Business and finance informatics

Technological progress and its dominating influence on the economic performance of companies, regions, and countries play a key role in sustainable economic development. In order for companies and policymakers under the new framework
to be able to make sustainable decisions (in the sense of value-oriented administration and management) and simultaneously fulfill legislative requirements, dependable baseline data entailing profit and risk information is needed. This will be produced from the development and implementation of new mathematical finance models.

Deep Data Analysis and refined knowledge management can help to assess future risks posed by increasingly complex scenarios. Besides technological or IT-aided approaches in financial management, integrated profit and risk management based on empirical economic and financial methods and indicators is advantageous. Standardization and optimization of business and control processes in conjunction with IT infrastructure constitute the basis for integration of internal and external services.

The financial markets only have a few geographical
points of reference remaining. They continuously adapt
to current requirements and economic developments. Changes are recognized early and strong fluctuations can
be avoided through fast reactions. Clear representations make the complex connections and flows comprehensible and manageable. Opportunities for investing in innovative technologies and business ideas are systematically sought and evaluated. Collaborations for most of the players are indispensable in order for them to be able to concentrate on their core businesses and yet flexibly broaden their own portfolios.

Economic models and simulations can answer questions pertaining to distributive and fiscal effects of individual financial policy measures or bundles of services under the German tax revenue transfer system. Increasingly higher accuracy is being attained through the utilization of comprehensive empirical micro-simulation models and statistical parameters. Similarly, predictions about future education and labor market participation by the population can be made based on the expected demographic developments.

Bank IT ensures the smooth running of all processes thanks to the highest levels of security and availability. Flexible outsourcing and simple integration of external services in operations are feasible through standardized interfaces. Adherence to international standards and measures like Basel II, the Sarbanes-Oxley Act, EuroSOX, and IFRS increases transparency and additionally secures operations.

Under the Pension Product Information Office project (Produktinformationsstelle Altersvorsorge/PIA) funded by the German Federal Ministry of Finance, Fraunhofer is studying the risk-reward classes of pension products with the help of mathematical simulations and based on probability calculations. Various predictions for the legislated product information sheet on funded pension products depend upon this product and tariff-specific classification.