MORS Software is an award winning ALM solution that covers Financial Risk Management for interest rate, liquidity and credit risk. We offer fully fledged profitability and performance forecasting.
MORS Solution - An Atomic Structure
MORS is based on an atomic architecture centred around a common core of contract level data and common services. All functionality in this atomic structure is interconnected, providing a holistic system for optimising the performance and profitability of the bank at group and at entity level.
MORS supports complex group structures and the establishment and management of organisational models and respective Balance Sheet structures, creating a centralised and unified view of ALM and Risk management as well at individual entity level.
At a high level, MORS is made up of 3 distinct functional domains based on a common core, as depicted in the picture.
Why MORS Solution?
MORS Solution is an award winning ALM software solution that covers Financial Risk Management for Interest rate, liquidity and credit risk. It also offers fully fledged profitability and performance forecasting. While MORS is available as one integrated ALM system, it is also available as point solutions. Some of the key MORS ALM differentiators include:
- Balance sheet imported into MORS on single deal level, providing excellent data lineage and superb analysis from a top of the house view to single deal and single cashflow analysis
- Largely automated data management which will heavily reduce operational costs normally associated with ALM systems
- Real-time time system always providing up to date reporting and the ability to generate new scenarios on the fly, even for heavy calculations such as Net Interest Income forecasts
- Superb Visualization tools especially for use at for example board level and ALCO meetings, providing excellent key decision support
- Especially for small and medium sized entities, using MORS Treasury Management System (TMS) as an add on to MORS ALM makes perfect sense, providing one holistic and integrated system, without the operational hassle and cost of operating two separate systems
Asset Liability Management
MORS ALM offers comprehensive Financial Risk Management across all risk surfaces. Financial risks are covered both from prudential and from internal risk management points of view.
MORS covers an extensive set of market risks. These include Interest Rate Risk in the Banking Book (IRRBB) from an Economic Value of Equity (EVE) and from an Earnings at Risk (EaR) points of view. Related to IRRBB, MORS covers Gap, Basis and Option Risk. It should be noted that MORS can be used seamlessly for Interest Rate Risk management both for day to day or operational IR Risk management and for scenario type risk management. Offering a transparent rules engine, the user can easily modify, copy & paste or create new scenarios from scratch.
An off the shelf and very fast historic Value at Risk (VaR) analysis is provided as part of the Market Risk repertoire.
FX risk analysis is available both as specific and tailored FX analysis, as well as across all reports which can be broken down by currency or consolidated into base currency.
MORS Liquidity Risk covers both Liquidity and Intraday Liquidity Risk Management.
With MORS, it is easy to measure key Liquidity Risk Indicators such as the LCR, NSFR and Survival Horizon in real-time or near-time. MORS also provides liquidity ladder style reporting, meaning calculations such as the Additional Liquidity Monitoring Metrics (ALMM) are supported.
The MORS rule engine allows a broad range of scenarios to be set up, both regulatory scenarios and scenarios for internal use. In the scenario definition, the user can for example define inflow and outflow assumptions, as well as assumptions for the liquid asset buffer.
Forecasts for ratios are fully supported as well as historical analysis of key ratios and their components.
MORS supports Intraday Liquidity Risk Management both for regulatory purposes, for operative intra-daily cash management, as well as for forecasting liquidity in the next business days. Nostro account balances and payments can be imported from Swift messages (MT and Camt formats). MORS also supports IBM MQ messages. Finally, Open Banking style APIs are also an option for importing account balances and payments. A comprehensive set of reports for intraday analysis is included. These cover both the historical angle, as well as forward looking analysis.
MORS offers Credit Risk features primarily for Expected Credit Loss (ECL) calculations and for Counterparty Credit Risk (CCR) management.
ECL in MORS is heavily focused around income forecasting, i.e., forward looking earnings projections with ECL as one of the key components in the projections. For the ECL calculations and forecasts, MORS offers flexible ways of importing or entering key variables, such as Probabilities of Default (PD) and Loss Given Defaults (LGD)
MORS Counterparty Credit Risk functionality allows banks to set up almost any type of Counterparty, including single counterparty, groups / segments, countries, sectors, etc. The Limit classes are also fully configurable and can for example be set up as, settlement, short term, long term and Equity / Capital Limits. All of the exposures versus limits can be monitored in real-time, allowing for full drill down of a consolidated exposure, to a single deal and counterparty exposure.
Balance Sheet Management
MORS is an award-winning balance sheet management solution, based on our unique transaction-based integration, providing a consistent view across all risk surfaces.
The powerful scenario engine, combined with in-memory analytics and virtual modelling, enable our clients to manage their financial resources in real-time.
With complexity and multi-dimensional interaction between risk drivers and financial constraints, good scenario analysis capability and the possibility to visualise online different outcomes and how they impact profitability is paramount – MORS supports our clients in optimising their financial resources.
MORS award-winning balance sheet management solution allows banks to cross the bridge from balance sheet to income statement alike. Profitability drivers can be analysed, the impact on financial constraints measured, as banks are able to understand the impact and correlation between net commissions / provisions and net interest income.
Real-time visualisation further enhances the offering, as decision-makers can understand the potential implications of their decisions online.
The sensitivity to all material risk drivers, is incorporated, with the ability to simulate online how different KPI’s, financial resources and profitability would evolve under different stressed scenarios.
Real-time earnings forecasting and scenario analysis, combined with loan loss provisioning support and the ability to incorporate net commissions, as part of the integrated income statement forecast in MORS, are some of the key features that support banks as part of their capital planning process.
Online stress-testing capabilities, combined with ability to utilise the powerful visualisation layer further enhances the offering.
Treasury Management System
MORS Treasury Management System is a complete real-time, front- to back-office solution, covering an extensive set of instruments and products. Offering efficiency and control, MORS TMS is a great system for a bank to improve both its treasury workflow and its risk management.
Underpinning MORS TMS is a deal workflow protocol that is configurable to fit any trade processing policies and routines. Segregation of duties and a complete audit trail ensure full control. Market data imports both for rates and prices as well as for instrument setup ensures that position revaluations are up to date. Numerous off the shelf reports as well as a report generator provides excellent reports for all different reporting requirements and needs.
For front office users, MORS offers deal capture for an extensive set of instruments and products. Deals can also be imported from other systems either in real-time or in batches.
Pre-trade, MORS provides analytics and counterparty limit checks to ensure the deal to be done is in-line with limits and other constraints. Once the deal has been captured the positions and reports are updated in real-time. Deal confirmations are available and can be configured, both to match content and formatting requirements of the bank.
Deal Blotters makes it easy to keep track of the trades and deals inflight. A wide range of off the shelf position, P/L and risk reports ensures the treasury team has a complete picture of positions.
For the middle office and risk control, comprehensive and sophisticated counterparty and market risk reporting is available. The counterparty risk features allow setting up and monitoring any type of counterparty risk limit matrix, ranging from single counterparty and product limits, to sector, industry and country limits. For market risks any exposure can be setup and monitored with automatic breach alerting.
The middle-office has complete control of instrument and product definitions. A workflow board details in real-time, each deal as it flows through the workflow protocol that has been configured to match the banks polices, approval paths and routines.
Sophisticated, yet easy to use yield curve and other market rate setup is provided, to be used of revaluation of positions. MORS supports setting up any number of curves and mapping the different products and instruments to their appropriate curves.
Back-office features include bookkeeping and accounting features that allow the bank to integrate MORS TMS efficiently and transparently with the General Ledger. MORS offers full subledger functionality for the Treasury deals. The accounting entries for the deals are generated both for settlement and running entries as well as for periodical valuation entries (e.g. end of month valuation entries).
For tasks such as keeping track and actioning deals settling, fixing or maturing today, MORS offers transparent and easy to use real-time deal lists that can be sorted and configured to match the exact content requirements.
The back office also benefits from features supporting the payments and settlement processes. The generation of payment cashflows can be automated and reconciled with the data from payment systems or payment messages.
Reporting & Visualisation
Reporting and Visualisation – Data only becomes information when it adds value to a business process.
All data items and all calculation results in MORS can be used to create reports. Reporting in MORS comes at 3 distinct levels:
- Standard Reporting Packs. MORS has over 200 predefined reports covering all aspects of Treasury, ALM, and Risk. While predefined, all of these reports can be configured and customised by the user without the need for specialist knowledge or programming skills.
- User Defined Reporting. Within MORS, it’s possible to build your own reports with intuitive ‘drag and drop’ techniques. All reports can be created then stored in a custom reporting library.
- MORS Decision Maker. This is a powerful and highly visual functioning dashboard combining Balances Sheet and Income Statement elements with endless scenario analysis functionality. Adding tremendous value to the decision-making process at all levels, this tool also finds itself equally at home in the Boardroom.
All reporting in MORS is available in real-time or at a user configurable frequency. MORS Reporting and Visualisation supports the 3 primary reporting functions of the institution, namely, Regulatory Reporting, ALCO, and Executive Level.
Asset and Liability Committee (ALCO)
The fundamental management of the bank.
MORS provides 3600 oversight of the management of your institution’s Assets and Liabilities. Incorporating powerful functionality for all surfaces of Market Risk and Liquidity Risk, MORS provides you with a complete solution for monitoring and managing on and off Balance Sheet risk in pursuit of Balance Sheet optimisation.
MORS ALCO Reporting comes complete with dozens of pre-configured reports, a flexible reporting tool for creating your own reports and is underpinned by MORS ALM and Risk Management calculation engines and Scenario Analysis.
MORS ALCO Reporting provides comprehensive information in managing the bank’s spread while maintaining the necessary level of liquidity.
Used as a sound basis for understanding your institution’s Market Risk tolerances and setting limits appropriately, MORS ALCO Reporting is a valuable tool in establishing short, medium and long-term funding plans.
Report to your regulator(s) with the same data and systems you use to run the bank.
All calculations in MORS are made in accordance with specifications from EBA (insert standards) and as such, many of our customers populate their regulatory disclosures directly from MORS. You can even use the powerful report building functionality to management and maintain regulatory reporting templates, or you can ask us to do it for you.
Using the same solution for regulatory reporting is highly efficient and cost effective and ensures 100% consistency between your management solutions and regulatory returns. It also allows you to drill back from cells in a regulatory report all the way back to the underlying data at contract level.
If you’d like to use MORS all the way through to transmitting the reports to your regulator, you can choose our partner’s regulatory disclosure solution and we’ll integrate it seamlessly with MORS.
Executive Reporting Toolkit
Empower decision-makers with real-time, highly visual analytics and scenario analysis all the way into the Boardroom
In the current climate of shrinking Net Interest Margins, the responsiveness of any bank can be the difference between profit and loss. MORS Decision Maker is a highly visual and configurable Executive Reporting Toolkit that provides instant scenario analysis across multiple risk surfaces, the Balance Sheet, and the Income Statement and the interaction between all elements in between.
Operating in real-time and on contract level data, MORS Decision Maker empowers the bank to make decisions in the moment. Using sliders, dials, and switches, MORS Decision Maker demonstrates the effect of any decision across all aspects of the performance of the bank. Whether considering structural Balance Sheet changes, assessing shocks from particular sources of risk, or processing complex multi-stress scenarios, such as Climate Risk, MORS Decision Maker provides instant feedback facilitating the making of decisions in seconds and minutes, rather than days and weeks.
MORS Decision Maker is at home in any function of the bank, on the desktop, through a browser, and portable enough to take into the Boardroom on an iPad or similar device.
Depending on your priorities, MORS solution and its modules are packaged to meet the following needs
MORS Core is the central hub of MORS. It’s home to the data management layer, where contract level data is stored and managed for all products and instruments. It is also the home of Market Data which can be interfaced directly and automatically for all the market leading provider’s data subscriptions or internally from the bank.
MORS Core is also the place from which all central services and functionality is managed and then used by all modules of MORS. It takes care of many general administrative services such as user roles and permissions, audit trail, interfacing rules in and out of MORS. It also takes care of all scheduling matters for running processes, calculations, and reports either in real-time or on a periodic basis.
MORS Core provides configurable and flexible functionality for Stress Testing and Scenario Analysis applicable across all risk surfaces, Funds Transfer Pricing, and Limit Management. Virtual Modelling is provided for Deposit and Loan analytics, is highly configurable and can easily incorporate external models via a programmatic interface. MORS Core also provides a powerful built-in Cash Flow Engine for generating contracted and forecasted cash-flows. MORS Core is also where MORS manages Covered Bond Pools.
As an integral part of all aspects of MORS, both from a data perspective and functionally, MORS Core is the Engine Room of MORS. As such, MORS Core is the facilitator that ensures that MORS is truly atomic, and that all aspects of the solution work in a cohesive and holistic manner.
MORS Deployment options