Dubai, 24 September, 2000: Frasin Operational Risk, a division of HSBC Insurance Brokers Ltd, and Euro Banking Solutions (ebs), a leading banking software provider, have formed an alliance to protect banks and financial institutions in the Middle East against operational risk.

Under the agreement, ebs will market and deliver SOFWINä , Frasin’s operational risk management solution, throughout the Middle East. Currently used in 12 countries, SOFWINä allows financial institutions to identify, quantify and manage operational risk exposure. This Windows-based application, featuring advanced reporting and risk analysis tools, allows internal audit, authorisation and security controls data to be systematically collected and consolidated.

Commenting on the alliance, Keith Blankey, Managing Director, ebs said: "Current indicators suggest that the Basel Committee on Banking Supervision will introduce capital adequacy charges for operational risk by the end of 2001. Now is the ideal time for banks in the Middle East to assess their current operational risk strategy to ensure that controls are consolidated or maximised where appropriate."

Philip Martin, Managing Director, Frasin Operational Risk, said: "We aim to establish SOFWINä as the first-choice operational risk management solution for the Middle Eastern banking community. Middle Eastern banks will have access to software that can greatly improve the control of operational risks at a time when it is most needed."

Mr. Martin, who is based in London, is speaking at the "e-bank 2000" conference in Dubai today, on the subject of Operating Risk – The Changing World.

Frasin Operational Risk is a division of HSBC Insurance Brokers Limited, which is an indirectly wholly-owned subsidiary of HSBC Holdings plc. With more than 6,000 offices in 80 countries and territories and assets of US$580 billion at 30 June 2000, the HSBC Group is one of the world’s largest banking and financial services organisations.