SAS Risk Intelligence Offerings

Risk Reporting

Data Integration

Internal Risk Ratings

Credit Risk

Market Risk

Operational Risk

Faster Simpler Modular

SAS Risk Intelligence—Faster, Simpler and Modular
®

SAS Risk Intelligence provides a faster, simpler and modular path forward to improved risk measurement and management.
This approach, with components that are easy to use and that integrate with existing systems, delivers cost-effective risk
intelligence. This comprehensive risk intelligence framework offers a 360-degree view of your organization’s risk activities, from
data integration to final risk reporting, along with a single point of control for managing them. The solutions for market risk, credit
risk, internal risk ratings and operational risk draw from a risk repository and portfolio of risk analytic and reporting capabilities,
giving you a consistent, forward-looking view of risk across your enterprise.

Faster—SAS Risk Intelligence incorporates a number of project accelerators based on industry best prac-
tices to increase the velocity of your risk projects—delivering meaningful results faster. These accel-
erators include logical and physical data models, predefined analytics for market and credit risk measures,
report templates, and a business intelligence framework that supports ad hoc analysis and reporting.

Simpler—SAS Risk Intelligence provides an environment to mix and match the artifacts and resources
required to produce regulatory and non-regulatory risk measures and support for data-driven risk
management decisions. Risk analysts and managers can easily assess data using a graphical user
interface and business terms instead of obscure batch code commands and unintelligible data labels.
Simple and easy access will facilitate accelerated data acquisition, modeling, risk measurement, and
reporting. The simpler approach also produces attractive and easy-to-understand process flows that
transform data integration, risk analytics and risk reporting into well documented processes for
auditors, management and regulatory reporting.

Modular—SAS Risk Intelligence enables customers to select the appropriate capabilities from SAS’
comprehensive portfolio of risk and compliance offerings that fit their needs without having to rip out
and replace existing systems. The SAS strategy is to help customers leverage existing technology
investments while improving risk measurement and management capabilities, and provide
a platform for integrated risk capabilities that can be deployed over time.

Key Features
Risk reporting and enterprise portal—Effectively communicate risk measures with our advanced business
intelligence reporting environment. SAS solutions provide Web-based, Excel-based and GUI-based reports, scheduled
and ad-hoc report delivery, multidimensional drilldowns and interactive analysis, security, and alerts.
Sophisticated analytic solutions—A portfolio of robust, integrated analytic applications empower your
organization to optimize strategies, investments and asset allocations. SAS delivers a full suite of modern credit, market
and operational risk analysis techniques, giving you virtually unlimited perspectives on your risk profile.
Data integration—Access and consolidate position and market data from around the world with SAS’ industry-leading
data integration capabilities, including automated data extraction from virtually any source; rules-based data cleansing;
self-documenting, rules-based workflow; and an integrated metadata model.
Centralized risk repository and data model—SAS provides a sophisticated data model that is designed
specifically for risk and is optimized for analytics and reporting. Structured modeling, data mapping, the integrated
metadata layer and a centralized risk repository ensure consistent, accurate information.

������������������������������������������
�������������������������� �����������������������������������������

�������������������������������������������������
��������������������������������������������
�������������������������������� �������������������������������������
�������������������������

�����������������������������������
���������������� ��������������������������������������
��������������������������������������

�������������������������������������������
������������������������������ �����������������������������������������
���������������������������������������
�������������
SAS Risk Intelligence
®

Integrated, comprehensive and accurate

Risk reporting and enterprise portal

SAS helps you achieve comprehensive risk
governance by incorporating a performance
management approach into all areas of risk.
The SAS Risk Intelligence Portal provides an
efficient and secure way of distributing risk
and compliance information to users across
the organization. Based on their access
profiles, users can view the reports and
analysis results, as well as create and
distribute their own analyses and reports

Faster Simpler Modular

without IT support.
The portal includes:
• Risk dashboard and risk-based perfor-
mance management. The dashboard and
risk performance capabilities are aimed pri-
marily at senior managers and top decision
makers. The dashboard provides execu-
tives with high-level information as well
as granular drill-down information on the
organization’s overall risk exposure.
Key risk indicators and risk scorecards
within the dashboard highlight potential
issues.
• Drilldown and diagnostics. Once a prob-
lem is identified within the dashboard, diagnostics and drilldown capabilities enable
decision makers to drill further into the risk data to identify root cause. The level of
drill-down granularity is completely defined and controlled by your organization.
• Analytics. While the dashboard and diagnostic capabilities tell the current status and what
has happened in the past, analytical components help predict future risk performance.
Risk metrics such as key risk and key performance Indicators can be analyzed in-depth
to find relationships between indicators to predict future risk events. SAS has a depth
and breadth of analytical techniques unmatched by any other solution provider.

Results of rich SAS analyses and reports can be shared across all levels of the organization
through the portal, batch processes, e-mail or wireless devices. With ready-to-access key
performance measures and other risk indicators at their fingertips, managers throughout the
organization can contribute to more effective business strategies.

The self-service reporting environment enables risk staff to generate their own reports without
relying on IT. In addition, when reporting templates need to be altered, risk managers can make
those changes themselves. The portal and reporting environment consolidates all risk informa-
tion easily, rather than consolidating information from a myriad of spreadsheets. Risk profes-
sional can quickly look at risk at an organizational level and with a click of a mouse drill into the
information in more granular detail.
Risk Intelligence solutions
At the heart of SAS Risk Intelligence is a portfolio of robust analytic applications spanning
market risk, credit risk, internal risk ratings and operational risk.
• Market risk. SAS helps you consolidate information from across the organization, combine
multiple instrument types into one portfolio, perform scenario and stress tests, calculate
at-risk measures, and deliver customized reporting back to users.
• Internal risk ratings and Credit risk. SAS helps you gauge overall risk exposure and strike
the right balance between risk and reward. SAS Credit Risk Management is the most
complete end-to-end credit risk management application available.
• Operational risk. SAS OpRisk Management helps you identify, measure, monitor, aggregate,
evaluate and report operational risks to help you mitigate and control these risks, calculate
capital reserves and comply with regulatory requirements.

Data integration and cleansing for business users

SAS Data Integration is a critical component of SAS Risk Intelligence because it provides a
framework for organizing and managing vast quantities of data from across your enterprise.
The interactive, point-and-click data integration environment and integrated metadata reduce
the need for custom coding, testing and maintenance, increasing business users’ productivity
and reducing the burden on IT staff. SAS Data
Integration provides:
• Unparalleled data access capabilities that can
pull information from virtually any system.
• Automated data consolidation, cleaning and
quality checks before data is loaded into the
risk data repository.
• The auditability required for financial industry
regulators.

Data model and risk repository

At the core of our risk solutions framework resides a risk data repository that serves as the
single version of the truth for SAS Risk Intelligence solutions. This detailed data store (DDS)
contains the atomic-level data and historical information needed to populate the risk solution
data marts, and is an integration point for the SAS Risk Intelligence suite. It serves as a standard
target for populating tables from source systems to be used as inputs in risk analyses as well
as output data created by SAS solutions. The risk management data model that underlies the
DDS is part of our comprehensive banking data model that also supports customer intelligence,
compliance and financial management solutions from SAS.

Benefits of this centralized repository and comprehensive data model:

• Provides a single target for loading risk
management data.
• Reduces implementation time.
• Enables the sharing of source and output
data among SAS risk solutions.
• Captures current and historical data.
• Facilitates transparency for risk management
processes.
 SAS Internal Risk Ratings Platform
®

In-house credit risk scorecards for improved performance

SAS SOLUTION

The SAS internal risk ratings platform consists of four components that enable financial institu-
tions to handle risk rating from a model development, model deployment, model repository
and model testing perspective.
®

SAS also provides a user-friendly interface that enables business analysts to take advantage
of the sophisticated data analysis routines without the need for extensive SAS programming
experience or IT support.

The internal risk ratings platform is ideal for helping organizations meet evolving regulatory
requirements. The data management, modeling and reporting aspects of the solution are
integrated via a metadata layer to provide the audit trails necessary for meeting regulatory

Faster Simpler Modular

requirements. The GUI provides an easy-to-use workflow map that details the process of
model development and provides an easy-to-understand map for regulators.

SAS banking customers worldwide are using the internal risk ratings platform as a dual ratings
system platform for wholesale risk grading and retail credit scoring at both obligor and facility
ratings levels.

Key business needs

• Increased accuracy in predictions
of bad debt.
• Framework for developing and
managing internal credit risk
scorecards, both consumer
scoring and commercial grading.
• Integrated framework for model
development, validation and
management.
Key capabilities for credit scoring and risk ratings
Model development
• Effectively manage data sources to ensure that the right data is being used.
• Access SAS’ sophisticated scoring and grading analytics in an easy-to-use GUI.
• Monitor and back test models over their life cycle in an automated fashion.
• Build scorecards to assign risk scores to customers, including application scoring,
behavior scoring, probability of default scoring (rating) and collection scoring.
• Develop risk rating models, including:
• Individual Probability of Default (PD) from statistical models.
• Loss Given Default (LGD) estimation.
• Definition of rating grades.
• Proof of risk differentiation per ratings grade: automatic grouping and interactive
variable grouping based on WOE (weight of evidence).
• Reject inference and though-the-door
analysis.
• Bootstrapping when data is sparse.
• Document data management processes
and scorecard development processes
using process flow diagrams.

Model repository/management
• Enables development staff to keep track of
models as they are developed.
• Registration process ensures that audit
trails are kept as to the data used to
develop the model, the data used to test it,
and the model code itself.
• Handles the tasks of auditability and documentation of model development, including registration
of models, sharing models across business units, creating audit trails and comparing
models over time to:
• Demonstrate the model is well developed.
• Verify the model is working as expected.
• Perform outcomes analysis (i.e., back testing of models).

Model deployment
• Enables the creation of batch or real-time rating environments using
message queuing technology.
• Limits the need to integrate risk rating models within each product authorization system.
• Centralizes the risk rating function within one (or a few) rating
environment setup(s) on a dedicated SAS server.
• Significantly reduces implementation time.
• Enables quick upgrades to newer, improved risk rating models.

Model testing
• Set up customized back-testing and/or stress-testing environment.
• Automates the process for ongoing monitoring of model performance.
 SAS Credit Risk Management
®
SAS SOLUTION

Manage, analyze and report on credit risk

SAS Credit Risk Management for Banking is an end-to-end credit risk solution designed to assist
institutions with both non-regulatory and regulatory credit risk management. It provides an enter-
prise-scale risk platform that combines risk analysis for both the banking and trading book, and
®

is a comprehensive application for managing, analyzing and reporting credit risk in financial insti-
tutions of all sizes. Alternatively, it can serve as a credit risk application for a single line of busi-
ness on either the wholesale or retail side of the institution. The solution is highly configurable,
accommodates user-defined models and supports a wide range of risk analyses.

Key capabilities for portfolio credit risk management

Economic capital
• Enables users to employ a variety of methods to calculate, allocate and decompose

Faster Simpler Modular

economic capital.
• Supports a wide array of user-defined models: Merton, credit VaR,
Key business needs
hazard, macroeconomic and many others. • Data integration and real-time,
rules-based data cleansing.
• Includes user-defined allocation rules—using either tail-risk or
expected loss approaches. • Interest rate and prepayment
risk modeling.
Risk-adjusted performance measures • Predictive default modeling.
• Enables users to compute risk-adjusted performance • Risk exposure calculations.
measures, such as RAROC and RORAC, based on • Capital allocations.
user-defined methodologies.
• Web-based reporting.
• Multidimensional drill-down reporting enables users to investigate
and identify the key factors contributing to portfolio performance,
including risk factor sensitivities and credit concentrations.

Loan pricing and performance

• Assists institutions in the process of pricing
loans and measuring loan profitability via
user-defined models and pricing methods.
The solution can compute:
• Net margin.
• Net interest income.
• Loan cash flows.
• The volatility surrounding these measures.

Standard portfolio analytics

• Concentrations.
• Allowance for Loan and Lease
Losses (ALLL).
• Roll rate and vintage analysis.
• Ad hoc analysis
Key capabilities for regulatory credit risk management
Basel II/regulatory capital
• Provides preconfigured data model and calculations for computing Basel I and Basel II
capital requirements.
• Supports all three credit risk approaches – Standardized, IRB-F and IRB-A.
• Generates a Basel-specific reporting data mart. Parameters, RWA, regulatory capital
calculations, etc. are present in the reporting mart.
• Calculation transparency via metadata provides a powerful tool for regulator validation.
• Easy configuration mechanism for Basel I-A.

Other regulatory initiatives

• OCC 2000-16/model validation.
• FRB — SR99-18/integrated view of risk.
• FRB — SR98-25/sound credit risk management and internal risk ratings.

Summary Report

Report Generated: March 27, 2006 09:47:34 AM

Data current as of: August 18, 2005

Graphical Summary Report:

Summary of general provisions

Summary of general provisions for all levels :

Counterparty General
Position Category Country provision

GENERAL_PROVISION Aggregate Total 540,101,090

Historical

Report Generated: March 27, 2006 09:52:01 AM

Data current as of: August 18, 2005

Summary Report : First category only

Historical
Counterparty General
Position Category Country provision Previous Period Previous Qtr Previous Year
GENERAL_PROVISION Aggregate Total 540,101,090

GENERAL_PROVISION Missing 540,101,090

Breakdown Current vs Previous Period

Historical - Previous Period
Data
Counterparty Counterparty Risk Weight current as Exposure at Previous Exposure at
Approach Class subclass Bucket of Default Period Default Difference Summary Report
Aggregate Total Aggregate Total Aggregate Total Aggregate Total 18AUG2005 8,734,371,443 11AUG2005 8,725,230,096 -9,141,347

IRB Aggregate Total Aggregate Total Aggregate Total 18AUG2005 2,577,944,077 11AUG2005 2,556,621,608 -21,322,469 Report Generated: March 27, 2006 09:53:08 AM
Data current as of: August 18, 2005
RETAIL Aggregate Total Aggregate Total 18AUG2005 2,577,944,077 11AUG2005 2,556,621,608 -21,322,469

RETAIL Aggregate Total 18AUG2005 2,577,227,989 11AUG2005 2,555,430,518 -21,797,471 This reports shows the history of EAD analysis.
BUCKET01 18AUG2005 1,738,353,999 11AUG2005 1,737,244,497 -1,109,502
Summary of exposure at default : Graphical
BUCKET02 18AUG2005 23,240,646 11AUG2005 22,884,041 -356,605

BUCKET03 18AUG2005 50,588,875 11AUG2005 50,588,883 8

Exposure at default trending analysis EAD vs Exposure value
BUCKET04 18AUG2005 737,837 11AUG2005 707,886 -29,951

BUCKET05 18AUG2005 669,935 11AUG2005 712,558 42,624

BUCKET06 18AUG2005 71,583,523 11AUG2005 71,583,523 0

BUCKET07 18AUG2005 14,809,636 11AUG2005 13,945,752 -863,885

BUCKET08 18AUG2005 49,472,513 11AUG2005 51,521,064 2,048,551

BUCKET09 18AUG2005 210,879,648 11AUG2005 207,782,794 -3,096,854

BUCKET10 18AUG2005 92,686,690 11AUG2005 93,447,861 761,172

BUCKET11 18AUG2005 277,699,422 11AUG2005 270,802,986 -6,896,436

BUCKET12 18AUG2005 46,505,266 11AUG2005 34,208,673 -12,296,593

SME Aggregate Total 18AUG2005 716,088 11AUG2005 1,191,091 475,002

BUCKET09 18AUG2005 436,088 11AUG2005 436,088 0

BUCKET11 18AUG2005 280,000 11AUG2005 755,002 475,002

IRBA Aggregate Total Aggregate Total Aggregate Total 18AUG2005 14,374,269 11AUG2005 19,071,466 4,697,197 Summary of exposure at default :
CORPORATE Aggregate Total Aggregate Total 18AUG2005 14,374,269 11AUG2005 19,071,466 4,697,197

SME Aggregate Total 4,697,197 Exposure at Exposure

Approach Default Concentration
BUCKET08 3,185
Aggregate Total 8,725,230,096 100%
BUCKET11 0

BUCKET12 4,694,012
-4-
IRBF Aggregate Total Aggregate Total Aggregate Total -6,676,047

BANK Aggregate Total Aggregate Total 18AUG2005 1,014,054,758 317,730,909

BANK Aggregate Total 18AUG2005 317,808,552

Summary of exposure at default : First category only
BUCKET03 18AUG2005 108,481 11AUG2005 108,481 0

BUCKET06 18AUG2005 122,854,196 11AUG2005 440,952,284 318,098,088

Exposure at Exposure
BUCKET09 18AUG2005 672,152,592 Summary
11AUG2005 Report
672,152,592 0 Approach Default Concentration

BUCKET11 18AUG2005 64,561,500 11AUG2005 62,909,486 -1,652,014 IRBF 5,386,493,848 62%

BUCKET12 18AUG2005 9,927,189 Report

11AUG2005 Generated:
11,289,667 March 27, 2006 09:53:37 AM
1,362,478 IRB 2,556,621,608 29%

LOCAL_GOV Aggregate Total 18AUG2005 54,823,693

Data current
11AUG2005
as of: 18AUG2005
54,779,378 -44,315 IRB_RBA 491,432,846 5.6%

BUCKET12 18AUG2005 54,823,693 This report

11AUG2005 contains limit
54,779,378 requirements for capital
-44,315 STD 269,591,166 3.1%

MDB Aggregate Total 18AUG2005 138,832 11AUG2005 105,504 -33,328 IRBA 19,071,466 .22%
Summary of limit status at the highest aggregate levels :
BUCKET11 18AUG2005 88,819 11AUG2005 88,819 0 IRB_SIMPLE_RW 1,274,040 .01%

IRB_SFA 500,000 .01%

BUCKET12 18AUG2005 16,686 11AUG2005 16,686 0
Visual indicator of IRB_SLOTTING 245,121 .00%
SEC Aggregate Total 18AUG2005 89,488,274 11AUG2005 89,488,274 0 Warning threshold limit status

BUCKET06 18AUG2005 1,704,242 11AUG2005 1,704,242 0 Visual

Current Limit The Visual indicator
BUCKET11 18AUG2005 13,221,410 11AUG2005 Counterparty
13,221,410 Counterparty
0 Risk Weight value of the warning amount of warning of limit
Approach Class subclass Bucket Risk indicator indicator Limit amount percentage limit left indicator status
BUCKET12 18AUG2005 74,562,622 11AUG2005 74,562,622 0
Aggregate Aggregate Aggregate Aggregate Exposure at Default 8,725,230,096 8,628,126,390 90% -97,103,706
CORPORATE Aggregate Total Aggregate Total 18AUG2005 3,096,944,571 11AUG2005 Total
Total 3,123,709,057 Total
26,764,486 Total

CORPORATE Aggregate Total 18AUG2005 2,994,236,243 11AUG2005 3,019,701,789 25,465,545

Aggregate Aggregate Minimum capital 1,030,176,659 966,518,788 95% -63,657,871
Total Total requirement
BUCKET01 18AUG2005 50,450,720 11AUG2005 50,450,720 0

BUCKET03 18AUG2005 2,438,501 11AUG2005 2,438,501 0

-4-

Breakdown of limits by first 2 reporting structures :

Visual indicator of
Warning threshold limit status

Visual
Current Limit The Visual indicator
Counterparty Counterparty Risk Weight value of the warning amount of warning of limit
Approach Class subclass Bucket Risk indicator indicator Limit amount percentage limit left indicator status

IRB RETAIL Aggregate Aggregate Exposure at Default 2,556,621,608 2,694,798,690 90% 138,177,082
Total Total

Aggregate Aggregate Minimum capital 72,055,702 76,609,984 95% 4,554,282

Total Total requirement

IRBA CORPORATE Aggregate Aggregate Exposure at Default 19,071,466 18,746,017 90% -325,449
Total Total

Aggregate Aggregate Minimum capital 3,962,607 3,403,643 95% -558,964

Total Total requirement

IRBF BANK Aggregate Aggregate Exposure at Default 1,331,785,667 1,461,129,547 90% 129,343,879
Total Total

Aggregate Aggregate Minimum capital 120,604,385 132,457,511 95% 11,853,126

Total Total requirement

CORPORATE Aggregate Aggregate Exposure at Default 3,123,709,057 3,274,168,480 90% 150,459,423

Total Total

Aggregate Aggregate Minimum capital 421,910,256 442,886,434 95% 20,976,178

Total Total requirement

SOVEREIGN Aggregate Aggregate Exposure at Default 930,999,124 918,792,731 90% -12,206,393

Total Total

Aggregate Aggregate Minimum capital 83,745,202 101,142,805 95% 17,397,603

Total Total requirement

IRB_RBA CORPORATE Aggregate Aggregate Exposure at Default 491,430,546 456,439,194 90% -34,991,353
Total Total
 SAS Market Risk Management
®
SAS SOLUTION

Consolidate information; measure and manage risk

The highly configurable and flexible nature of SAS Market Risk Management provides the
ultimate high-performance environment for defining and controlling the myriad assumptions
that go into calculating the market risk of portfolios of complex and diverse instruments. This
®

solution gives you the power to consolidate information from across your organization, combine
different instrument types into one portfolio, perform scenario and stress tests, calculate at-risk
measures and deliver customized reporting back to users and decision makers.

Key capabilities for market risk management

• Fit models to different factors via assigning different normal or non-normal distributions
to individual factors.
• Create causal models between different factors.

Faster Simpler Modular

• Run large-scale, copula-based Monte Carlo simulations in grid-enabled, multiprocessor
environments that tie all of the factors together and create distributions of potential portfolio
outcomes from which VaR and Expected Shortfall are derived.
• Define the characteristics for any type of instrument via instrument Key business needs
definitions, risk factor definitions and pricing methods. • An integrated platform for
econometric analysis of
• Incorporate any third-party term structure, prepayment or pricing
portfolios.
models, and deal waterfall libraries that have been written in C,
C++, C# or SAS. • Ability to measure and aggregate
the risk of diverse portfolios of
• Create transition matrices for modeling credit migration.
assets and liabilities.
• Efficiently create distributions of potential outcomes at many
• Portfolio optimization to
different user-defined levels of aggregation.
maximize returns.
• Manage counterparty and collateral.
• A risk engine to support
• Optimize portfolios. multivariate copula-based
simulations.
 SAS OpRisk Management
®

SAS SOLUTION
Measure, monitor and manage operational risk
SAS OpRisk Management provides an integrated platform for continuous risk management.
It provides comprehensive modules for collecting operational loss data, conducting proactive
risk management activities and analyzing the operational risk profile from the enterprise wide
®

view to the local business-unit level. It incorporates both qualitative and quantitative modules as
well as a global loss database.

The qualitative module encompasses functionality to estimate inherent risk, conduct risk and
control self-assessment, measure residual risk, capture actual loss event data and key risk
indicators, and provides integrated risk reporting for a 360-degree view of risk.

Key capabilities for SAS OpRisk Monitor

Risk and control self-assessment (RCSA)
• Enables end-to-end risk management, including risk identification, Key business needs
inherent risk measurement, risk and control assessment and risk • An integrated framework for oper-
mitigation. ational risk exposure estimation
• Provides questionnaire-driven assessments of risks, controls and and capital charge calculation.
root causes with user-configurable workflow. • Tool to support centralized,
enterprise-level operational risk
Loss data collection management oversight and
• Includes GUI with workflow for entering and managing operational governance.
failures (events) and financial impacts (losses).
• Tool to support RCSA implemen-
• Classifies losses along both internal and regulatory (Basel II)
tation, configuration and process
business lines and risk event types and links losses to specific
management.
root causes and control failures.
• Instantly highlights areas of concern via Risk and Loss Heat Maps.

Issues and corrective action plans

• Associates issues with one or more operational risk points within the organization.
• Tracks corrective action plans and the associated costs to resolve issues.

Key risk indicators

• Delivers a compre-
hensive framework
for Global Indicators,
Local Indicators and
Observations.
• Includes threshold
alerts and escalation for
measuring, monitoring
and managing KRIs.

Scenarios
• Enables the capture and
assessment of future
risks and rare risk
event types.
• Associates risk assess-
ments with scenarios.
Key capabilities of SAS OpRisk VaR
Flexible methodology
• Supports the calculation of value-at-risk (VaR) capital following the Basic Indicator,
Loss Distributions or Advanced Measurement Approaches.
• Enables modeling under different assumptions (e.g. with or without insurance) and scenarios
with full audit tracking and reporting of all assumptions.

Frequency and severity distributions

• Includes advanced MLE distribution-fitting techniques.
• Out-of-the-box frequency distributions: Poisson, Binomial and Negative Binomial.
• Out-of-the-box severity distributions: Lognormal, Weibull, Generalized Pareto, Burr,
Lognormal Gamma.
• Automated fitting and mixing.
• Supports advanced VaR calculators with the ability to calculate aggregate loss distributions using

Faster Simpler Modular

Monte Carlo simulation.
• Estimates KRIs for all frequency and severity distributions.

Modeling techniques
• Includes the industry’s most advanced math-
ematically derived methods for combining
internal and external data, and addressing
size, control and reporting biases in a
statistically valid way.
• Supports multiple forms of mathematical
and graphical analysis through a user-friendly
process.
• Includes advanced capability to scale loss
frequency and severity data to the current
size of a business.
• Supports user-specified covariance matrices.

Global loss database

• Contains over 12,000 observations.
• More than 1500 new observations are
added annually.
• Consistent with Basel II classifications.
 About SAS
SAS is the leader in business intelligence software and services. Customers at 40,000 sites use SAS software to manage
and gain insights from vast amounts of data, resulting in faster, more accurate business decisions; more profitable rela-
tionships with customers and suppliers; compliance with governmental regulations; research breakthroughs; and better
products. Only SAS offers leading data integration, intelligence storage, advanced analytics and traditional business intel-
ligence applications within a comprehensive enterprise intelligence platform. Since 1976, SAS has been giving customers
around the world The Power to Know . ®

Please send requests for additional information about SAS Risk Intelligence ®

offerings to riskmanagement@sas.com

������������������ �����������������
���������������� ���������������
���������������� �������������������������
������������������ ���������������������������
��������������������� �������������������
��������������������� ���������������������
��������������������
������������������� �����������
����������������������������������������������������������������������������������������������������������������������������
�������������������������������������������������������������������������������������������������������������������������������
��������������������������������������������������������������������� ��������������������