Launch of ComplianceASSESSOR

PRESS RELEASE

21 November 2012

Lombard Risk Management plc

("Lombard Risk" or "The Company")

Launch of ComplianceASSESSORTM - a powerful compliance and audit application

David Wilford appointed as Director of Compliance Products

Lombard Risk Management plc (LSE: LRM) a leading provider of integrated collateral management and liquidity, regulatory and MIS reporting solutions for the financial services industry, is pleased to announce the launch of ComplianceASSESSORTM - a powerful compliance and audit application designed to enable firms to determine, achieve and maintain compliance with all applicable laws and regulations irrespective of jurisdiction.

As a consequence of the financial crisis firms, more than ever, are faced with a plethora of regulations as governments seek to regulate as a means of protecting individual economies. As a result, a considerable amount of management time is spent in trying to keep up with the pace of regulatory change and addressing regulatory demands, whilst having less and less certainty about the level of enterprise or departmental compliance. Regulatory risk, being the risk of non-compliance and the repercussions that may follow, is now a major challenge and of serious concern for institutions.

In conjunction with the launch of ComplianceASSESSORTM, Lombard Risk is delighted to announce the appointment of David Wilford as Director of Compliance Products. David has over 35 years' experience, primarily in the areas of risk management and regulation, and will head up the dedicated ComplianceASSESSORTM team as its product director. Over the last 10 years David has been involved in the interpretation and implementation of the Basel II/III Accord as reflected in the EU CRD and subsequently the FSA Prudential Sourcebooks. He has also been advising banks on the adequacy of their risk governance frameworks to address these and other regulatory requirements and implementation issues.

John Wisbey, CEO, Lombard Risk commented: "Our clients look to us for solutions to all their regulatory needs and an increasingly important part of that is to ensure that their firm as a whole is meeting, and/or working towards meeting, all aspects of compliance. ComplianceASSESSORTM has been designed to show senior management how a firm complies and continues to comply with regulations. It addresses the new approach to supervision by providing a means of assessing the state of compliance with all applicable regulations at business unit and regulation level - irrespective of jurisdiction - and addressing deficiencies through appropriate action plans.

More importantly, dashboards and reports enable senior management to identify deficiencies in compliance anywhere within their organisation and take appropriate action, a valuable tool given the regulators' intention to make executives collectively and individually responsible for non-compliance."

David Wilford added: "With governments seeking to impose further regulations as a means of stabilising and protecting economies, and the regulators taking a more intrusive approach to supervision, it is clear that many compliance and audit functions will come under enormous pressure, possibly to breaking point, without investment in resources and appropriate applications."

For more information on ComplianceASSESSORTM, visit www.lombardrisk.com.

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About Lombard Risk - www.lombardrisk.com

Lombard Risk is a leading provider of integrated collateral management and liquidity, regulatory and MIS reporting solutions - enabling firms in the financial services industry to significantly improve their approach to managing the risk in their businesses.

Founded in 1989 and headquartered in London, Lombard Risk has offices in New York and New Jersey in the US; Hong Kong, Mumbai, Shanghai, Singapore and Tokyo in Asia Pacific, and service centres in Atlanta, Cape Town, Luxembourg and Miami.

Our clients include banking businesses - over 30 of the world's "Top 50" financial institutions - almost half of the banks operating in the UK, as well as investment firms, asset managers, hedge funds, fund administrators, insurance firms and large corporations worldwide.

Managing collateralised trading | Enabling regulatory complianceThe Lombard Risk solution suite is developed and supported by an extensive team of risk, regulatory and financial experts and includes:

ComplianceASSESSORTM - addressing regulatory risk. Part of the Lombard Risk regulatory compliance and risk management suite of solutions - ComplianceASSESSORTM is designed to address the compliance requirements of simple and complex, domestic and cross border organisations. Accommodating an unlimited library of multi-jurisdictional prudential and non-prudential regulations, ComplianceASSESSORTM enables a firm to map regulations to internal policies & procedures, undertake assessments, action plans and reviews, and independently approve the assessments and reviews thereby reinforcing the 'four-eyes' approach and lending itself to the three lines of defense where appropriate. In doing so, firms can monitor and measure regulatory risk and create a compliance environment focused on achieving maximum compliance - from business unit upwards, across an entire corporation with maximum efficiency and minimum redundancy.

Regulatory elements of the library may be further populated with company-specific corporate governance regulations, staff training material and even regulatory consultation and discussion papers - detail with which to create a firm-wide risk compliance monitoring and maintenance system and minimise regulatory risk.

ComplianceASSESSORTM identifies and highlights all new and amended regulations for review and possible assessment to ensure that such regulations are not overlooked. Similarly, changes to internal policies & procedures are identified for review to ensure that any amendments do not result in an inadvertent breach of a regulation.

Advanced product design and screen technology permits management and external auditors to view all data appertaining to regulatory compliance, together with any and all regulations, policies & procedures and audit papers, from a single source. … even on an iPad!

COLLINE® - collateral management and clearing. State-of-the-art, web-based solution designed by experienced business practitioners for end-to-end, cross-product (OTC derivatives, repo and sec lending) collateral management. COLLINE provides a consolidated solution for mitigating credit risk while satisfying the growing demand for multiple/global entities, cross-product margining, clearing, optimisation, master netting, MIS reporting, dispute management and electronic messaging.

REFORM™ - event-driven workflow, used for real-time regulatory transaction reporting (e.g. Dodd-Frank and EMIR). Will interface seamlessly with an organisation's banking infrastructure and external systems, such as clearing houses and messaging systems.

REPORTER - global regulatory reporting. Fully scalable regulatory compliance solution for branch or head office, with global coverage. Fully supports key supervisory computations and integrates with LISA for stress testing and REPORTER MIS for ad-hoc and management reporting. Straightforward and streamlined integration to multiple source systems; built in reconciliation and trends and variance reports.

REG-Reporter® - U.S. and Canadian regulatory reporting.  A regulatory solution addressing financial reporting requirements by automating compliance with the mandated reports to all US regulatory agencies and the Office for the Superintendent of Financial Institutions Canada (OSFI). 

LISA® - scenario analysis and stress testing. LISA satisfies the latest liquidity risk management requirements and supports growing regulatory demands for timely and reliable information.

REPORTER MIS - business and management reporting. A flexible and easy-to-use module for reporting across the Lombard Risk product range AND with external sources. Provides valuable BI by combining risk and regulatory information in reports or on-screen dashboards, enabling well-informed business decisions to be made with confidence.

The Lombard Risk software solution suite also includes OBERON® trade capture and valuation and FIRMAMENT®credit and equity valuation.