MIR is Management Solution’s answer to integrated risk management, unifying the regulatory and management views under the same customizable and modular platform.
MIR offers a global solution both from the regulatory and the risk management point of view, maximizing the consistency and exploitation of the risk information obtained by every area of an Entity:
Incremental implementation methodology tailored to the priorities of each individual Entity.
Multidimensional data model geared towards the exploitation (reporting) and functionality of accounting
Uniqueness of information and calculation logic ensures consistency between the different reports generated.
Solution adapted to best risk management practice and the specific regulatory requirements of European and
American supervisory authorities (particularly Basel 3 for Capital and IFRS 9 for provisions).
In a changing and competitive environment like the current one, an adaptable integrated risk solution becomes necessary, enabling a nimble decision making process and reducing the timings of putting into production new strategies.
Incremental implementation and tool adapted to the needs and possibilities of each client.
Maintenance service of the tool which encompasses a personalized attention according to the needs of the client.
Adaptable, developed using standard market technology and with a multiplatform focus.
Integrated reporting, including interactive graphs and an OLAP driver, to enable the exploitation of multidimensional reports.
MIR’s modular structure allows for incremental and customizable
implementation to suit the needs of each client.
Policies and Model Manager – Risk Assesment Tool
The policies and model manager is an analytical environment focused on covering every inch of the risk decision model´s
life cycle, allowing the analysis of automated strategies (score + rules) and of the impact of manual decisions (allocation of responsibilities). Automated production through the Risk Assessment Tool reduces the time to market of new strategies:
Rating models monitoring: predictive capacity, portfolio stability, sub-populations analysis, etc.
Approach focused on metadata (adapted to each Entity´s data model, which helps and speeds up
Policy on Delegated Authority.
Cut-off points, profitability and manual decisions analysis.
Campaign manager enables the assessment of a target population by integrating risk models and policies in order to obtain a limit structure that will allow launching the campaign to clients and non-clients:
Automated environment to reduce cost and time.
Parametrical and user-friendly environment.
Alerts and Portfolio Manager
The alerts manager allows you to define and monitor different level alerts (portfolio, customer, product, etc.) for key risk indicators (volume, late payments, expected loss, capital, RAROC, etc.) incorporated into the system’s different reporting modules, including Risk Monitoring and integrated Risk Management and Appetite (RAS) modules.
Likewise, the portfolio manager enables proactive customer management through business strategies and impairment control, prioritizing recovery measures and automatically identifying other pending actions with immediate feedback to Corporate Services.
The MIR data model contatins all attributes necessary to estimate risk parameters (PD, LGD, CCF), enabling its exploitation using data mining tools. MIR also:
Implements a risk parameters back test and stress test.
Includes the necessary incremental information for other system functionalities, which generates synergies
related to ETL re-use, audit processes, etc.
MIR covers the needs relating to provisions and capital calculation and regulatory reporting (Basel Pillars I, II and III) and provisions according to IFRS 9 standards and country-specific regulatory requirements. Using this platform supports the
consistency of the information generated as well as the emergence of synergies among the different areas involved:
Adapts to each country´s legislation.
Supports Standard and IRB capital calculation in Credit Risk and Standard capital calculation in Market Risk.
Supports the calculation of provisions through practical expedients and internal models in line with IFRS 9 regulations and country-specific regulatory requirements.
Audits at the lowest granularity level.
Reconciliation with accounting through specific reports.
Capital and provisions simulation and stress testing capabilities to meet the ICAAP capital requirements and IFRS 9
IFRS 9 Compliance
MIR provides an integrated IFRS 9 compliance solution enabling:
Transaction sorting and parameter allocation:
Parameterization and execution of indication models for classification in stages (model manager).
Treatment of refinancings.
Segmentation for individual analysis.
Calculation of impairment loss allowances:
Treatment of collateral (haircuts).
Calculation of generic provisions: internal models and practical solutions.
Calculation of provisions through individual assessment.
Reports and scenarios:
Automated generation of the new reports on provisions (for regulatory and management purposes).
Forward looking scenario simulation and impact analysis.
Accounting interface generation.
RAROC and Pricing
The RAROC functionality allows entities to measure different risk-adjusted profitability levels (historic and forward-looking) through the PRICING driver, adjusting pricing policies to align them with their target profitability levels:
Analysis performed over different aggregation levels: contract, customer, bureau, portfolio, etc.
Possibility of using regulatory or management parameters.
Integrated with the regulatory calculation drivers.
Stress test and Capital and provisions planning
MIR allows you to create capital planning and provisions stress scenarios. This makes it possible to manage internal and regulatory solvency targets and provision levels for both base and stress scenarios.
Top-down simulation of standard portfolio and bottom-up simulation of IRP portfolios.
Interface designed to provide an intuitive way of creating new scenarios.
Delinquency entries, provision needs and evolution of results estimation.
MIR includes a complete and customizable risk scorecard which, via an OLAP driver, enables analysis at different
aggregation levels as well as the creation of multidimensional reports.
Integrated Risk Management and Appetite (RAS)
Information focused on decision making.
Ease of analysis.
Information focused on the diagnosis.
Origination reports: processing times
Monitoring reports: alerts, delinquency, etc.
Recoveries reports: managed portfolio, full cycle view, etc.
The MIR architecture only uses standard market technology in order to reduce technology costs.
Operational and Analytical Environment
MIR provides to the different areas of the firm with an analysis and simulation environment, being able to nimbly
produce new strategies.
Bringing these strategies into production is done automatically through batch processes, which replicate the parameterizations established by the user.
Three layers architecture
The user´s PC with a web navigator (that will act as the client).
A Java applications web server for which different versions
exist in nearly every OS.
A Relational Database Manager System.
Reduced implementation timelines and support both from a technical and from a business point of view are two features highly valued by our clients.
The different modules in our MIR solution are implemented across some 100 financial institutions in Spain and Latin American countries, including:
Strongly diversified International Financial Groups with a presence in different geographies
Local Entities of different sizes
Multinational Financial Organisations, Development Banks and Microfinance Institutions
Investment Services Companies and Securities Firms
Management Solutions is an international consulting Firm whose core mission is to deliver business, risk, financial, organization and process-related advisory services, targeted at both functional aspects and the implementation of related technologies.
Management Solutions currently has a multidisciplinary team (functional, mathematical, technical and systems integration) of more than 3,300 professionals, and operates through 41 offices (17 in Europe, 20 in the Americas, 2 in Asia, 1 in Africa and 1 in Oceania) from where we regularly serve clients that operate in more than 50 countries across five geographical areas (Europe, Americas, Asia, Africa and Oceania).
Management Solutions' differentiating factor lies in its in-depth knowledge of the businesses in which its clients operate and in its high degree of sector-specific and functional specialization.