Advanced technology infrastructures for FRTB excellence
FRTB Technology Infrastructure
Successful FRTB implementation requires solid, flexible, and intelligent technology infrastructures. We develop tailored IT architectures that not only meet regulatory requirements but also increase operational efficiency and create competitive advantages.
- ✓Flexible cloud-based FRTB architectures with enterprise-grade security
- ✓Real-time data processing and automated compliance monitoring systems
- ✓Smooth integration into existing banking infrastructures and legacy systems
- ✓AI-assisted risk assessment and intelligent reporting automation
Your strategic success starts here
Our clients trust our expertise in digital transformation, compliance, and risk management
30 Minutes • Non-binding • Immediately available
For optimal preparation of your strategy session:
- Your strategic goals and objectives
- Desired business outcomes and ROI
- Steps already taken
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Technology Excellence for FRTB Compliance
Our Technology Expertise
- In-depth expertise in financial technology and RegTech innovations
- Proven experience with enterprise banking infrastructures and legacy integration
- Specialization in cloud-based architectures and modern DevOps practices
- Continuous innovation through proprietary research and technology partnerships
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Technology-First Approach
Modern FRTB compliance cannot be achieved without advanced technology infrastructures. Our technology-first philosophy ensures that your FRTB implementation is not only compliant but also future-proof and competitive.
ADVISORI in Numbers
11+
Years of Experience
120+
Employees
520+
Projects
Together with you, we develop a future-proof technology strategy that treats FRTB compliance not as a technical challenge, but as an opportunity for digital transformation and competitive advantage.
Our Approach:
Comprehensive Technology Assessment and Future-State Architecture Design
Agile implementation with DevOps practices and continuous integration
Cloud-based development with microservices architecture and container orchestration
AI integration and machine learning for intelligent automation
Continuous innovation and technology evolution for sustainable competitive advantages
"The FRTB compliance of the future is technology-driven and requires infrastructures that go far beyond traditional banking IT. Our clients benefit from highly advanced cloud-based architectures and AI-assisted automation solutions that not only ensure compliance but also create operational excellence and the capacity for innovation."
Melanie Düring
Head of Risk Management
Our Services
We offer you tailored solutions for your digital transformation
Cloud-based FRTB Platform Development
We develop highly advanced, flexible cloud-based platforms specifically optimized for FRTB requirements, meeting the highest security, performance, and compliance standards.
- Microservices-based architecture with container orchestration and automatic scaling
- Real-time data processing with stream processing and in-memory computing
- Enterprise-grade security with zero-trust architecture and end-to-end encryption
- Intelligent API gateways and event-driven architecture for optimal integration
AI-assisted FRTB Automation and Intelligence
We implement advanced AI and machine learning solutions that intelligently automate FRTB processes, proactively identify risks, and enable continuous optimization.
- Machine learning risk assessment and anomaly detection
- Intelligent automation of compliance monitoring and reporting processes
- Predictive analytics for proactive risk management and compliance optimization
- Natural language processing for automated documentation and regulatory intelligence
Our Competencies in Fundamental Review of the Trading Book (FRTB)
Choose the area that fits your requirements
Expected Shortfall Under FRTB – Calculation, Validation and Implementation
Expected Shortfall (ES) is the central risk measure for market risk capital requirements under the Fundamental Review of the Trading Book (FRTB). It replaces Value at Risk and measures the average loss in the tail of the loss distribution — at the 97.5% confidence level over a 250-day stress period. ADVISORI guides banks through implementation: from ES calculation through classification of modellable risk factors to regulatory validation.
FRTB Backtesting Requirements — Model Validation Standards for Market Risk
FRTB Backtesting Requirements demand precise implementation of Basel III model validation with specific backtesting performance requirements and validation procedures. As a leading consulting firm, we develop tailored RegTech solutions for intelligent backtesting compliance, automated model performance monitoring, and strategic validation optimization with full IP protection.
FRTB Boundary Trading Banking Book
The correct delineation between the trading book and banking book is critical for FRTB compliance and capital optimization. Together with you, we develop solid boundary management frameworks for precise classification and efficient management.
FRTB Credit Valuation Adjustment
FRTB Credit Valuation Adjustment presents new challenges for capital calculation and risk management. Together with you, we develop comprehensive CVA frameworks for precise capital calculation, effective hedging, and sustainable compliance excellence.
FRTB Data Management
The Fundamental Review of the Trading Book demands comprehensive market data, demonstrable risk factor modellability and audit-proof data governance. We build the data infrastructure your trading book needs — from real price observation pipelines and NMRF minimisation to automated data quality assurance.
FRTB German Implementation
The Fundamental Review of the Trading Book presents German banks with specific challenges. We develop tailored implementation strategies that meet BaFin requirements while accounting for the particularities of the German banking market.
FRTB Implementation
Navigate the complex implementation of the Fundamental Review of the Trading Book with our comprehensive implementation support. We guide you through the entire process – from the initial assessment and gap analysis through concept development and system adaptation to full integration into your trading and risk management systems, including model adjustment, data infrastructure and process optimisation.
FRTB Implementation Strategy: Approach Selection, Capital Optimization & Phased Rollout
FRTB Implementation Strategy requires precise implementation of the Basel III Fundamental Review of the Trading Book with specific market risk capital requirements and supervisory validation. As a leading AI consultancy, we develop tailored RegTech solutions for intelligent FRTB compliance, automated trading book separation and strategic market risk optimization with full IP protection.
FRTB Internal Models Approach (IMA) — Requirements, Approval and Implementation
The FRTB Internal Models Approach (IMA) allows banks to use their own risk models for market risk capital calculations — provided they meet strict supervisory requirements for Expected Shortfall, backtesting and P&L attribution. As specialist FRTB consultants, ADVISORI supports institutions with IMA approval, model validation and ongoing compliance.
FRTB Market Risk Modeling – Sensitivity-Based Approach, Risk Classes & Risk Factor Modeling
The Fundamental Review of the Trading Book requires fundamentally new market risk modeling: The sensitivity-based approach (SbA) calculates delta, vega and curvature risks across seven risk classes – GIRR, CSR (non-sec, sec CTP, sec non-CTP), equity, FX and commodity. We support banks in the methodological design, risk factor modeling and operational implementation of these requirements.
FRTB Non-Modellable Risk Factors (NMRF) – RPO Test & SES Capital Add-On | ADVISORI
FRTB Non-Modellable Risk Factors require precise implementation of Basel III NMRF identification with specific capital calculation procedures and stress scenario calibration. As a leading AI consultancy, we develop tailored RegTech solutions for intelligent NMRF compliance, automated risk factor validation and strategic supervisory recognition optimization with full IP protection.
FRTB Ongoing Compliance
Ongoing adherence to FRTB requirements demands systematic monitoring, regular adjustments, and proactive optimization. We support you in establishing sustainable FRTB compliance.
FRTB P&L Attribution Test (PLAT) – Requirements, Methodology & Consulting | ADVISORI
FRTB Profit & Loss Attribution requires precise implementation of Basel III P&L allocation with specific risk factor decomposition requirements and model validation. As a leading AI consultancy, we develop tailored RegTech solutions for intelligent P&L attribution compliance, automated backtesting integration and strategic transparency optimisation with full IP protection.
FRTB Readiness Assessment
Our comprehensive FRTB readiness assessment identifies gaps in your current systems, processes, and data, quantifies the impact on your capital, and delivers a tailored implementation roadmap for efficient FRTB compliance.
Frequently Asked Questions about FRTB Technology Infrastructure
What IT infrastructure does a bank need for FRTB implementation?
An FRTB-compliant IT infrastructure must cover three core areas: a high-performance risk calculation engine for sensitivity computations and Expected Shortfall calculations, a data platform for aggregating market data, positions and risk factors, and a reporting system for regulatory submissions. ADVISORI designs this architecture in a modular way so that existing banking systems connect through standardised interfaces. The risk calculation engine must compute thousands of sensitivities per risk class within tight time windows, placing high demands on computing power and data throughput.
How does the computational effort differ between SA and IMA under FRTB?
The Standardised Approach (SA) requires computing weighted sensitivities across seven risk classes with subsequent aggregation using prescribed correlation matrices. The Internal Models Approach (IMA) demands Monte Carlo simulations for Expected Shortfall across multiple liquidity horizons, supplemented by P&L Attribution tests and daily backtesting. The computational effort for IMA is estimated at roughly nine times that of SA. ADVISORI sizes the IT infrastructure so that both approaches can run in parallel, since banks must always maintain SA as a fallback.
What role does data quality play in FRTB system architecture?
Data quality is the critical success factor for any FRTB implementation. Missing granularity in sensitivities causes positions to fall into the Residual Bucket, eliminating hedging benefits and materially increasing capital requirements. For fund positions, look-through data down to ISIN level must be available, otherwise punitive risk weights apply. ADVISORI therefore structures the data architecture on three levels: source data validation, real-time enrichment and continuous quality monitoring, ensuring that flawed data does not enter the risk calculation pipeline.
How do you scale computing power for FRTB calculations as portfolios grow?
For growing trading portfolios, ADVISORI uses horizontal scaling: calculations are distributed across independent compute nodes that scale up or down automatically based on load. GPU-accelerated computation significantly reduces the time needed for Monte Carlo simulations and Expected Shortfall calculations compared to CPU-only processing. In-memory aggregation avoids writing intermediate results to disk. This architecture ensures that daily risk calculations complete within regulatory time constraints even as instrument counts increase.
How are existing banking systems integrated into an FRTB infrastructure?
Integration with existing legacy systems runs through an API gateway that serves as the central interface between trading systems, risk databases and the FRTB calculation engine. Data virtualisation allows querying data sources from different systems without physically migrating them. Event-driven architecture ensures that position changes from front-office systems are forwarded to the risk calculation in real time. ADVISORI has deployed this integration approach across multiple banking projects and can adapt it to different system landscapes.
What regulatory requirements apply to FRTB IT infrastructure in the EU?
Under CRR III and the accompanying technical standards, regulators require the IT infrastructure to guarantee full traceability of all calculations, including complete audit trails. Backtesting and P&L Attribution must run daily in an automated fashion, and results must be reproducible. Additional requirements cover IT security under frameworks like DORA and national supervisory standards, mandating access controls, encryption and contingency planning. ADVISORI ensures that the technical architecture addresses these regulatory requirements from the outset.
How long does it take to build an FRTB-compliant IT infrastructure?
The timeline depends on the starting condition of existing systems. For a bank that already has a modern risk system, ADVISORI estimates six to nine months from architecture planning to production. Where comprehensive legacy migration is required, twelve to eighteen months may be needed. ADVISORI divides the project into phases: first the core infrastructure with calculation engine and data pipeline, then integration of existing systems and finally performance and reporting optimisation. This means initial regulatory calculations are possible after the first phase.
Success Stories
Discover how we support companies in their digital transformation
Digitalization in Steel Trading
Klöckner & Co
Digital Transformation in Steel Trading
Case Study
Results
Over 2 billion euros in annual revenue through digital channels
Goal to achieve 60% of revenue online by 2022
Improved customer satisfaction through automated processes
AI-Powered Manufacturing Optimization
Siemens
Smart Manufacturing Solutions for Maximum Value Creation
Case Study
Results
Significant increase in production performance
Reduction of downtime and production costs
Improved sustainability through more efficient resource utilization
AI Automation in Production
Festo
Intelligent Networking for Future-Proof Production Systems
Case Study
Results
Improved production speed and flexibility
Reduced manufacturing costs through more efficient resource utilization
Increased customer satisfaction through personalized products
Generative AI in Manufacturing
Bosch
AI Process Optimization for Improved Production Efficiency
Case Study
Results
Reduction of AI application implementation time to just a few weeks
Improvement in product quality through early defect detection
Increased manufacturing efficiency through reduced downtime
Let's
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Your strategic success starts here
Our clients trust our expertise in digital transformation, compliance, and risk management
Ready for the next step?
Schedule a strategic consultation with our experts now
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