The Alloq Balance Management module provides a comprehensive insight into the Regulatory Capital Requirement (Dutch: VEV), balance sheet risks, and funding ratio of your clients. The module offers users the capability to automatically input the required data, which streamlines the preparation and execution of the annual work significantly. Alloq is set up for complete Straight-Through-Processing to minimize human error and further optimize efficiency.
Additionally, the module enables users to review and keep track of historical development. Through automated exports, Alloq provides both high-level (management) reports as well as in-depth reports and breakdowns which can be used in analyses by executors and auditors.
The Balance Management module allows users to calculate the Regulatory Capital Requirement (RCR) of their clients using their formula, both factual and strategic, on a daily, monthly, quarterly, and annual level.
The RCR calculation can be traced to any desired level. From total overview, instrument level, all the way back to its source data. This enables users to look up intermediate outcomes with ease, also aiding the process of monitoring and reviewing historical developments.
By default, the calculation rules of the Balance Management module are configured according to the standard guidelines of the Dutch regulatory authority (DNB). However, the calculation rules are flexible and customisable per fund. They can be tailored as necessary to support any other type of risk calculation that may be required by the users.
Alloq enables users to customize risk calculations through various parameters and formulas. Chief among these parameters are the risk factors per category according to the standard guidelines of the DNB. These ten risk factors can be calculated individually or all at once to calculate the Regulatory Capital Requirement. Additionally, Alloq updates the funding ratio automatically with every new calculation and data set that is introduced to ensure accurate reporting both factual and strategic.
Alloq’s Balance Management module support automated exports of both high-level (management) reports as well as in-depth reports and breakdowns which can be used in analyses by executors and auditors. Exports are readily available via API, sFTP and secure downloads.