DocumentCode :
3091116
Title :
A financial analytic based service architecture: decision support under the Basel III framework
Author :
Xiaoyu Wu ; Zhao, J.L.
Author_Institution :
Dept. of Inf. Syst., City Univ. of Hong Kong, Hong Kong, China
fYear :
2013
fDate :
17-19 July 2013
Firstpage :
757
Lastpage :
762
Abstract :
The 2008 financial tsunami stimulated intense discussions on the effectiveness and efficiency of the current practices in financial risk management in banks. Under stricter financial regulations after the crisis, bank senior managers are facing the challenge to balance between liquidity and profitability. Financial information services supporting financial risk management decisions are in great need to meet the new regulatory requirements in Basel III. However, risk management services available in the market (e.g., consulting, analytics and reporting services) are lack of capability to handle financial market dynamics. Currently, academic research efforts mainly use empirical and static approaches to measurement and management of risk in banks but research on complex financial systems is scant. To address these problems, we propose a financial analytic based service architecture consists of four service levels to support decision making in liquidity and revenue management under the Basel III framework. Real data on liquidity shortfall during the financial tsunami is used to evaluate the proposed architecture. The service architecture also achieves agility by providing modular functions so that the decision model can be easily extended and modified by service users.
Keywords :
banking; decision support systems; financial data processing; information services; profitability; risk management; 2008 financial tsunami; Basel III framework; bank senior managers; decision model; decision support; financial analytic based service architecture; financial information services; financial market dynamics; financial regulations; financial risk management decisions; liquidity shortfall; profitability; Banking; Decision making; Liquids; Profitability; Reactive power; Risk management; Tsunami; Basel III; financial information service; liquidity risk management; system dynamics simulation; systemic decision making;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Service Systems and Service Management (ICSSSM), 2013 10th International Conference on
Conference_Location :
Hong Kong
Print_ISBN :
978-1-4673-4434-0
Type :
conf
DOI :
10.1109/ICSSSM.2013.6602564
Filename :
6602564
Link To Document :
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