Hypo International Strengthens Risk Management with a Large-Scale, Secure Spreadsheet-Management Framework

Yusuf Jafry (), Christopher Marrison () and Ulrike Umkehrer-Neudeck ()
Additional contact information
Yusuf Jafry: Risk Integrated, Douglas, Isle of Man, IM1 2LH, British Isles
Christopher Marrison: Risk Integrated, Garrison, New York 10524
Ulrike Umkehrer-Neudeck: Hypo Real Estate Systems GmbH, Münich, Germany

Interfaces, 2008, vol. 38, issue 4, 281-288

Abstract: We present the solution that Hypo Real Estate Bank International (Hypo) implemented to perform Monte Carlo simulations of its commercial real estate credit risk. The solution uses Risk Integrated's proprietary software, the Specialized Finance System, which is supported by another Risk Integrated technology, the Enterprise Spreadsheet Platform. The platform embeds individual master spreadsheets within a high-performance, server-based, computational-engine architecture; thus, it enables them to be accessed enterprise-wide. The major benefit of this approach is the near-elimination of spreadsheet risk in Hypo's banking system. The solution allows domain experts to have the flexible programming power that spreadsheets provide; however, it does not sacrifice the reliability and auditability expected from traditional business applications.

Keywords: software; risk management; systems; models; portfolio; banks; insurance; investment; commercial real estate; simulation; Basel II (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.1287/inte.1080.0372 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:38:y:2008:i:4:p:281-288

Access Statistics for this article

More articles in Interfaces from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().