Risk Management Technologies Enhances The RADAR System for IBM's Massively-Parallel Environment and DB2 Database; Scalable technology enables responsive enterprise risk management for even the largest financial institutions.

NEW YORK--(BUSINESS WIRE)--June 4, 1996--Risk Management Technologies (RMT), Berkeley, Calif., the world's leading provider of enterprise risk management (ERM) solutions for complex financial institutions, and IBM Corp. today announced the ability to run RMT's RADAR RiskManager software on IBM's highly scalable, massively parallel RISC System/6000 SP and the DB2 Family of Relational Database Management System products.

By extending support to these IBM technologies, RMT is further enabling financial institutions to perform enterprise risk management.

ERM has become essential as financial managers wrestle with two challenges: minimizing potential loss due to adverse changes in the interest rate environment, and maximizing ongoing profitability within risk limits established by senior management. In today's competitive environment, financial institutions offer a wide range of interest-rate-dependent customer options.

The need to understand and manage the resulting enterprise-wide interest-rate-related risk is critical.

Enterprise risk management is a processing-intensive activity involving as much as terabytes -- thousands of gigabytes -- of data, which limited its practicality for large institutions in the past.

By taking advantage of IBM's RISC System/6000 SP massively parallel architecture to distribute and manage computation tasks over multiple loosely-coupled computing nodes, the RADAR System can now perform enterprise risk analysis more quickly than ever.

"Extensive Monte Carlo financial simulations can be run for an entire institution in a fraction of the time previously required," said Sharyn R. Kohen, IBM segment manager, securities marketing. "As a result, managers can have the most comprehensive and up-to-date risk analysis at their fingertips as they make critical decisions."

In addition, the data warehousing capabilities of IBM's DB2 products further extends the reach and the power of RADAR Risk Manager, RMT's flagship financial risk management application.

RADAR can now interoperate with data warehouse and operational systems which utilize DB2 on MVS systems, or DB2 Parallel Edition, IBM's parallel DBMS designed to exploit the MPP architecture of the RISC/System 6000 SP. RADAR can utilize these DB2 systems to access the vast amounts of transaction-level data (gigabytes to terabytes) that drives sophisticated risk analysis.

RADAR results databases can also be stored within DB2 systems, where a wide range of online analytical processing (OLAP) applications can be used to perform additional modeling and analysis. With support for DB2 both as the source of data and the target of the results, integration with existing DB2 systems and exploitation of DB2's parallel capabilities is greatly simplified.

"Through the enormous scalability of the IBM SP and direct connectivity to DB2, The RADAR System now offers significant benefits to financial institutions seeking to leverage high-performance risk management with enterprise data warehousing," said Jefferson Braswell, RMT president.

"For example, even banks with hundreds of billions of dollars in assets can perform comprehensive risk management enterprise-wide, quickly modeling a broad range of interest rate scenarios to determine optimum levels of risk and return."

Founded in 1989, Risk Management Technologies is the leading provider of enterprise financial risk management and profitability management software to financial institutions. With clients spanning the United States, Europe and Asia, RMT is at the forefront of efforts by these institutions to improve financial stability and profitability.

Among U.S. clients are Barnett Bank, Chase Manhattan Bank, First Union Corp., Norwest Bancorp, Wachovia Corp., and Wells Fargo & Co. Lead overseas clients include Sumitomo Bank in Tokyo, ANZ Bank in Melbourne and Abbey National in London.

IBM's Banking, Finance and Securities Group works with financial services companies around the world to provide hardware, software, and consulting services and solutions.

CONTACT: Risk Management Technologies, Berkeley

Alan Tobey, 800/233-2635 ext. 243

or

IBM Corp.

Ian Colley, 914/642-6219

or

The Reference Point

Lynne Winters, 212/496-0400