Underscoring SAS’s growth in domain-specific solutions, the acquisition will allow SAS to significantly expand the breadth of its risk management solutions portfolio.
The acquisition of Kamakura will deepen SAS’ portfolio of risk management solutions and enable it to serve new facets of the financial services industry.
Mumbai, India (June 28, 2022) – SAS, a global leader in AI and analytics, has acquired Honolulu-based Kamakura Corporation. Private company Kamakura provides specialized software, data and advice that helps financial organizations from all walks of life (banks, insurance companies, asset managers, pension funds, etc.) manage a variety of financial risks .
SAS’s investment decision comes as post-pandemic optimism is clouded by war, unyielding supply chain disruption and the end of many crisis-era financial and social safety net programs. pandemic. Rising inflation and rumblings of recession have appeared as dark clouds on the global economic horizon, signaling potential turbulence ahead – a time for financial services organizations large and small alike. look closely at liquidity risk and other risks in their portfolios.
“This acquisition builds on the huge investments already made in SAS’s cloud-ready risk management platform and integrated solutions,” said Jim Goodnight, co-founder and CEO of SAS. “This signals our intention to advance market-changing risk solutions to solve the most pressing challenges facing our financial services clients. We anticipate that the resulting strength of SAS technology, coupled with Kamakura’s risk and credit analysis models, will prove to be far greater than the sum of its parts.
By acquiring Kamakura, SAS aims to provide an unparalleled suite of integrated risk management solutions, particularly around asset-liability management (ALM), and to serve additional facets of the financial services industry.
“The synergistic value of merging two highly complementary venture technology portfolios is undeniable to anyone familiar with SAS and Kamakura; it’s like putting matching puzzle pieces together,” said Sidhartha Dash, Research Director at Chartis. “Merging Kamakura’s strengths (robust ALM and interest rate risk capabilities, proprietary and sophisticated credit models and risk data) with SAS’s award-winning credit risk management and integrating risk and finance on SAS® Viya® is a powerful combination of solutions across the entire balance sheet. »
A singular vision
Kamakura is known for its pioneering vision and quantitative rigor. For more than three decades, it has specialized in risk management software and data for the banking and insurance sectors, today available in two offers:
• Kamakura Risk Manager (KRM). KRM is one of the most advanced and fully integrated risk management systems for ALM on the market. The software offers transaction-level valuation, simulation, stress testing, and cash flow analysis.
• Kamakura Risk Information Services (KRIS). This cloud-based software-as-a-service (SaaS) offering is a subscription-based data service that provides credit risk data and analytics that help businesses and countries forecast credit spreads and calculate default probabilities based on proprietary models.
The acquisition will bring these solutions capabilities into the SAS fold, along with Kamakura’s executives, management team, employees and contractors – a remarkable accumulation of specialized quantitative risk expertise that would take years to assemble in today’s market.
Two sides of the same coin
According to Don van Deventer, Chairman and CEO of Kamakura, who founded the company in 1990, Kamakura specifically chose SAS over other potential acquisition suitors based on the alignment of data-driven cultures and research of companies and their mutual excellence in modeling and analysis.
SAS and Kamakura share the same philosophy, he said: successfully managing financial risk, while maximizing returns and meeting regulatory requirements, requires cutting-edge research, robust analytics, fully integrated applications, flawless execution and quantifiable results.
“Joining the SAS family represents an exciting new chapter in Kamakura’s 32-year history,” said van Deventer. “In combination, our similar cultures will produce synergies that fuel customer and market innovation. More concretely, the addition of SAS’s cloud-native Viya technology, risk domain capabilities, and intuitive, user-friendly interfaces to Kamakura’s IP will create a leading ALM offering that will change the market.
Alongside van Deventer, acclaimed author of four books on risk, Kamakura’s leadership team includes research director Robert Jarrow, recognized in the field of quantitative risk for co-creating two risk modeling frameworks of foreground: the Heath-Jarrow-Morton interest rate model and the Jarrow model – Turnbull’s reduced-form credit risk model. Van Deventer and Jarrow, along with Kamakura COO Martin Zorn, will join SAS to facilitate the transition and lead the development of ALM and integrated balance sheet offerings and other advances in risk management solutions .
“The fragmented and siled methods that finance organizations have traditionally used to manage assets, liabilities and the balance sheet are becoming prohibitively expensive and unsustainable,” said Troy Haines, senior vice president and head of risk and solutions research. quantitative at SAS. “Augmenting and combining SAS’s decades-long expertise in risk management and finance solutions with Kamakura’s advanced ALM capabilities will better support the heavy regulatory risk calculation burdens of industry and promote data-driven decision making.
SAS is the leader in analytics. Through innovative software and services, SAS empowers and inspires customers around the world to turn data into intelligence. SAS gives you THE POWER TO KNOW®.
SAS and all other SAS Institute Inc. product or service names are either registered trademarks or trademarks of SAS Institute Inc. in the United States and other countries. ® indicates US registration. Other brand and product names are trademarks of their respective companies. Copyright © 2022 SAS Institute Inc. All rights reserved.
Danielle M. Bates
Discover the stories that interest you