Earlier this month, the 2022 International Workshop on Financial Risk Management was held in London. Around 50 experts and scholars from international financial institutions such as Bank of England, HSBC, Standard Chartered Bank, Credit Suisse First Boston Bank, and European financial system regulators such as EBA and ESRB attended the conference, to jointly conduct an in-depth dialogue on topics including financial markets regulation, risk management, and financial technology.
Ricky Sun, CEO of Ultipa, world-class high-performance computing and storage system and big-data expert, delivered a keynote speech titled "Liquidity Risk Management with Real-time Graph Computing" - showcasing the world's first application of real-time graph database technology in liquidity risk management for financial institutions.
The audiences was amazed by the innovation breakthroughs and series of achievements of this cutting-edge technology - especially the incredible performance and experience empowered by Ultipa Graph - 10,000 times of performance improvement, compared with Oracle system that has been often used by European BFSI industries.
During the workshop, an expert from Bank of England, a British regulatory agency, expressed his curiosity, "How does the deployment of a liquidity risk management system using Ultipa Graph real-time graph database affect customers' analysis and decision-making on their (other/all) business indicators?"
Ricky offered his thoughts: If we look at a single indicator of LCR (Liquidity Covered Ratio, for liquidity risk management), it shows the current liquidity situation of the bank's assets and liabilities, that’s it, but if we look from a broader spectrum of ALM (Asset Liability Management), we can have a better overview of how multiple indicators are related to and interacting with each other, such as deposits, loans, Risk Weighting Assets (RWA), risk-adjusted performance indicator Risk-adjusted Return on Capital (RAROC), Economic Value Added (EVA), Liquidity Coverage Ratio (LCR), Net Interest Margin (NIM), Asset Under Management (AUM), Pricing FTP, and KPIs. The gist here is that all these ratios and indicators are linked together and being able to conduct deep-link analysis against all metrics are both pivotal and beneficial.
Ricky further explained: For example, when people look into LCR, actually they would also look at RWA (Risk-Weighted Assets) as well as other indicators, because risks and benefits are never separate, which requires the system to perform real-time aggregation, scientific measurement, deep drill-down, multi-dimensional correlation. Customers ask us to correlate all financial indicators, so that they can analyze these data from a multi-dimensional, flexible, and penetrative perspective to facilitate decision making. However, data warehouses and Relational DBMS do not have such capabilities in terms of flexibility and computing powers. Typical operations including real-time indicator impact or correlation analysis, can never be realized by constructing unlimited "wide tables", which means that the IT architecture based on the RDMBS infrastructure can never empower the business to a higher level as graph DBMS does.
With a vision to develop world’s most intuitive and best-performing graph database, Ultipa is a leading graph DBMS vendor committed to the development of next-generation of BI and Advanced Analytics killer-app solutions. It is not too much of a surprise that in June this year, Ultipa was recognized as one of the Top-10 Most Promising HPC (High Performance Computing) Vendors by CIOReview, and its real-time liquidity risk management showcase was collected by IBM Research, the first of its kind by any graph database vendor.