Bermudian Firm Teams Up With American Partners To Provide Risk Management Services
by Leroy Baker, Tax-News.com, New York
27 October 2004

Bermuda based Investors Guaranty Fund Ltd has joined forced with US financial data management firm Cicada and Canadian software company Algorithmic to provide a risk management solution for the asset management and insurance industry, the Bermuda Gazette has reported.

According to Hubert Holmes, executive vice president of Cicada Corporation, a global provider of end-to-end reference data validation and cleansing to support risk management, trading and settlement, regulatory compliance and other critical applications, the new service sets out to provide risk management specifically for insurers and asset managers, with regulatory demands such as the Basel II capital adequacy rules and Sarbanes Oxley very much in mind.

“Whereas before you were only looking at total return – how much am I making on this portfolio – now people are looking in a much more risk-adjusted analytical way and there is also regulatory compliance coming to the world of asset managers as well,” explained Holmes.

He added that the group’s hosted solution will enable banks to save significant resources devoted to implementing their own risk management structures.

“It adds up to a big commitment and the banks for the most part had to foot those bills for themselves and they are multi-million dollar bills,” he noted.

From its origins as a financial guaranty insurance company, Bermuda-based IGF now provides global insurance and investment services to institutions and individuals, development capital funding and financial technologies to insurance and capital market institutions and intermediaries.

The third partner in the venture, Algorithmic, is providing the software.

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