Reuters, Sep 1, 2011, By Soham Chatterjee and Paul Sandle
Laurence Trigwell, IBM's head of business analytics for financial services, said there was significant demand from banks, financial markets and insurance firms for analytical insight, both to improve performance and comply with increased regulation.
"We see risk analytics as a critical component of that analytical insight, driven by market factors and events over the last 10 years since Basel II (banking regulations) and over the last three or four since the financial crisis," he told Reuters in an interview.
"Alogrithmics heritage in helping banks produce risk models is incredibly important to help respond to regulatory pressures."
Algorithmics risk analytics software, content and advisory services are used by banking, investment and insurance businesses to help assess risk, address regulatory requirements and make more insightful business decisions.
Algorithmics is based in Toronto, Canada and has generated revenue of $163.7 million in 2010. About 900 Algorithmics employees will join IBM's software group upon closing of the deal.