MEGA Introduces Powerful Risk Management Capability

Published 22nd June 2009

Unique mathematical method expands ability to measure risk exposure


London – June 22, 2009 – For immediate release:

MEGA, a leader in governance, risk, and compliance (GRC) software solutions, has integrated a powerful mathematical tool to measure risk exposure into its MEGA GRC Suite, making it the first time such a capability has become part of a comprehensive GRC solution.

The MEGA GRC Suite will contain an expanded risk quantification and analytics component based on Bayesian scenario calculation, a proven, but advanced means to produce the complex operational risk models that experts agree are the best way to measure risk exposure and aid in decision making.

The Bayesian modelling technique provides a simple, yet robust way of combining existing data and knowledge in the form of probabilities, while keeping uncertainties in the data and knowledge explicit. These principles are used to model complex real-world problems in a unified framework. The methods for the MEGA GRC Suite were developed by Probayes, a French-based company with significant expertise in probabilistic software applications.

The measurement and modelling of operational risk has become more essential within many industries, but especially for banks and insurance companies that must adhere to the Basel II and Solvency II regulations, which require alignment of capital reserves with potential risks. As those regulations are adopted by more countries, banks and insurers around the world will need the means to meticulously measure risk exposure.

“This new capability will provide operational risk managers with more detailed and reliable information about a company’s risk exposure,” said Lucio de Risi, CEO, MEGA. “These improved estimations of potential risks will help executives make better business decisions about corporate priorities, to help reduce the company’s exposure to possible liabilities.”

Operational risk management has become a standard practice in many industries, but there has been a shortage of sophisticated tools with comprehensive methods to produce operational risk models that supply the important data that executives need to make business decisions.

Operational risk managers, corporate executives, and board members will be interested in this progressive addition to the MEGA GRC Suite because it adds yet another innovative capability to help enterprises accurately and swiftly identify and manage risks. The MEGA GRC Suite includes three business solutions – GRC Risk, GRC Compliance and Control, and GRC Audit – that help corporations solve pressing issues in risk identification and control, compliance, and audit.

This year MEGA GRC Suite was named as the best solution for integrated risk management and control by Yphise, an independent company that conducts ongoing research to help organisations in all sectors make sound IT investment decisions for boosting their business performance.

The new risk quantification and analytics component will be available in the MEGA GRC Suite in July.

ABOUT MEGA

MEGA provides enterprise architecture, business process analysis, and governance, risk, and compliance solutions, with 70,000 users worldwide. European customers include Allianz, AXA, British American Tobacco, Direct TV, LCL Le Crédit Lyonnais, Renault Nissan, Société Générale and Unicredit. www.mega.com

ENDS

More information from:

Julie Boulanger
MEGA
Telephone: +44 (0)20 8323 8033
E-mail: jboulanger@mega.com
Web: www.mega.com

Mark Mitchell
Pattison Mitchell & Associates
Telephone: +44 (0)20 7924 7700
E-mail: ptml@btinternet.com