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Refinitiv announced today the adoption of its Environment Social and Governance (ESG) data by FinAPU, a German language-based platform offering risk management solutions to banks, insurance companies, corporations and investment funds.
ESG has become a significant benchmark in the global financial industry, driven by the influenceof millennials, regulation and the need to find new data sources to help generate alpha.The Refinitiv ESG data tools and insight will provide FinAPU the ability to seamlessly integrate ESG data with their risk assessment workflows allowing client to calculate portfolio list.
Asgovernments and regulatory bodies develop wide range of policies focused on sustainable investment, market players require insight on credit rating, current currency of ratings, forecasts,ownership structures, equity market and inventory.
Karl Tasch, Chief Executive Officer, FinAPU Group, said: “Our partnership with Refinitiv will provide clients with the ability to act quickly and perform risk assessments covering countries, companies and banks. Clients will be able to carry out portfolio risk analytics involving companies and countries. Reliable ESG data can help guide the allocation of trillions of dollars of investment capital which is now a critical requirement for effective sustainable investment.”
Antonio De Gregorio, Managing Director, Central and Eastern Europe, Refinitiv, said: “We are proud to partner with FinAPU and help incorporate our ESG data into the decision-making processes of their clients. In the past few years, global markets have seen a real shift towards sustainability themes. ESG data will continue its evolution as the bedrock of sustainable financial markets.”
“We are witnessing the advent of ESG-related regulation at EU level, a world-first and surely notthe last effort to integrate responsible practices into hard letter regulation. Factors driving the adoption of ESG data tools include the enthusiasm of millennials, greater regulation and stronger links to alpha generation. Our goal at Refinitiv is to make ESG data readily consumableand help pinpoint the investment community to make better and more impactful investment decisions at scale,” he said.
Refinitiv has been serving the financial industry with ESG data and solutions for over 18 years and offers one of the richest ESG databases in the industry with coverage on 9,000+ companiesrepresenting over 80% of global market capitalization – a fully transparent resource that is trusted by investors and corporates to drive positive impact and provide comprehensive analysis. As members of the UN Global Compact, Refinitiv is part of a community of 9,000+ businesses across 135 countries that are committed to operating with responsible business practices at its core.
Refinitiv ESG data is designed to help investors make sound, sustainable investment decisions, our ESG data covers 80% of global market cap and over 450 metrics. For more information about Refinitiv ESG data, visit https://www.refinitiv.com/en/sustainable-finance/esg-investing
By applying the tools of FinAPU (www.finapu.com) UNIQA Insurance Group AG is now in a position to compute the default risk in the portfolios of the parent company as well as in those of subsidiary companies at the push of a button and to establish an efficient risk monitoring. IT based processes reduce the operational risks and enable an efficient use of resources. The quality of the risk models and data used are critical for a smooth operation of an insurance business, as indeed are also factors such as stability, speed and transparency of the software used. In a joint effort of specialists from UNIQA and FinAPU the risk management tool FinAPU (developed by FinAPU GmbH) was adapted in order ensure optimal risk steering/management and to meet all other regulatory requirements.
For the two founders of FinAPU, Karl Tasch and Felix Diem, it has been as very special task to analyze and optimize risk processes and routines of one of the most successful internationally active insurance company of Austria.
UNIQA Insurance Group AG became client of FinAPU GmbH at the beginning of 2020. The primary use of FinAPU Risk Management is in the analysis and surveillance of „Default-Risks“ of unrated credits (mainly banks and corporates).
„FinAPU represents a very valuable support tool for the management and the monitoring of default risks as it offers comprehensive customer coverage, sector specific and transparent risk models as well as the possibility to integrate internal qualitative credit risk parameters“ Mag. Paul Buchner, Head of Group Risk Management, at UNIQA.
Together with UNIQA and other FINAPU users in the DACH region (Germany, Austria, Switzerland), in Italy, Malta the UK and the US our risk management platform is being continuously further developed in order to identify ever increasing requirements and to address them adequately.
Union Investment is the asset manager of the cooperative financial group in Germany and manages more than 330 billion Euro for private and institutional investors. Union Investment is one of the leading fund companies in Germany.
In the future Union Investment will rely on the support of the innovative risk management platform FinAPU for its internal credit risk assessment. FinAPU enables networked risk management and a credit risk assessment of securities and issuers in real time. The risk models, processes and functions implemented at Union Investment have been adapted to the requirements of the EU Money Market Fund Regulation and aligned with the company's requirements.
Flexible workflow design enables the integration of in-house processes
"Thanks to the regulatory expertise of the persons involved, we were able to adjust models and processes efficiently and benefit from the experience with auditors and banking regulators," specifies Sebastian Schäfer, responsible for the implementation of the new EU Money Market Fund Regulation at the portfolio management group of Union Investment, describing the benefits of the new cooperation with FinAPU. "We are convinced that the user-friendly and stringent design of the rating application ensures high-quality results. The high data quality of the input parameters because of the close cooperation with established data providers is very helpful."
The challenge during the implementation phase was the integration of different databases and processing large amounts of data. Because FinAPU comprises master, owner and fundamental data of 31 million entities, which are automatically linked, evaluated and sent to defined processes and models. The successful application at Union Investment proves that FinAPU provides a valuable contribution to the core tasks of fund companies.
The project “FinAPU” (Financial Application Pooling Unit) was able to gain Thomson Reuters, one of the world’s leading financial data and news providers as a partner. From now on, FinAPU users have access to Thomson Reuters’ whole data landscape.
The regional bluechip partnership with Thomson Reuters honours the FinAPU project. This proves that the project evolves on the forefront of modern times and ascertains that the world’s leading companies value the risk platform’s quality.
FinAPU is a risk management platform that is connected to different data sources and automatically provides the data for the processes and risk models. The whole risk process or risk assessment can be conducted on both single case level and portfolio level.
FinAPU is by now an established platform, successfully used by multiple banks, insurances and companies within the German-speaking area.