Services for

Middle Office
Asset Management & Capital Markets
www.hexaware.com

Middle Office
Introduction

Services for

Hexaware offers a complete range of Asset Management Solutions for Global Financial Institutions, Fund Managers, Investment Managers, Institutional Asset Managers, Mutual Fund Managers and Insurance Money Managers. Hexaware has around 100 professionals with deep and extensive domain knowledge in various business lines of Middle Office space. We deliver end-to-end solutions combining technology and a deep understanding of the business with expertise in Risk Management, Compliance, Reconciliation, Position Management, and P&L Allocation. Our solutions are precisely aligned to our clients specific context and requirements to ensure an integrated experience pres ented from a common front that addresses the business need. Our resources worked in leading Risk Management Products and Reconciliation products such as Eagle, TLM. In addition, our dedicated Asset Management & Capital Markets team leverages technical expertise from our technology teams covering JEE, Microsoft Dot Net, Mainframe and ERP.

Hexaware provide solutions in the following areas:

Risk Management, Compliance Reconciliation, Position Management, and P&L Allocation.

Hexawares solution for Asset Management & Capital Markets Clients:

Hexaware Technologies Limited. All rights reserved.

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Middle Office
Middle Office Expertise Hexaware has a strong domain & technical experts working with Global Investment Managers in Middle Office Functions. The team brings rich experience in Middle office functions like Risk Management, P&L Calculation and Position Management.
Need for Risk Management

Services for

Due to global market participation and regulatory changes, Risk Management plays vital role in managing the liquidity for Asset Management Companies. Listed below are some of the emerging trends in the Risk Management. Increased market volatility Are measures like VaR sufficient? Exposure to credit risk increased manifold for asset managers/hedge funds Increased focus on liquidity risk assessment and measurement High focus on counterparty risk Model development/ Model validation Scenario analysis and stress testing Stress testing

Business & Risk Decisions Moving away from steady state High focus on operational risk and compliance risk Compliance with UCITS III/IV Enterprise wide view of risk risk attribution with performance attribution Increased focus on data management/ appropriate dashboards

Risk Management
Hexaware focused on providing tailored risk management and compliance solutions to asset management companies, capital market participants, banks and financial institutions worldwide. Solutions imbibe best practices of the industry. We work with CROs, CIOs AND CFOs, and their organizations to deliver innovative solutions in the areas of risk and compliance. Our resources include practitioners/ industry leaders in credit risk, market risk, operational risk and structured finance with prior experience of working with leading asset management companies, banks, financial institutions, consulting firms and risk analytic product companies. Many of our people possess advanced degrees in risk, finance with many possessing certifications from GARP/PRIMIA/CFA and we have strategic relationships with leading risk software and technology vendors

Our Solution
Models, Scorecards, Economic Cap Credit Analytics, Risk Adjusted Framework Risk Adjusted Return

Credit /Counterparty Risk

Basel II Framework

Market risk

VAR

UCITS III/ IV

Risk Data Infrastructure

Operational/compli ance Risk

VAR Causal Models EAR/ VAR/ Stochastic Modeling

Basel Approaches, AMA

Interest RateTrading Book, Internal Models Approach

KRI, Financial Crime

Risk Aggregation and Early Warning

Liquidity Risk

Gap, Sensitivity, NII, NIM , EAR etc

Hexaware Technologies Limited. All rights reserved.

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Middle Office
Hexaware Service Offerings in Middle office functions Market Risk
Model validation and refinements Independent validation of methodology, analytics and implementation of market risk models VaR analytics Development of implementation and process outsourcing framework,

Services for

Operational Risk
Roll-out of leading 3rd party operational risk and GRC platforms
Local and global roll-out strategies and best practices Conducting workshops requirements for gathering solution

Risk dashboards and reporting Custom and pre-built reports to integrate different instrument and product types across different platforms Internal audit services Analytical support to internal audit groups, spreadsheet evaluation & validation Stress testing Conduct independent stress testing of market risk models. Counterparty risk and collateral management Implementation of counterparty risk systems including simulation engines, netting and collateral rules Data aggregation and cleansing Linking multiple data sources and providing frameworks for the identification of most recent and accurate values

Iterative solution configuration Pre-built solution extensions and migration of loss data Testing and training

ORM Consulting
Define operational risk management frameworks, policies and processes for financial institutions Design of control testing methodologies Gap analysis and business requirements specifications Vendor & technology operational risks selection for managing

Implementation of Basel II Advanced Measurement Approach (AMA) for capital estimation Methodologies and implementation of Economic Capital frameworks

Credit Risk
Management for leading 3rd party credit management software or bespoke systems risk

Compliance
. Implementation of Anti-Money Laundering solutions Design and implementation of roadmaps for Basel II, MiFID, Anti-Money Laundering and SOX compliance

Commercial rating systems Design and implementation of Basel II risk rating scorecards and PD models, including data and system requirements Consumer credit scoring Modeling & analytics regarding consumer campaign management & behavioral scorecards Basel II implementation Pillar 1, Foundation IRB and Advanced IRB (Internal Rating-Based) approaches for Minimum Regulatory Capital, PD, LGD and EAD calculations Data quality and testing Pre-built data quality rules for cleaning portfolio, counterparty and financial spread data Commercial real estate reporting Combination of prebuilt and customized reports for financial institutions for segmenting and understanding direct and indirect commercial and residential real estate exposures Model validation and refinements Independent validation of methodology, analytics and implementation of credit models Internal audit services - Analytical support to internal audit groups and spreadsheet evaluation Stress testing Stress testing of internal rating systems based on transition matrices & customized scenarios Benchmarking of internal rating systems - Using market data for loan pricing & market credit default swap

Why Hexaware?
Deep understanding of strategic and tactical challenges confronted by financial institutions in risk management functions and processes. Our consulting methodologies enable clients to perform a quick analysis of existing state, understand their target state and create a roadmap for implementation. Wide range of experience in implementing risk management solutions from multiple software vendors. Our vendor selection methodology enables clients to score software vendors and arrive at an objective decision during the selection process. With a holistic view of the risk domain, independent of the solutions available in the market, we help clients choose the right solutions meeting their current as well as future business needs. Leverages domain, functional and technical consultants to provide end-to-end implementation of risk management systems for credit, market or operational risk. Our consultants have the right blend of business and technology expertise. Partnered with leading risk management software vendors and has a dedicated lab for training consultants.

Hexaware Technologies Limited. All rights reserved.

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Middle Office
Reconciliation Capabilities
Hexaware resources have worked in reconciliation space and have expertise in working with Leading Reconciliation products like TLM and Eagle. Hexaware has developed an in-house reconciliation product to track and trace business data across two systems called Verzoenen. By virtue of our experience in working with Leading Asset Management companies in the Reconciliation space, Hexaware has gained strong Domain Knowledge in Reconciliation and has handled Position, Cash, Transaction and General Ledger Reconciliation. Some of the focused areas in the reconciliation process are: Trade Instructions and Confirmations of Investment Manager Vs. Broker Reconciliation of Custody System GL Reconciliation Ledger / Sub Ledger Reconciliation Settlements Reconciliation Payments Reconciliation Investment Manager System Vs. .

Services for

Nostro Reconciliation

Success Stories - Risk Management

A Top 2 Global Bank: Implementation of Basel II Capital Adequacy framework A Top 10 Global Bank: infrastructure advisory assignment for BASEL II implementation providing roadmap for Pillar I and ICAAP processes. This included gap analysis and client preparedness assessment. A roadmap was advised A Top 10 US Bank: Risk strategy and consulting engagement for developing a revised methodology for ALLL (Allowance for loan and lease losses). It provided the bank with a robust, accurate and efficient allocation mechanism aimed at preventing sudden capital shocks. This approach aligned with the economic capital calculations and included macroeconomic adjustments A Top 10 US Bank: Counterparty credit risk analysis infrastructure with graphical user interface and key exposure monitoring variables using SAS Tools .

Success Stories - Reconciliation

Client is a leading provider of investment tools globally for investment banks, hedge funds, asset managers, regulators, rating agencies & insurance companies. Loading data Files (Portfolios, Holdings, Security master, transactions) into the tool Reconcile Market Values of Portfolios Reconcile Transactions Calculate P& L for the Portfolio

US-based, Global Asset Management Firm: Support the migration of Data from Smart stream SSR to Smart stream TLM A Top 20 Global Asset Manager: Support and Maintenance of Smart Stream SSR Application A Leading Mutual Life Insurance Company in US: Implementation and Reconciliation of Derivative Trades from Legacy System to Murex Application during Migration .

Hexaware Technologies Limited. All rights reserved.

www.hexaware.com

Middle Office
About Hexaware
Hexaware is a leading global provider of IT and BPO services. The company has achieved leadership position in domains such as Banking, Financial Services, Insurance, Transportation, Logistics and HR-IT solutions. Hexaware focuses on delivering business results leveraging technology solutions and specializes in Business Intelligence & Analytics, Enterprise Applications, Independent Testing and Legacy Modernization. Hexaware has been providing business technology solutions for over 18 years and offers world class service delivery, technology leadership and skilled human capital.

Services for

NA Headquarters 1095 Cranbury South River Road Suite 10, Jamesburg, NJ 08831 Main: 609-409-6950 Fax: 609-409-6910

India Headquarters 152, Sector 3 Millennium Business Park A Block, TTC Industrial Area Mahape, Navi Mumbai 400 710 Tel.: +91-22-67919595 Fax: +91-22-67919500

EU Headquarters 4th Floor, Cornwall House 55-57 High Street, Slough Berkshire SL1 1DZ, UK Tele: +44 (0)1753 217160 Fax: +44 (0)1753 217161

APAC Headquarters 180 Cecil Street, #09-03, Bangkok Bank Building, Singapore 069546 Tel.: +65-63253020

For all Hexaware office locations, visit: http://www.hexaware.com/worldwide.htm

corporatemarketing@hexaware.com
Safe Harbor Certain statements on this brochure concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Hexaware has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry.

Hexaware Technologies Limited. All rights reserved.

www.hexaware.com