Type of solution
IBM OpenPages solutions enable customers to manage risk and compliance across the enterprise to reduce loss while improving decision-making.
Description of solution
IBM OpenPages addresses the varying needs of risk and compliance professionals, business unit managers, internal audit managers and senior executives by providing a programmatic cross-domain approach to managing risk, regulation and regulatory change while arming decision-makers with intelligence to make risk-aware decisions that improve business performance. A typical installation consists of three separate servers including an application server (WebLogic or WebSphere), a database server (DB2 or Oracle) and a reporting server (IBM Cognos). The IBM OpenPages Platform is enabling leading organisations across the world to manage risk and compliance more effectively and achieve the following:
- Improved decision-making by embedding risk management into business practice so informed risk/reward decisions can be made
- Aligning reporting with process metrics
- Reducing the opportunity cost of disparate but duplicative risk and compliance activities (e.g., multiple RCSA processes)
- Reducing the capital and ongoing management cost of overlapping risk and compliance infrastructures (e.g., multiple risk data marts)
- Enhancing visibility into the firm's risk landscape which improves decision-making (effectiveness)
- Better capital allocation
- Reducing the amount of capital required for solvency protection
- Risk-adjusted return on capital used to drive investment strategy
- Reducing unexpected losses which increase earnings and will result in
- Higher valuation
- Lower cost of debt
Date first developed
2004
Was the solution developed specifically for the insurance industry?
No, it was initially developed for Sarbanes-Oxley compliance and then expanded into operational risk, regulatory compliance, internal audit and IT risk management.
If not, is the solution designed for both banks and re/insurance companies?
Yes, the IBM OpenPages GRC Platform has been adapted and adopted by global banks and re/insurance companies to meet Basel II AMA certification, Solvency II and RMORSA requirements.
How much is your own technology and how much is adapted or licensed from others?
The solution is owned and developed by IBM with the exception of an integrated workflow engine from Fujitsu.
Does your solution integrate with third-party systems or in-house systems?
Yes, the IBM OpenPages GRC Platform includes a Java SDK API to support application extensions and integration with enterprise applications. Also, OpenPages provides a full set of interactive, dynamic and real-time reports with drill down capabilities via the OpenPages reporting solution built on embedded IBM Cognos Business Intelligence.
Describe any features specific to insurance and specific to Solvency II
IBM OpenPages is currently working with some of the largest insurance companies in the US and Europe to ensure they're meeting regulatory requirements (NAIC, RMORSA, Solvency II, FDICIA, GLBA, SOX and rating agency ERM assessments).
Section 1 of the ORSA Summary Report of the Risk Management and Own Risk Assessment (RMORSA) Model Act in the US (expected to be effective by 2015) is labelled the "description of the insurer's risk management framework" and covers topics such as risk governance, risk identification, risk tolerances, risk management controls and risk reporting. IBM OpenPages addresses the requirements under section 1 guidance manual by:
- Delivering a risk management framework for identifying, assessing, monitoring, managing and reporting on material and relevant risks
- Supporting a governance structure and risk culture with accountability in risk-based decision making.
IBM also offers a flexible and extensible enterprise risk management framework.
OpenPages has recently won several highly contested deals, including Prudential, Unum and Delta Lloyd to meet the pillar 2 risk governance requirements of Solvency II.
IBM's Solvency II framework combines solutions from Algorithmics, OpenPages, Cognos FSR, InfoSphere and more
Implementation
How long does the solution take to implement?
Depending on the scale of the project, typically two to three months.
How much training and support is necessary?
This will depend on the scale of the project. IBM OpenPages provides an intuitive user experience which requires minimal training due to state of the art UI, BI tools and visualisation.
Cost
Implementation cost
Licence to service ratio on new deals is typically 2:1 as most customer needs can be met through configuration only.
One-year licence cost
Typical licence costs start at $100,000 and increase with the scale of the deployment.
Maintenance cost
Annual product maintenance and support fees average 21% of net licence cost.
New version releases costs
Minor releases are typically included in maintenance cost.
Types of user
Types of company/organisation
Insurers including AIG, Nationwide, Aviva, Allianz, ING, Old Mutual and Unum, and utility, healthcare and manufacturing companies.
Types of users within companies/organisations
risk and compliance professionals, business unit managers, internal audit managers and senior executives.
Areas/countries with the most users
IBM policy prevents disclosure of customer numbers by region.
Contact person(s) and details
Name: John Kelly
Tel: +1 978 899 4136
Email: kellyjo@us.ibm.com