IBM Algo Operational Risk Capital Modeling V6.4

IBM United States Software Announcement 212-500
December 4, 2012

	Overview		Publications
	Key prerequisites		Technical information
	Planned availability date		Ordering information
	Description		Terms and conditions
	Program number		Prices

Overview

IBM® Algorithmics® financial risk management solutions include solutions for market, credit, operational, collateral, capital, and liquidity risk management. IBM risk analytics focus on credit and market risk. This strong footprint in insurance and key operational risk customer accounts strengthens and expands the depth and breadth of risk advisory and consulting services.

IBM Algo® Operational Risk Capital Modeling helps financial institutions develop realistic capital estimates that reflect the operational risk exposure of their businesses.

IBM Algo Operational Risk Capital Modeling provides statistical procedures to estimate an aggregate loss distribution. The basic model consists of three components:

Frequency of loss events
Severity of loss events
Aggregate loss of a compilation of loss events

Annual updates are available.

IBM Algo One® Foundation is offered with a new ordering metric, per establishment.

Key prerequisites

Refer to the Hardware and software requirements section.

Planned availability date

December 7, 2012: Electronic delivery

December 14, 2012: Media delivery

Description

IBM Algo Operational Risk Capital Modeling V6.4 features:

Monte Carlo simulation engine to calculate aggregate loss.
Simulation for the generation of loss event distributions by business unit and Basel event type.
Numerous frequency and severity distribution choices including Poisson, Binomial, and nonparametric techniques.
Fully integrated curve fitting tool, which allows for modeling of severity distributions.
Full audit trail and self-documenting calculation runs.
Ability to model with internal and external loss data and scenario data, and the ability to create combined models with each data type.
Modeling of insurance programs.

Through loss event data analysis functions, Algo Operational Risk Capital Modeling:

Assists with transformation of data into analysis, reports, and risk exposures
Contains drill down, and slice and dice capabilities for internal and external loss data
Scales loss information by a variety of scaling factors
Displays loss information by histograms, pie charts, and tables
Creates management reports
Downloads and exports data in Excel and HTML formats

Solution packaging - Algo Operational Risk Capital Modeling

Algo Operational Risk Capital Modeling is a standalone application.

Algo Operational Risk Capital Modeling can be used in conjunction with IBM OpenPages® GRC Platform.

IBM Algo One Foundation

IBM Algo One provides you with a solid foundation for building a risk management system that takes an integrated enterprise-wide approach, and can efficiently evolve to help meet compliance requirements.

Algo One Foundation is the underlying scenario based simulation framework for Algo One based solutions:

IBM Algorithmics Integrated Market and Credit Risk
IBM Algorithmics Balance Sheet Risk Management
IBM Algorithmics Portfolio Construction and Risk Management
IBM Algorithmics Economic Capital & Solvency II: Enterprise Edition
IBM Algorithmics Capital Management

Solution packaging - Algo One Foundation

Algo One Foundation is offered for production and nonproduction environments, per establishment.

Accessibility by people with disabilities

A US Section 508 Voluntary Product Accessibility Template (VPAT) containing details on accessibility compliance can be requested at

: http://www.ibm.com/able/product_accessibility/index.html

Program number

 
Program          Program
number    VRM    name

5725-H45  6.4.0  IBM Algo Operational Risk Capital Modeling

Education support

For education information, visit

: http://www.ibm.com/jct03001c/services/learning/ites.wss/us/en?pageType=page&c=U431952F7 6355G56

Offering Information

Product information is available via the Offering Information website

: http://www.ibm.com/common/ssi

Also, visit the Passport Advantage® website

: http://www.ibm.com/software/passportadvantage

Publications

Product documentation will be provided as part of the software install.

Technical information

Specified operating environment

Hardware and software requirements

Algo Operational Risk Capital Modeling

Microsoft™ Windows™ computer with:

Java™ 6
100 MB disk storage
2 GB memory

License for Wolfram Research Mathematica computation software, V6, or later, for curve fitting. For details, visit

: http://www.wolfram.com/

The program's specifications and specified operating environment information may be found in documentation accompanying the program, if available, such as a readme file, or other information published by IBM , such as an announcement letter. Documentation and other program content may be supplied only in the English language.

Planning information

Installability

Software Subscription and Support (also referred to as Software Maintenance) is included with licenses purchased through Passport Advantage and Passport Advantage Express® . Product upgrades and technical support are provided by the Software Subscription and Support (Software Maintenance) offering as described in the Agreements. Product upgrades provide the latest versions and releases to entitled software, and technical support provides access to IBM support organizations, worldwide.

IBM includes one year of Software Subscription and Support (also referred to as Software Maintenance) with each program license acquired. The initial period of Software Subscription and Support (Software Maintenance) can be extended by the purchase of a renewal option, if available.

Packaging

A media pack is available for IBM Algo Operational Risk Capital Modeling V6.4.

The IBM Algo One Foundation media pack is unchanged.

This program, when downloaded from a website, contains the applicable IBM license agreement and License Information, if appropriate, and will be presented for acceptance at the time of installation of the program. For future reference, the license and License Information will be stored in a directory such as LICENSE.TXT.

Software Services

IBM Software Services has the breadth, depth, and reach to manage your services needs. You can leverage the deep technical skills of our lab-based, software services team and the business consulting, project management, and infrastructure expertise of our IBM Global Services team. Also, we extend our IBM Software Services reach through IBM Business Partners to provide an extensive portfolio of capabilities. Together, we provide the global reach, intellectual capital, industry insight, and technology leadership to support a wide range of critical business needs.

To learn more about IBM Software Services or to contact a Software Services sales specialist, visit

: http://www.ibm.com/software/sw-services/

Ordering information

This product is only available via Passport Advantage . It is not available as shrinkwrap.

These products may only be sold directly by IBM or by authorized IBM Business Partners for Software Value Plus.

For more information about IBM Software Value Plus, visit

: http://www.ibm.com/partnerworld/page/svp_authorized_portfolio

To locate IBM Business Partners for Software Value Plus in your geography for a specific Software Value Plus portfolio, visit

: http://www.ibm.com/partnerworld/wps/bplocator/

 
Product group: Algo
 
  Product Identifier Description (PID)
 
  IBM Algo Operational Risk Capital Modeling (5725-H45)
 
Product category: Customer solutions

Charge metric

 
Program name                                PID number Charge metric
 
IBM Algo Operational Risk Capital Modeling  5725-H45   Authorized user
IBM Algo One                                5725-H42
- IBM Algo One Foundation                              Establishment

Authorized User

Authorized User is a unit of measure by which the program can be licensed. An Authorized User is a unique person who is given access to the program. The program may be installed on any number of computers or servers and each Authorized User may have simultaneous access to any number of instances of the program at one time. Licensee must obtain separate, dedicated entitlements for each Authorized User accessing the program in any manner directly or indirectly (for example, via a multiplexing program, device, or application server) through any means. An entitlement for an Authorized User is unique to that Authorized User and may not be shared, nor may it be reassigned other than for the permanent transfer of the Authorized User entitlement to another person.

Note: Some programs may be licensed where devices are considered users. In that case, the following applies. Any computing device that requests the execution of or receives for execution a set of commands, procedures, or applications from the program or that is otherwise managed by the program is considered a separate user of the program and requires an entitlement as if that device were a person.

Establishment

Establishment is a unit of measure by which the program can be licensed. An Establishment is a single physical site, including the surrounding campus and satellite offices located within 50 kilometers, of licensee's site address. Licensee must obtain an entitlement for each Establishment at or for which the program will be used. Licensee is permitted to deploy an unlimited number of copies of the program within the Establishment. An entitlement for an Establishment is unique to that Establishment and may not be shared, nor may it be reassigned other than for the permanent closing of the Establishment.

Passport Advantage

                                                                  Part
Program name/Description                                          number
 
IBM Algo Operational Risk Capital Modeling (5725-H45)
 per Authorized user
 
 - License and Subscription & Support 12 Mo                       D0UP5LL
 - Subscription & Support Renewal 12 Mo                           E0F02LL
 - Subscription & Support Reinstatement 12 Mo                     D0UP6LL
 
IBM Algo One (5725-H42)
 
Algo One Foundation per Establishment
 - License and Subscription & Support 12 Mo                       D0WC4LL
 - Subscription & Support Renewal 12 Mo                           E0FXFLL
 - Subscription & Support Reinstatement 12 Mo                     D0WC5LL
 
Algo One Foundation for Non Production Environment
 per Establishment
 - License and Subscription & Support 12 Mo                       D0WC6LL
 - Subscription & Support Renewal 12 Mo                           E0FXGLL
 - Subscription & Support Reinstatement 12 Mo                     D0WC7LL

Passport Advantage customer: Media pack entitlement details

Customers with active maintenance or subscription for the products listed are entitled to receive the corresponding media pack.

 
Media pack
description                                               Part number
 
IBM Algo Operational Risk Capital Modeling V6.4           B5008EN

Terms and conditions

The information provided in this announcement letter is for reference and convenience purposes only. The terms and conditions that govern any transaction with IBM are contained in the applicable contract documents such as the IBM International Program License Agreement, IBM International Passport Advantage Agreement, and the IBM Agreement for Acquisition of Software Maintenance.

This product is only available via Passport Advantage . It is not available as shrinkwrap.

Licensing

IBM International Program License Agreement including the License Information document and Proof of Entitlement (PoE) govern your use of the program. PoEs are required for all authorized use. Part number products only, offered outside of Passport Advantage , where applicable, are license only and do not include Software Maintenance.

This software license includes Software Subscription and Support (also referred to as Software Maintenance).

These programs are licensed under the IBM Program License Agreement (IPLA) and the associated Agreement for Acquisition of Software Maintenance, which provide for support with ongoing access to releases and versions of the program. IBM includes one year of Software Subscription and Support (also referred to as Software Maintenance) with the initial license acquisition of each program acquired. The initial period of Software Subscription and Support (also referred to as Software Maintenance) can be extended by the purchase of a renewal option, if available. These programs have a one-time license charge for use of the program and an annual renewable charge for the enhanced support that includes access to technical support, as well as access to updates, releases, and versions of the program as long as support is in effect.

License Information form number

: L-LASY-8VARRA: IBM Algo Operational Risk Capital Modeling

Limited warranty applies

Yes

Limited warranty

IBM warrants that when the program is used in the specified operating environment, it will conform to its specifications. The warranty applies only to the unmodified portion of the program. IBM does not warrant uninterrupted or error-free operation of the program or that IBM will correct all program defects. You are responsible for the results obtained from the use of the program.

IBM provides you with access to IBM databases containing information on known program defects, defect corrections, restrictions, and bypasses at no additional charge. For further information, consult the IBM Software Support Handbook found at

: http://www.ibm.com/support/handbook

IBM will maintain this information for at least one year after the original licensee acquires the program (warranty period).

Program technical support

Technical support of a program product version or release will be available for a minimum of three years from the general availability date, as long as your Software Subscription and Support (also referred to as Software Maintenance) is in effect. This technical support allows you to obtain assistance (via telephone or electronic means) from IBM for product-specific, task-oriented questions regarding the installation and operation of the program product. Software Subscription and Support (Software Maintenance) also provides you with access to updates (modifications or fixes), releases, and versions of the program. You will be notified, via announcement letter, of discontinuance of support with 12 months' notice. If you require additional technical support from IBM , including an extension of support beyond the discontinuance date, contact your IBM representative or IBM Business Partner. This extension may be available for a fee.

Money-back guarantee

If for any reason you are dissatisfied with the program and you are the original licensee, you may obtain a refund of the amount you paid for it, if within 30 days of your invoice date you return the program and its PoE to the party from whom you obtained it. If you downloaded the program, you may contact the party from whom you acquired it for instructions on how to obtain the refund.

For clarification, note that (1) for programs acquired under the IBM International Passport Advantage offering, this term applies only to your first acquisition of the program and (2) for programs acquired under any of IBM's On/Off Capacity on Demand (On/Off CoD) software offerings, this term does not apply since these offerings apply to programs already acquired and in use by you.

Other terms

Volume orders (IVO)

IBM International Passport Advantage Agreement

Passport Advantage applies

Yes, and through the Passport Advantage website at

: http://www.ibm.com/software/passportadvantage

Usage restriction

Yes

For additional information, refer to the License Information document that is available on the IBM Software License Agreement website

: http://www.ibm.com/software/sla/sladb.nsf

Software Subscription and Support applies

Yes. Software Subscription and Support (also referred to as Software Maintenance) is included with licenses purchased through Passport Advantage and Passport Advantage Express . Product upgrades and Technical Support are provided by the Software Subscription and Support offering as described in the Agreements. Product upgrades provide the latest versions and releases to entitled software and Technical Support provides voice and electronic access to IBM support organizations, worldwide.

IBM includes one year of Software Subscription and Support with each program license acquired. The initial period of Software Subscription and Support can be extended by the purchase of a renewal option, if available.

While your Software Subscription and Support is in effect, IBM provides you assistance for your routine, short duration installation and usage (how-to) questions, and code-related questions. IBM provides assistance via telephone and, if available, electronic access, only to your information systems (IS) technical support personnel during the normal business hours (published prime shift hours) of your IBM support center. (This assistance is not available to your end users.) IBM provides Severity 1 assistance 24 hours a day, 7 days a week. For additional details, consult your IBM Software Support Handbook at

: http://www.ibm.com/support/handbook

Software Subscription and Support does not include assistance for the design and development of applications, your use of programs in other than their specified operating environment, or failures caused by products for which IBM is not responsible under the applicable agreements.

For additional information about the International Passport Advantage Agreement and the IBM International Passport Advantage Express Agreement, visit the Passport Advantage website at

: http://www.ibm.com/software/passportadvantage

Other support

Passport Advantage

System i Software Maintenance applies

Variable charges apply

Educational allowance available

Not applicable.

Statement of good security practices

IT system security involves protecting systems and information through prevention, detection, and response to improper access from within and outside your enterprise. Improper access can result in information being altered destroyed or misappropriated or can result in misuse of your systems to attack others. Without a comprehensive approach to security, no IT system or product should be considered completely secure and no single product or security measure can be completely effective in preventing improper access. IBM systems and products are designed to be part of a comprehensive security approach, which will necessarily involve additional operational procedures, and may require other systems, products, or services to be most effective. IBM does not warrant that systems and products are immune from the malicious or illegal conduct of any party.

Prices

Business Partner information

If you are an IBM Business Partner -- Distributor for Workstation Software acquiring products from IBM , you may link to Passport Advantage Online for resellers where you can obtain Business Partner pricing information. An IBM ID and password are required.

: https://www.ibm.com/software/howtobuy/passportadvantage/paoreseller

For current prices, contact your IBM representative.

Passport Advantage

For Passport Advantage information and charges, contact your IBM representative or authorized IBM Business Partner for Software Value Plus. Additional information is also available at

: http://www.ibm.com/software/passportadvantage

IBM Global Financing

IBM Global Financing offers competitive financing to credit-qualified customers to assist them in acquiring IT solutions. Offerings include financing for IT acquisition, including hardware, software, and services, from both IBM and other manufacturers or vendors. Offerings (for all customer segments: small, medium, and large enterprise), rates, terms, and availability can vary by country. Contact your local IBM Global Financing organization or visit

: http://www.ibm.com/financing

IBM Global Financing offerings are provided through IBM Credit LLC in the United States, and other IBM subsidiaries and divisions worldwide to qualified commercial and government customers. Rates are based on a customer's credit rating, financing terms, offering type, equipment type, and options, and may vary by country. Other restrictions may apply. Rates and offerings are subject to change, extension, or withdrawal without notice.

Financing from IBM Global Financing helps you preserve cash and credit lines, enables more technology acquisition within current budget limits, permits accelerated implementation of economically attractive new technologies, offers payment and term flexibility, and can help match project costs to projected benefits. Financing is available worldwide for credit-qualified customers.

For more financing information, visit

: http://www.ibm.com/financing

Trademarks

IBM, OpenPages, Passport Advantage and Express are registered trademarks of IBM Corporation in the United States, other countries, or both.

Microsoft and Windows are trademarks of Microsoft Corporation in the United States, other countries, or both.

Other company, product, and service names may be trademarks or service marks of others.

Terms of use

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: http://www.ibm.com/legal/us/en/

For the most current information regarding IBM products, consult your IBM representative or reseller, or visit the IBM worldwide contacts page

: http://www.ibm.com/planetwide/us/


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