As I have said before, ITE are into "risk management" software applications whereas Basel II is about "risk measurement" of various balance sheet (both off and on) exposures vis-a-vis capital requirements.
For example, within Razor the end-user defines what risk values to be used int he calculation of VaR. Each end-user may apply a different risk parameter according to their own assessment of risk within the instrument. Even then, it is up to management to define, for their internal purposes, how to manage that risk (internal controls) and how much EAR they wish to "punt". Do they wish to place "at risk" 20% of the past 6 months trading revenues, 50%, etc etc.?
ITE
i.t.& e limited
