A financial analytic based service architecture : Decision support under the Basel III framework

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)

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Detail(s)

Original languageEnglish
Title of host publication2013 10th International Conference on Service Systems and Service Management - Proceedings of ICSSSM 2013
Pages757-762
StatePublished - 2013

Conference

Title2013 10th International Conference on Service Systems and Service Management, ICSSSM 2013
PlaceChina
CityHong Kong
Period17 - 19 July 2013

Abstract

The 2008 financial tsunami stimulated intense discussions on the effectiveness and efficiency of the current practices in financial risk management in banks. Under stricter financial regulations after the crisis, bank senior managers are facing the challenge to balance between liquidity and profitability. Financial information services supporting financial risk management decisions are in great need to meet the new regulatory requirements in Basel III. However, risk management services available in the market (e.g., consulting, analytics and reporting services) are lack of capability to handle financial market dynamics. Currently, academic research efforts mainly use empirical and static approaches to measurement and management of risk in banks but research on complex financial systems is scant. To address these problems, we propose a financial analytic based service architecture consists of four service levels to support decision making in liquidity and revenue management under the Basel III framework. Real data on liquidity shortfall during the financial tsunami is used to evaluate the proposed architecture. The service architecture also achieves agility by providing modular functions so that the decision model can be easily extended and modified by service users. © 2013 IEEE.

Research Area(s)

  • Basel III, financial information service, liquidity risk management, system dynamics simulation, systemic decision making

Citation Format(s)

A financial analytic based service architecture : Decision support under the Basel III framework. / Wu, Xiaoyu; Zhao, J. Leon.

2013 10th International Conference on Service Systems and Service Management - Proceedings of ICSSSM 2013. 2013. p. 757-762 6602564.

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)