PillarOne: Open-Source Framework for Risk Management Uses UltraLightClient and Grails
Over the last two days I attended the PillarOne Conference in Brussels. (PillarOne Conference? Never heard before? That’s probably because this is the first time this conference has taken place.)
The main focus of the conference was not about Web applications or Rich Internet Applications; it was about risk management in the financial sector and how open-source software can assist in averting financial collapse of the kind we’re currently facing.
Over one year ago Munich Re (one of the world’s largest re-insurers) initiated the development of an open-source business application suite entitled PillarOne. PillarOne seeks to address every aspect of reserving and risk analyses of insurance companies. Open-source has particular relevance to this business: Identifying and simulating risk cries out for openness and for a strong community that actively validates the applied models and methods. There is absolutely no doubt that conducting Risk Management behind closed doors and concealing models behind inappropriate tools like Excel has contributed to the current financial crisis.
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| Intuitive Collaboration’s Markus Stricker points out the direction of future risk management tools |
Risk management tools like this also have special requirements which are perfectly met by Rich Internet Application technology like UltraLightClient. Firstly, the complex models and simulations need highly interactive and responsive user interfaces designed for power users. Secondly, truly capable risk management tools must be enterprise solutions with all features these solutions normally have (central database, logging, historization, multi-user synchronization etc.). On the other hand, risk managers are used to having their tools on their laptops being fully functional even if they are off-line. Intuitive Collaboration – the company behind PillarOne – has chosen Grails and UltraLightClient because they meet both these requirements. UltraLightClient is a web-based user interface technology that in conjunction with Grails enables the cost-effective implementation of web applications with the most sophisticated user interfaces that are vital for handling the complex domain of risk management and simulation. Moreover, an application can be deployed as on an enterprise server or as standalone tool on a risk-manager’s laptop without changing a single line of code in the application.
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| Canoo’s Dierk König and SAP’s Christos Lemonidis demonstrating the SAP integration of ULC and Grails based PillaOne |
That PillarOne is a milestone for risk management tools is underlined by the fact that SAP has chosen this platform to offer Solvency II compliant risk management to its insurance customers. Just in time for the conference, the UltraLightClient-based PillarOne was successfully integrated into SAP and shown at the conference as an online demo to a captivated audience.
The conference was attended by a large number of risk managers and regulators, one of whom (a speaker) was bold and self-effacing enough to describe the current crisis as “collective failure of a whole profession”. Whatever the full spectrum of reasons behind this collective failure is, the potential of an open-source tool such as PillarOne is to provide the system with a degree of transparency and robustness that would have been unthinkable a few years ago. This has got to be a good thing for all citizens, not just risk managers!
