New Cognos and IBM Performance Solution Helps Banks Integrate Risk Management and Profitability Planning Across Core Systems

    Risk Adjusted Profitability Blueprint mitigates risk, enables greater
financial planning accuracy, and builds stronger alignment between finance and
risk organizations

    ARMONK, N.Y., AND BURLINGTON, MASS., August 22 /CNW/ - Cognos (NASDAQ:  
COGN; TSX: CSN), a world leader in business intelligence and performance
management solutions, and IBM (NYSE:   IBM) today launched a new financial
services solution that includes hardware, software and services designed to
help banks more effectively integrate critical risk information with revenue
and expense planning data to maximize risk-adjusted return on capital.

    The Cognos-IBM Risk Adjusted Profitability Blueprint provides a
performance management framework that helps bank executives build precise
multi-dimensional, product-level profitability plans and forecasts that are
aligned with risk management strategies, enabling greater financial planning
accuracy and building a critical connection between the finance and risk

    "Banks today are challenged with striking a delicate balance between
aggressively growing their business while controlling and minimizing their
risk exposure. Risk adjusted financial reporting provides another dimension to
traditional financial metrics, and requires the integration of domain
expertise and software capabilities to develop an automated solution. The
co-developed blueprint embeds this expertise and delivers the opportunity for
a quick-time-to-value implementation that should jumpstart risk adjusted
profitability reporting integrated with much needed planning and forecasting
capabilities," said Kathleen Wilhide, research director, GRC and Financial
Performance Management Solutions, at IDC.

    Anchored on Cognos 8 Planning, Cognos 8 BI and coupled with IBM's Banking
Data Warehouse, the Cognos-IBM Risk Adjusted Profitability Blueprint
capitalizes on the financial services domain expertise provided by IBM Global
Business Services to deliver an intuitive planning and reporting environment

    --  Integrated risk-adjusted planning and forecasting at the product
level, across multiple dimensions, with risk measures including risk adjusted
return on capital (RAROC), economic capital, probability of default, loss
given default and expected loss

    --  Activity-based management and costing for key customer, product and
business segments, providing the most accurate, reliable profitability
planning and reporting data

    --  Multi-dimensional scenario planning incorporating activity costs,
allowing users to compare the financial impact of several business options and
take action on the most profitable course

    --  Multi-dimensional risk management and profitability reporting and
analysis, leveraging the IBM-Cognos Risk Cockpit, a risk management reporting
and analysis solution that combines the power of the IBM Banking Data
Warehouse with Cognos 8 Business Intelligence

    --  Optimized support for IBM System p and System x servers running IBM
Information Server and DB2 Datawarehouse software

    --  Full integration with System z mainframes to extend core banking

    Available immediately, the Risk Adjusted Profitability Blueprint is the
latest in a series of profitability planning solutions launched by Cognos,
including Blueprints for branch performance, corporate and retail banking
customer segment performance, and insurance product profitability. For more
information, visit

    The Blueprint also represents yet another collaborative offering between
Cognos and IBM. In March 2006, the two companies announced a global strategic
alliance to help customers integrate their business processes across the
enterprise and gain greater insight into business performance. The alliance
agreement included joint development, marketing, and sales of SOA-based
solutions to help customers optimize their analytics capabilities leveraging
industry-specific best practices. For more information, please see

    "Banks require core banking systems that are integrated, open, flexible,
scalable and secure," said June Yee Felix, general manager, banking solutions
and strategy, IBM. "The integration of IBM's Banking Data Warehouse with
Cognos 8 Planning and BI will help customers achieve a comprehensive,
integrated view of their core banking business in order to drive increased
profits and shareholder value. Together with Cognos, we have delivered a
solution that can break down the traditional silos between risk and finance
reporting to drive more value from existing information assets."

    "IBM and Cognos share a common vision for providing cost-effective
solutions that enable banks to identify, report on and analyze the costs of
trade, performance, risk management, compliance and profitability, among
others," said Francis McKeon, financial services industry director, Cognos.
"Through this joint offering, banks will finally be able to synchronize
profitability plans with relevant risk scenarios, minimizing discrepancies
between projected and actual financial results. This new Blueprint offers a
significant head-start in helping banks boost profitability with a complete
understanding of the credit and operational risks at play."

    NOTE TO EDITORS: Cognos and IBM will be showcasing the new Cognos-IBM
Risk Adjusted Profitability Blueprint at the Gartner Financial Services
Technology Summit, Booth K, Westside Ballroom, Marriott Marquis Hotel, New
York City, August 27-29, 2007.


    Cognos offers a full suite of Performance Blueprints to address planning
and performance management process areas that directly impact an
organization's ability to create business value. Both functional and
industry-specific process areas can now be automated, streamlined and
transformed to help organizations quickly create more business value.
Developed by the Cognos Innovation Center for Performance Management, the
Cognos Performance Blueprints are a key component within the Cognos
Performance Management System, which combines technology, best practices,
analytical applications and solutions, and a broad network of partners into a
single performance management solution. For further information on the Cognos
Performance Blueprints see


    Cognos, the world leader in business intelligence and performance
management solutions, provides world-class enterprise planning and BI software
and services to help companies plan, understand and manage financial and
operational performance.

    Cognos brings together technology, analytical applications, best
practices, and a broad network of partners to give customers a complete
performance system. The Cognos performance system is an open and adaptive
solution that leverages an organization's ERP, packaged applications, and
database investments. It gives customers the ability to answer the questions
-- How are we doing? Why are we on or off track? What should we do about it? -
and enables them to understand and monitor current performance while planning
future business strategies.

    Cognos serves more than 23,000 customers in more than 135 countries, and
its top 100 enterprise customers consistently outperform market indexes.
Cognos performance management solutions and services are also available from
more than 3,000 worldwide partners and resellers. For more information, visit
the Cognos Web site at


    For more information about IBM, visit

    Cognos and the Cognos logo are trademarks or registered trademarks of
Cognos Incorporated in the United States and/or other countries. All other
names are trademarks or registered trademarks of their respective companies.
Note to Editors: Copies of previous Cognos press releases and Corporate and
product information are available on the Cognos Web site at

For further information:

For further information: Media Contacts: Cognos David DeRosa,
613-738-1338 ext. 3317 or IBM Sean Tetpon,

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