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Killer App: Liquidity Risk Management (LCR)

Liquidity Risk Management is a major compliance feature mandated by Basel ll, the 3d installment of the Basel Accords in response to the 2007-2008 global financial crisis. It is intended to increase bank liquidity while strengthening its capital requirement.

Ultipa offers end-to-end LRM solutions by leveraging Ultipa Server's superior graph computing power and Ultipa KG's 3D visualization, it's a true one-of-a-kind killer app for banks to master with their assets and liabilities meanwhile satisfying domestic and international regulatory needs without hassles. Factors like LCR(Liquidity Coverage Ratio) are managed and computed in real-time in a fully explainable white-box fashion, with unprecedented features like real-time simulation, backtracking, quantification (i.e., top contributors to LCR), and high visualization.

A Screenshot of The Ultpa LCR System

LCR = HQLA (High-Quality Liquid Asset Amount) / Total Net Cash Flow Amount

The LCR system by Ultipa supports various kinds of data sources:

  • Data Warehouses
  • Data Lakes
  • Trillion Scale

Business features of LCR system facilitated with Ultipa deep graph computing include but are not limited to below:

  • Real-time LCR
  • Discount Rules
  • Backtracking / Simulation
  • Customer Contribution

Superior user experience augmented by LCR system's high visualization performance is brought with functions as:

  • 3D Transmitting Paths
  • Graphical Simulation
  • Trend Monitoring
  • Full-text Visual Search

Overall features and performance of the liquidity risk operational flow of LCR system:

  • 80+ Tables
  • 1,000s of Fields
  • Trillions of Data
  • Daily Updates
  • Entire Bank Coverage
  • Cross-BU Collaboration

Liquidity Risk Operational Flow

A recommended LRM HTAP Cluster Setup:

Cluster Size >= 4 Instances (in each cluster)
Cluster Deployment >= 2 Clusters for Active-Active Deployment
(Per Instance Configuration:)  
Compute 232 vCPU
Memory >= 384GB
Disk >= 2TB SSD
Network 10Gbps
Host OS Centos 7.x, Ubuntu 18,x or Redhat 7.x
Continue Support Docker 19.x
Virtualization Support Various Environments Differ

To demonstrate the difference of LCR products by traditional databases and graph databases in the market, here we list a comparison between an Oracle LRM Solution and Ultipa LRM offerings:

Oracle LRM Solutions Ultipa LRM Offerings
LCR: T+1 ETL (3.5 Hours) LCR calculations: 10 seconds
No Visualization 3D Visualization
No Backtracking (to customers) Real-time backtracking
No Simulation Real-time simulation
Oracle DB Cluster Ultipa cluster (128-256 vCPU)
Blackbox solution White-box solution
Excel Centric Routine work Easy to consume GUI & maintain
High Maintenance Cost Many scenarios in the pipeline

LCR IT Architecture

Have a glance at the interfaces of Ultipa LCR system and feel it for yourself:

LCR Global Visualization & Graph View

LCR Realtime Backtracking

Aggregation by Centers or Industries

 

 

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