Risk Adjusted Performance Management (RAPM)

Understand, measure and manage your business using a broad set of Key Performance Indicators (KPIs), compiled from a single source of profitability and performance data.

Financial institutions have spent large sums on Basel II compliance. These investments have paid dividends in the form of regulatory compliance, but realizing the full potential from these investments remains elusive. Many institutions still struggle to get a comprehensive view of their business, which will allow them to more effectively use capital to maximize return.

Effectively Measure and Manage Your Business Performance

Fermat RAPM delivers a complete and integrated view of income, cost and risk within a dashboard with the ability to drill into transaction level detail as needed.

With Fermat RAPM you can:

• Use KPI's such as economic profit, risk adjusted return, risk adjusted return on capital (RAROC), and economic value added (EVA)
• Measure and monitor past, current and future profitability by any dimension, allowing the efficient allocation of budget and resources
• Forecast results of competing marketing campaigns to determine the most effective ones
• Understand the true profitability of a counterparty or account
• View risk adjusted performance across any dimension to understand the true individual, geographic or departmental performance
• Allocate cost against individual transactions and roll up to customers and products
• Fully integrate into Moody’s Analytics products, including our Fermat products, such as regulatory and economic capital for unexpected loss and capital charges, asset and liability management for funds transfer pricing (FTP) and past, current and future revenue, and IAS for economic provisioning data.

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