Financial Services Industry Solution -

Risk Management
Liquidity Risk

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Liquidity Risk - The Definition

“Liquidity risk is financial risk due to uncertain liquidity.

An institution might lose liquidity if its credit rating falls, it experiences

sudden unexpected cash outflows, or some other event causes
counterparties to avoid trading with or lending to the institution.

A firm is also exposed to liquidity risk if markets on which it depends are

subject to loss of liquidity.”

(http://en.wikipedia.org/wiki/Liquidity_risk)

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Liquidity Risk - Business Challenge

● We need the ablility to run Liquidity Risk Algorithms on our Investment

Portfolios at many different intervals

○ Intra Day; End of Day; Weekly; Monthly; Quarterly; Annual

● In support of
○ maximizing investment opportunities
○ satisfying regulatory capital reserve requirements

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Liquidity Risk Calculations Demo Setup

We are actively ingesting real time market feeds into the architecture.

We will show:

● Intra Day Liquidity Risk Algorithms executing In Memory.

● Batch Liquidity Risk Algorithms executing in the Data Lake.
● Interactive SQL Queries showing Liquidity Risk Algorithm output.

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Overall Liquidity Risk Workflow
(2.) Data Transformations take place in HDP. Data
flows back and forth between the Red Hat JBoss Data
Grid In Memory Compute Tier and HDP.
(1.) The Red Hat JBoss Data Grid
and Hortonworks Data Platform
(HDP) are primed with Real Time (3.) In-Memory calculations take
and Batch Loads place within Red Hat JBoss Data
Grid. Results are routed to HDP for
Red Hat HDP future Interactive and Batch job
JBoss flows.
Data Grid

(4.) Interactive SQL Queries and

New Markets Data & Batch Job Execution take place
Portfolio Data &
within HDP.

Reference Data

Optional Flow of Output

Data to RDBMS systems

Business RDBMS
Users

(5.) Business Users leverage BI

Tools to Query Data Interactively in
HDP and / or an RDBMS

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 Liquidity Risk: High Level Topology

Red Hat JBoss BRMs Applications Analytics Application Tier

(Workflow)

Red Hat JBoss

Data Virtualization
(ODBC, JDBC) Data Tiers

Red Hat JBoss Data Grid

(In-Memory Compute)
Data Ingestion

Event Stream Red Hat JBoss Fuse Hortonworks Data Platform (HDP)
(ESB)
and
Batch Loads Red Hat JBoss BPMS RDBMS

& Integration
(CEP)

Governance

Operations
Data Access

Security
MPP

Data Management
EDW

(Infinite Scale Storage and Compute)

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 Liquidity Risk: Data Flow and Architecture
Red Hat JBoss BPMs Applications Analytics

Red Hat JBoss

Input Feed Data Virtualization

Write Once Read Many

Write Many Read Many
Red Hat JBoss Fuse In Memory Batch
(ESB) HDP

Red Hat JBoss BRMS

(CEP)
Output Feed

Red Hat JBoss Infinite Storage Interactive SQL

Data Grid Red Hat Storage or
HDFS Hive

RDBMS EDW MPP

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 DEMO

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Appendix: FOR BUILD TEAM DISCUSSION
SE LAPTOP (Red Hat SE’s - 32GB RAM; Hortonworks SEs - 16 GB RAM)

SQuirrel

Red Hat JBoss Data Virtualization Libre Office

Red Hat JBoss Data Grid

Hortonworks Sandbox - HDP2.1
● HiveServer2

MySQL
PHASE 1 RDBMS
BUILDOUT

Note: Phase 2 (and for Fraud Solution) - Can add BI Partner and Red Hat JBoss BPMs, Red Hat JBoss Fuse

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