TORONTO, May 9 /PRNewswire/ -- Today, Algorithmics Incorporated, announced the launch of Algo OpRisk, a comprehensive risk management solution to proactively manage operational risk. Halifax Group plc has played an important role as a strategic client in the development of the solution, assisted by Arthur Andersen. "Halifax has a progressive approach to operational risk within the organisation, and Algorithmics' software meets our requirements. We think Algo OpRisk can take Halifax to the forefront of operational risk management," says Ammy Seth, Halifax's Head of Special Risk Areas.

Building on its innovative Algo WatchDog product, Algo OpRisk is a component-based risk management solution, currently consisting of Algo OpData and Algo WatchDog. Algo OpData, the newest component, is an infrastructure for operational risk data, in the form of losses, near-misses, issues and key risk indicators. It currently provides a robust and auditable system for the collection and management of operational risk data and an enterprise-wide framework for internal risk control. In future, Algo OpRisk will be extended to include risk capital and self-assessment modules.

Michael Zerbs, Algorithmics' Vice President of Research and Product Marketing, says today's turbulent financial markets, increasingly complex financial systems, and the enhanced regulations specified by the Basle Accord have led executives and risk managers to realize the importance of proactively measuring and managing operational risk. "The Accord has mandated the regulation of operational risk by the January 2004 deadline. We believe that in order to meet the capital requirements of the Accord, there is a need not only for risk analytics, but also for a rigorous system to enable data collection. With Algo OpRisk we believe we will enable our clients to not only become BIS compliant, but also to meet their wider operational risk management needs," says Zerbs.

Whether risks lie in operational processes, resources, systems or external events, Algo OpRisk generates the scenarios necessary for effective operational risk management. Algo OpRisk can be tailored to meet specific user needs. An open architecture and robust APIs (Application Programmer Interfaces) enable easy customization for clients who may wish to use part, but not all, of the solution.

Strategic client Halifax Group plc is the first to implement the Algo OpRisk solution and was instrumental in providing the building blocks of Algo OpRisk. Halifax identified the inherent potential of Algo OpData and enlisted Algorithmics, as a leading risk management software vendor, to enhance and develop it. For Algorithmics, the expansion of the operational risk solution was a logical move. Long recognized as a world leader in enterprise-wide risk management solutions, Algorithmics has a client list of more than 120 clients in 26 countries worldwide.

About Halifax Group plc

Halifax is one of the leading providers of personal financial services in the UK, employing some 37,000 staff across the Group. The company has assets of over pnds stlg 183bn and with more than 20 million customers, the Halifax has a relationship with 2 in every 5 households. In addition, Halifax is only one of six companies in the world with a financial strength 'A' rating from Moody's.

About Algorithmics

Algorithmics was founded in 1989 in response to the complex issues surrounding financial risk management for the enterprise. Today, as a leading provider with one of the largest and most experienced teams in the industry, Algorithmics continues to focus its efforts on creating and implementing enterprise risk management software that meets the evolving needs of its customers. Continuing its tradition of leading the way in risk measurement and management tools and processes, Algorithmics has introduced Mark-To-Future™ (MtF™), a new risk-reward management framework, which recently won Risk magazine's Technology Development of the Year award for 2001. Headquartered in Toronto, with 16 offices around the world, Algorithmics serves more than 120 global clients with 150 installations in 26 countries.

© 2001 Algorithmics Incorporated. All rights reserved. ALGORITHMICS and the Ai Logo are trademarks of Algorithmics Incorporated and/or its affiliates.

SOURCE: Algorithmics Incorporated

WEB SITES: www.algorithmics.com, www.marktofuture.com