Operational Risk Management - Risk Management Software

By: Rockall Tech  05/12/2011
Keywords: Risk Management, management software

Rockall Technologies is a global leader in providing operational risk management software to the banking sector.  STOC (Systemic Tracking of Collateral) is a software product platform which automates the management of collateral for consumer, commercial lending and private banking with an emphasis on real estate collateral and securities collateral.  STOC collateral management solution is a comprehensive risk management software which covers all areas of collateral management from collateral capturing, maintanance and tracking to collateral release management.


Where exposure is secured using marketable securities, even if coupled with less volatile collateral, a bank has an obligation to monitor:

  • Out of Margin - simple (one exposure multiple collateral items) and complex (multiple exposure using some collateral items)
  • Concentration per exposure
  • Regulations: U, W (23A/B) - initial and ongoing
  • Early release of collateral


Perfection of Real Estate collateral

  • Post closing documentation checks
  • Property Registration
  • Insurances
  • Property details - tenants, construction
  • Property Valuation Tracking

Release Management

  • Collateral release process
  • Cross collateralization and invalid releases
  • Regulations and Audit
  • Supervisory reports (e.g. OCC)
  • Underwriting vs Current
  • Forecasting
  • Real Estate / Property
  • Insurance
  • Cash / Deposits
  • Securities
  • Guarantees / Surety
  • Machinery / Equipment
  • UCC
  • Inventory
  • Receivables


  • Promised but yet to be received collateral
  • Cross collateral situations (eg. collateral used by both consumer and commercial agreements)
  • Margin waiving activity
  • Eligibility of collateral
  • Good pre-qualification of proposed collateral
  • Perfection/completion of collateral for exposure
  • Good record and maintenance of collateral
  • Maturity of collateral in relation to maturity of exposure
  • Release of collateral
  • Location of possitarry collateral
  • Stock splits
  • Substitutions


The STOC system addresses the features discussed above using the following modules:

STOC - Data Manager

  • STOC takes data feeds from consumer systems, trust systems, brokerage systems, etc.
  • History of data is kept for any alerts or notifications
  • Collateral is priced
  • Concentrations are calculated
  • Exposure to market value and exposure to margin value are calculated

STOC - Rules Engine / Alert Scheduler

  • A highly user configured system which allows a bank identify the types of activities it wants to monitor.
    Examples of this would include “Out of margin”, Regulation U, governance issues such as securities maturing and stock splits.
  • The refreshed data (post data manager) is automatically scanned of identified activities to be monitored
  • For matching cases an alert and notification is generated
  • The system takes care of related alerts that may be active

STOC - Workflow

  • A user configured system determines how alerts and notifications are formed and routed
  • Each work step can be put into a pending state managed by the tickler module of STOC
  • Work steps can be configured to drive other work steps or tasks

STOC - Document Production

  • A fully user defined tool which allows a document template to be built from scratch to include text and any data item or table of data items from the STOC system.

STOC - Search and View

  • Data held within STOC can be accessed by a number of searches such as obligor number, obligation number, customer name or via a workflow step.
  • The data is presented in a format according to the access method

STOC - Reporting

  • A capability to report on any activities or data that needs to be monitored

Keywords: management software, Risk Management

Other products and services from Rockall Tech


Banking Software - Collateral Management

Rockall Technologies Collateral Management solution automates almost 100% of the back office processing activity, from generation of the loan offer letter the entire way through to the funds disbursement, collateral exception management, collateral maintenance and collateral release.