial results of companies and banks, data from the financial market such as Bloomberg, etc.)
  • Data-Visualization platforms to help with investors’ decision-making

The success of this project, which helps to reconcile profitability and the resilience of the banking system, has allowed ALTEN to be awarded the contract for this client’s referencing of the Big Data cluster.