RMA and RiskBusiness Enter Agreement with Algorithmics to Develop a Joint External Loss Event/Key Risk Indicator Initiative

Phildelphia, PA - April 1, 2005 -

Algorithmics Incorporated, an international leader in enterprise RMA and RiskBusiness Enter Agreement with Algorithmics to Develop a Joint External Loss Event/Key Risk Indicator Initiative

The Risk Management Association and RiskBusiness have entered into an agreement with Algorithmics to develop a joint external loss event/key risk indicator initiative. Its objective is to define and specify key risk indicators (KRIs) for major operational risks throughout financial institutions.

RMA and RiskBusiness have already developed an industry risk map that identifies the high operational risk points in a typical bank. They recently completed an online KRI library, which identifies, defines, evaluates and catalogues some 1,500 indicators. 
Currently, RMA and RiskBusiness are working to deepen and broaden the library; and launch a benchmarking of KRIs. This is where Algorithmics comes in. In addition to consulting with the company's RMA staff, the Algo OpVantage research team will provide information about real-life operational risk scenarios that can be discussed in RMA's key risk indicator workshops.

"We welcome the Algo OpVantage team to this important industry initiative," said Charles Taylor, RMA's director of Operational Risk. "This well respected organization brings extensive consulting and operational risk experience to our benchmarking effort. Financial institutions need to determine how well KRIs work in tracking important risks so that they can more accurately determine their operational risks."

The initiative will be using actual scenarios from the Algo OpVantage FIRST (Financial Institutions Risk Scenario Trends) database. Designed to significantly enhance institution's analysis of external operational risk events and make truly informed risk-based decisions, FIRST utilizes a unique case study approach. The database contains approximately 5,000 detailed case studies and is unrivalled in its depth of analysis and coverage of the industry.

The Algo OpVantage research team is led by Penny Cagan, who has managed the FIRST database for over six years and has worked with many financial institutions to integrate the use of case studies into their operational risk management efforts.

"We are very pleased to be supporting the RMA in this valuable initiative," said Penny Cagan. "Our goal is to establish a very useful resource for RMA members that demonstrates the value of operational risk case studies."

About RMA:
Founded in 1914, the Risk Management Association-is a nonprofit, member-driven professional association that advances sound risk principles in the financial services industry. RMA promotes an enterprise-wide approach to risk management that focuses on credit, market and operational risk.

Headquartered in Philadelphia, Pennsylvania, RMA has 3,000 financial institution members and 16,000 risk management professional members in North America and overseas. Members meet regularly in RMA's chapters around the globe.

About RiskBusiness:
RiskBusiness International Limited is a consultancy specializing in operational risk management. It comprises senior financial industry risk management professionals who work with its clients to improve risk management in order to enable better risk-reward decision-making. RiskBusiness has established relationships with the leading players and regulators in operational risk and its senior consultants are well-published thought leaders and educators active in several leading industry fora.

About Algo OpVantage
Algo OpVantage allows financial institutions to respond to increased market volatility and address regulatory pressures and shareholder demands for more stringent corporate governance practices. With over 70 operational risk clients worldwide, Algorithmics leverages one of the largest and most experienced operational risk teams in the industry. Algo OpVantage is the first fully integrated end-to-end solution for the identification, collection, management and measurement of qualitative and quantitative operational risk.

About Algorithmics
Founded in 1989, Algorithmics is a recognized leader in enterprise risk management. Following its acquisition by the Fitch Group in January 2005, Algorithmics is the world's leading provider of enterprise risk management solutions and services that enable financial institutions to effectively understand and manage their financial risk. Algorithmics has over 200 clients, including more than 60 of the 100 largest financial institutions in the world. Algorithmics was recently recognized as the dominant enterprise risk solution provider in market, credit and operational risk in Risk Magazine's 2004 Technology Rankings.

About Fitch Group
Fitch Group is the parent company of Fitch Ratings, a leading global rating agency committed to providing the world's credit markets with accurate, timely and prospective credit opinions. Fitch Ratings is dual-headquartered in New York and London, operating offices and joint ventures in more than 50 locations and covering entities in more than 80 countries. Fitch Group is a wholly owned subsidiary of Fimalac, S.A., an international business support services group listed and headquartered in Paris, France.

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