FSLDM

Teradata FinancialServices Logical Data Model Release 09.00.00 For Financial Institutions and Insurance Companies Reference Guide Book 2 of 2 IMPORTANT CAREFULLY READ THE FOLLOWING NOTICE BEFORE PROCEEDING THE INFORMATION CONTAINED IN THIS DOCUMENT CONSTITUTES CONFIDENTIAL, TRADE SECRET INTELLECTUAL PROPERTY OF TERADATA CORPORATION (TERADATA). You may access or use this document and the information contained herein only to the extent that such access and/or use has been expressly authorized by Teradata through signed written agreement(s) between you and Teradata, and you have paid all applicable fees due to Teradata under such agreement(s). No permission or license rights will be implied. If you are not such a Teradata-authorized user then you are not permitted or licensed to use or access this document or the information contained herein unless and until you have the prior written consent of Teradata to do so and all fees due therefore have been paid to Teradata. 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To maintain the quality of our products and services, we would like your comments on the accuracy, clarity, organization, and value of this document. Please write to: Teradata Corporation Application Engineering 17095 Via del Campo San Diego, CA 92127-1711 U.S.A. Any comments or materials (collectively referred to as Feedback) sent to Teradata will be deemed nonconfidential. Teradata will have no obligation of any kind with respect to Feedback and will be free to use, reproduce, disclose, exhibit, display, transform, create derivative works of, and distribute the Feedback and derivative works thereof without limitation on a royalty-free basis. Further, Teradata will be free to use any ideas, concepts, know-how, or techniques contained in such Feedback for any purpose whatsoever, including developing, manufacturing, or marketing products or services incorporating Feedback. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved. Teradata Confidential and Trade Secret Revision Record Release History Release Date Sections Description of Change 2.1 May, 1999 All Original Customer Release; Retail Banking 3.0 November, 1999 All Added P&C/Life Insurance and Multicurrency Capabilities 4.0 November, 2000 All Added Clickstream, Privacy, and Insurance enhancements 5.0 November, 2001 All Added Commercial Banking, Brokerage and Credit Cards enhancements Page iv Added Revision History table All Added Commercial Banking, Brokerage and Credit Cards enhancements All Changes to reflect new entities All Combined all extensions into one document All Separated the Appendices into another document All Added Financial Management and Health Insurance functions All Entity/Attribute naming standard changes All Miscellaneous enhancements All Changes to reflect new entities All Added changes driven by Basel II that affect Party, Agreement, and Party Asset All Added Finance, Privacy, Model Score and Campaign enhancements All Miscellaneous enhancements Banking Changes to Risk Management including Market Risk, Credit Risk, Risk Mitigation, Basel II Pillar 3 reporting and Basel II Parameters; Affects Agreement and Product subject areas. 6.0 7.0 8.0 November, 2002 May, 2004 June 2006 Investment Foundation Financial Management additions to support subledger information for Accounts Payable, Accounts Receivable, Procurement, Fixed Assets, and Project Accounting; Affects the Finance subject area Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret iii Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 9.0 December 2007 Foundation Campaign subject area – Opportunity, Proposal, Cell and Step; Event subject area – Interactive Voice Recognition Navigation Unstructured Text Legal Action iv Banking Anti Money Laundering, Credit Card Balance Segment and Access Device Insurance Enterprise Risk Management; Salvage and Subrogation; Behavior Based Pricing; Coverage Level Premium Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Contents Revision History................................................................................................................iii Revision History....................................................................................................................................iii List of Tables .................................................................................................................... xv List of Figures ................................................................................................................... xi Chapter 5 .........................................................................................................................5-1 Banking Extension ..................................................................................................................... 5-1 About this Chapter...............................................................................................................................5-1 What is the Teradata Financial Services Logical Data Model Banking Extension?............................5-3 Introduction...................................................................................................................................5-3 Fit with other Teradata FS-LDM Extensions.......................................................................................5-5 Chapter 6 .........................................................................................................................6-1 Banking Extension – Business Value ........................................................................................ 6-1 About this Chapter...............................................................................................................................6-1 Business Context .................................................................................................................................6-3 Business Questions..............................................................................................................................6-5 Chapter 7 .........................................................................................................................7-1 Banking Extension – High Level Data Models........................................................................ 7-1 About this Chapter...............................................................................................................................7-1 Model Levels.......................................................................................................................................7-3 Subject Area Data Model.....................................................................................................................7-5 Conceptual Level Data Model.............................................................................................................7-7 Party and Party Asset ....................................................................................................................7-9 Product ........................................................................................................................................7-10 Agreement................................................................................................................................... 7-11 Event ...........................................................................................................................................7-14 Campaign ....................................................................................................................................7-15 Chapter 8 .........................................................................................................................8-1 Banking Extension – Detailed Data Model Description ......................................................... 8-1 About this Chapter...............................................................................................................................8-1 Party Subject Area ...............................................................................................................................8-3 Party Type .....................................................................................................................................8-4 Business Party...............................................................................................................................8-6 Score and Rating .........................................................................................................................8-10 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret v Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 Party Asset Subject Area ...................................................................................................................8-13 Party Asset Role..........................................................................................................................8-14 Asset Inspection ..........................................................................................................................8-16 Product Subject Area .........................................................................................................................8-17 Product Overview .......................................................................................................................8-18 Basel I Risk Weight.....................................................................................................................8-21 Feature ........................................................................................................................................8-23 Feature Subtype ..........................................................................................................................8-26 Feature/Feature ...........................................................................................................................8-29 Party Feature ...............................................................................................................................8-30 Agreement Subject Area....................................................................................................................8-31 Agreement - Agreement Subtype................................................................................................8-32 Agreement Overview and Summary...........................................................................................8-39 Account Groups ..........................................................................................................................8-43 Asset............................................................................................................................................8-46 Automatic Payments ...................................................................................................................8-49 Card-Access Device....................................................................................................................8-51 Collateral and Risk Mitigation....................................................................................................8-56 Conceptual Level Overview - Risk Mitigation ...........................................................................8-64 Collateral Item ............................................................................................................................8-67 Risk Mitigant Agreement............................................................................................................8-69 Seniority......................................................................................................................................8-78 Collateral Value and Haircuts .....................................................................................................8-80 Haircuts and Adjustments ...........................................................................................................8-85 Loan and Credit Agreement ........................................................................................................8-86 Deposit and Cash Management...................................................................................................8-89 Factoring, Purchased Receivable Collection ..............................................................................8-91 Foreign Exchange .......................................................................................................................8-97 Interest Based Agreement .........................................................................................................8-102 Leasing......................................................................................................................................8-104 Letter of Credit and Letter of Guarantee...................................................................................8-106 Other Financial Services ........................................................................................................... 8-113 Party Roles................................................................................................................................ 8-115 Product and Feature .................................................................................................................. 8-117 Projected Cash Flow .................................................................................................................8-123 Provision ...................................................................................................................................8-124 Score and Rating .......................................................................................................................8-127 Securitization Agreement..........................................................................................................8-129 Event Subject Area ..........................................................................................................................8-135 Event Overview ........................................................................................................................8-136 Check Event..............................................................................................................................8-141 Card-Authorization-Purchase-Settlement .................................................................................8-143 Finance Subject Area.......................................................................................................................8-147 Asset Account ...........................................................................................................................8-148 Expense Account.......................................................................................................................8-149 Liability Account ......................................................................................................................8-150 Revenue Account ......................................................................................................................8-151 Cross Subject Area ..........................................................................................................................8-153 Background...............................................................................................................................8-153 vi Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Contents Models and Risk Grades ...........................................................................................................8-161 Risk Management............................................................................................................................8-165 Basel II Credit Risk Management.............................................................................................8-166 Basel Approach and Asset Class ...............................................................................................8-171 Risk Agreement Relationships ..................................................................................................8-175 Credit Risk Pools ......................................................................................................................8-179 Credit Risk Metrics and Scenarios............................................................................................8-181 Basel Pillar 3 Reporting ............................................................................................................8-185 Basel II Parameters ...................................................................................................................8-189 Basel II Operational Risk..........................................................................................................8-197 Market Risk...............................................................................................................................8-203 Standardized Method - Interest Rate Risk ................................................................................8-204 Standardized Method - Equity Risk ..........................................................................................8-209 Standardized Method - Foreign Exchange Risk .......................................................................8-213 Standardized Method - Commodities Risk ...............................................................................8-217 Standardized Method - Options ................................................................................................8-219 Standardized Method - Time Band ...........................................................................................8-223 Internal Models - Risk Factors (Sensitivity) .............................................................................8-225 Internal Models - Market Risk Factors .....................................................................................8-227 Internal Models - Stress Test.....................................................................................................8-229 Internal Models - Value at Risk.................................................................................................8-231 Market Risk Parameter .............................................................................................................8-234 Chapter 9 .........................................................................................................................9-1 Insurance Extension .................................................................................................................. 9-1 About this Chapter...............................................................................................................................9-1 What is the Teradata Financial Services Logical Data Model Insurance Extension?..........................9-3 Introduction...................................................................................................................................9-3 Fit with other Teradata FS-LDM Extensions.......................................................................................9-5 Chapter 10 .....................................................................................................................10-1 Insurance Extension – Business Value ................................................................................... 10-1 About this Chapter.............................................................................................................................10-1 Business Context ...............................................................................................................................10-3 Business Objective ............................................................................................................................10-5 Business Scope of FS-LDM Insurance Extension.............................................................................10-7 Business Questions............................................................................................................................10-9 General Business Questions......................................................................................................10-10 Life Insurance Business Questions ........................................................................................... 10-11 Property and Casualty Insurance Business Questions ..............................................................10-14 Life Insurance Scenarios .................................................................................................................10-17 Chapter 11 ..................................................................................................................... 11-1 Insurance Extension – High Level Data Models ................................................................... 11-1 About this Chapter............................................................................................................................. 11-1 Model Levels..................................................................................................................................... 11-3 Subject Area Model ........................................................................................................................... 11-5 Subject Area Model Diagram Description .................................................................................. 11-5 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret vii Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 Conceptual Level Data Model........................................................................................................... 11-7 Party ............................................................................................................................................ 11-9 Party Asset ................................................................................................................................ 11-10 Product ...................................................................................................................................... 11-11 Agreement................................................................................................................................. 11-12 Events........................................................................................................................................ 11-14 Claim and Event........................................................................................................................ 11-15 Chapter 12 .....................................................................................................................12-1 Insurance Extension – Detailed Data Model Description .................................................... 12-1 About this Chapter.............................................................................................................................12-1 Party Subject Area .............................................................................................................................12-3 Party Overview ...........................................................................................................................12-4 Relationship and History ............................................................................................................12-5 Agent...........................................................................................................................................12-9 Party Driving History................................................................................................................12-13 Party Provider ...........................................................................................................................12-14 Insured Party - Provider ............................................................................................................12-15 Party Risk..................................................................................................................................12-16 Party Asset Subject Area .................................................................................................................12-17 Party Assets...............................................................................................................................12-18 Party Asset Risk ........................................................................................................................12-23 Party Asset Insurable Interest....................................................................................................12-24 Party Asset Salvage...................................................................................................................12-26 Product Subject Area .......................................................................................................................12-29 Product Overview .....................................................................................................................12-30 Features.....................................................................................................................................12-32 Feature Subtyping .....................................................................................................................12-34 Feature Relations ......................................................................................................................12-36 Agreement Subject Area..................................................................................................................12-37 Agreement Overview ................................................................................................................12-38 Underwriting .............................................................................................................................12-43 Insurance Agreement Type........................................................................................................12-44 Status and History .....................................................................................................................12-46 Metric and Premium .................................................................................................................12-48 Reinsurance...............................................................................................................................12-53 Agreement Risk ........................................................................................................................12-57 Product and Feature ..................................................................................................................12-58 Agreement Application, Quotation, and Party ..........................................................................12-65 Agreement, Application, Quotation, and Asset.........................................................................12-69 Asset and Feature......................................................................................................................12-73 Party and Feature ......................................................................................................................12-77 External Insurance Policy .........................................................................................................12-81 Claim Subject Area..........................................................................................................................12-85 Claim Service Status History ....................................................................................................12-89 Claim and Feature .....................................................................................................................12-93 Claim Amount and Claim Related ............................................................................................12-97 Claim Authorization................................................................................................................12-101 Claim and Assets.....................................................................................................................12-103 viii Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Contents Claim and Party ......................................................................................................................12-105 Claim Cost Recovery ..............................................................................................................12-107 Claim Score.............................................................................................................................12-109 Claim Subrogation .................................................................................................................. 12-110 Claim Text............................................................................................................................... 12-115 Event Subject Area ........................................................................................................................ 12-116 Event Overview ...................................................................................................................... 12-117 Event and Claim...................................................................................................................... 12-119 Claim and Adjudication ..........................................................................................................12-123 Insurance Payment ..................................................................................................................12-127 Commission ............................................................................................................................12-131 Finance Subject Area.....................................................................................................................12-135 Asset Account .........................................................................................................................12-136 Expense Account.....................................................................................................................12-139 Liability Account ....................................................................................................................12-143 Revenue Account ....................................................................................................................12-147 Insurance Function View ...............................................................................................................12-149 Insurance - Function View - Behavior Based Pricing .............................................................12-149 Chapter 13 .....................................................................................................................13-1 Investment Extension .............................................................................................................. 13-1 About this Chapter.............................................................................................................................13-1 What is the Teradata Financial Services Logical Data Model Investment Extension? .....................13-3 Introduction.................................................................................................................................13-3 Fit with other Teradata FS-LDM Extensions.....................................................................................13-5 Chapter 14 .....................................................................................................................14-1 Investment Extension – Business Value ................................................................................. 14-1 About this Chapter.............................................................................................................................14-1 Business Context ...............................................................................................................................14-3 Business Objective ............................................................................................................................14-5 Business Scope of FS-LDM Investment Extension ..........................................................................14-7 Business Questions............................................................................................................................14-9 Chapter 15 .....................................................................................................................15-1 Investment Extension – High Level Data Models ................................................................. 15-1 About this Chapter.............................................................................................................................15-1 Model Levels.....................................................................................................................................15-3 Subject Area Model ...........................................................................................................................15-5 Subject Area Model Diagram Description ..................................................................................15-5 Conceptual Level Data Model...........................................................................................................15-7 Party ............................................................................................................................................15-9 Product ......................................................................................................................................15-10 Agreement.................................................................................................................................15-12 Event .........................................................................................................................................15-14 Chapter 16 .....................................................................................................................16-1 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret ix Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 Investment Extension – Detailed Data Model Description .................................................. 16-1 About this Chapter.............................................................................................................................16-1 Party Subject Area .............................................................................................................................16-3 Investment Objective ..................................................................................................................16-3 Product Subject Area .........................................................................................................................16-5 Product Overview .......................................................................................................................16-6 Instrument Identification........................................................................................................... 16-11 Features.....................................................................................................................................16-12 Investment Product ...................................................................................................................16-15 Market Feeds.............................................................................................................................16-23 Party ..........................................................................................................................................16-25 Risk ...........................................................................................................................................16-27 Agreement Subject Area..................................................................................................................16-29 Agreement Overview ................................................................................................................16-30 Derivatives and Swaps..............................................................................................................16-35 Investment Agreement Type .....................................................................................................16-45 Investment Holding...................................................................................................................16-50 Party and Portfolio ....................................................................................................................16-52 Portfolio Details ........................................................................................................................16-54 Portfolio and Application..........................................................................................................16-56 Securities Financing..................................................................................................................16-58 Settlement Instructions..............................................................................................................16-60 Event Subject Area ..........................................................................................................................16-63 Investment Event Subtyping .....................................................................................................16-64 Event-Event Relationships........................................................................................................16-73 Financial Events........................................................................................................................16-75 Party and Geographical Area ....................................................................................................16-78 Settlement Instruction ...............................................................................................................16-82 x Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret List of Figures Figure 5-1 FS-LDM Extensions.................................................................................................................5-5 Figure 7-1 Data Model Levels ...................................................................................................................7-4 Figure 7-2 Subject Area Data Model .........................................................................................................7-5 Figure 7-3 Banking Conceptual Model......................................................................................................7-8 Figure 8-1 Banking - Party.Party Type......................................................................................................8-5 Figure 8-2 Banking - Party.Business Party ................................................................................................8-9 Figure 8-3 Banking - Party.Score and Rating ..........................................................................................8-11 Figure 8-4 Banking - Party Asset.Party Asset Role.................................................................................8-15 Figure 8-5 Banking - Party Asset.Asset Inspection .................................................................................8-16 Figure 8-6 Banking - Product.Overview..................................................................................................8-20 Figure 8-7 Banking - Product.Basel 1 Risk Weight.................................................................................8-22 Figure 8-8 Banking - Product.Feature......................................................................................................8-25 Figure 8-9 Banking - Product.Feature Subtype........................................................................................8-28 Figure 8-10 Banking - Product.Feature/Feature ......................................................................................8-29 Figure 8-11 Banking - Product.Party Feature ..........................................................................................8-30 Figure 8-12 Banking - Agreement.Agreement Subtype Detail................................................................8-37 Figure 8-13 Banking - Agreement.Overview and Summary ...................................................................8-42 Figure 8-14 Banking - Agreement.Account Groups ................................................................................8-45 Figure 8-15 Banking - Agreement.Asset .................................................................................................8-47 Figure 8-16 Banking - Agreement.Automatic Payments.........................................................................8-50 Figure 8-17 Banking - Agreement.Card-Access Device..........................................................................8-55 Figure 8-18 Banking - Agreement.Risk Mitigant Agreement - Exposure Agreement Relationships......8-57 Figure 8-19 Banking - Agreement.Loan, Collateral Agreement, and Collateral Item Overlaps .............8-60 Figure 8-20 Banking - Agreement.Collateral Overview..........................................................................8-65 Figure 8-21 Banking - Agreement.Collateral Item ..................................................................................8-68 Figure 8-22 Banking - Agreement.Risk Mitigant Agreement .................................................................8-71 Figure 8-23 Banking - Exposure Agreements Related to Risk Mitigant Agreements Mitigant Agreement Type...........................................................................................................................................8-72 Figure 8-24 Banking - Agreement.Risk Mitigant Agmt to Exposure Agmt............................................8-73 Figure 8-25 Banking - Risk Mitigant Agreement Related to Collateral Item ..........................................8-74 Figure 8-26 Banking - Agreement.Risk Mitigant Agmt to Collateral Item .............................................8-75 Figure 8-27 Banking - Agreement.Collateral Item to Exposure Agmt ....................................................8-77 Figure 8-28 Banking - Agreement.Collateral Seniority...........................................................................8-79 Figure 8-29 Banking - Agreement.Collateral Value and Haircut ............................................................8-83 Figure 8-30 Banking - Agreement.Haircuts and Adjustments.................................................................8-85 Figure 8-31 Banking - Agreement.Loan and Credit Agreement..............................................................8-88 Figure 8-32 Banking - Agreement.Deposit and Cash Management ........................................................8-90 Figure 8-33 Banking - Agreement.Factoring - Purchased Receivable.....................................................8-96 Figure 8-34 Banking - Agreement.Nostro and Vostro Accounts...........................................................8-100 Figure 8-35 Banking - Agreement.Foreign Exchange ...........................................................................8-101 Figure 8-36 Banking - Agreement.Interest Based Agreement...............................................................8-103 Figure 8-37 Banking - Agreement.Leasing............................................................................................8-105 Figure 8-38 Banking - Agreement.Letter of Credit and Letter of Guarantee ........................................8-111 Figure 8-39 Banking - Agreement.Other Financial Services.................................................................8-114 Figure 8-40 Banking - Agreement.Party Roles......................................................................................8-116 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret xi .........................8-207 Figure 8-69 Banking ...................Purchase ...................Credit Risk............8-235 Figure 9-1 FS-LDM Extensions....Provider.......Internal Models ............................Settlement ........................................................................8-151 Figure 8-54 Example of Credit Card Balance Segments and Conditions ............8-123 Figure 8-43 Banking ..........................................................11-8 Figure 12-1 Insurance ..........................................................................Expense Account ...............................................................8-159 Figure 8-57 Banking ............................................................................Commodity Risk.................Interest Rate Risk.............................................FM.....................Pools.....Party.......................................................................................................................8-224 Figure 8-74 Banking .................Overview..................................Agreement.............................................................Card .........................................................8-233 Figure 8-78 Banking .8-143 Figure 8-50 Banking ............................Liability Account ..............................00....................................................................................................................Risk.....................8-228 Figure 8-76 Banking ..................................Operational Risk................................Parameter .........Securitization ..........................................................Revenue Account..............................................Event......................Provider ......Driving History ...............Internal Models .Agreement.....................Metric and Scenario ......Party.................................FM.........................................................................................................................................................................Foreign Exchange Risk............Party......Operational Risk........8-221 Figure 8-73 Banking .................Parameter Tables...................................8-195 Figure 8-65 Banking ..........................8-148 Figure 8-51 Banking ...........11-6 Figure 11-3 Insurance Conceptual Data Model ...........................................................................Agreement Relationships .........Credit Risk........Market Risk..................Market Risk......12-7 Figure 12-3 Insurance ...Standardized Approach ...............FM..8-180 Figure 8-62 Banking ...................................8-128 Figure 8-45 Banking ............Time Band ................................................8-149 Figure 8-52 Banking ............................................8-218 Figure 8-72 Banking .................Agreement..............................10-7 Figure 11-1 Data Model Levels ......Credit Risk.10-5 Figure 10-3 FS-LDM Insurance Extension Business Scope.................Market Risk..........8-226 Figure 8-75 Banking ..............8-154 Figure 8-55 Relationship of One Feature to Another Feature for Balance Segments.8-133 Figure 8-46 Check Event Scenario Flow ..................8-197 Figure 8-66 Banking .....Agent............................Advanced Measurement Approach ........................8-157 Figure 8-56 Banking .............................Event...........................Relationship and History..................Basic Indicator...........Operational Risk......Market Risk.......................Basel Pillar 3 ..........Overview................................Product and Feature .....................................FM............................................Risk Factors .......Party..........................Sensitivity ......................................................................8-215 Figure 8-71 Banking ........................................................Stress Test ....................Value at Risk...............................12-4 Figure 12-2 Insurance ...8-163 Figure 8-58 Banking .............................................................Basel Approach and Asset Class.........8-150 Figure 8-53 Banking ............................................................................................8-140 Figure 8-48 Banking ......................Provisions ...........11-4 Figure 11-2 Subject Area Data Model .8-142 Figure 8-49 Banking ......Market Risk.....Market Risk........................................12-11 Figure 12-4 Insurance .........................................................................................Market Risk........................Internal Models ...............................Agreement..............Risk...................................................................Event....12-14 Figure 12-6 Insurance .............................Authorization ............................Models and Risk Grades................Market Risk................................................................12-15 xii Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret ..........................Option Risk.........Asset Account..Credit Risk...................................................8-199 Figure 8-67 Banking ................................................................................................8-230 Figure 8-77 Banking .....................................Cross Subject Area.........................Credit Card Balance Segment ............................................................................................Party..........Teradata Financial Services Logical Data Model Reference Guide Release 09.........................................Agreement.......................8-183 Figure 8-63 Banking ..........................................9-5 Figure 10-1 Business Context Model...............Party...............8-125 Figure 8-44 Banking ...............................................8-174 Figure 8-60 Banking ..Check ......8-187 Figure 8-64 Banking .........................................................8-173 Figure 8-59 Banking ...........Equity Risk ................8-211 Figure 8-70 Banking .........................................Risk........Cross Subject Area .................00 Figure 8-41 Banking ...................................................Insured Party .......Market Risk................................................Projected Cash Flow ....................Market Risk.12-13 Figure 12-5 Insurance ................8-121 Figure 8-42 Banking ........8-138 Figure 8-47 Banking .......10-4 Figure 10-2 Closed Loop Market Strategy ....8-177 Figure 8-61 Banking ..............................Score and Rating...............Market Risk..........Basel Approach .........8-201 Figure 8-68 Banking ............................. ...........Agreement..............................Claim and Feature.............12-67 Figure 12-25 Insurance ..Reinsurance.........Overview................External Insurance Policy .....................................Agreement...........12-151 Figure 13-1 FS-LDM Extensions...........................Product...........Agreement.............................................................Agreement.12-16 Figure 12-8 Insurance ................................Event...........Claim..12-102 Figure 12-34 Insurance ....12-75 Figure 12-27 Insurance .....................................................12-79 Figure 12-28 Insurance ............Claim................................................................................Investment Objective ........Product..................................................................................................................................Agreement................Agreement Risk ...............Agreement...............................12-106 Figure 12-36 Insurance ................Event.......................Party Asset....Claim...Party Asset Risk ..................Revenue Account.................Feature Relations...............................Status and History..Claim..............................................................................................Agreement..................Features .............................................................................Claim...........Product..........................................................Party...FM.........Party Assets...................12-33 Figure 12-14 Insurance .12-104 Figure 12-35 Insurance ..........................Event and Claim..................12-41 Figure 12-17 Insurance ...............Insurance Agreement Type..............................................................................Agreement.......12-43 Figure 12-18 Insurance ....Agreement..................................Party.....................................Subrogation....................Claim...Application..........................................16-14 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret xiii ............12-25 Figure 12-11 Insurance ........................................................Expense Account ...Commission .....................12-95 Figure 12-32 Insurance ..................................................................Asset Account........................................................Cost Recovery................Claim......................................................................................................Product.................................12-47 Figure 12-20 Insurance ...............................12-147 Figure 12-49 Insurance Function View .................................FM..Product.................................Agreement............Event.............................................12-109 Figure 12-38 Insurance ......Product...Insurance Payment ............Claim Overview.....................................................Agreement...Claim and Party ...........................................12-113 Figure 12-39 Insurance ......12-115 Figure 12-40 Insurance ................................12-118 Figure 12-41 Insurance ... and Party .................................Agreement.................................................Agreement.......Product and Feature ....................................12-145 Figure 12-48 Insurance ..12-31 Figure 12-13 Insurance .......Features....................................12-21 Figure 12-9 Insurance . Quotation and Asset .......................................................................................................12-121 Figure 12-42 Insurance .............12-87 Figure 12-30 Insurance ......................Claim Service Status History...........Text.........................................................15-8 Figure 16-1 Investment ...........................................15-4 Figure 15-2 Subject Area Model..................Claim...........................................................Feature Subtyping ...................................................Claim Authorization ............Overview ...........................................................................Claim..............Claim.....12-55 Figure 12-22 Insurance ........................................................12-27 Figure 12-12 Insurance ...........................................Liability Account ........................................Claim.........16-10 Figure 16-3 Investment .....12-133 Figure 12-45 Insurance .....................................................................................................................12-91 Figure 12-31 Insurance ...16-4 Figure 16-2 Investment ...........12-51 Figure 12-21 Insurance .........Claim and Adjudication ..Event..............13-5 Figure 15-1 Data Model Levels ............................................................................................................12-125 Figure 12-43 Insurance ......... Quotation...Overview ......................................12-45 Figure 12-19 Insurance ................Underwriting.................................................................................................Claim Amount and Claim Related.................................Behavior Based Pricing ........Insurable Interest........12-83 Figure 12-29 Insurance ...................12-99 Figure 12-33 Insurance ................................................Event..........................................................15-5 Figure 15-3 Investment Conceptual Data Model ....................Score ................................................Asset and Feature........12-129 Figure 12-44 Insurance ..................................Overview.............Party Asset..........12-108 Figure 12-37 Insurance ..........12-23 Figure 12-10 Insurance ............Party Asset...........................Product..........................................16-11 Figure 16-4 Investment ...............................Party and Feature ..Instrument Identification.....................................Party Asset.....................12-63 Figure 12-24 Insurance ........................................12-71 Figure 12-26 Insurance ......Claim and Assets ..............................FM....FM......................................12-36 Figure 12-16 Insurance ..........................................12-35 Figure 12-15 Insurance ...........................................................Metric and Premium ... Application......................Agreement...................12-57 Figure 12-23 Insurance ...........................................................................List of Figures Figure 12-7 Insurance ..Salvage ..............12-141 Figure 12-47 Insurance .........Party Risk.................12-137 Figure 12-46 Insurance ........ ....Derivatives and Swaps ......16-62 Figure 16-18 Investment ...............Agreement..............16-34 Figure 16-10 Investment ....................................Agreement.................16-28 Figure 16-9 Investment .....................................................Agreement...........16-83 xiv Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret ............16-24 Figure 16-7 Investment .....Overview ............................................16-59 Figure 16-17 Investment ..........................................................................16-43 Figure 16-11 Investment .Party and Portfolio.........16-81 Figure 16-22 Investment ...00.......Subtyping ..................Settlement Instruction ......................Portfolio and Application .............................................00 Figure 16-5 Investment .................................................Agreement.................................16-26 Figure 16-8 Investment .......................................Event.....................16-53 Figure 16-14 Investment ....Market Feeds...............................Event...Agreement.................................................................................Party .................Event-Event Relationships..................................Product........Agreement.Agreement............16-57 Figure 16-16 Investment ..Teradata Financial Services Logical Data Model Reference Guide Release 09.....................................................................................Product.Agreement....................................Portfolio Details...........................................................Event.........16-22 Figure 16-6 Investment ...................................................Securities Financing .......................Agreement.............16-51 Figure 16-13 Investment ......................Financial Events....Product..........Risk ...........Investment Product .............................................................16-74 Figure 16-20 Investment ..........................Event............................................................Event.....Party and Geographical Area .............................................Holding ................16-49 Figure 16-12 Investment ..16-55 Figure 16-15 Investment .....................Product...................................................16-71 Figure 16-19 Investment ....Investment Agreement Type .Settlement Instruction.....16-77 Figure 16-21 Investment ............ .....................................................8-145 Table 10-1 Business Problems Addressed by the CRMs for Life Insurance ..Foreign Exchange Swap Leg Example .........................12-61 Table 16-1 Investment .8-144 Table 8-6 Purchase Event Scenario Subtype Entity Interrelation ......................................8-107 Table 8-3 Check Event Scenario...............Agreement........................8-6 Table 8-2 Letter of Credit and Letter of Guarantee Entity Information............16-38 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret xv .......................................................................................... and Quotation ................................................................................................ Application.......................................................................................10-17 Table 12-1 Entities for Agreement.....8-139 Table 8-5 Purchase Event Scenario .........................................................................................8-137 Table 8-4 Check Event Scenario Subtype Entity Interrelation .....................................................................List of Tables Table 8-1 Financial Document Item Examples......... Teradata Financial Services Logical Data Model Reference Guide Release 09.00 This page intentionally left blank. xvi Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 5-1 .Chapter 5 Banking Extension About this Chapter This chapter describes the Banking Extension for the Teradata Financial Services LDM. The data model structures described in this chapter build upon entities described in the Foundation section and are specific to the banking function in an organization. 00. 5-2 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank .Teradata Financial Services Logical Data Model Reference Guide Release 09. Credit Card balance segments are described which can track different types of balances such as balance transfers.Chapter 5 – Banking Extension What is the Teradata Financial Services Logical Data Model Banking Extension? What is the Teradata Financial Services Logical Data Model Banking Extension? Introduction The Financial Services Logical Data Model (FS-LDM) Banking extension is a generic logical data model intended to serve as a working template for financial institutions that do banking or provide credit card services and want to implement a data warehouse. collection agreements. Agreements that are specific to the banking function are described and include loans. market risk. Collateral is shown as it relates to Agreements. and letters of credit/guarantee agreements. safe deposit box accounts. The roles that Parties have with an Agreement are described from a banking perspective. current accounts. swaps. Features are also described as they relate to Agreements and Products for banking. and overdraft excess history. The portion of collateral pledged for each collateral agreement is shown along with its associated value over time. and balance history. and derivatives are described in the Investment section. collateral agreements. scores. Limits. Credit history of a Loan Account is added. purchase cards. and Applications. Agreements that involve trading and investing in securities including foreign exchange. and ratings at the Agreement and Account Group levels are described for credit risk. Risk metrics. and any other kind of grouping. Collateral adjustments (haircuts) are described. Information about account groupings is added for securitization. deposits. It takes the FS-LDM Foundation and expands the following subject areas: • AGREEMENT Entities are added to handle standing orders. • CAMPAIGN Emphasis is placed on how this area is used to support Collection and Recovery Strategies and executions. loan review history. securitization tranches. purchased receivables (factoring). risk grades and risk metrics are tracked at an account group level. • CHANNEL Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 5-3 . Quotations. and operational risk. which includes credit limit history. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Information is also added about asset inspection assets over time. Other areas related to Basel II and risk management include pooling for retail and purchased receivable accounts.Teradata Financial Services Logical Data Model Reference Guide Release 09. • PARTY Emphasis is placed on how this area is used for Merchants as well as business customers. The Banking Extension also takes several of the FS-LDM Foundation areas and discusses how these areas can be used for specific banking aspects. • CROSS SUBJECT AREA The grading structure for risk management is shown and how it relates to other areas in the model. • EVENT – Types of events are expanded to include: ▪ Inter-bank and bank-only Events ▪ Check Events ▪ Bank of First Deposit Check Events ▪ Home Bank Check Events • FINANCIAL MANAGEMENT General Ledger account subtypes are added for banking specific accounting practices. risk mitigation. market risk. Examples are given to explain how to use some Foundation structures for banking. • PARTY ASSET There is information about roles that a Party can have with an Asset such as asset owner. and operational risk. Information is included about the history of the value of an asset over time and any adjustments to the value. collateral. or asset insurer (other than your institution). • 5-4 PRODUCT Several new entities are shown to assist with risk and profitability calculations. and securitization. asset lessee. Background on the Basel II Capital Accord and the areas in the model that could apply are described. especially with the Feature entity.00.00 The point of sale device and lock box is added as a type of channel. Data structures are shown for credit risk. The Investment extension includes information that involves securities whether it is your institution as the investor or your institution as a broker. The FS-LDM Foundation contains those entities that are common across all FS-LDM extensions. commercial banking. and credit card operations. The Banking extension includes retail banking. This section describes the Banking Extension. The Insurance Extension builds on the Foundation and contains entities that are specific to the insurance business. Figure 5-1 FS-LDM Extensions Foundation Insurance Extension Investment Extension Banking Extension Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 5-5 . This section describes the Banking extension and the parts of the Foundation that it builds upon. The Banking Extension builds on the Foundation and contains entities that are specific to the banking business. customers and their addresses are common to all extensions.Chapter 5 – Banking Extension Fit with other Teradata FS-LDM Extensions Fit with other Teradata FS-LDM Extensions Figure 5-1 shows how the Teradata FS-LDM Banking Extension relates to other FS-LDM extensions that Teradata provides. This figure shows the relationship between the FS-LDM Extensions. For example. which builds on the Foundation. All FS-LDM Extensions work together and share some common entities in the Foundation. The Foundation and Extensions in the FS-LDM is one integrated data model. 00.Teradata Financial Services Logical Data Model Reference Guide Release 09.00 This page intentionally left blank. 5-6 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Chapter 6 Banking Extension – Business Value About this Chapter This chapter describes the Business Value of the Banking Extension of the Teradata Financial Services LDM. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 6-1 . 00. 6-2 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank.Teradata Financial Services Logical Data Model Reference Guide Release 09. but also accommodates other parties of interest. and third party affiliates. merchants. including employees. risk management and financial management The data model revolves around the individual or commercial customer. to use. brokers. or to quit using products and services. Customer knowledge derives from detailed customer data and information. They must develop marketing programs that address customer needs with the right products at the right time and through the right distribution channels. That information helps to determine likely targets for marketing campaigns. It accommodates all legal and organization structures for the industry. the data can be used to generate information about propensity to purchase. such as: • • • • Fierce competition from traditional and nontraditional businesses Profitability and risk issues Rapid evolution of traditional distribution channels Better informed and more demanding customers These factors are forcing providers to take a holistic view of the individual customer. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 6-3 . Through statistical analysis. having identifiable characteristics that suggest they will open additional accounts Regulatory compliance. They focus on the following aspects: • • • • Customer retention to improve lifetime customer value and recovery of acquisition costs Customer acquisition to gain market share while reducing acquisition costs and only targeting potentially ‘high value’ customers Customer growth to increase purchases by identifying customers (across accounts).Chapter 6 – Banking Extension Business Value Business Context Business Context Today banks are facing growing business challenges. 00.Teradata Financial Services Logical Data Model Reference Guide Release 09.00 This page intentionally left blank. 6-4 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Chapter 6 – Banking Extension Business Value Business Questions Business Questions Once the relevant portions of the FS-LDM Foundation and Banking Extension are populated, businesses can answer many questions critical to their success and to the successful management of customer relations. This section identifies some major questions. The lists are intended to indicate the range and depth of information that can be obtained from the warehouse, but the lists are not exhaustive. Many other questions can be answered. These questions are divided into several categories: Customer Questions • • • • • • • • • • • • • Who are our most profitable customers? Who are our least profitable customers? How much business has been gained? What is the dispersion of business by product line? Which customers produce the most revenue? Who are our new customers by product line? Which prospective customers have a credit card account within the bank and have available credit associated with their account? Who owns the business? What is the customer’s ownership type and percentage of ownership of the business? Where are the prospective customers currently doing business? Where are their current loans? What types of collateral does a prospective customer have? What industry(s) is the prospective customer in? Which customers were assigned what risk rating? Channel Usage Questions • Which customers use what channel for which purpose and product? Sales Channel Questions • • • What are the characteristics of each sales channel? What products were sold by sales relationship managers? What products were sold by branch and regional district, etc.? Retention Questions • • What is the profitability of customers by length of relationship? What is the retention rate by product or product type? Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 6-5 Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 Cross Selling Questions • • Which customers are likely to purchase another product from us? Which prospective customers currently have an account (noncredit card) with the bank? Marketing Questions • • • • • • • • • • • • • • • • • • • • • • • How many responses were received per campaign? What are current balances from accounts approved during a particular solicitation? How many active accounts were obtained by campaign? Which customers have (X) product but do not have (Y)? Which segments based on SIC codes are growing? What is the customer’s growth as measured by Revenue/Networth? What is the customer’s growth, measured by business in bank loan amounts/deposits/fees/outstanding? Which customers have what products? What are margins or prices of products? Which salesperson has the best margins? Which business is getting the best margins? How many/what dollar amount are woman-owned business loans? How many/what dollar amount are minority-owned business loans? How many/what dollar amount are business loans in a particular census tract? What is the company location of these loans? What customer accounts were opened at the same time? What customer accounts were opened within a period of time? What is the average customer balance over a period of time? What is the customer account activity over time? What customer is the bank at risk of losing? In the existing customer pool, which customers are more likely to be approved for a loan? What is the average maturity of a loan by loan type? What are the trigger points that cause a loan to be paid off prior to maturity (e.g,. change in interest rates)? Who are the current signers for the business account? Fraud Questions • • • • 6-6 How many new cases are there of fraud, by fraud type, by location, by fraud dollar amounts? What are the types of transactions that occurred by fraud type? What was the frequency of fraud transactions by fraud type? What is the number of ATM uses by a customer account over a period of time? Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Chapter 6 – Banking Extension Business Value Business Questions • • What is the average deposit amount for an account for a period of time? Has it increased over past performance? What is the amount of individual deposits to the account (to find money laundering)? Account/Application Questions • • • • • • • • • • • • • What type of payment was made on an account (e.g., minimum > minimum, < minimum, full)? What are account balances by account type? What are account balances by balance type? What accounts have been securitized? What is the average Credit Limit for approvals? What is the average Application Credit Score for approvals and declines? What are the Number of Accounts in reward program, percent of approvals in rewards program at opening, number of existing accounts in rewards scheme, points given out, total rewards points waiting to be spent, percent of available points spent? What is the number of accounts in Collections? What is the number of promises made by collections strategy? What is the number of accounts where there was legal action? How many merchants are acquired? What is the revenue for all merchants each month? What is the profitability of specific merchant types? Account Analysis Questions • • • • • • What are the transactions by product for a customer account? What are the fees charged by transaction, by product for a customer account? What is the dollar amount of loans held by a customer? How many loans are held by a customer? What does the entire customer portfolio look like? Who is the relationship manager by customer account? Risk Management Questions • • • • • • How much capital should I be allocating for credit risk purposes? What is the probability of default for a given account? What is the loss given default for a given account? What is the exposure at default for a given account? What is the risk weighted asset value of all my assets? What is the exposure of my internal investments? Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 6-7 Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 This page intentionally left blank. 6-8 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Chapter 7 Banking Extension – High Level Data Models About this Chapter This chapter is a high-level data model representation of the Banking Extension to the Teradata Financial Services Logical Data Model. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 7-1 Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 This page intentionally left blank. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 7-2 Chapter 7 – Banking Extension High Level Data Models Model Levels Model Levels This section shows two high level data model views of the FS-LDM Banking Extension. These high level views are shown to provide an understanding of the types of things that are contained in the model without overwhelming with detail. The purpose of these high level views is to show the essence of the model and to simplify understanding. The two levels presented in this section are: • Subject Area Data Model • Conceptual Level Data Model The Subject Area data model shows major things of significance to the business. These concepts become the building blocks from which all other detail in the data model is based. It is at a very high level of abstraction. It sets the scope and semantics of the detailed data model. The Conceptual Level Data Model takes the Subject Area Data Model one step further into detail but is still at a conceptual level. The conceptual model also establishes semantics, philosophy, and general business rules used in the model. The Detailed Level Data Model is the lowest level of detail and is described in Chapter 8. The Detailed Level Model takes the Conceptual Level to the lowest level of detail – the attribute level. The detailed model shows subtyping and resolves many-to-many relationships into associative entities. To explain the Detailed Model we have divided it up into logical views where each view explains a business concept. An entity name in the Conceptual Model may be different from the entity name in the Detailed Model. This is because abstraction is required when going from one level to another level. The following figure shows the relationship between high and low level data models. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 7-3 Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 Figure 7-1 Data Model Levels SUBJECT AREA MODEL DETAILED LOGICAL VIEWS CONCEPTUAL MODEL 7-4 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret DETAILED MODEL Chapter 7 – Banking Extension High Level Data Models Subject Area Data Model Subject Area Data Model The following Subject Area model is an abstraction. It represents the major business concepts and building blocks that form the basis of the full Financial Services Data Model. The Subject Area model presents an overall map of major Subject areas and how they relate to each other. These are the same major subject areas that are described in the Foundation section and all are applicable to the banking business. The subject area data model in Figure 7-2 shows the 10 main subject areas. Figure 7-2 Subject Area Data Model Not al l rel ati onshi ps are PARTY ASSET Tangible or int angible it ems AGREEMENT A c ont rac t or deal bet ween part ies t hat is of int eres t . PARTY A n indiv idual, bus ines s or group of indiv iduals of int eres t t o t he f inanc ial ins t it ut ion. FINANCE The int ernal ac c ount ing of t he bus ines s . EVENT PRODUCT A ny mark etable or t radable produc t or s erv ic e inc luding t erms , c ondit ions and f eat ures . CHANNEL INTERNAL ORGANIZATION A P art y t hat is a unit of bus ines s . LOCATION A phy s ic al addres s , elec t ronic addres s , geographic or s pat ial area. Somet hing of int eres t t hat happened t hat may or may not inv olv e c ont ac t wit h t he c us t omer. The v ehic le by whic h a part y may interac t wit h t he f inanc ial ins t it ut ion. CAMPAIGN A c ommunic at ion plan t o deliv er a mes s age. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 7-5 Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 This page intentionally left blank. 7-6 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Chapter 7 – Banking Extension High Level Data Models Subject Area Data Model Conceptual Level Data Model This section describes the conceptual model for the Banking Extension of the FS-LDM. This Extension covers the retail banking, commercial banking, and credit card areas of the enterprise. It also covers some back office agreements by the bank for asset/liability and risk management purposes. This Conceptual Model extends the following FS-LDM Major Subject Areas: • PARTY • PARTY ASSET • PRODUCT • AGREEMENT • EVENT • CAMPAIGN At the Conceptual Model level, the following FS-LDM Major Subject Areas are not affected by the Banking Extension. At the detail level there are different structures for Finance and Channel for banking. • INTERNAL ORGANIZATION • LOCATION • FINANCE • CHANNEL This Conceptual Model shows modeling for the following subjects: • PARTYs of interest to the bank; types of PARTYs and relationships between PARTYs; their PARTY ASSETs and their COMPANY INFORMATION, if applicable • PRODUCTs offered by the bank and the FEATUREs describing these PRODUCTs • AGREEMENTs held by the bank; types of AGREEMENTs and relationships between AGREEMENTs • EVENTs that occur, such as transactions and queries • CAMPAIGN strategies that can lead to CONTACT EVENTs • Relationships between PARTYs, PRODUCTs, AGREEMENTs, PARTY ASSETs, EVENTs, and CAMPAIGN strategies An overview of the Conceptual Model is shown on the next page. Conceptual entities that are specific to banking are light gray (or green). In the text, all words in capital letters refer to conceptual entities. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 7-7 00 Figure 7-3 Banking Conceptual Model COLLECTION. RECOVERY RISK CATEGORY LOCATION BALANCE/RATE HISTORY FEATURE GROUP CREDIT HISTORY EXTERNAL STANDING ORDER PROJECTED CASH FLOW PARTY ASSET AGREEMENT RELATED ACCESS DEVICE PRODUCT RELATED AGREEMENT LIMIT FEATURE FINANCIAL INFORMATION AGREEMENT PRODUCT GROUP PARTY RELATED PRODUCT PARTY RISK METRIC PROJECTED AGREEMENT METRIC INTERNAL STANDING ORDER ACCOUNT GROUP/POOL BANK AGREEMENT CAMPAIGN OWNERSHIP EMPLOYMENT EVENT RISK MITIGANT AGREEMENT INDIVIDUAL ORGANIZATION EVENT STATUS HOUSEHOLD EXPOSURE AGREEMENT CHANNEL RETAIL BANK AGREEMENT CREDIT RATING ORGANIZATION TYPE INTERNAL ORGANIZATION BACK OFFICE AGREEMENT COMMERCIAL BANK AGREEMENT FINANCIAL ACCOUNT EVENT CONTACT EVENT AGREEMENT EVENT FINANCIAL EVENT COLLECTION EVENT OTHER FINANCIAL EVENT 7-8 PURCHASE ACCOUNT WITHDRAWAL DEPOSIT CHECK EVENT Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09. DEFAULT.00. A PARTY that is an obligor can have FINANCIAL INFORMATION that can be useful when assessing risk. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 7-9 . A PARTY may have a CREDIT RATING or credit score such as probability of default. and accounts receivable. The collateral’s value and adjustments to the value can change over time. A PARTY can have many roles with the PARTY ASSET such as own. such as real estate and vehicles. tax return. lease. Over time the value of PARTY ASSETs may change. a HOUSEHOLD. These assets can be used as collateral for a loan. A PARTY may also be assigned a risk grade which could be a numerical range. A counter PARTY may have an interest in PARTY ASSETs.Chapter 7 – Banking Extension High Level Data Models Conceptual Level Data Model Party and Party Asset A PARTY is an INDIVIDUAL. balance sheet. AA-. which may change over time. securities. An ORGANIZATION includes INTERNAL ORGANIZATIONs of any PARTY. Another example is a relationship between family members who may each have accounts at the bank. or use. legal entity has subsidiaries). inventory. Other PARTY ASSETs may include machinery. Examples of relationships include an OWNERSHIP relationship where one PARTY owns another PARTY (e. or an ORGANIZATION. PARTY RELATED shows relationships between PARTYs that are of importance to the bank. or any value from another grading method. rent.. Another relationship between parties is an employeremployee EMPLOYMENT relationship. income statement. OWNERSHIP contains details such as type of ownership and ownership percentage. etc. Detailed financial information may include cash flow. a grading – such as AAA. Party relationships can be used to understand total exposure by a party when determining risk.g. An example is a car rental discount. which belongs to the credit card FEATURE GROUP and to the nonbanking components FEATURE GROUP.00.Teradata Financial Services Logical Data Model Reference Guide Release 09. or theater tickets. This includes car rental discounts conditions. and theater tickets. etc. fee amounts. offer. or one PRODUCT may succeed another PRODUCT. A PRODUCT may belong to many PRODUCT GROUPs. A FEATURE may belong to many FEATURE GROUPs. and fee percentages. Examples are a PRODUCT GROUP for loans and a PRODUCT GROUP for students. PRODUCTs may compete with each other. such affiliates who offer rental car discounts. FEATUREs describe PRODUCTs. rules for earning and redeeming points for air miles. A FEATURE may be of a banking nature. A FEATURE may specify the rules for earning and redeeming points such as when credit cards are used with an affiliate. such as minimum balances requirements. PARTYs that are third party ORGANIZATIONs may be involved with FEATUREs of a nonbanking nature. 7-10 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . or theater tickets when used in conjunction with a (banking) PRODUCT. and a FEATURE GROUP for nonbanking components such as credit card point redemption rules for car rental discounts. PRODUCTs may complement each other. which belongs to the loan PRODUCT GROUP and to the student PRODUCT GROUP.00 Product PRODUCT contains all products and services that are marketed or traded by the bank or by their competitors. air miles. FEATUREs may be grouped into FEATURE GROUPs. air miles. terms lengths. Examples include a FEATURE GROUP for FEATUREs describing credit card PRODUCTs. PARTYs that are employees or departments of the bank may develop. and/or service PRODUCTs and FEATUREs. PRODUCT RELATED shows relationships between PRODUCTs that are of importance to the bank. PRODUCTs may be grouped into PRODUCT GROUPs. PRODUCTs may be packaged together and offered as a separate PRODUCT. Features may be dependent on a FEATURE GROUP such as a rate feature that is dependent on time and minimum balance amount features for Certificates of Deposits. An example is a student loan. An AGREEMENT that creates exposure to the bank has credit risk and market RISK METRICs associated with it such as loss given default and exposure at default. or between the bank and other businesses and financial institutions for asset/liability and risk management purposes as in BACK OFFICE AGREEMENT. such as one AGREEMENT providing security for another AGREEMENT. cleared balance. and safe deposit boxes. with organization and business customers as in a COMMERCIAL BANK AGREEMENT. and margin rate. current accounts. cost of funds rate. fee income. overriding standard FEATUREs. and exposure amount. life time value.. an AGREEMENT at any point in time is for a single PRODUCT. penalties. and/or may be different FEATUREs negotiated by the bank or the account holder. Examples include ledger balance. and between other financial institutions and the bank’s customers (e. An AGREEMENT may have a CREDIT RATING and credit scores that may change over time. Such a relationship may be for regular payments from one account to another. AGREEMENT metrics may also be projected such as PROJECTED CASH FLOW and other PROJECTED AGREEMENT METRICs such as loss given default. These can include deals between the bank and its customers (front office). AGREEMENTs may be with individual customers as in a RETAIL BANK AGREEMENT. such as standing orders and direct debits.Chapter 7 – Banking Extension High Level Data Models Conceptual Level Data Model Agreement AGREEMENT contains all deals and contracts of interest. An AGREEMET may have a BALANCE/RATE HISTORY which keeps track of many types of amounts and rates that an agreement can have. Examples of RETAIL BANK AGREEMENTs include deposits. Over time. an AGREEMENT may be for a succession of PRODUCTs. AGREEMENTs have limits such as the credit card balance limit or line of credit limit. Securities brokering and investment agreements are described in the Investment section. fees. Most of the time. Examples of banking FEATUREs can include interest rate. Complex agreements may involve many products at the same time. interest paid. collateral agreements. AGREEMENT RELATED contains all relationships between AGREEMENTs that are of importance to the bank. interest earned. and/or may be additional FEATUREs negotiated by the bank or the account holder. however. loans. and minimum balance. between the bank and other organizations that are many times other financial institutions (back office).g. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 7-11 . or may be for securing debts. customer interest rate. These may be standard FEATUREs describing the PRODUCT to which the AGREEMENT is linked. credit cards. An agreement may be an account with financial implications or a contract for performance. collateral agreements where the same asset is pledged to multiple agreements). An AGREEMENT may be described by many FEATUREs. DEFAULT. Examples of BACK OFFICE AGREEMENTs include cash agreements with other institutions (e. the bank pays the merchant (minus a discount) and forwards purchase information to the interchange network for further processing. An ACCOUNT GROUP is a grouping of similar AGREEMENTs. Retail loans may be pooled 7-12 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . repurchase (repo) agreements. leasing. There may be many associations between PARTYs and ACCESS DEVICEs.00 Examples of COMMERCIAL BANK AGREEMENTs include deposits. and securitization agreements. and/or abuse. the PARTY ASSET being leased may be vehicles or machinery. etc. RECOVERY measures may take place. servicer). If a customer starts to go into default then COLLECTION. An AGREEMENT may have CREDIT HISTORY. investor. Inventory and accounts receivable for a commercial loan and a house for a real estate loan may be pledged as collateral in a collateral agreement. the internal department of the bank that services the AGREEMENT.g. swap agreements.00. foreign exchange. loans. The financial institution that issued the ACCESS DEVICE is the PARTY the card holder pays. beneficiaries. fraud. A card that is a purchase card may be used solely for purchases at specified ORGANIZATION TYPEs. The merchant forwards the purchase information to the bank. securitization (seller. collection services. and letters of credit for trade financing. Examples are account holders. credit derivative agreements.. excessive overdrafts. An ACCESS DEVICE may be associated with many AGREEMENTs. collateral agreements. In a leasing AGREEMENT. A COMMERCIAL BANK AGREEMENT may be a contract between a bank and an ORGANIZATION that is a merchant where the bank (Merchant Bank) agrees to process card purchases made at the merchant site. such as AGREEMENTs with the same kind of conditions. AGREEMENTs may be grouped into ACCOUNT GROUP/POOLs. factoring (purchased receivables). The user of the card is the cardholder. such as a history of late payments. the bank employee who approved the loan. the seller and investor of a securitization agreement. There may be many associations between PARTYs and AGREEMENTs. An AGREEMENT that is a COMMERCIAL BANK AGREEMENT may be a PURCHASE ACCOUNT which is solely used for purchases at specified ORGANIZATION TYPEs. An AGREEMENT may be related to a PARTY ASSET. An AGREEMENT may be associated with many physical cards or mobile phones which are types of ACCESS DEVICE that are valid devices used to access and transact with an account. central bank). which may be the subject of the loan as in a real estate mortgage or automobile loan.Teradata Financial Services Logical Data Model Reference Guide Release 09. An ACCOUNT GROUP/POOL that is a securitization package may be composed of ‘tranches’ which have similar characteristics such as time to maturity and balance due. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 7-13 .Chapter 7 – Banking Extension High Level Data Models Conceptual Level Data Model together and then the pool may be assigned risk metrics. An ACCOUNT GROUP/POOL that comprises loans may be sold as a securitized package to other financial institutions who take on the risk. The relationship between AGREEMENT and ACCOUNT GROUP/POOL identifies the underlying loans in that group. and currency exchange. a call center phone number or face to face at a branch. A COLLECTION EVENT is a type of CONTACT EVENT and may be the result of a CAMPAIGN to collect overdue payments. such as the purchase by another institution of a securitized package of loans. an example for commercial banking is a meeting at which business and financial strategies are discussed. An account may or may not be involved in this transaction. A CONTACT EVENT will occur via a CHANNEL such as an ATM. An example of a direct contact EVENT is a withdrawal at a branch office where human contact is made. a web site. An EVENT may be a CONTACT EVENT where another PARTY (e.g. A type of FINANCIAL EVENT that involves a check document is a CHECK EVENT.. Meetings between a PARTY representing the bank and a PARTY that is a customer are also direct CONTACT EVENTs. An EVENT may also be related to an ACCOUNT GROUP/POOL.00. This includes transactions. such as a deposit or withdrawal that is related to a single AGREEMENT. WITHDRAWAL. An example of an indirect contact EVENT is an ATM withdrawal. etc. complaints.00 Event An EVENT is an action directly or indirectly related to customers and/or their AGREEMENTs. via a card). Examples include DEPOSIT. outbound calls by the call center. queries.g.. An example for retail banking is a meeting about a home mortgage. the customer) was involved in the interaction either directly (with human interaction) or indirectly (e. A type of EVENT that involves money is a FINANCIAL EVENT. 7-14 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09. An AGREEMENT EVENT is a type of EVENT. Another type of CAMPAIGN strategy is a debt recovery and/or debt collection campaign. grow customers. related to a single CAMPAIGN strategy. One type of CAMPAIGN strategy is a marketing campaign to retain. Outgoing and incoming CONTACT EVENTs are related to this CAMPAIGN execution. A CAMPAIGN at its lowest level in the hierarchy contains the details of the actions related to one CAMPAIGN execution. or to build an image. One or more PARTYs that may be internal or external to the bank execute a CAMPAIGN strategy. or sending letters to PARTYs. CAMPAIGN strategies may be defined in a hierarchy.Chapter 7 – Banking Extension High Level Data Models Conceptual Level Data Model Campaign A CAMPAIGN strategy is a concentrated effort targeted toward PARTYs to reach a predefined objective. A CAMPAIGN execution that is related to a debt recovery/collection CAMPAIGN strategy may result in multiple COLLECTION EVENTs. such as the placement of advertisements in newspapers or on television. usually on different dates. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 7-15 . There may be multiple CAMPAIGN executions. acquire. 00.00 This page intentionally left blank.Teradata Financial Services Logical Data Model Reference Guide Release 09. 7-16 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Banking-only entities are shaded in green in the corresponding diagrams. This chapter covers major subject areas that have banking-only entities such as Party Asset. refer to Chapter 4.Chapter 8 Banking Extension – Detailed Data Model Description About this Chapter This chapter describes the FS-LDM Banking Extension in detail. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-1 . For nonbanking specific details. the Party section discusses how it relates specifically to the banking business. Event. Agreement. Market Risk. and Operational Risk areas. and refer to Investment and Insurance extensions for details about those business lines. A separate section is included for Risk Management in Credit Risk. Sections of this chapter are organized by subject area. Product. Additionally. Detailed Data Model in the Foundation. and Finance. 8-2 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank.Teradata Financial Services Logical Data Model Reference Guide Release 09.00. In this section. A Party is any person or organization that is of interest to the financial enterprise. The logical views shown in this section include: • Party Type • Business Party • Score and Rating Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-3 . Party is from a banking standpoint. The Foundation Reference section of this document describes Party.Chapter 8 – Banking Extension Detail Data Model Description Party Subject Area Party Subject Area This section describes the FS-LDM Major Subject Area Party. In general. trustees. purchase cards. A merchant is a type of business that accepts payment cards (e. brokers. lien holders. Examples of Individuals of interest include customers. The Org Business Type Cd (ORG ORG BUSINESS TYPE) categorizes organizations. In the model. florist. A PARTY is an INDIVIDUAL or ORGANIZATION that is of interest to the financial institution. prospects. An ORGANIZATION may be an EXTERNAL ORGANIZATION. such as a legal BUSINESS or an informal ASSOCIATION. These businesses contract with a bank or financial institution so that the Merchant bank will process the payment card transactions submitted by the merchant. 8-4 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . an ORGANIZATION. A Party is an Individual or an Organization. Individuals and Organizations are Party subtypes. and contacts at businesses.Teradata Financial Services Logical Data Model Reference Guide Release 09. executors. credit cards. beneficiaries. a Merchant is a PARTY. and a BUSINESS. employees.g. this code places merchants in categories such as retail store. but not both..00.00 Party Type This logical view describes the types of Parties that might be of interest from a banking perspective. gas station. other individuals related to customers. debit cards and charge cards) as payment for products and services. and office supply store. or an ORGANIZATION can be an INTERNAL ORGANIZATION. Party.Chapter 8 – Banking Extension Detail Data Model Description Party Subject Area Figure 8-1 Banking .Party Type PARTY PARTY TO LOCATOR Party Id has address of Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind Party Party Party Party Id (FK) Locator Id (FK) Locator Usage Cd (FK) Locator Start Dt Party Locator End Dt Party Type Cd INDIVIDUAL ORGANIZATION Individual Party Id (FK) MM Object Id (FK) Ethnicity Cd (FK) Gender Type Cd (FK) Birth Dt Death Dt Org Party Id (FK) Org Type Cd (FK) Organization Established Dt Organization Close Dt ORG ORG BUSINESS TYPE is described by Org Party Id (FK) Org Business Type Cd (FK) Org Busnes Type Relat Start Dt Org Busnes Type Relat End Dt HOUSEHOLD Household Id (FK) Org Type Cd EXTERNAL ORGANIZATION INTERNAL ORGANIZATION External Org Party Id (FK) Internal Org Party Id (FK) External Org Type Cd (FK) Internal Org Type Cd (FK) Internal Org Categ Cd (FK) External Org Type Cd BUSINESS Business Party Id (FK) Business Legal Class Cd (FK) Duns Id (FK) Business Category Cd (FK) ASSOCIATION Association Party Id (FK) Association Type Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-5 . The actual value for each item that a business reported to the financial institution is in the attribute Financial Doc Item Val. barrels of oil). or more values to report such as cash amount. The Audited Cd indicates if the document is audited or unaudited. The type of value (e. Each value is an instance of entity PARTY FINANCIAL DOC ITEM. The entity PARTY PARTY RELATIONSHIP HIST specifies relationships between PARTYs. These business types represent category(s) of items the business chooses to represent for sale. Examples of financial document types include income statement. Financial Document Item Examples. in each of the specified financial documents is a separate value in Financial Doc Item Type Cd. An Organization may be a legal BUSINESS. Business Ownership Pct.’ ‘legal name’ or ‘for factoring purpose. barrels of oil.Teradata Financial Services Logical Data Model Reference Guide Release 09. A Party Financial Document may have zero. one.00.g. A PARTY may have zero. the business type – florist or gas station – may describe what the business offers. The Name Type Cd specifies the type of name.. If the Party Relationship Type Cd specifies a relationship ‘is business owner of. cash amount. or many financial documents (PARTY FINANCIAL DOCUMENT). and cash flow statement. balance sheet. one. A Party that is an Organization may have many names (ORGANIZATION NAME HIST). revenue amount. and accrued tax amount on the Balance Sheet. inventory amount.00 Business Party A PARTY may be an ORGANIZATION.’ the entity BUSINESS OWNERSHIP contains the information about the percentage of ownership. tax amount. Financial Document Type Cd specifies the type of financial document.’ An Organization that is a Business may have many business types (ORG ORG BUSINESS TYPE) associated with it. lists document types for Financial Doc Type Cd and Financial Doc Item Type Cd: Table 8-1 Financial Document Item Examples Financial Doc Type Cd Balance Sheet Financial Doc Item Type Cd Cash Amount Acct Receivable Amount Inventory Amount Other Current Assets Amount Total Current Assets Amount (Cash Amount + Acct Receivable Amount + Inventory Amount + Other Current Assets Amount) Land and Building Value Equipment Value Other Asset Value 8-6 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . For example. such as ‘doing business as. Table 8-1. salaries Interest and dividend income Other Income Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-7 .Chapter 8 – Banking Extension Detail Data Model Description Party Subject Area Financial Doc Item Type Cd Financial Doc Type Cd Total Assets Amount (Cash Amount + Acct Receivable Amount + Inventory Amount + Other Current Assets Amount + Land And Building Value + Equipment Value + Other Asset Value) Short Term Debt Amount Accounts Payable Amount Accrued Tax Amount Other Short Term Liability Amount Total Current Liability Amount (Short Term Debt Amount + Acct Payable Amount + Accrued Tax Amount + Other Short Term Liability Amount) Long Term Debt Amount Total Liability Amount (Long Term Debt Amount + Total Current Liability Amount) Total Liability Equity Amount (Total Liability Amount + Owners Equity Capital Amount) Cash Flow Statement Increase In Cash Amount (Income From Operations + Increase Short Term Liability Amount + Increase In Capital Amount) Income From Operations Increase Short Term Liability Amount Increase In Capital Amount Decrease In Cash Amount (Increase Short Term Asset Amount + Increase In Equity Value + Dividend Payment Amount) Increase Short Term Asset Amount Increase In Equity Value Dividend Payment Amount Net Change In Cash (Increase In Cash Amount – Decrease In Cash Amount) Income Statement Total Sales Amount Cost Of Goods Sold Amount Operation Gross Margin Amount (Total Sales Amount – Cost Of Goods Sold Amount) Cost Of Sales Amount Depreciation Amount General Admin Expense Amount Earning Before Tax Amount (Total Sales Amount – Cost Of Goods Sold Amount – Cost Of Sales Amount – Depreciation Amount – General Admin Expense Amount) Interest Expense Amount Income Tax Provision Amount Net Profit Amount (Total Sales Amount – Cost Of Goods Sold Amount – Cost Of Sales Amount – Depreciation Amount – General Admin Expense Amount – Interest Expense Amount – Income Tax Provision Amount) Individual Tax Return Wages. 00. salaries + Interest and dividend income + Other Income) Adjusted Gross Income Total Tax Corporate Tax Return Total Sales Amount Cost Of Goods Sold Amount Gross Profit (Total Sales Amount – Cost Of Goods Sold Amount) Total Income Total Deductions Total Tax 8-8 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 Financial Doc Item Type Cd Financial Doc Type Cd Total Income (Wages.Teradata Financial Services Logical Data Model Reference Guide Release 09. Chapter 8 – Banking Extension Detail Data Model Description Party Subject Area Figure 8-2 Banking .Business Party PARTY PARTY PARTY RELATIONSHIP HIST Party Id Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind is related to is related with Relates Party Id (FK) Party Relationship Role Cd (FK) Related Party Id (FK) Party Relationship Start Dttm Party Party Party Party audited Relationship End Dttm Structure Type Cd (FK) Rel Status Reason Cd (FK) Rel Status Type Cd (FK) may have Party Type Cd PARTY FINANCIAL DOCUMENT ORGANIZATION is described by Org Party Id (FK) Org Type Cd (FK) Organization Established Dt Organization Close Dt has names of Org Type Cd Party Id (FK) Financial Document Type Cd (FK) Data Source Cd (FK) Financial Doc Start Dttm Financial Doc End Dttm Audit Party Id (FK) Audited Cd (FK) Financial Doc Time Period Cd (FK) Financial Document Id (FK) ORG ORG BUSINESS TYPE Org Party Id (FK) Org Business Type Cd (FK) Org Busnes Type Relat Start Dt Org Busnes Type Relat End Dt EXTERNAL ORGANIZATION Org Name Org Name Desc Org Name End Dt BUSINESS OWNERSHIP Relates Party Id (FK) Related Party Id (FK) Party Relationship Role Cd (FK) Party Relationship Start Dttm (FK) Business Ownership Pct Invested Capital Amt has item of External Org Party Id (FK) External Org Type Cd (FK) External Org Type Cd ORGANIZATION NAME HIST Org Party Id (FK) Name Type Cd (FK) Org Name Start Dt Party Structure Type Cd BUSINESS Business Party Id (FK) Business Legal Class Cd (FK) Duns Id (FK) Business Category Cd (FK) PARTY FINANCIAL DOC ITEM Party Id (FK) Financial Document Type Cd (FK) Financial Doc Start Dttm (FK) Financial Doc Item Type Cd (FK) Data Source Cd (FK) Financial Document Item Dt Financial Financial Financial Financial Item Status Cd (FK) Item Sts Reason Cd (FK) Document Item Val Item UOM Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-9 .Party. where it is based on data gathered and stored by the third party.Teradata Financial Services Logical Data Model Reference Guide Release 09. Scores are also available externally. and has an auto loan with another institution. Examples include information from various credit bureaus such as the total outstanding debt of a person. These ratings can be for different purposes such as payment rating or collection rating. other kinds of credit data available for Parties from external PARTY DEMOGRAPHICs can be a structure used to track external credit information received for the Parties as well as the source for the information over time. The score value can be obtained by using a mathematical model based on other attributes in the data model such as demographics or behavioral events. For more information about Credit Reports.00 Score and Rating This logical view presents scores. this entity represents the payment history for that auto loan. Scores can also be associated with a Party-Product combination (PARTY PROD SCORE DD) such as the propensity of a given Party to acquire or attrite from a specific Product. include credit score.’ The score is actually a derived attribute and represents the probability that the party will behave a certain way. as in the case of credit scores.Party . The term used for this measurement is ‘score. and credit reports. Acquired party scores and Party Product scores are many times the result of an internally calculated score based on an analytical model. and probability to default. but all have to do with credit and the ability to repay an obligation (PARTY CREDIT REPORT). 8-10 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . ratings. the entity PARTY SCORE DD also contains scores at the Household level. Party Scores A Party demonstrates measurable propensities and behaviors. Credit Report A Party can also have a history of different ratings from external credit reporting agencies like credit bureaus. attrition score. Party Liability Credit Report . The source of this information may come from externally provided credit reports. It is a liability from a customer’s perspective.Externally Acquired These ratings (PARTY LIAB CREDIT RATING) contain the history of credit reports for debt that a Party owes to parties other than your enterprise. or from obtaining a score value from a third party. if a customer has a mortgage with your financial institution. Examples of score types associated with a Party that may also be a customer. Other Externally Acquired Credit Data In addition to scores.Credit Report section of this guide. and risk grades from a banking perspective. see the Foundation .00. ratings. Since a Party can be a household. The data model associates many types of scores with each Party (PARTY SCORE DD) and tracks the changes over time. For example. credit risk for Basel I.Chapter 8 – Banking Extension Detail Data Model Description Party Subject Area Party Risk Grades A Party may have risk related grades (PARTY RISK GRADE) that are either externally provided or internally calculated. There could be many types of risk grades (e. External Credit Agency structure). Standard & Poor’s debt rating method. Fitch Investors Service. Figure 8-3 Banking . This entity accommodates Basel II requirements. repayment risk) and each of these types could be based on a different reporting method or scheme (e.Party.Score and Rating PARTY CREDIT REPORT reports specific liability of supplied information for Liability Role Cd (FK) Liability Start Dt Liability End Dt is obligor for owes is owed by LIABILITY Party Liability Id Liability Liability Liability Liability Model Id Credit Rating Cd (FK) Credit Report Score Num PARTY LIABILITY Party Id (FK) Party Liability Id (FK) ANALYTICAL MODEL Credit Bureau Party Id (FK) Obligor Party Id (FK) Credit Report Dt Type Cd (FK) Desc Account Num Last Validation Dt has credit rating of is source for Model Status Cd (FK) Model Name Model Desc Model Type Cd (FK) Model Purpose Cd (FK) Model Algorithm Type Cd (FK) Model Source Party Id (FK) Data Source Cd (FK) Party Id Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind is assigned Party Id (FK) Analytical Model Id (FK) Model Run Id (FK) Party Score Val Information Effective Dt High Balance Amt Times Not Delinq Cnt Times 30 Days Delinq Cnt Times 60 Days Delinq Cnt Times 90 Days Delinq Cnt Charge Off Cnt Card Cnt Credit Limit Amt Report Start Dt Monthly Payment Amt Current Past Due Amt Credit Status Cd (FK) generates Model Id (FK) Model Run Id Model Run Dttm was used to calculate has propensity value of has risk rating of PARTY PROD SCORE DD is described by PARTY LIAB CREDIT RATING Credit Bureau Party Id (FK) Obligor Party Id (FK) Party Liability Id (FK) Credit Report Dt (FK) MODEL RUN PARTY SCORE DD PARTY is run PARTY DEMOGRAPHIC Party Id (FK) Demog Cd (FK) Data Source Cd (FK) Party Demog Start Dt Demog Value Cd (FK) Party Demog End Dt Party Demog Num Party Demog Val PARTY RISK GRADE Party Id (FK) Risk Grade Id (FK) Party Risk Grade Start Dttm Party Id (FK) Product Id (FK) Model Id (FK) Model Run Id (FK) Party Product Score Val Party Risk Grade End Dttm Party Risk Grade Next Rev Dttm Party Risk Grade Rate Dttm Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-11 . Moody’s Investors Service with its Investment Grade ratings. credit risk for Basel II...g.g. 00 This page intentionally left blank 8-12 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00.Teradata Financial Services Logical Data Model Reference Guide Release 09. The following logical views are discussed in this section: • Party Asset Role • Asset Inspection Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-13 . the Foundation Reference section of this document describes Party Asset. In general. In this section Party Asset is from a banking perspective. A Party Asset is a tangible or intangible thing that exists in the real world about which you want to track information.Chapter 8 – Banking Extension Detail Data Model Description Party Asset Subject Area Party Asset Subject Area This section describes the FS-LDM Major Subject Area Party Asset. go to Foundation . Renter or Lessee Other subtype entities are present in the model to show other possible values for the role of a Party with an Asset such as ‘is legal owner’ of the asset. These are usually for assets held by external parties but these may also include internal physical assets. which assumes that external policies are instances of AGREEMENT. 8-14 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . inventory.Teradata Financial Services Logical Data Model Reference Guide Release 09. The account number is the PK of this entity. of ‘leases/rents’ the asset. PARTY ASSET contains instances of intangible and tangible things that exist in the real world and are of interest to an enterprise. or by the accumulated equity in the property). furniture. If your enterprise is the insurer. equipment. a home improvement loan or home equity credit line secured by assets pledged as collateral.) Examples of Party Assets with commercial value include title to real estate property. Coverage for this asset by the Party is PARTY ASSET INSURANCE COVERAGE.00.Agreement. remove the account number from the PK and replace it with an independent identifier. bonds. livestock. and marine vehicles. If that is not the case.00 Party Asset Role This logical view shows different roles that an Asset may have with a Party. Party as Owner. trademarks. coverage information is not present in this entity but is found in the coverage(s) related to the policy (ACCOUNT FEATURE) as described in the Insurance Extension chapter. enforceable claims against others.External Agreement. mortgage. This is pertinent for Basel II when understanding the risk associated with an exposure whereby an asset is pledged as collateral for that exposure (e. (Internal financial assets are instances of AGREEMENT and the accountings of internal fixed assets are instances of FIXED ASSET.g. stocks. jewelry. For more information.. automobiles. Party as Insurer A PARTY may relate to a PARTY ASSET as an insurer. or other intangible or tangible property such as patents. Party Asset Role PARTY Party Id PARTY TO PARTY ASSET PARTY ASSET Party Asset Id MM Object Id (FK) Asset Insurance Hist Type Cd (FK) Asset Type Cd (FK) Asset Desc Asset Acct Num Asset Next Valuation Dt Asset Next Inspection Dt Valuation Time Period Cd (FK) Asset Host Id Val has role with Party Id (FK) Party Asset Id (FK) Asset Role Cd (FK) Asset Role Dt has role with Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind Asset Use Cd (FK) Asset Relinquish Dt Asset Role Cd PARTY ASSET INSURANCE COVERAGE Party Id (FK) Party Asset Id (FK) Asset Role Cd (FK) Asset Role Dt (FK) Insurance Coverage Type Cd (FK) Asset Insurance Start Dttm Account Num (FK) Account Modifier Num (FK) Asset Insurance Coverage Amt Asset Insurance End Dttm PARTY ASSET INSURER has insurance of Party Id (FK) Party Asset Id (FK) Asset Role Cd (FK) Asset Role Dt (FK) PARTY ASSET LESSEE Party Id (FK) Party Asset Id (FK) Asset Role Cd (FK) Asset Role Dt (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret PARTY ASSET OWNER Party Id (FK) Party Asset Id (FK) Asset Role Cd (FK) Asset Role Dt (FK) 8-15 .Chapter 8 – Banking Extension Detail Data Model Description Party Asset Subject Area Figure 8-4 Banking .Party Asset. Party Asset.00 Asset Inspection This logical view shows information about inspections of assets over time.00. If the reason for the asset valuation is an official appraisal then further information about the appraisal is in PARTY ASSET APPRAISAL.Teradata Financial Services Logical Data Model Reference Guide Release 09. ASSET INSPECTION HIST tracks the inspection activity and the result.Asset Inspection ASSET VALUE HIST Party Asset Id (FK) Asset Valuation Amount Cd (FK) Asset Value Start Dt PARTY ASSET Party Asset Id MM Object Id (FK) Asset Insurance Hist Type Cd (FK) Asset Type Cd (FK) Asset Desc Asset Acct Num Asset Next Valuation Dt Asset Next Inspection Dt Valuation Time Period Cd (FK) Asset Host Id Val has value history of Asset Value End Dt Evaluator Party Id (FK) Asset Value Amt Asset Crncy Asset Value Amt Currency Cd (FK) Asset Valuation Method Cd (FK) Asset Valuation Purpose Cd (FK) Inspection Dt (FK) Asset Valuation Purpose Cd was inspected is inspection result for PARTY ASSET APPRAISAL ASSET INSPECTION HIST 8-16 Party Asset Id (FK) Inspection Dt Party Asset Id (FK) Asset Valuation Amount Cd (FK) Asset Value Start Dt (FK) Inspection Result Type Cd (FK) Asset Appraisal Reason Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Figure 8-5 Banking . or expected future income.Collateral section of this guide. the value of comparable sales. refer to Banking Agreement . If an asset is a physical or real tangible asset (such as inventory or real estate) then the asset may undergo inspection and appraisal to determine its estimated market value based on replacement cost. For more information about collateral valuation. ASSET VALUE HIST records Asset value changes resulting from inspection activity. Asset inspections are important when calculating risk. In general. A Product is an offering by the financial institution. The Product subject area includes components that make up the offering such as its terms and conditions and financial instruments. The following logical views are discussed in this section: • Product Overview • Basel I Risk Weight • Feature • Feature Subtype • Feature/Feature (features that describe features) • Party Feature Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-17 . This section describes Product from a banking perspective. the Foundation Reference section of this document describes Product.Chapter 8 – Banking Extension Detail Data Model Description Product Subject Area Product Subject Area This section describes the FS-LDM Major Subject Area Product. The structure of Product Group is such that a Product can be in many groups. Senior Citizens Saving. A PACKAGE OFFERING is a marketable product that may consist of a combination of other marketable products. present. and/or future products. all Consumer Loan Products. A marketable product has a name. or all Credit Card Products. commodity and their derivatives. a lower minimum balance requirement. Visa Platinum. Product Groups can be grouped to higher-levels to form a hierarchical structure. Most of the entities are found in the FS-LDM Foundation. their relationships to channels.Teradata Financial Services Logical Data Model Reference Guide Release 09. and a free checking account. There are many other possible kinds of banking products included in the domain of PRODUCT (e. Product and Product Package A PRODUCT offered on its own and not with any other product is an INDIVIDUAL OFFERING.. currency. present. • A Credit Card offered at a discounted annual fee with the purchase of an extended warranty product 8-18 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Start and end dates can indicate past. If it is a BANKING PRODUCT then it may also be a PAYMENT CARD PRODUCT such as a credit card or purchase card. The end date is the day after which the product is no longer available. Product Groups for “Secured Loans and Unsecured Loans” are also in the Product Group “All Loans”. Examples are: • A Super Summer Bonanza Package comprises a Certificate of Deposit with a special incentive rate of interest. Consumer Loan. Real Estate Loan. all Commercial Loan Products. For example. Product PRODUCT may comprise past. Commercial or Industrial Loan. geographical areas. and parties. and MasterCard Platinum. and future marketable products and services. Visa Classic. bond.00.00 Product Overview This section provides an overview of products. A PRODUCT may also be an INVESTMENT PRODUCT which is any financial instrument including stock. and a Product Group can consist of many Products (PROD GROUP ASSOCIATION). how they are grouped and packaged. The start date is the first day the product is available to the public. A Product Group can contain products that are similar such as all Savings Products. Confirmed or Standby Letters of Credit.g. This section relates Foundation entities to the business of banking. all Checking Products. Product Group Products can be organized in a structure called PRODUCT GROUPs. such as Standard Checking. Investment products are further described in the Investment section of this guide. loans and deposits) which are not specifically subtyped in this diagram. Irrevocable Banker’s Acceptance. A PRODUCT may be a BANKING PRODUCT as opposed to insurance or investment. or product group (PRODUCT GROUP PARTY). a product package (PRODUCT PACKAGE PARTY). develops.Overview for modeling standalone and packaged offerings. the internet channel for deposit products may only allow deposit types of transactions. and services. offers. A Party can have many roles with a product (PRODUCT PARTY). is in the present. An example is that certain products may be used via specified channel types only. Product Geographical Area Relationship Products may have relationships with geographical areas or addresses (PRODUCT TO LOCATOR).Product. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-19 . This product-package relationship is in the entity PRODUCT PACKAGE. An individual may be an employee. Start and end dates indicate if the relationship between the party and product or product group. additional Party Product relationships can include cobranded cards and/or affinity cards. these packages can be marketed at a lower price than if the two products were marketed separately. occurred in the past.Chapter 8 – Banking Extension Detail Data Model Description Product Subject Area • • A Protection Credit Card with a special lower rate of interest than conventional or standard credit cards provided it is linked to a new Checking Account for Overdraft Protection. Examples of relationships between products and geographical areas are: marketed within. Some examples of Party-Product relationships are. A special Back to School Credit Card offer that allows the customer to receive a standard credit card with a $300. Refer to logical view Foundation . In the credit card area. or will be in the future. sponsors. Product Channel Relationship Products may be related to channel types (PROD CHANNEL TYPE XREF). A marketable product can be included in many Packages and a Package can contain many marketable products. For example. Each related party many be an individual or an organization. issues.00 credit limit when opened with a new Student Checking Account Often. These relationships have start and end dates. is valid within. or is not valid within. Product Party Relationship Marketable PRODUCTs and PRODUCT GROUPs may have relationships with many parties. Teradata Financial Services Logical Data Model Reference Guide Release 09.00 Figure 8-6 Banking .Overview PROD PROD RELATIONSHIP HIST Product Id (FK) Product Group Id (FK) Prod Assoc Start Dt is related with PRODUCT GROUP PARTY Product Locator End Dt is related to PRODUCT PRODUCT PARTY Product Id is part of Product Group Party End Dt groups PRODUCT GROUP Product Group Id involves Parent Prod Group Id (FK) Product Group Desc Product Group Start Dt Product Group End Dt Product Group Level Num Product Group Reason Type Cd (FK) is involved with Product Party End Dt is involved with is part of PROD CHANNEL TYPE XREF Product Id (FK) Channel Type Cd (FK) Product Channel Type Role Cd (FK) Prod Channel Start Dt Product Package Type Cd Product Type Cd INDIVIDUAL OFFERING Product Id (FK) BANKING PRODUCT Package Product Id (FK) Investment Product Id (FK) Invest Prod Trade Type Cd (FK) Investment Product Type Cd (FK) Denomination Currency Cd (FK) Package Product Id (FK) Product Id (FK) is offered/serviced by Banking Product Type Cd (FK) Banking LOB Cd (FK) Banking Product Type Cd PAYMENT CARD PRODUCT Product Id (FK) Card Association Type Cd (FK) consists of 8-20 Prod Channel End Dt PRODUCT PACKAGE Product Id (FK) INVESTMENT PRODUCT Party Product Role Cd (FK) Party Id (FK) Product Id (FK) Product Party Start Dt has location of Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind parent of PACKAGE OFFERING Product Id (FK) Prod Feat Locator Rel Cd (FK) Locator Id (FK) Product Locator Start Dt Prod Rel End Dt Prod Assoc End Dt Party Id (FK) Party Product Role Cd (FK) Product Group Id (FK) Product Group Party Start Dt PRODUCT TO LOCATOR Product Id (FK) Related Product Id (FK) Product Relationship Type Cd (FK) Prod Rel Start Dt PROD GROUP ASSOCIATION Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret PRODUCT PACKAGE PARTY Package Product Id (FK) Product Id (FK) Party Id (FK) Party Product Role Cd (FK) Party Package Start Dt Party Package End Dt .Product.00. Cross Subject Area section of this guide.) For Basel I. Entity PROD GRP BASEL 1 WEIGHT assigns risk weightings.. cross border loans = 100% In the FS-LDM. short term claims maturing in less than one year = 20% • Home mortgages with first lien. and a portion of loan loss reserves for possible bad loans. such as standby letters of credit.. Some product groups may be both Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-21 . The data requirements for Basel II span multiple subject areas and are described in the Banking . Tier 1 capital is common stock and retained earnings. the Risk Weight is a function of the product group as follows: • Cash.g.Chapter 8 – Banking Extension Detail Data Model Description Product Subject Area Basel I Risk Weight This logical view shows the risk weight that is assigned to a group of products to calculate capital requirements according to the Basel I capital requirement standards. interest rate swaps. the capital requirement formula is: Capital (Tier 1 + Tier 2) Total Risk Weighted Asset (RWA) The ratio should be at least 8%. For Basel I. It was designed to encourage leading banks to strengthen their capital positions. checks in the process of collection. unused open lines of credit) = 50% • Corporate loans = 100% • Real estate investments. The Basel I Agreement on International Capital Standards (BIS) was developed by the Basel Committee on Banking Supervision. futures and forward contracts. or the actions of another party. Risk Weighted Asset is the value of the asset (e.g. reduce inequality in regulatory rules of different nations. Cash has zero risk weight rate and loans have a higher risk weight commensurate with its risk as described below. (Off balance sheet commitments are agreements where the obligation (exposure) is dependent on future events. Note: Basel II replaced Basel I for international capital requirement standards. interest rate options. which is an international organization headquartered in Basel. Switzerland. municipal bonds = 50% • Credit commitments over 1 year (e. cash or loans) adjusted for its risk. a PRODUCT GROUP instance represents each item in the above list of product groupings. convertible securities. and consider the risk to banks of off-balance sheet commitments. as defined by the Bank of International Settlements (BIS) for Basel I. repurchase agreements. The Committee comprises central bank representatives from major industrial countries worldwide who establish standards for banks to adopt when calculating capital requirements. etc. Tier 2 Capital includes the bank’s subordinated debt. gold bullion. to combinations of Product Groups and Asset/Liability Types. Basel I was formally approved in 1988. cash in central bank = 0% • Deposits at domestic banks. 00 an asset and a liability depending on the balance such as Current Accounts. Figure 8-7 Banking .Product. hence the need for an asset/liability code in the primary key.00.Teradata Financial Services Logical Data Model Reference Guide Release 09.Basel 1 Risk Weight PRODUCT GROUP Product Group Id Parent Prod Group Id (FK) Product Group Desc Product Group Start Dt Product Group End Dt Product Group Level Num Product Group Reason Type Cd (FK) parent of is product group for BASEL 1 WEIGHT PROD GRP BASEL 1 WEIGHT Product Group Id (FK) Asset Liability Cd (FK) Basel 1 Type Cd (FK) Basel 1 Type Cd describes Basel 1 Weight Rate Basel 1 Type Desc describes ASSET LIABILITY TYPE Asset Liability Cd Asset Liability Desc 8-22 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . with the University’s logo affixed on the card in exchange for compensation from the card issuer. interest rate. or cash advance balances would be Features of the Credit Card Product. time period. One way to use feature groups is to group features that are in the same tier.. The corporate logo of the sponsor is typically affixed on the card issued and the corporation or business may share in some profits received from card use by its cardholders. 2%) is dependent upon a minimum balance feature (e. This grouping allows for selection and analysis of similar features. award balance. Examples of categories include purchase balance. The Feature subject area can define terms and conditions for credit card award programs as well as Features such as discounts or rebates associated with cobranded and affinity card products. deductible or limit. the product Feature subject area is used to define the terms of credit card products. Product features (FEATURE) are organized in a structure called feature groups (FEATURE GROUP). For example. 1 year) to form one tier. The attribute Feature Classification Type Cd in FEATURE is used to further classify the feature into categories.g. A feature group contains features that are similar such as all features that are considered fees.Chapter 8 – Banking Extension Detail Data Model Description Product Subject Area Feature This section describes Features as the characteristics and components of Products. A group can also be part of a higher level group in a hierarchical structure (FEATURE GROUP). The bank may also receive the alumni membership list for marketing purposes.g. A marketable product or products in a package can have many features and the same feature can apply to many products (PRODUCT FEATURE and PRODUCT PACKAGE FEATURE). $5000) and a term feature (e. A cobranded card product can associate the bank with another corporation or business such as a retail department store or airline.. For example. In addition. all balance restrictions. For example. or minimum balance. A Feature describes the contractual terms and conditions of a product such as a fee..g. benefits and terms included with certain credit card products such as rental car insurance or travel insurance are associated as features of the product. In the credit card area. but a Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-23 . The structure of feature groups is such that a feature can be in many groups and a group can consist of many features (FEATURE TO FEATURE GROUP). For example. The same rate spread may be related to the same balance. Product Features Marketable standalone PRODUCTs and products contained in a package (PRODUCT PACKAGE) are described by product FEATUREs. all terms or all interest calculation methods. a specific interest rate spread (e. an affinity card product can associate the bank and a sponsoring organization such as a University. an introductory interest rate for a specified period of time or the varying interest rates applicable to different card balance types such as purchase balances. the product Feature defines rates of interest that can be associated with the credit card account. A credit card can be a mandatory feature for a card product. A fee is usually a mandatory feature.Geographical Area Relationship Features may have relationships with geographical areas or addresses (FEATURE TO LOCATOR).’ or ‘is not valid within. For example. The negotiated rate would override the current rate. The hierarchical structure of FEATURE GROUP then allows tiers to be related to other tiers to form a tiered hierarchical structure. but a debit card may be an optional feature for another bank product such as a checking product. Feature . or to a specific product package (PRODUCT PKG FEAT FEAT). This model allows for Features to have relationships with other Features outside of the feature group (FEATURE FEATURE REL). The Feature Group Type Cd in FEATURE GROUP indicates whether this feature group type is a tier. such as grouping all features that are related to car rental insurance. ‘is marketed within.Teradata Financial Services Logical Data Model Reference Guide Release 09.’ 8-24 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . or all features that are related to purchase balances. The model also allows for the feature to feature relationship to be captured in relation to a specific product (PRODUCT FEATURE FEATURE). or where a lower interest rate is negotiated with a customer in order to retain the relationship. Another use of feature groups is for analysis purposes. Examples of relationships between features and geographical areas are. These relationships have start and end dates. Examples of possible relationship types include one-feature-replaces-another-feature.’ ‘is valid within. Mandatory and Optional Features A product can be associated with mandatory and optional features (PRODUCT FEATURE). the financial institution can perform analysis on a group of features by a specific commonality.00.00 different term for senior citizens to form a different tier. Chapter 8 – Banking Extension Detail Data Model Description Product Subject Area Figure 8-8 Banking .Feature PRODUCT PACKAGE PRODUCT PACKAGE FEATURE Product Id (FK) Package Product Id (FK) Feature Id (FK) Prod Feat Rel Type Cd (FK) Prod Pkg Feature Start Dt has subfeatures Package Product Id (FK) Product Id (FK) PRODUCT Product Id is part of has terms and conditions of Prod Pkg Feature End Dt has terms and conditions of describes PRODUCT FEATURE PRODUCT PKG FEAT FEAT Product Id (FK) Package Product Id (FK) Feature Id (FK) Prod Feat Rel Type Cd (FK) Prod Pkg Feature Start Dt (FK) Related Feature Id (FK) Prod Pkg Related Feat Rel Cd (FK) Prod Pkg Relatd Feat Start Dt Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind Product Id (FK) Feature Id (FK) Prod Feat Rel Type Cd (FK) Product Feature Start Dt has subfeatures Product Feature End Dt FEATURE describes Prod Pkg Relatd Feat End Dt FEATURE TO FEATURE GROUP Feature Group Id (FK) Feature Id (FK) Feature Assoc Start Dt PRODUCT FEATURE FEATURE Feature Id Feature Type Cd (FK) Feature Classification Cd (FK) Feature Desc Feature Name Common Feature Name Feature Category Type Cd (FK) Feature Level Cnt describes describes is related with is related to Product Id (FK) Feature Id (FK) Product Feature Start Dt (FK) Prod Feat Rel Type Cd (FK) Related Feature Id (FK) Prod Related Feat Rel Type Cd (FK) Product Relatd Feat Start Dt Product Relatd Feat End Dt is part of Feature Assoc End Dt FEATURE FEATURE REL has geographical areas of is part of FEATURE TO LOCATOR FEATURE GROUP Feature Group Id Feature Group Type Cd (FK) Feature Group Start Dt Feature Group End Dt Parent Feature Group Id (FK) Feature Group Name Feature Group Desc Feature Id (FK) Prod Feat Locator Rel Cd (FK) Locator Id (FK) Feature Address Start Dt Feature Relationship Type Cd (FK) Related Feature Id (FK) Feature Id (FK) Feature Rel Start Dt Feature Rel End Dt Feature Address End Dt parent of Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-25 .Product. a balance amount) • Quantity Features that have an associated quantity associated • Descriptive Features that have no associated metric • Date Features that have a specific date In entity FEATURE. such as the time interval before benefits are paid. which does not change over time.00. This section relates these entities to the banking business.00 Feature Subtype This section shows different types of features and the attributes associated with the different types. The rate tied to the index changes over time depending on market conditions. With variable rates the bank has a fixed profit and the rate the customer pays changes over time.g. The TERM FEATURE specifies three different aspects of time.. Subtypes of RATE FEATURE based on the Rate Feature Type Cd are: • FIXED INTEREST RATE FEATURE Fixed Interest Rate is the rate the customer is charged. It specifies (1) how much time must elapse.Teradata Financial Services Logical Data Model Reference Guide Release 09. The profit or spread on fixed rates depends on fluctuations in the market and will change over time. and (3) the end of time. the attribute Feature Type Cd indicates the type of feature for classification purposes.g. Rates include the interest rate charged to the customer and other kinds of rates. For all three time aspects. Subtypes of FEATURE based on feature type are: • RATE FEATURE • TERM FEATURE • AMOUNT FEATURE • QUANTITY FEATURE • DESCRIPTIVE FEATURE • DATE FEATURE The RATE FEATURE entity consists of terms and conditions that are rates. (2) the length of time. • OTHER RATE FEATURE This is the type of RATE FEATURE that is not an interest rate. • VARIABLE INTEREST RATE FEATURE The rate the customer is charged is the sum of a constant spread (or profit) plus the rate that is tied to an index. All these entities are part of the FS-LDM Foundation. Types of Features described here are: • Term Features that have an associated time element • Rate Features that have an associated rate (e.. a unit of time must be specified. such as the maximum time period benefits are paid. For example. FEATURE is the supertype that contains information about all features. an interest rate) • Amount Features that have an associated amount (e. The customer rate is calculated as Interest Index Rate (INDEX RATE HIST entity) plus Spread Rate (VARIABLE INTEREST RATE FEATURE entity). such as the end or expiration date for paying benefits. such as 8-26 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . a commitment fee could be a percent of a committed amount in an irrevocable or standby letter of credit agreement. but rather can refer to the existence or restriction of a condition. For example. term usually refers to the maturity of a deposit or loan expressed in months or years. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-27 . For a short-term deposit the term may be less than one year. For example. or a cash advance feature. months. The DATE FEATURE can be used when specific dates are part of the standard product terms and conditions. deductible. This entity also identifies term values and handles a range of terms and conditions. For a loan. long-term note. The AMOUNT FEATURE allows for specifying monetary amounts.Chapter 8 – Banking Extension Detail Data Model Description Product Subject Area days. or a minimum payment amount. weeks. The DESCRIPTIVE FEATURE does not contain any of the above metrics. purchase feature. The QUANTITY FEATURE allows for specifying quantities or counts of conditions such as the number of allowed withdrawals for a time deposit in a specified period of time. a deposit agreement may be accompanied with issuance of a debit card. the term may be 30 years. or years in addition to how many units apply. short-term deposit. such as a maximum or minimum balance. This is relevant for bonds that may have a call date. a grace period feature could be a term value of 7 days. it is also the time between the issuance and maturity of a loan. or mortgage. The feature is Debit Card Included. The inclusion of the card with the account is a feature of the account. In banking. The attribute Feature Classification Cd in FEATURE can be used to further classify the feature such as classifying them into categories such as a limit. 00 Figure 8-9 Banking .Teradata Financial Services Logical Data Model Reference Guide Release 09.Feature Subtype FEATURE Feature Id Feature Type Cd (FK) Feature Classification Cd (FK) Feature Desc Feature Name Common Feature Name Feature Category Type Cd (FK) Feature Level Cnt Feature Type Cd TERM FEATURE Feature Id (FK) From Time Period Cd (FK) To Time Period Cd (FK) Until Age Cd (FK) From Time Period Num To Time Period Num Until Age Num AMOUNT FEATURE DESCRIPTIVE FEATURE RATE FEATURE Feature Id (FK) Feature Id (FK) Feature Id (FK) Amount Currency Cd (FK) From Feature Amt To Feature Amt Amount Time Period Cd (FK) Amount Time Period Num Rate Time Period Cd (FK) Rate Feature Type Cd (FK) Rate Time Period Num DATE FEATURE Feature Id (FK) QUANTITY FEATURE Feature Dt Feature Id (FK) INTEREST INDEX Quantity Time Period Cd (FK) Quantity Unit Of Measure Cd (FK) Feature Qty Feature Time Period Num Interest Index Cd Interest Index Time Period Cd (FK) Interest Index Desc Interest Index Currency Cd (FK) Yield Curve Maturity Seg Id (FK) Rate Feature Type Cd is index for has rate history of VARIABLE INTEREST RATE FEATURE Feature Id (FK) INDEX RATE HIST Rate Effective Dt Interest Index Cd (FK) Interest Index Rate 8-28 Spread Rate Interest Index Cd (FK) Upper Limit Rate Lower Limit Rate OTHER RATE FEATURE Feature Id (FK) Other Feature Rate Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret FIXED INTEREST RATE FEATURE Feature Id (FK) Fixed Interest Rate .Product.00. One Product feature may be a Credit Card that is associated with two Amount Features (maximum withdrawal amount and yearly fee). Features can relate to other features because they may replace other features and/or features can relate to other features to form a tiered structure. This grouping allows analyzing the performance of similar features across products.50%. but a balance of $10. In banking. All these entities are in the FS-LDM Foundation.000 for the same term pays 6. Another example is how features relate to other features to form a tiered structure. then applies the concept to the banking business.Product. how do products that have an ATM card fee waiver. The feature group structure is such that a feature can be in many groups and a group can consist of many features. a 1-year term deposit with a balance of $5000 pays 6. it is common to have the interest rate dependent on the term and balance. For example. For example. FEATURE FEATURE REL tracks relationships between product features over time. A feature group contains features that are similar. Relating these two features form the hierarchical relationship between these features to give you a tiered structure.00%. Product FEATUREs organize into a structure called FEATURE GROUPs.Chapter 8 – Banking Extension Detail Data Model Description Product Subject Area Feature/Feature This section describes how Features relate to other Features. This provision allows one product feature to describe other product features. like all maximum balances or all fees for cards.Feature/Feature FEATURE Feature Id Feature Type Cd (FK) Feature Classification Cd (FK) Feature Desc Feature Name Common Feature Name Feature Category Type Cd (FK) Feature Level Cnt FEATURE FEATURE REL is related with is related to is part of Feature Assoc End Dt Feature Rel End Dt FEATURE GROUP Feature Group Id FEATURE TO FEATURE GROUP Feature Group Id (FK) Feature Id (FK) Feature Assoc Start Dt Feature Relationship Type Cd (FK) Related Feature Id (FK) Feature Id (FK) Feature Rel Start Dt is part of Feature Group Type Cd (FK) Feature Group Start Dt Feature Group End Dt Parent Feature Group Id (FK) Feature Group Name Feature Group Desc parent of Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-29 . perform by market segment? Figure 8-10 Banking . A FEATURE may have many relationships with Parties (PARTY FEATURE).Product.00 Party Feature This section describes how Features relate to Parties. An example would be the party that services the auto rental insurance Feature associated with the credit card product. All these entities are in the FS-LDM Foundation. Figure 8-11 Banking . and uses. offers. In the credit card business this includes Party relationships with product benefit features. administers.Party Feature PARTY Party Id Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind has involvement with PARTY FEATURE Party Id (FK) Feature Id (FK) Party Feature Role Cd (FK) Party Feature Start Dt Party Feature End Dt FEATURE Feature Id Feature Type Cd (FK) Feature Classification Cd (FK) Feature Desc Feature Name Common Feature Name Feature Category Type Cd (FK) Feature Level Cnt 8-30 has involvement with Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09. Some examples of party role include services.00. and then applies the concept to the banking business. The role code in PARTY FEATURE tells you what role the Party has with the Feature. Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Agreement Subject Area This section describes the FS-LDM Major Subject Area Agreement. In general, the Foundation Reference section of this document describes Agreement. In this section, covered aspects of Agreement relate to Banking. An Agreement is an arrangement between parties. It can include contracts, accounts, facilities, and other kinds of formal or informal deals. It can include agreements composed of, or related to other agreements. The terms and conditions for the agreement (e.g., fees, interest rates, minimum/maximum amounts), are in the scope of this subject area. Logical views in this subject area are in alphabetical order following Agreement Overview: • • • • • • • • • • • • • • • • • • • • • Agreement Subtype Agreement Overview Account Groups Asset Automatic Payments Card Collateral and Risk Mitigation – Collateral Overview – Collateral Item – Risk Mitigant Agreement Type – Risk Mitigant Agmt to Exposure Agmt – Risk Mitigant Agmt to Collateral item – Collateral Item to Exposure Agmt – Collateral Seniority – Collateral Value and Haircut – Haircuts and Adjustments Deposit and Cash Management Factoring-Purchase Receivable and Collection Foreign Exchange Interest Based Agreements Leasing Letter of Credit and Letter of Guarantee Loan and Credit Agreement Other Financial Services Type Party Roles Product and Feature Projected Cash Flow Provision Score and Rating Securitization Agreement Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-31 Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 Agreement Agreement Subtype This logical view shows Agreement subtyping for banking and investment lines of business. It drills down into detailed subtyping for FINANCIAL AGREEMENT and shows the hierarchical classification for banking and investment agreements. Please refer to the foldout diagram Figure 8-12 Banking - Agreement.Agreement Subtype Detail in this section. The AGREEMENT domain cuts across all products, services, and contracts, including banking, investment, capital markets, and insurance lines of business. Agreement - First Level Subtyping AGREEMENT is the highest-level supertype entity and includes all types of contracts and deals across banking, investment (including capital markets and brokerage), and insurance lines of businesses. The first level of subtyping crosses major lines of business. An AGREEMENT is: • FINANCIAL AGREEMENT (banking and investments/capital markets) • INSURANCE AGREEMENT Customization Note: In developing your customized model, you are not restricted to these subtypes or to this subtype hierarchy design. Each institution differs based on their product offerings and their business. In addition, going from logical to physical designs you may reduce or collapse the number of subtypes. Definitions for all subtype entities are in the Erwin model and in the Appendix to the Reference Guide. An AGREEMENT may also be internal or external. EXTERNAL AGREEMENTs contain agreements where your institution is not a party to, but is interested in the information, like collateral agreements between your customer and another institution or an insurance policy where another institution covers an asset pledged as collateral for one of your loans. Financial Agreement - Second Level Subtyping A FINANCIAL AGREEMENT contains agreements that are involved in the banking, investment, and capital markets functions for the enterprise. This also includes agreements that a bank might have with other banks and businesses for asset/liability management or for its own internal investment purposes. This entity does not include agreements where a financial institution acts as a broker or broker-dealer for security transactions. For such agreements, refer to the ACCOUNT PORTFOLIO entity, as described in the Investment section. This entity also does not include insurance agreements and policies. FINANCIAL AGREEMENTs may be fee-based, or interestbased, or an umbrella agreement (facility) composed of smaller agreements, or an agreement for performance where one party agrees to perform in a certain situation (e.g., guarantee agreement, credit derivative agreement, or collateral agreement). 8-32 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area A FINANCIAL AGREEMENT can be classified three ways, each having its own subtype scheme. • Based on whether the agreement creates or mitigates an exposure, a FINANCIAL AGREEMENT is a: – FINANCE EXPOSURE AGREEMENT (creates an exposure) – RISK MITIGANT AGREEMENT (reduces the exposure) This subtyping was created because these entities are used to determine collateral coverage. • Based on product type, a FINANCIAL AGREEMENT can be: – CASH MANAGEMENT (including deposits) – CREDIT AGREEMENT (including loans) – INVESTMENT AGREEMENT – OTHER FINANCIAL SERVICEs • Based on whether the account is interest-based: INTEREST BASED AGREEMENT. Risk Mitigant Agreement - Third Level Subtyping A RISK MITIGANT AGREEMENT is any agreement where the intent is to reduce risk. Going down the RISK MITIGANT AGREEMENT leg of the classification hierarchy, a RISK MITIGANT AGREEMENT can be a: • SECURITIZATION SELL AGREEMENT • COLLATERAL AGREEMENT • NETTING AGREEMENT • THIRD PARTY GUARANTEE AGMT • CREDIT DERIVATIVE AGREEMENT can be: – CREDIT LINKED NOTES – CREDIT DEFAULT SWAP – TOTAL RATE OF RETURN SWAP Credit Agreement - Third Level Subtyping CREDIT AGREEMENTs involve providing money or money commitments to customers for products such as loans, mortgages, current accounts, purchased receivables (factoring), credit cards, lines of credit (transaction accounts), letters of credit, and leasing. These types of agreements involve some kind of credit risk. A CREDIT AGREEMENT is a type of FINANCIAL AGREEMENT that is a type of AGREEMENT. A CREDIT AGREEMENT can be: • A LOAN ACCOUNT that can be: – LOAN TRANSACTION ACCT (e.g., credit card) – LOAN TERM ACCOUNT (e.g., mortgage, car loan, lease) • CURRENT ACCOUNT • LETTER OF CREDIT AGREEMENT • FACILITY AGREEMENT • PURCH(ased) RECEIVABLE INVOICE Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-33 Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 Cash Management Agreement - Third Level Subtyping A CASH MANAGEMENT agreement involves money management services for customers by means of deposit accounts, such as checking, savings and time accounts, and specialized cash management services that enable businesses to handle cash, transfer money, and in general, make and receive payments. A CASH MANAGEMENT agreement is: • A DEPOSIT ACCOUNT that can be: – DEPOSIT TERM ACCOUNT – DEPOSIT TRANSACTION ACCT (e.g., checking account) • CASH HANDLING agreement • DOCUMENT PAYMENT AGMT Other Financial Services Agreement - Third Level Subtyping These types of services tend to be fee-based. OTHER FINANCIAL SERVICEs agreements include: • SECURITIES ORIGINATION • CLEARING AND SETTLEMENT • TRUST_ESTATE • SAFE DEPOSIT ACCOUNT • PURCH RECEIVABLE ISSUER AGMT • PURCH RECEIVABLE ISSUER DEBTOR AGMT • COLLECTION ISSUER AGREEMENT • COLLECTION DEBT INVOICE • DEALER AGREEMENT Investment Agreement - Third Level Subtyping An INVESTMENT AGREEMENT tracks investments (holdings) in investment instruments (e.g., stocks, bonds, commodities, your cash at other banks, and foreign exchange) that your enterprise is interested in tracking. This does not include retail brokerage investments where securities trade in and out of a portfolio – those are in the PORTFOLIO entity. This entity includes traded and not traded securities and trades based on other financial instruments such as foreign exchange currencies and interest rate yield curves. An INVESTMENT AGREEMENT outside of a portfolio account is: • A SECURITIES FINANCING agreement • A SECURITY HOLDING • A DERIVATIVE AGREEMENT, which is: – An OPTION AGREEMENT – A FORWARD FUTURES AGREEMENT – A SWAP AGREEMENT • CASH AT OTHER BANKS • A FOREIGN EXCHANGE AGREEMENT 8-34 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area ACCOUNT PORTFOLIO is an investment account that is set up for retail brokerage where investment products move in and out of the portfolio. A more thorough discussion of INVESTMENT AGREEMENTs and PORTFOLIOs appears in the Investment section of this guide. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-35 Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 This page intentionally left blank. 8-36 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Figure 8-12 Banking - Agreement.Agreement Subtype Detail AGREEMENT Agreement Categ Cd has portfolio of ACCOUNT PORTFOLIO External Agreement Ind INSURANCE AGREEMENT EXTERNAL AGREEMENT FINANCIAL AGREEMENT Risk Expsr Mitigant Type Cd RISK MITIGANT AGREEMENT Pricing Method Cd FINANCE EXPOSURE AGREEMENT Risk Mitigant Agmt Type Cd SECURITIZATION SELL AGREEMENT Financial Agreement Categ Cd NETTING AGREEMENT COLLATERAL AGREEMENT INTEREST BASED AGREEMENT THIRD PARTY GUARANTEE AGMT THIRD PARTY COLLATERAL CLAIM CASH MANAGEMENT CREDIT DERIVATIVE AGREEMENT INVESTMENT AGREEMENT Cash Management Categ Cd Credit Derivative Type Cd Investment Type Cd CREDIT LINKED NOTES OTHER FINANCIAL SERVICE CASH HANDLING FOREIGN EXCHANGE AGREEMENT CREDIT DEFAULT SWAP Other Financial Srv Categ Cd TOTAL RATE OF RETURN SWAP DEPOSIT ACCOUNT CREDIT AGREEMENT SECURITIES ORIGINATION SECURITIES FINANCING DOCUMENT PAYMENT AGMT Maturity Cd SECURITY HOLDING DERIVATIVE AGREEMENT DEALER AGREEMENT SAFE DEPOSIT ACCOUNT Credit Agreement Categ Cd DEPOSIT TRANSACTION ACCT CLEARING AND SETTLEMENT CASH AT OTHER BANKS DEPOSIT TERM ACCOUNT FACILITY AGREEMENT TRUST_ESTATE Derivative Type Cd LETTER OF CREDIT AGREEMENT CURRENT ACCOUNT COLLECTION DEBT INVOICE LOAN ACCOUNT OPTION AGREEMENT SWAP AGREEMENT FORWARD FUTURES AGREEMENT has underlying debt of COLLECTION ISSUER AGREEMENT PURCH RECEIVABLE ISSUER AGMT has debtor contract Maturity Cd PURCH RECEIVABLE INVOICE LOAN TRANSACTION ACCT has invoice PURCH RECV ISSUER DEBTOR AGMT Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret LOAN TERM ACCOUNT Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Agreement Overview and Summary This section describes an overview of the Agreement subject area for banking. AGREEMENT records details of an arrangement between two or more Parties. The account number and an account modifier uniquely identify the agreement. The account modifier is optional if an account number uniquely identifies the agreement. Some companies require another attribute such as a branch number or a system number to identify an account uniquely. In that case, the modifier is an additional attribute that makes the account instance unique. Dates Among the attributes of AGREEMENT, the following specify a date: Account Signed Dt: Account Processing Dt: Date the terms and conditions of the account were agreed upon by the bank and the party(s) involved. Date the account posted to the bank’s data processing system. Account Open Dt: Date the account became effective (valid). Account Close Dt: Date the account actually closed. Contract Expiration Dt: The date the contract is expected to end. Account Renewal History An account’s agreement or contract term may be extended or renewable over time. The entity ACCOUNT RENEWAL HISTORY tracks various contract start and end dates associated with the account. For example, a Certificate of Deposit (CD) can be renewed or rolled over several times. The entity also tracks various time intervals/periods associated with the contract term. Account Summary A summary of historical balances and transactions count information at the account level is represented in two types of entities. ACCOUNT SUMMARY DD – varies by account number and date and has specific attributes for each type of balance. It contains amounts and counts. ACCOUNT BALANCE SUMMARY DD – varies by account number, date, amount type, and balance type and provides a more flexible way of keeping track of many balances that you might want to maintain. If you need to add new balance or amount types, add more rows instead of adding new columns. Note: If an amount does not vary by balance type then a balance type of value ‘all’ may be used. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-39 Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 Both types are described below: • ACCOUNT SUMMARY DD Each customer account (AGREEMENT) is associated with derivable summary account information at the end of a time period (ACCOUNT SUMMARY DD). Even though this kind of summary information derives from the transactions (events), and technically should not be included in a logical model, it is here because balance information is a common practical requirement. There is one instance for each customer account for each time period and ending date. Attributes of ACCOUNT SUMMARY DD include average, lowest, highest, and ending balance amounts for the specified time period. Depending on implementation, other appropriate attributes are possible. This entity is specific to banking. Start and End dates are both in the primary key because it is possible to have balance information with the same ending date or starting date but for a different time period (e.g., monthly, quarterly, or yearly). • ACCOUNT BALANCE SUMMARY DD Each customer account (AGREEMENT) is associated with derivable summary account information by balance type at the end of a time period (ACCOUNT BALANCE SUMMARY DD). Even though summary is a derivable result, and technically, should not be included in a logical model, balance summary is here because it is a common practical requirement. There is one instance for each customer account for each account balance type, for each amount type, for each time period, and each ending date. Attributes of ACCOUNT BALANCE SUMMARY DD include average and ending balance amounts for the specified time period. For example, this entity has balance information for award point balances, cash advance balances, and purchase balances. For Current Accounts, a balance can alternate between loan or deposit states within a time period. The interest rate can also change depending on the balance state (loan or deposit), and on the balance amount (balance tiers). This structure allows the system to capture balance information for any type of balance. Time period is part of the primary key because it is possible to have balance information with the same ending date (e.g., December 31) but for a different time period (e.g., monthly, quarterly, or yearly). Depending on the implementation, other appropriate attributes can be added. Account - Product Relationship A customer account (AGREEMENT) is usually only associated with one banking Product at one time. However, an Account may be established with one Product, like a 12-month CD, and at its renewal date, be upgraded to a different Product, like a 24-month CD, while keeping its originally assigned account number. ACCOUNT PRODUCT HISTORY keeps track of all Products associated with the same Agreement. FS-LDM provides for an AGREEMENT to be associated with more than one PRODUCT at one time. This allows complex types of agreements, such as 8-40 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area swaps where the deal and the investment products that are part of the deal can be many possible combinations. These combinations are assembled at the Agreement level. Account - Address Relationship The associative entity AGREEMENT TO LOCATOR relates locators, which includes addresses and GEOGRAPHICAL AREAs, with Agreements. The relationship is defined by means of a relation code. Examples of relations are: • The state or country in which the account was signed • The area for which rates and tariffs were used to set up the account • The state or country whose laws and regulations govern the account Account Grouping AGREEMENTs can be organized into structures called ACCOUNT GROUPs. An Account Group contains accounts that are similar in nature such as all credit card accounts that have exceeded their credit limit, all accounts that are in a charged off status, or all accounts placed in a securitization pool. ACCOUNT GROUPS can also be grouped into higher levels to form group hierarchies. Account Group can be described by the criteria that were used to group the accounts (ACCOUNT GROUP CRITERION). An AGREEMENT may be in more than one group and an ACCOUNT GROUP may have more than one AGREEMENT (ACCOUNT ACCOUNT GROUP). Account groups can be used internally for the purpose of analysis and reporting as well as a mechanism for securitizing a pool of accounts. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-41 00 Figure 8-13 Banking .Teradata Financial Services Logical Data Model Reference Guide Release 09.Agreement.Overview and Summary ACCOUNT ACCOUNT GROUP Account Account Account Account ACCOUNT GROUP Account Group Id Num (FK) Modifier Num (FK) Group Id (FK) Assoc Start Dt AGREEMENT TO LOCATOR Account Num (FK) Account Modifier Num (FK) Contract Locator Rel Cd (FK) Locator Id (FK) Account Locator Start Dt has locator of Account Assoc End Dt Acct To Acct Group Relat Cd (FK) Account Group Name Account Group Desc Account Group Start Dt Account Group End Dt Analytical Model Id (FK) Account Group Reason Type Cd (FK) Parent Account Group Id (FK) Data Source Cd (FK) is defined by Account Locator End Dt PRODUCT contains Product Id ACCOUNT SUMMARY DD Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind is parent of AGREEMENT ACCOUNT GROUP CRITERION participates in ACCOUNT RENEWAL HISTORY Account Num (FK) Account Modifier Num (FK) Contract Start Dttm has renewal history of Contract Term Expiration Dttm Contract Grace Period End Dttm ACCOUNT BALANCE SUMMARY DD Account Num (FK) Account Modifier Num (FK) Balance Category Type Cd (FK) Account Metric Type Cd (FK) Acct Bal Summary Start Dttm Acct Bal Summary End Dttm Acct Bal Summary Tm Pd Cd (FK) Account Balance Summary Amt Acct Crncy Balance Summary Amt Account Balance Summary Rate Account Balance Summary Cnt Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) Agreement Categ Cd FINANCIAL AGREEMENT Account Num (FK) Account Modifier Num (FK) has financial history of 8-42 describes Account Num Account Modifier Num Account Group Id (FK) Selection Criterion Id (FK) Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) may be for product ACCOUNT PRODUCT HISTORY Account Num (FK) Account Modifier Num (FK) Product Id (FK) Agreement Product Role Cd (FK) Acct Product Assoc Start Dt Acct Product Assoc End Dt has financial history of Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Account Account Account Account Num (FK) Modifier Num (FK) Summary Start Dttm Summary End Dttm Average Cleared Balance Amt Average Ledger Balance Amt Ending Ledger Balance Amt Ending Cleared Balance Amt Fee Income Amt Total Credit Cnt Total Debit Cnt Collateral Balance Amt Reserve Loan Balance Amt Highest Credit Balance Amt Lowest Debit Balance Amt Total Interest Income Amt Total Interest Expense Amt Interest Balance Amt Tax Equivalent Gross Up Amt Deposit Account Ind Loan Account Ind Future Margin Income Amt Overdraft Balance Amt Drawn Amt Securitization Position Amt Discount On Default Amt Acct Crncy Avg Cleared Bal Amt Acct Crncy Avg Ldgr Bal Amt Acct Crncy End Ldgr Bal Amt Acct Crncy End Clear Bal Amt Acct Crncy Fee Income Amt Acct Crncy Collateral Bal Amt Acct Crncy Reserve Bal Amt Acct Crncy High Cr Bal Amt Acct Crncy Low Dr Bal Amt Acct Crncy Tot Intst Incm Amt Acct Crncy Tot Intst Expns Amt Acct Crncy Intst Bal Amt Acct Crncy Tax Gross Up Amt Acct Crncy Overdraft Bal Amt Acct Crncy Drawn Amt Acct Crncy Position Amt Acct Crncy FMI Amt Acct Crncy Disc On Default Amt Time Period Cd (FK) .00. An Account Group can also be classified in many ways (ACCOUNT GROUP TYPE ASSOC). and as to whether the group can be deducted from capital on the balance sheet. An Account Group can be classified as a securitized group of loan or credit receivable accounts. those accounts (in a pool) securing a given tranche may share the same currency and have similar terms (e. The specific approach (refer to entity ACCOUNT GROUP RISK HIST). have different issue and market prices. Some major entities associated with ACCOUNT GROUPs are: ACCOUNT GROUP TYPE This entity contains many ways to classify an Account Group. individual tranches have different maturities and offer different rates of interest. tranche). or as a risk pool. Refer to the logical view Banking -Agreement.Securitization for more information about securitizing bank loans and credit receivables. and be identifiable by a unique number (in the U. ACCOUNT GROUP FEATURE This entity contains terms and conditions for this group of accounts. For example. An AGREEMENT can be in many ACCOUNT GROUPs (ACCOUNT ACCOUNT GROUP). shows one attribute for each metric at the account group level. • Group Accounts because they share similar characteristics and to assign a risk rating (risk pool). and therefore. etc. A tranche is usually defined as part of a uniform capital issue (bond) that is offered for subscription in several installments. under a collateralized mortgage obligation. and major entities that relate to these groups of agreements. The generic approach (refer to entity ACCOUNT GROUP RISK TYPE HIST). Those terms record as an instance of Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-43 ..Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Account Groups This logical view shows how to group AGREEMENTs for various reasons. same maturity and coupon rate). Usually.e. Required attributes may vary based on the purpose of the group. the attribute Acct Grp Default Guarantee Amt may not be required for all account groups. To add a new metric requires adding a new attribute or column to the respective table and thus requires a design change in the underlying physical database. allows for an unlimited number of metrics at the account group level where one instance is one metric. This occurs with retail exposures such as credit cards or consumer loans by banks that use the Basel II Standardized approach for calculating risk.g. it is the CUSIP number).S. For example. if mortgage loans are used to secure one class of debt securities issued (i. Examples of reasons for grouping accounts: • Group loans or receivable accounts for securitization purposes.. To add a metric requires adding a row to the table rather than adding a column. Risk metrics for a group of loan or receivable accounts modeling uses two approaches: a generic approach and a specific approach. It is used by Basel II for balance sheet netting arrangements. This entity represents the assigned grade for that pool. 8-44 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .’ The trading room desk can be responsible for a group of deals (agreements). PARTY ACCOUNT GROUP This associative entity describes the role that a party has with a group of accounts such as ‘is responsible for. second. ACCOUNT GROUP RELATED For Market Risk one group of agreements can be used as a hedge against another group of agreements. The feature will define whether the guarantor bank protects the first. liability balance. Examples of types of limits include ‘gross limit’ (sum of debit balances only) and ‘net limit’ (includes credit balances). ACCOUNT GROUP BAL(ANCE) HIST DD This is a derived summary entity at the account group level. in the group in the event of a default.Teradata Financial Services Logical Data Model Reference Guide Release 09. ledger balance). for the account group and allows any specified type of balance. ACCOUNT GROUP SCORE DD Scores may be related to a group of accounts. or ‘n’ advance). ACCOUNT GROUP RISK GRADE and RISK GRADE VALUE Accounts grouped into risk pools may have a risk grade associated with the pool. or ‘n’ loan advance in the event the borrower defaults. ACCOUNT GROUP LIMIT HIST This entity tracks different credit or risk limits for groups of accounts over time..00. while another bank agrees to provide credit protection (assurance or guarantee) for the first advance (or second advance. This entity relates the groups and specifies the reason for the relationship (Account Group Related Role Cd). It contains various kinds of amounts (e. Another example of features related to Account Groups: a bank has a group of loans advanced (drawn) against a line of credit committed to a single borrower. that are assigned a Probability of Default. cleared balance. asset balance. like risk pools.g.00 FEATURE and relate to the account group in ACCOUNT GROUP FEATURE. Agreement.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Figure 8-14 Banking .Account Groups RISK GRADE VALUE Risk Grade Id FEATURE Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Feature Id Feature Type Cd (FK) Feature Classification Cd (FK) Feature Desc Feature Name Common Feature Name Feature Category Type Cd (FK) Feature Level Cnt AGREEMENT Account Num Account Modifier Num participates in ACCOUNT ACCOUNT GROUP Account Account Account Account Num (FK) Modifier Num (FK) Group Id (FK) Assoc Start Dt Account Assoc End Dt Acct To Acct Group Relat Cd (FK) ACCOUNT GROUP TYPE ASSOC Account Group Id (FK) Account Group Type Cd (FK) Account Group Type Start Dt Account Group Type End Dt ACCOUNT GROUP LIMIT HIST belongs to Account Group Id (FK) Limit Type Cd (FK) Account Group Limit Start Dt Limit Change Reason Cd (FK) Account Group Limit End Dt Account Group Credit Limit Amt has limit history of has risk metrics of Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) describes ACCOUNT GROUP FEATURE Account Group Id (FK) Feature Id (FK) Acct Group Feature Role Cd (FK) Account Group Feature Start Dt Account Group Feature End Dt is value for ACCOUNT GROUP RISK GRADE Account Group Id (FK) Risk Grade Id (FK) Account Group Risk Start Dttm Account Group Risk End Dttm Account Group Next Review Dttm Account Group Risk Rate Dttm ACCOUNT GROUP CRITERION Account Group Id (FK) Selection Criterion Id (FK) contains has characteristics of ACCOUNT GROUP Account Group Id Account Group Name Account Group Desc Account Group Start Dt Account Group End Dt Analytical Model Id (FK) Account Group Reason Type Cd (FK) Parent Account Group Id (FK) Data Source Cd (FK) is defined by Risk Scenario Id (FK) Account Group Id (FK) is related to Grp Loss Given Dflt Rate Grp Prob Default Rate Grp Eff Maturity Cnt Grp Default Guarantee Amt Grp Exposure At Dflt Amt Grp Capital Reqmt Amt is related with Grp Specific Provisn Amt Party Id (FK) Account Group Id (FK) Party Account Group Role Cd (FK) Party Account Group Start Dt has score of Party Account Group End Dt ACCOUNT GROUP SCORE DD is parent of Account Group Id (FK) Analytical Model Id (FK) Model Run Id (FK) Account Group Score Val has risk metrics of has balance history of ACCOUNT GROUP BAL HIST DD ACCOUNT GROUP RELATED Account Group Id (FK) Related Account Group Id (FK) Account Group Related Role Cd (FK) Account Group Related Start Dt Account Group Related End Dt has risk of PARTY ACCOUNT GROUP is responsible by ACCOUNT GROUP RISK HIST Acct Acct Acct Acct Acct Acct Acct Grade Scheme Id (FK) Grade Desc Grade From Val Grade To Val Grade Val Grade Rate Grade Level Num Grade Num Grade Id Start Dttm Grade Id End Dttm Account Group Id (FK) Balance Category Type Cd (FK) Account Group Balance St Dttm ACCOUNT GROUP RISK TYPE HIST Account Group Id (FK) Risk Metric Type Cd (FK) Risk Scenario Id (FK) Account Group Risk Metric Amt Account Group Risk Metric Rate Account Group Risk Metric Cnt Account Group Balance End Dttm Account Group Balance Tm Pd Cd (FK) Account Group Balance Amt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-45 . Collateral Item to Exposure Agmt for further discussion around the association of collateral items to exposures and risk mitigant agreements.Collateral Agmt to Collateral Item. and QUOTE COLLATERAL ASSET. the insurance side is not shown in this diagram (refer to Insurance Extension). the same customer asset. three association entities between customer asset and application. In most cases. RISK MITIGANT AGMT TO ITEM. and Quotations. Applications.Agreement . Refer to sections and model views Banking .00 Asset This view shows relationships between Agreements.Agreement . such as real estate (a building). can be pledged as collateral for one (loan) account and be classified as an insurable interest for another (insurance) account. and Banking . To separate collateral values from insured values. respectively.Teradata Financial Services Logical Data Model Reference Guide Release 09.00. These associations are defined in EXPSR AGMT TO COLLATERAL ITEM. the appraised value of the property (collateral value) may not be the same as the insured property valuation. 8-46 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Assets. APPL COLLATERAL ASSET. and account are subtyped as shown in the diagram. However. quotation. In the world of BancAssurance. Asset AGREEMENT AGREEMENT ASSET Account Num Account Modifier Num Agreement Categ Cd FINANCIAL AGREEMENT Account Num (FK) Account Modifier Num (FK) Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) has asset of Agreement Asset End Dt has agreement of is involved with Quotation Id has led to Risk Review Time Period Cd (FK) Securitization Rate Basel II Asset Class Id (FK) Party Asset Id (FK) Quotation Id (FK) Asset Contract Role Cd (FK) Quotation Asset Start Dt has collateral of Asset Contract Role Cd APPL COLLATERAL ASSET Party Asset Id (FK) Application Id (FK) Asset Contract Role Cd (FK) Application Asset Start Dt (FK) Appl Collateral Asset Amt Acct Crncy Appl Collat Ast Amt EXPSR AGMT TO COLLATERAL ITEM Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Collateral Item Id (FK) Risk Mit Agmt To Item Start Dt Account Modifier Num (FK) Account Num (FK) Collateral Item Id (FK) Asset Contract Role Cd (FK) Agreement Asset Start Dt Risk Mit Agmt To Item End Dt Expsr To Collat Zero Ind QUOTE COLLATERAL ASSET Quotation Id (FK) Party Asset Id (FK) Quotation Asset Start Dt (FK) Asset Contract Role Cd (FK) Quote Collateral Asset Amt Acct Crncy Qte Collat Ast Amt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Quotation Categ Cd (FK) Campaign Id (FK) Quote Status Type Cd (FK) Quote Close Reason Cd (FK) Quote Origin Cd (FK) Application Id (FK) Quotation Amt Current Quote Status Start Dt Quotation Open Dt Quotation Expiration Dt Quotation Close Dt Quote Ceiling Amt Acct Crncy Quote Amt Acct Crncy Ceiling Amt Quote Planned Account Open Dt Quote Planned Account Close Dt Agreement Objective Type Cd (FK) Asset Contract Role Cd QUOTATION ASSET Risk Mitigant Agmt Type Cd (FK) RISK MITIGANT AGMT TO ITEM Application Completed Dt Promo Id (FK) Planned Account Open Dt Application Received Dt Application Signed Dt Product Group Id (FK) Application Type Cd (FK) Document Id (FK) may be subject of MM Object Id (FK) Asset Insurance Hist Type Cd (FK) Asset Type Cd (FK) APPLICATION ASSET Asset Desc Party Asset Id (FK) Asset Acct Num may be subject of Application Id (FK) Asset Next Valuation Dt Asset Contract Role Cd (FK) Asset Next Inspection Dt Application Asset Start Dt Valuation Time Period Cd (FK) Asset Host Id Val Account Num (FK) Account Modifier Num (FK) covers QUOTATION Application Id Party Asset Id FINANCE EXPOSURE AGREEMENT Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) APPLICATION PARTY ASSET Risk Expsr Mitigant Type Cd RISK MITIGANT AGREEMENT Account Num (FK) Account Modifier Num (FK) Asset Contract Role Cd (FK) Party Asset Id (FK) Agreement Asset Start Dt has asset of .Agreement.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Figure 8-15 Banking . . For example. as well as the maximum amount of money that may be automatically transferred during a specified period of time. Account Direct Debits An account holder may sign a preauthorization agreement to authorize electronic debiting of a variable amount of money from an account (AGREEMENT) with the same bank on the designated payment due date (INTERNAL DIRECT DEBIT). it is an amount transferred on a designated date specified by the Party (the creditor) of the receiving bank account (i. The bank electronically transfers funds between two accounts. a prearrangement can be made to instruct the bank to make electronic payments to merchants (e. or an electronic funds transfer. Attributes of INTERNAL DIRECT DEBIT include start and end dates of the period during which direct debits are preauthorized. transact the payment of $100 each month to a health club for monthly membership dues). a fixed amount at a fixed interval is transferred from one account to another account. An account holder may also prearrange automatic transfers of a fixed amount of money from one account (AGREEMENT) to another account held at an external bank (EXTERNAL STANDING ORDER). as well as the maximum amount of money that may be transferred during a specific time period. This entity is specific to banking. or electronic transfer services. reverse wire transfers) are mainly used by banks to collect recurring consumer loan. under an automatic transfer service arrangement (ATS) or a standing order. the amount and the date might vary). In the case of a Direct Debit.. For example. Attributes of EXTERNAL DIRECT DEBIT include start and end dates of the period during which direct debits are preauthorized.g. Electronic Funds Transfers are mainly used by banks for recurring payments of variable amounts. With Standing Orders. or mortgage payments.g.. such as telephone bills and merchant card expenses. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-49 . An account holder may preauthorize transfers of a variable amount of money from one account (AGREEMENT) to an account held outside the bank (EXTERNAL DIRECT DEBIT). This entity is specific to bill payment banking services. This entity is specific to banking. a prearranged funds transfer of $100 each month from a checking account to a savings account for the same customer be execute..Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Account Standing Orders Automatic Payments An account holder may arrange automatic fund transfers of a fixed amount of money from one account (AGREEMENT) to another account at the same bank (INTERNAL STANDING ORDER). Direct Debit payments (e. credit card. This entity is specific to banking and can be used for home banking. bank-by-phone.e. Standing Orders and Direct Debits are somewhat similar as both are relationships between two bank accounts. 00 Figure 8-16 Banking .Automatic Payments INTERNAL STANDING ORDER EXTERNAL STANDING ORDER Business Party Id (FK) Account Num (FK) Account Modifier Num (FK) Ext Order Start Dt External Order Txf Freq Cd (FK) To Account Id Ext Standing Order Due Day Num Ext Standing Order Due Amt Ext Order Currency Cd (FK) Ext Order End Dt AGREEMENT Account Num Account Modifier Num pays INTERNAL DIRECT DEBIT To Account Num (FK) To Account Modifier Num (FK) Account Num (FK) Account Modifier Num (FK) Internal Direct Debit Start Dt Internal Internal Internal Internal Internal 8-50 Debit Time Period Cd (FK) Debit Time Period Num Debit Allowed Amt Debit Currency Cd (FK) Direct Debit End Dt is destination for is source for Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) is source for is destination for Account Num (FK) Account Modifier Num (FK) To Account Num (FK) To Account Modifier Num (FK) Internal Order Start Dt Internal Internal Internal Internal Internal Order Txf Freq Cd (FK) Order Currency Cd (FK) Order Due Day Num Order Due Amt Order End Dt EXTERNAL DIRECT DEBIT has direct debit Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Business Party Id (FK) Account Num (FK) Account Modifier Num (FK) Ext Direct Debit Start Dt Ext Direct Debit Tm Pd Cd (FK) External Account Id Ext Direct Debit Allowed Amt Ext Direct Debit Currency Cd (FK) Ext Debit Time Period Num Ext Direct Debit End Dt .Teradata Financial Services Logical Data Model Reference Guide Release 09.Agreement.00. such as a gas station or florist. can have zero. MOBILE PHONEs.g. which is usually a credit card or checking account. past due). Thus. stolen. active. PURCHASE CARD BUS HIST maintains the relationship over time between purchase cards and Business Types. inactivated) and the reason for the status change (e. ACCESS DEVICEs can be related to other devices (ACCESS DEVICE RELATED). The Party Access Device Role Cd attribute identifies the role the party has with the device such as issuer or holder. If the device is a CARD then the Card Type Cd attribute in CARD is used to identify the particular type of card. ACCESS DEVICEs can be involved in transactional events such as purchases.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Card-Access Device This section identifies relationship between cards and agreements.g. The Access Device Related Type Cd specifies the relationship between the devices such as one device replaces another device or two devices were issued in combination. inquiries and payments on a credit card account. A cardholder AGREEMENT. There may be a set of conditions (FEATUREs) that are valid for this ACCESS DEVICE for this AGREEMENT which are expressed in ACCOUNT ACCESS DEVICE FEATURE. such as DEBIT CARD or CREDIT CARD. Examples include: Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-51 . An ACCESS DEVICE is any valid physical mechanism used to access accounts such as CARDs.. The device can be used with many Agreements. A history of PINs is kept for each device in ACCESS DEVICE PIN HISTORY. Entity ACCESS DEVICE STATUS contains a history of statuses (e. not yet active.. there is a many-tomany relationship between AGREEMENT and ACCESS DEVICE (ACCOUNT ACCESS DEVICE). or withdrawals from a checking or savings account (ACCESS DEVICE EVENT). A particular type of CREDIT CARD known as a PURCHASE CARD can be used for purchases made only at valid merchant categories. The status of an ACCESS DEVICE can change over time. or many access devices (ACCESS DEVICE) associated with it (ACCOUNT ACCESS DEVICE). or key chain CARDs. over limit. one. This information is maintained in the PARTY ACCESS DEVICE entity. also known as business types. A PARTY can be associated with many different devices and a device can be associated with many PARTYs. ACCESS DEVICE LIMIT specifies different limits associated with the device. lost. In addition. there are four instances of PRODUCT FEATURE (a. for two interest rates).00 • • • Device can only be used for purchase types explicitly stated (e. This Card facility may have several subfeatures (PRODUCT FEATURE FEATURE) such as a yearly fee. or monthly limit). These subfeatures are Amount Features. and one or more limits (e. The following describes two Card scenarios and how the information is represented in FS-LDM. we can specify that this account has a Card facility. this PRODUCT has a RATE FEATURE that specifies a standard interest rate. supplies) Device is temporary and will expire in 90 days The standard yearly fee of $20 is $10 for this Device only – separate feature. and b. with the Card Num) to the AGREEMENT.. FS-LDM defines the Debit/Credit Card (Account) as a PRODUCT.g. ACCOUNT ACCESS DEVICE also links the piece of plastic (CARD. These subfeatures are Amount Features. That rate links to the PRODUCT via PRODUCT FEATURE.. choose between specific modeling (and use ACCESS DEVICE LIMIT) and general modeling (use ACCOUNT FEATURE FEATURE. it specifies that the PRODUCT has a Debit Card facility and a Credit Card facility (or whatever the two Card facility types they are). one for positive balances and one for negative balances). the same way as PRODUCT FEATURE FEATURE).g. use the attribute Limit Type Cd. above. and by means of ACCOUNT FEATURE FEATURE. c. For one or more limits as agreed with the customer. So. refer to Simple Case. we can define for instance. and d. for each AGREEMENT. in ACCESS DEVICE LIMIT. daily limit. Simple Case: One Card for one or more Accounts This case is where there is one physical card per account.). one account can have multiple cards with different card numbers. Using two instances of PRODUCT FEATURE (a. transaction limit. the easiest way is to define these limits at the AGREEMENT level by means of ACCOUNT FEATURE FEATURE.Teradata Financial Services Logical Data Model Reference Guide Release 09. 8-52 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . If the same piece of plastic can be used for more than one AGREEMENT and has different limits for each AGREEMENT. specify the yearly fee as agreed with the customer. and b.). In the FS-LDM. and d. For each. This PRODUCT may have two interest rates (e. a Standard Credit Card (Account) as a PRODUCT. The agreed interest rate is specified via ACCOUNT FEATURE.g. There is a simple case of one card for one or more accounts. for two Card facilities. specified by means of two more instances of PRODUCT FEATURE (c. and a more complex case with multiple cards for an account. If there is only one interest rate. it specifies the associated limits and yearly fees via PRODUCT FEATURE FEATURE.. Complex Case: Multiple Cards per Account In this case. In PRODUCT FEATURE we can specify that this PRODUCT has a Card facility (descriptive FEATURE).00. At the AGREEMENT level by means of ACCOUNT FEATURE. For specific modeling.. and the other linked to b.). you can specify that this account has a credit card facility and a debit card facility. choose between specific modeling (use ACCESS DEVICE LIMIT) for each CARD. each with its own Card Num) must link to correct instances of ACCOUNT FEATURE (one to a.) via the ACCOUNT ACCESS DEVICE FEATURE entity. Moreover.) specify the associated yearly fee for each card facility. The agreed interest rates are specified via two additional instances of ACCOUNT FEATURE (c. as agreed with the customer.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Two instances of ACCOUNT FEATURE (a. and d. the other to b.). and general modeling (use ACCOUNT FEATURE FEATURE linked to the associated instance of ACCOUNT FEATURE (a. using two instances of ACCOUNT FEATURE FEATURE (one linked to a. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-53 . The two pieces of plastic (two instances of CARD. or b. and b. at the AGREEMENT level. For one or more limits for each Card facility.)).. If the Card facility is used. if needed. it is specified at the Agreement level. although ACCESS DEVICE LIMIT may still be used.Teradata Financial Services Logical Data Model Reference Guide Release 09. CARD (the piece of plastic) is associated to ACCOUNT FEATURE (not anymore to AGREEMENT). Specifying Card Limits is best done via ACCOUNT FEATURE FEATURE. interest rates can be specified at the Card facility level (PRODUCT FEATURE FEATURE and ACCOUNT FEATURE FEATURE). by means of PRODUCT FEATURE..00 Summary • • • • • • • • 8-54 Specify Card facility as a descriptive feature (optional or mandatory) at the Product level. Piece(s) of plastic are defined in CARD. At the Product level. all characteristics of the Card facility are specified via PRODUCT FEATURE FEATURE. however.00. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . this works also in the simple case. via ACCOUNT FEATURE.g. All details of the Card facility are specified at the Agreement level. via ACCOUNT FEATURE FEATURE. Characteristics that exist at the AGREEMENT level (e. interest rates) are specified at the ACCOUNT FEATURE level. Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Figure 8-17 Banking .Card-Access Device ACCESS DEVICE STATUS ACCESS DEVICE LIMIT ACCESS DEVICE Access Device Status Start Dt Access Device Id (FK) Limit Type Cd (FK) Access Device Id (FK) Access Device Limit Start Dt Access Device Id has status of Access Device Type Cd (FK) Access Device Status Cd (FK) Access Device Status End Dt Access Device Reason Cd (FK) has limit of Access Device Limit End Dt Access Device Limit Val Unit Of Measure Cd (FK) accesses is related to Account Num (FK) Account Modifier Num (FK) Account Access DeviceType Cd (FK) Account Access Device Start Dt Access Device Id (FK) Account Access Device End Dt ACCESS DEVICE PIN HISTORY is related with ACCOUNT ACCESS DEVICE ACCESS DEVICE EVENT Access Device Related End Dt has party of PARTY ACCESS DEVICE Account Num (FK) Account Modifier Num (FK) Account Access DeviceType Cd (FK) Account Access Device Start Dt (FK) Access Device Id (FK) Feature Id (FK) Account Device Feature Strt Dt Access Device PIN Issue Dttm Access Device PIN Mailing Dttm Access Device PIN Reason Cd (FK) Access Device Id (FK) Related Access Device Id (FK) Access Device Related Type Cd (FK) Access Device Related Start Dt is characterized by ACCOUNT ACCESS DEVICE FEATURE Party Id (FK) Access Device Id (FK) Party Access Device Role Cd (FK) Party Access Device Start Dt Party Access Device End Dt MOBILE PHONE Account Device Feature End Dt Access Device Id (FK) Access Device Event Id (FK) was used during Access Device Type Cd Access Access Access Access Access Device Num Device Method Type Cd (FK) Device Verifiy Type Cd (FK) Device Id (FK) Medium Type Cd (FK) CARD Access Device Id (FK) Card Type Cd (FK) Card Association Type Cd (FK) Technology Type Cd (FK) Card Num Expiration Dt Card Issue Dt Card Activation Dt Card Deactivation Dt Card Name DEBIT CARD PURCHASE CARD BUS LIMIT Access Device Id (FK) Org Business Type Cd (FK) Pcard Bus Type Start Dt (FK) Pcard Bus Limit Start Dt Access Device Id (FK) Pcard Bus Type Limit Amt Pcard Bus Limit End Dt Currency Cd (FK) Access Device PIN Num Access Device Id (FK) has pin of ACCESS DEVICE RELATED has limit of CREDIT CARD Access Device Id (FK) Credit Card Type Cd (FK) Credit Card Type Cd PURCHASE CARD BUS HIST Org Business Type Cd (FK) Pcard Bus Type Start Dt Access Device Id (FK) Card Type Cd may or may not be used for Pcard Bus Type End Dt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret PURCHASE CARD Access Device Id (FK) Purchase Type Cd (FK) 8-55 .Agreement. 00.g.g. house or inventory) that may be the subject of Risk Mitigant Agreement and that provide protection – called Assets (Asset) • ‘H’ refers to Haircuts that are adjustments to the value of the collateral. The bank needs to know the following about credit risk mitigants that are collateral: • What is the value of the collateral asset over time? • How much of the exposure is covered by the collateral asset? • Which collateral assets cover what exposures? – an exposure can be covered by many collateral assets and a collateral asset can cover many exposures • Who are the parties that have a claim to that collateral asset and how much is the claim? • What is the seniority of the claim to that collateral asset compared with other claims (e. Other risk mitigation techniques include third party guarantees.)? • Haircuts – mismatches in currency or maturity date between the collateral asset and the exposure it is collateralizing • Inspection and insurance information about the asset • Classifications of the assets i. 8-56 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09. loans) and agreements that reduce credit risk (e.. third. such as loans – called ‘Exposure Agreements’ (EA) • Agreements that reduce risk such as collateral agreements – called ‘Risk Mitigant Agreements’ (RMA) • Assets (e.g... credit derivatives.. Relationship between Risk Mitigants and Risk Exposures Figure 8-18 depicts the relationship between exposures and risk mitigants: • Agreements that create risk. collateral agreements).g. second. there are agreements that create credit risk (e. first. and netting agreements. etc. from Basel perspective that drives Basel calculations.e.00 Collateral and Risk Mitigation This section discusses collateral and other risk mitigants that are used to reduce the credit risk of agreements that create exposures. securitization. Business Background In banking.. Collateral is not the only mitigation technique to reduce credit risk created by loans and other exposures. Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Figure 8-18 Banking .Risk Mitigant Agreement . Hence. securitization. which will make it simpler. house. With Exposure Agreements. credit cards. These assets may be held outside the financial institution or may be held inside the financial institution such as deposits and securities held in accounts at your bank. third party guarantees. credit derivatives.g.Agreement. loans..Exposure Agreement Relationships H PA PA Asset CA CA RMA H H Collateral Item EA EA EA H Risk Mitigant Agreement including Collateral Agreements Exposure Agreement Exposure Agreement (EA) is any agreement that creates risk and includes mortgages. Assets are pledged items that have value as collateral and can be collected by the financial institution in the event a default occurs from the exposure agreement. cash or securities). the following conditions could exist: Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-57 . An important point to note is that the Asset relates to the Exposure Agreement through Collateral Agreement. and netting agreements. These asset items can be physical (e. Risk Mitigant Agreements and Assets can be a many-to-many relationship. Your rules may be one-to-many. A Risk Mitigant Agreement (RMA) is an agreement to reduce risk and includes collateral agreements. letters of credit. lending facilities. although this will depend on the rules of your bank. leases.. inventory) or can be financial (e. lines of credit. and purchased receivables. car.g. but you need to allow for future possibilities. which is a type of Risk Mitigant Agreement. A Collateral Agreement is like any other kind of agreement with terms and conditions. your institution is taking on credit risk – the risk that another party will not meet its credit obligation to you per the terms and conditions of the agreement. third party letters of credit. Each of the relationships in Figure 8-18 between Exposure Agreements. Collateral Agreements are legal documents that specify the agreement between the obligor and the lending bank as to how that asset can be used for collateral should the obligor default. FS-LDM design features assume many-tomany for all these relationships – the most complex case. These deductions. the size of the haircut is usually based on the volatility of the security.00 Many-to-many between Asset and Risk Mitigant Agreement: • One Asset (e. If the collateral is a security instrument..’ appear as ‘H’ in Figure 8-18. and if that asset is collateral for Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Maturity mismatch haircuts – if the asset has a maturity date (e. and market liquidity. Many-to-many between Risk Mitigant Agreement and Exposure Agreement: • A Risk Mitigant Agreement could apply to many Exposure Agreements. a deduction is made to the value of the asset to compensate. it can be because of currency or time mismatches between the asset and the exposure.g. Likewise. Collateral) Agreements. the expected holding period.. if the asset is in one currency and the exposure is in another currency. haircuts may occur due to the volatility of exchange rates. ‘H’ in Figure 8-18 shows where haircuts apply. Many-to-many between Asset and Exposure Agreement: • There is also a relationship between the Asset and the Exposure Agreement to calculate mismatches between the asset and the exposure regarding currency and maturity dates.g..g. When this happens. • A Collateral Agreement could have many Assets (e. It can also be for other reasons and occurs at various levels in the data model.. loan in a different currency). called ‘haircuts. The asset’s value is split between collateral agreements. A portion of the Risk Mitigant Agreement’s total value could cover a given loan. We call this the ‘collateralized portion’. It is possible for a big loan to be covered by multiple agreements including collateral agreements and guarantees. which is the portion of the exposure that is covered by this Risk Mitigant Agreement. if the asset expires before the exposure. the value of the asset is adjusted due to the mismatch between the currency of the exposure and the currency of the asset. bond or certificate of deposit).Teradata Financial Services Logical Data Model Reference Guide Release 09. Just mentioned.00. Haircuts are adjustments to the value of the collateral item for various reasons and are necessary when calculating risk metrics such as Loss Given Default. the currency of the collateralized asset may be different from the currency of the exposure. For example. jet airplane) could be the subject of many Risk Mitigant (e.g. many jet airplanes) that are pledged as collateral as part of this collateral agreement. and if this asset is pledged as collateral for an exposure that is also a financial instrument (e. • An Exposure Agreement could be covered by multiple Risk Mitigant Agreements. • • 8-58 Currency mismatch haircuts – If an asset is a negotiable financial instrument denominated in a specific currency..g. a deduction (haircut) is made to the value of the asset as it relates to the exposure it is covering. If the asset is foreign currency. Haircuts give the bank additional protection from a reduction in the value of the collateral held during the life of the agreement being collateralized. a maturity mismatch exists. the Collateral Agreement and the Exposure Agreement (loan). but you would still need to create a Collateral Agreement entity. • Loan B is partially covered by Collateral Agreements A and B. showing the covered portion in the Asset-Exposure Agreement associative entity. When this happens. you will find collateral agreements. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-59 . which represents the collateralized portion. If you do eliminate the Collateral Agreement entity you will need to capture the exposure coverage for third party guarantees and letters of credit that are not associated with an asset but that are risk mitigant agreements. • Collateral Agreement A has two assets and covers Loans A and B. Keep in mind that Collateral Agreements are real legal documents that exist in the business and have an identity with a beginning and an end.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area an exposure that also has a maturity date for when loan principal is due and payable (e. • Loan A is not fully collateralized. Figure 8-19 shows overlap and many-to-many relationship possibilities between the Collateral Item asset (jet airplane). commercial loan). If this is not an issue. and Exposure Agreement tend to be one-to-one.. If you eliminate the Collateral Agreement you lose the rules that tell you how to apply the asset values to the exposures they are covering. and if those maturity dates are different (e. • Loan A is partially covered by Collateral Agreement A. For larger and more complex commercial lending however. asset matures before the exposure). Collateral Item. Keeping the Collateral Agreement may be important for regulatory reporting purposes and to show traceability from the collateral agreement to the calculations. • Loan B is not fully collateralized. the value of the asset is adjusted due to this mismatch. although they may not have been recorded electronically. Customization Note: You may be tempted to eliminate the Collateral Agreement and have all the relationships between the Asset and the Exposure Agreement as many-to-many. Collateral Agreements are more commonly found in commercial lending than retail lending. Meet with risk personnel in your company to understand the implications. and therefore the IT department may not know about them. You need to know all the risk mitigants that protect an exposure whether they are inside or outside your bank. In retail lending the relationships between Collateral Agreement.g..g. • Asset Jet Airplane 1 splits between Collateral Agreements A and B. which together represent the collateralized portion. another choice may be to have a nonidentifying relationship between the Asset-Exposure associative entity and a Collateral Agreement entity. Teradata Financial Services Logical Data Model Reference Guide Release 09. For example. if you open up a mortgage. your collateral is your house.Loan. Collateral becomes subject to seizure on default.com Barron’s Dictionary of Banking Terms Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00. An exposure in this context is ‘the bank’s risk of suffering a loss when it credits a customer’s account before funds are collected from the payer. Collateral is a form of security to the lender in case the borrower fails to pay back the loan. It specifies the agreement between the obligor and the bank for use of that asset should the obligor default.Agreement. Banks enter into agreements to mitigate risk from exposures created from other agreements such as loans. the securities in your investment account act as collateral in the case of a margin call. Risk mitigants can include: • Collateral • Third party guarantees • Third party letters of credit • Netting agreements • Credit derivatives • Securitization sell agreements Collateral is defined ‘Property or assets that are offered to secure a loan or other credit. The bank will file 1 2 8-60 Investopedia. Collateral Agreement. In margin trading.00 Figure 8-19 Banking .’ 2 A Collateral Agreement is a legal document signed by the collateral provider and the bank. there are agreements that create risk exposure.’ 1 Within the banking enterprise. and Collateral Item Overlaps Loan Collateral Loan Agmt A Collateral Agmt B Jet Airplane 2 Jet Airplane 1 Risk Mitigant Types Risk mitigation is accomplished in many ways. as capital charges on individual transactions (agreements) could be reduced.g. and the value of the portion of the asset that is collateralizing the exposure. Thus. Other types of agreements can mitigate risk. its location and condition. This may allow them to deploy capital elsewhere.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area a lien in the public records office giving the bank a claim or priority over other creditors to that asset. another institution is promising to pay if your customer defaults. These include: • Third party guarantees – a three-party agreement whereby another party promises to fulfill the obligation of a person owing a debt if that party fails to perform. The Basel Capital Accord sets minimum capital standards for internationally active banks. or other exposure and how those assets are used to cover the exposure. two banks owing each other money will settle on the net amount. fair market value. it is important to understand the value of the collateral. Relevant information about the asset pledged as collateral includes its value(s) over time (i. and future value). Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-61 . all agreements the collateral may be pledged against (inside or outside your institution). This reduces risk in the sense that the amount your bank owes the other party reduces the size of your exposure if the other party should default. It allows collateral to offset a bank’s capital requirements according to certain rules.e. Many national regulators have adopted the guidelines set by the Accord. For many banks. Assets inside or outside the bank can be used as collateral.. replacement cost. lease. Collateral pledged may also cover multiple credit agreements and your institution may or may not be the lender for those exposure agreements. For credit risk calculation purposes. your bank is selling the exposures (e. its currency. The Collateral Agreement lists the assets pledged against a specific loan. • Securitization Sell Agreement – if your bank is the seller. haircuts.. this has made collateralization an interesting proposition. This is an agreement between your bank and the other institution to cover the debt of your obligor. • Netting Agreement – is a written contract to settle a mutual obligation at a net value owing to each other. loans) to other parties. the exposure being collateralized. relevant parties to the collateral. This also includes third party letters of credit offered by other institutions covering your exposures. Refer to the Securitization section of this guide. and allow them to price more competitively. This includes cash held in deposit accounts and securities held in investment accounts at the bank. appraisal value. as collateral can reduce the amount of capital a bank must maintain. and the portion of collateral value pledged against each exposure. In this context. g. Credit derivatives allow one to separate the trade of credit risk from the trade of the underlying assets themselves. Institution A pays Your Bank the amount of the loss.Teradata Financial Services Logical Data Model Reference Guide Release 09. – The protection seller who sells the credit derivative – The protection buyer (e. Credit derivatives can consist of one underlying asset or a pool of assets or baskets of assets. Institution A receives the cash flow from that loan and Institution A pays Your Bank a fixed stream of payments.. 8-62 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . In a basket of assets. In this case.g. the SPV pays the loss to the protection buyer and the investors get only the amount recovered. there are several types of parties: protection seller. The entity selling the protection needs a high rating because it issues notes to investors who will bear the credit risk. A Special Purpose Vehicle (SPV) or trust entity is created by the issuer of the CLN and notes are issued from the SPV to investors. a premium. – A Credit Linked Note (CLN) – is a tangible tradable hedging instrument and starts with a Credit Default Swap. The SPV issues notes to the investors and invests the proceeds in risk-free assets that serve as collateral and pays the interest to the investors. These are total returns in that interest and capital appreciation/depreciation are exchanged. Institution A takes on the risk if Customer B defaults.00 • Credit Derivatives – a negotiable bilateral contract whereby one party can transfer credit risk to another party. SPV (protection seller) and investors. There are three kinds of Credit Derivatives. This agreement is a Credit Default Swap. the first to default triggers the credit event and the derivative pay out. For example.. The event that triggers the payoff by the protector would be default on the underlying instrument. In the event of default. Your Bank has an agreement with Institution A to provide insurance in the event Customer B defaults. For example. If Customer B defaults. Your Bank pays Institution A. Your Bank has loaned money to Customer B. – A Credit Default Swap is a hedging instrument where the protection buyer pays the seller a fixed regular fee (similar to insurance premium) and the seller of protection provides the buyer with a payment in the event of a loss from default of the underlying asset (similar to claim payout).00. loan) for protection against default. – A Total Return Swap is a swap of the principal and interest on an asset (e. Institution A takes on the risk of the default. Credit Derivatives are off balance sheet items. There are two types of parties to a Credit Derivative. Credit Derivatives are also known as Synthetic Securitization. the lending bank) pays a premium or fee to the protection seller in exchange for the protection. and is organized as follows: • Conceptual Level Overview of Credit Risk Mitigation • Detailed Logical Model Views of Credit Risk Mitigation – Collateral Items – Risk Mitigant Agreements – Risk Mitigant Agreement to Exposure Agreement – Risk Mitigant Agreement to Collateral Item – Collateral Item to Exposure Agreement – Collateral Seniority – Collateral Value and Haircuts – Haircuts and Adjustments Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-63 .Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Risk Mitigation and the FS-LDM This section shows how risk mitigation is represented in FS-LDM. In FS-LDM any agreement that can mitigate risk is called a RISK MITIGANT AGREEMENT and is represented as a subtype entity to FINANCIAL AGREEMENT. which is a subtype to AGREEMENT. your institution. for example between institutions that have a claim on the same asset.00.Risk Mitigation This section takes the business concepts discussed previously and shows how they are represented in the FS-LDM. Haircut adjustments are recorded for collateral for various reasons including mismatches between the terms and conditions of the exposure and the terms and conditions of the risk mitigant (e. The asset can actually be assets held outside the bank (e. EXPOSURE AGREEMENT and RISK MITIGANT AGREEMENT are exclusive subtypes to FINANCIAL AGREEMENT. This is a conceptual level overview of risk mitigation. Terms and conditions to any of the aforementioned agreements are represented in ACCOUNT FEATURE. This means that a financial agreement that creates an exposure cannot also mitigate an exposure – it cannot be both. These can include the obligors.g. The relationship between agreements that create exposure and agreements that mitigate exposure are represented in ACCT ACCT RELATIONSHIP. protection providers. Parties to the AGREEMENT are represented in ACCOUNT PARTY.Teradata Financial Services Logical Data Model Reference Guide Release 09. The COLLATERAL ITEM entity is an abstraction of internal and external assets pledged as collateral. which is a subtype of AGREEMENT.. relates exposure agreements to risk mitigant agreements.g. RISK MITIGANT AGMT RELATED relates risk mitigant agreements to other risk mitigant agreements to understand seniority level of one over the other. In FS-LDM any agreement that creates an exposure is called a FINANCE EXPOSURE AGREEMENT and is represented as a subtype entity to FINANCIAL AGREEMENT. collateral). 8-64 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . and other institutions. This abstracted entity allows us to simplify the relationships between anything used as collateral (internal or external) with the exposure it is covering.g. deposit accounts or securities in investment accounts).00 Conceptual Level Overview . subtype to ACCT ACCT RELATIONSHIP. In FS-LDM the Asset is referred to as the COLLATERAL ITEM... house) or it can be assets held in accounts at the bank (e. which is a subtype of AGREEMENT. Entity EXPSR AGMT TO RISK MTGNT AGMT. Collateral Overview has value adjustments of COLLATERAL ITEM ADJUST HIST has coverage of covers AGMT AGMT CLASS ASSOC COLLATERAL AGMT COVERAGE RISK MITIGANT AGMT TO ITEM is subject of is related with is parent of may be a is classification value for PARTY ASSET PRICE SENSITIVITY PORTFOLIO PRODUCT HOLDING COLLATERAL ITEM has market sensitivity of protects PARTY ASSET CLASS VALUE Collateral Item Type Cd ACCT ACCT RELATIONSHIP may be a PORTFOLIO COLLATERAL ITEM has value history of may be a has internal identifier of ASSET COLLATERAL ITEM classifies PARTY ASSET INTERNAL ID has adjustment of Risk Expsr Mitigant Type Cd BASEL COLLATERAL HAIRCUT PARAM PARTY ASSET ASSET VALUE HIST FINANCIAL AGREEMENT has Basel parameter of has agreement of AGREEMENT ASSET Agreement Categ Cd is parent of AGREEMENT COLLATERAL ITEM has asset of is related to has adjustment rule of AGMT CLASS ADJUSTMENT PARAM has value of has risk metric of AGREEMENT AGREEMENT CLASS VALUE COLLATERAL ITEM CLASS ASSOC COLLATERAL ITEM RISK METRIC is classified as classifies is classified as COLLATERAL ITEM VALUE is classified as PARTY ASSET CLASS ASSOC Acct Relationship Type Cd EXPSR AGMT TO RISK MTGNT AGMT FINANCIAL AGMT ADJUSTMENT has collateralization of RISK MITIGANT AGMT RELATED RISK MITIGANT AGREEMENT COLLATERALIZED EXPOSURE has loss given default rule of BASEL II MINIMUM LGD PARAM EXPSR AGMT TO COLLATERAL ITEM may have has value of Risk Mitigant Agmt Type Cd RISK MTGNT AGMT SENIORITY HIST has adjustments of EXPOSURE AGMT ASSET VALUE HIST THIRD PARTY COLLATERAL CLAIM COLLATIZED EXPSR ADJUSTMENT THIRD PARTY GUARANTEE AGMT COLLATERAL AGREEMENT FINANCE EXPOSURE AGREEMENT has collateral of Collateral Agreement Type Cd PARTY ASSET AS COLLATERAL AGMT has adjustments of CUSTOMER ACCT AS COLLAT AGMT Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret EXPSR AGMT ASSET VAL ADJ HIST .Agreement.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Figure 8-20 Banking . . The entity COLLATERAL ITEM is a higher level of abstraction from three other entities: PARTY ASSET. the holding period is the number of days this collateral item can be held before it is disposed of. automobile. all of which can be collateral. Collateral items may be grouped and that group may have a limit as to the amount that can be pledged as collateral (COLLATERAL ITEM GROUP). loan).g. time deposit account.g.g. Subtype entities AGREEMENT COLLATERAL ITEM.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Collateral Item A Collateral Item is any financial or physical asset that can be used for risk mitigation purposes such as collateral for a loan. It could also be an asset that is held in an account by the bank such as securities or time deposit.. cash deposit or investment outside a portfolio). debt instrument with AAA rating. For example. These classifications can be used to calculate risk. In the FS-LDM. This is of interest when doing Basel II calculations. This limit would be used by the collateral allocation process. For example. and PORTFOLIO PRODUCT HOLDING. The value of a Collateral Item before and after haircut adjustments is in COLLATERAL ITEM VALUE. COLLATERAL ITEM RISK METRIC contains calculated metrics for this Collateral Item. and PORTFOLIO COLLATERAL ITEM contain the relationships to the entities that are collateral. or a PARTY ASSET (e. ASSET COLLATERAL ITEM. AGREEMENT.. a COLLATERAL ITEM is either an AGREEMENT (e. or inventory. house or inventory). it may be classified as real estate. These assets are held by the obligors and are pledged as collateral for a loan or other agreement that creates credit risk exposure. The entity COLLATERAL ITEM CLASS ASSOC classifies a Collateral Item many ways. The Collateral Item could be an asset that is held outside the bank such as real estate or an automobile. It was created for Risk Management purposes where any of these assets (external or internal) could be used as collateral for a loan or other customer exposure. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-67 . or an investment held in a Portfolio (PORTFOLIO PRODUCT HOLDING). These Collateral Items are often hedges to reduce the exposure from another agreement (e. as designated by the Collateral Item Type Cd.. Collateral Item COLLATERAL ITEM CLASS ASSOC Collateral Item Id (FK) Party Asset Class Cd (FK) Collateral Item Class Start Dt COLLATERAL ITEM GROUPED Collateral Item Id (FK) Collateral Item Group Id (FK) is grouped into Collat Item Grouped Start Dt Collat Item Grouped End Dt Party Asset Value Cd (FK) Collateral Item Class End Dt COLLATERAL ITEM COLLATERAL ITEM VALUE is classified as Collateral Item Id consists of Collateral Item Id (FK) Asset Valuation Amount Cd (FK) Risk Scenario Id (FK) has value of Collateral Item Type Cd (FK) Collateral Item Host Id has status of COLLATERAL ITEM GROUP Collateral Item Group Id Collateral Item Type Cd Collateral Item Group Name Collaterral Item Grp Limit Amt Collateral Item Group Start Dt Collateral Item Group End Dt COLLATERAL ITEM STATUS Collateral Item Id (FK) Collateral Item Status Cd (FK) Collat Item Status Start Dt Collat Item Status End Dt has risk metric of Collateral Item Value End Dt Collateral Item Eval Party Id (FK) Collateral Item Total Adj Amt Asset Crncy Item Total Adj Amt Collateral Item Post Adj Amt Asset Crncy Item Post Adj Amt Collateral Post Matur Adj Amt Asset Crncy Post Matur Adj Amt Collateral Item Pre Adj Amt Asset Crncy Item Pre Adj Amt Z Z COLLATERAL ITEM RISK METRIC Collateral Item Id (FK) Collateral Item Metric Calc Dt Est Holding Period Day Num Actual Holding Period Day Num Collat Item Eff Maturity Cnt Remargining Frequency Cd (FK) AGREEMENT COLLATERAL ITEM Collateral Item Id (FK) Account Num (FK) Account Modifier Num (FK) Z PORTFOLIO COLLATERAL ITEM Z Collateral Item Id (FK) Investment Product Id (FK) Portfolio Product Start Dttm (FK) Portfolio Id (FK) Account Num (FK) Account Modifier Num (FK) Account Portfolio Rel Cd (FK) Account Portfolio Start Dttm (FK) ASSET COLLATERAL ITEM Collateral Item Id (FK) Party Asset Id (FK) Z may be a may be a may be a AGREEMENT PORTFOLIO PRODUCT HOLDING Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) 8-68 Z Investment Product Id (FK) Account Num (FK) Account Modifier Num (FK) Portfolio Id (FK) Account Portfolio Rel Cd (FK) Account Portfolio Start Dttm (FK) Portfolio Product Start Dttm Portfolio Product End Dttm Investment Pct Portfolio Product Currency Cd (FK) Position Type Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret PARTY ASSET Party Asset Id MM Object Id (FK) Asset Insurance Hist Type Cd (FK) Asset Type Cd (FK) Asset Desc Asset Acct Num Asset Next Valuation Dt Asset Next Inspection Dt Valuation Time Period Cd (FK) Asset Host Id Val .Teradata Financial Services Logical Data Model Reference Guide Release 09.Agreement.00.00 Figure 8-21 Banking . A FINANCE EXPOSURE AGREEMENT can have multiple types of risk. a CREDIT DERIVATIVE AGREEMENT. that the issuer will default. leases. your institution may also have counterparty exposure to investment types of agreements. The subtypes to FINANCIAL AGREEMENT are product-oriented subtypes. facilities. The following logical view shows that an AGREEMENT may be a FINANCIAL AGREEMENT (as opposed to an insurance agreement or brokerage account). and purchased receivables that are shown as subtypes. current account. lines of credit. and letters of credit. credit cards. Your institution may have other kinds of risk mitigant agreements. A FINANCING AGREEMENT has a lending aspect to it and includes loans (term transaction/credit card). Please refer to the Business Background in this section for descriptions of these types of agreements. which can be added as subtypes to this model. The terms and conditions of the agreements are represented as instances of ACCOUNT FEATURE. a NETTING AGREEMENT. that the stock value will fluctuate. For example. purchased receivables. Facilities in this context are high-level loans or lines of credit where each draw on that line of credit is treated as a separate loan or agreement. Examples include loans. Another way to classify a FINANCIAL AGREEMENT is along product lines. Risk Mitigant Agreements and the FS-LDM Risk Mitigant Agreements are agreements that reduce the risk created by a Finance Exposure Agreement. In addition to financing types of agreements that carry exposure. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-69 . an investment in stock has both a credit risk. Referring to the following diagram a RISK MITIGANT AGREEMENT is a type of FINANCIAL AGREEMENT. which is a type of AGREEMENT. You are not limited to these types of exposures. Loan term accounts include mortgages and personal loans with a termination date. and a market risk. mortgages. which may vary by institution. A RISK MITIGANT AGREEMENT can be a COLLATERAL AGREEMENT. a THIRD PARTY GUARANTEE AGMT. or a SECURITIZATION SELL AGREEMENT. These structures are used when understanding collateralization.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Risk Mitigant Agreement Exposure Agreements are agreements that create an exposure to credit risk. Entity FINANCE EXPOSURE RISK TYPE allows an exposure to have many types of risk. One way to classify a FINANCIAL AGREEMENT is whether it creates risk (FINANCE EXPOSURE AGREEMENT) or mitigates risk (RISK MITIGANT AGREEMENT). Teradata Financial Services Logical Data Model Reference Guide Release 09. It is important for your institution to understand all claims against that collateral item. we can discuss the relationship between these two concepts.00. 8-70 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . It is possible for a third party like another financial institution to have a claim against a collateral item that your customer is also using as collateral for one of your exposures. Optionally. a CREDIT DEFAULT SWAP. Terms and conditions such as payment rates and notional amounts are specified in ACCOUNT FEATURE. Exposure Agreements as they Relate to Risk Mitigant Agreements Now that we have defined what a Risk Mitigant Agreement and an Exposure Agreement are. or a TOTAL RATE OF RETURN SWAP. these attributes could be specified in subtype entities. THIRD PARTY COLLATERAL CLAIM records agreements for collateral items between the third party and your customer.00 If the agreement is a CREDIT DERIVATIVE AGREEMENT then it could also be a CREDIT LINKED NOTES. Risk Mitigant Agreement AGREEMENT Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) Agreement Categ Cd FINANCIAL AGREEMENT Account Num (FK) Account Modifier Num (FK) Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) Risk Expsr Mitigant Type Cd FINANCE EXPOSURE AGREEMENT RISK MITIGANT AGREEMENT TYPE Account Num (FK) Account Modifier Num (FK) RISK MITIGANT AGREEMENT Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Risk Review Time Period Cd (FK) Securitization Rate Basel II Asset Class Id (FK) is type for Risk Mitigant Agmt Type Cd Risk Mitigant Agmt Type Desc Risk Mitigant Dbl Deflt Ind Risk Mitigant Agmt Type Cd (FK) THIRD PARTY GUARANTEE AGMT NETTING AGREEMENT Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Risk Mitigant Agmt Type Cd Third Party Guarantee Max Amt Third Party Guarantee Cd (FK) Netting Agreement Type Cd (FK) THIRD PARTY COLLATERAL CLAIM CREDIT DERIVATIVE AGREEMENT Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Credit Derivative Type Cd (FK) COLLATERAL AGREEMENT Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Collateral Agreement Type Cd (FK) Maximum Collateral Amt Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) SECURITIZATION SELL AGREEMENT Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Clean Up Call Exercise Dt Clean Up Call Amt Original Securitized Amt Gain On Sale Amt Credit Derivative Type Cd TOTAL RATE OF RETURN SWAP CREDIT LINKED NOTES Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) CREDIT DEFAULT SWAP Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-71 .Agreement.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Figure 8-22 Banking . it can include any kind of risk mitigation technique. In the following logical view. the loss given default for this collateralized exposure and the risk weight. A risk mitigant agreement can cover many exposure agreements. collateral or guarantee agreement) EA = Exposure Agreement (e. netting agreements. There are metrics over time that describe this relationship in COLLATERALIZED EXPOSURE that contains information such as the collateralized exposure amount.g. loan or investment) In a prior section we discussed how collateral agreements.Teradata Financial Services Logical Data Model Reference Guide Release 09.g. 8-72 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .. and an exposure agreement can be covered by many risk mitigant agreements. third party guarantee agreements.Exposure Agreements Related to Risk Mitigant Agreements Mitigant Agreement Type H PA PA Asset CA CA RMA H EA EA EA H Collateral Item H Risk Mitigant Agreement including Collateral Agreements Exposure Agreement Asset = Collateral Item RMA = Risk Mitigant Agreement (e. Even though the attributes refer to collateral.. and credit derivative agreements are abstracted in a single entity called RISK MITIGANT AGREEMENT to contain all of the types of agreements.00 Figure 8-23 Banking .00. this many-to-many situation is resolved by entity EXPSR AGMT TO RISK MTGNT AGMT. Agreement.Risk Mitigant Agmt to Exposure Agmt AGREEMENT Account Num Account Modifier Num Agreement Categ Cd FINANCIAL AGREEMENT Account Num (FK) Account Modifier Num (FK) Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) ACCT ACCT RELATIONSHIP Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) is related to is related with Acct Acct Relationship End Dt Exposure Account Num (FK) Exposure Account Modifier Num (FK) Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Acct Relationship Type Cd (FK) Acct Acct Relationship St Dt (FK) Risk Scenario Id (FK) Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Risk Mitigant Agmt Type Cd (FK) Collatized Exposure Amt Collatized Exposure LGD Rate Collatized Prob Default Rate Collatized Risk Weight Rate Collatized RWA Amt Seniority Level Cd (FK) Risk Grade Id (FK) Account Num (FK) Account Modifier Num (FK) has exposure risk of Exposure Account Num (FK) Exposure Account Modifier Num (FK) Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Acct Relationship Type Cd (FK) Acct Acct Relationship St Dt (FK) COLLATERALIZED EXPOSURE RISK MITIGANT AGREEMENT Risk Review Time Period Cd (FK) Securitization Rate Basel II Asset Class Id (FK) Acct Relationship Type Cd EXPSR AGMT TO RISK MTGNT AGMT has collateralization of Risk Expsr Mitigant Type Cd FINANCE EXPOSURE AGREEMENT Account Num (FK) Account Modifier Num (FK) Related Account Num (FK) Related Account Modifier Num (FK) Acct Relationship Type Cd (FK) Acct Acct Relationship St Dt FINANCE EXPOSURE RISK TYPE Risk Type Cd (FK) Account Modifier Num (FK) Account Num (FK) has adjustments of COLLATIZED EXPSR ADJUSTMENT Exposure Account Num (FK) Exposure Account Modifier Num (FK) Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Acct Relationship Type Cd (FK) Acct Acct Relationship St Dt (FK) Risk Scenario Id (FK) Risk Adjustment Metric Type Cd (FK) Collatized Portion Adjust Rate Collatized Portion Adjust Amt Collatized Portion Adjust Cnt Risk Adjustment Reason Type Cd (FK) describes BASEL II ASSET CLASS Basel II Asset Class Id (FK) BASEL II ASSET CLASS GROUP is composed of Basel II Asset Class Group Id (FK) Basel II Asset Class Group Id (FK) Haircut Adj Formula Type Cd Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-73 .Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Figure 8-24 Banking . then collateral could be multiple jet airplanes. The following diagram shows entity RISK MITIGANT AGMT TO ITEM. which resolves the many-to-many relationship between the Collateral Item (Asset) and the Risk Mitigant Agreement. if the exposure for the loan is an airline. One jet airplane could also cover multiple loans. Metrics over time for this relationship are contained in COLLATERAL AGMT COVERAGE and include the coverage amount for that asset for that risk mitigant agreement.Teradata Financial Services Logical Data Model Reference Guide Release 09. For example.00 Risk Mitigant Agreements as they relate to Collateral Item An asset can be collateral for many risk mitigant agreements.Risk Mitigant Agreement Related to Collateral Item H PA PA Asset CA CA RMA H H 8-74 EA EA EA H Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00. A risk mitigant agreement can also have multiple assets that are collateral. Figure 8-25 Banking . Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Figure 8-26 Banking .y Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-75 .Agreement.Risk Mitigant Agmt to Collateral Item RISK MITIGANT AGREEMENT Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Risk Mitigant Agmt Type Cd (FK) covers RISK MITIGANT AGMT TO ITEM Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Collateral Item Id (FK) Risk Mit Agmt To Item Start Dt Risk Mit Agmt To Item End Dt is subject of COLLATERAL ITEM Collateral Item Id Collateral Item Type Cd (FK) Collateral Item Host Id has coverage of COLLATERAL AGMT COVERAGE Risk Mitigant Account Mod Num (FK) Risk Mitigant Account Num (FK) Collateral Item Id (FK) Risk Mit Agmt To Item Start Dt (FK) Collateral Coverage Start Dt Collateral Coverage End Dt Collateral Agmt Covered Amt Asset Crncy Agmt Covered Amt Collateral Agmt Covered Qt. over time. 8-76 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . if the collateral asset is a bond that expires prior to the loan. which contains values before and after haircut adjustments. adjustments to the asset value are made. Likewise. If the exposure and asset are in different currencies. are contained in EXPOSURE AGMT ASSET VALUE HIST. This relationship exists to contain adjustments that must be made to the value of the asset because of mismatches between the asset and the exposure with regard to currency and expiration date. The adjustments are itemized in EXPSR AGMT ASSET VAL ADJ HIST. Metrics about the COLLATERAL ITEM as it relates to the exposure it is covering are in EXPOSURE AGMT ASSET VALUE HIST.00.00 Asset as it Relates to Exposure Agreement There is also a many-to-many relationship between the Exposure Agreement and the Asset at these abstracted levels (EXPSR AGMT TO COLLATERAL ITEM). adjustments must be made. These adjustments.Teradata Financial Services Logical Data Model Reference Guide Release 09. Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Figure 8-27 Banking .Agreement.Collateral Item to Exposure Agmt EXPSR AGMT ASSET VAL ADJ HIST Account Modifier Num (FK) Account Num (FK) Collateral Item Id (FK) Asset Contract Role Cd (FK) Risk Scenario Id (FK) Agreement Asset Start Dt (FK) Risk Adjustment Metric Type Cd (FK) AGREEMENT Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) Agmt Asset Value Adj Amt Asset Crncy Asset Adj Amt Agmt Asset Value Adj Rate Agmt Asset Value Adj Cnt Risk Adjustment Reason Type Cd (FK) Agreement Categ Cd Z has adjustments of FINANCIAL AGREEMENT Account Num (FK) Account Modifier Num (FK) EXPOSURE AGMT ASSET VALUE HIST Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) Risk Expsr Mitigant Type Cd Z FINANCE EXPOSURE AGREEMENT Account Num (FK) Account Modifier Num (FK) Risk Review Time Period Cd (FK) Securitization Rate Basel II Asset Class Id (FK) has collateral of Account Num (FK) Account Modifier Num (FK) Collateral Item Id (FK) Asset Contract Role Cd (FK) Risk Scenario Id (FK) Agreement Asset Start Dt (FK) Evaluator Party Id (FK) Agmt Asset Value End Dt Asset After Maturity Adj Amt Agmt Asset Preadj Amt Agmt Asset Total Adj Amt Agmt Asset After Adj Amt Agmt Asset Crystallized Amt Asset Crncy After Mat Adj Amt Asset Crncy Preadj Amt Asset Crncy Total Adj Amt Asset Crncy After Adj Amt Asset Crncy Crystallized Amt EXPSR AGMT TO COLLATERAL ITEM COLLATERAL ITEM Collateral Item Id Collateral Item Type Cd (FK) Collateral Item Host Id protects Account Modifier Num (FK) Account Num (FK) Collateral Item Id (FK) Asset Contract Role Cd (FK) Agreement Asset Start Dt has value of Expsr To Collat Zero Ind Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-77 . This is represented in entity RISK MTGNT AGMT SENIORITY HIST. There are several ways that seniority can be represented: • If you know all the claims against an asset each claim could be an instance of RISK MITIGANT AGREEMENT. When the asset is sold or liquidated the lenders are paid in the ranking order of their claim. This is the portion of the exposure covered by the risk mitigant agreements that apply to that exposure. and third mortgages. • Seniority could exist at the level of the collateralized exposure. second. tax) those claims have a higher seniority over the bank's claims.00.00 Seniority Seniority refers to the claim that one lender has to an asset over another claim to that same asset by another lender. For certain types of claims on an asset (e. 8-78 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . A common example is first. What seniority of claim does your bank have to the collateralized portion (COLLATERALIZED EXPOSURE.Seniority Level Cd)? Entity SENIORITY LEVEL PARAMETER contains parameters for a seniority level that are used during the capital allocation calculation process.Teradata Financial Services Logical Data Model Reference Guide Release 09.Seniority Level Cd.g. You can then relate one claim to another claim with an attribute describing whether one is senior to the other. • If you do not have the claims to an asset then you can specify the seniority in the lending agreement.. This is represented in attribute CREDIT AGREEMENT. Your institution does not need to be the lender on these claims. The following diagram shows how seniority is handled in the FS-LDM. Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Figure 8-28 Banking .Collateral Seniority ACCOUNT INVESTOR Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt (FK) Party Id (FK) SENIORITY LEVEL PARAMETER Seniority Level Cd (FK) Seniority Lvl Param Strt Dttm Seniority Levl Param End Dttm Basel II FIRB Senior Ind Seniority Level LGD Rate Seniority Level Cd (FK) describes has metric of CREDIT AGREEMENT RISK MTGNT AGMT SENIORITY HIST Account Num (FK) Account Modifier Num (FK) Acct Relationship Type Cd (FK) Related Account Num (FK) Related Account Modifier Num (FK) Acct Acct Relationship St Dt (FK) Seniority Start Dt Seniority Level Cd (FK) Seniority End Dt Account Num (FK) Account Modifier Num (FK) SENIORITY LEVEL TYPE describes Seniority Level Cd has seniority level of Seniority Level Desc describes COLLATERALIZED EXPOSURE Seniority Level Cd (FK) Reaging Cnt Financing Agmt Past Due Amt Acct Crncy Past Due Amt Financing Agmt Charge Off Amt Acct Crncy Agmt Charge Off Amt Financing Agmt Last Pmt Dt Financing Agmt Last Pmt Amt Acct Crncy Last Pmt Amt Credit Agreement Categ Cd (FK) Obligor Borrowing Purpose Cd (FK) Exposure Account Num (FK) Exposure Account Modifier Num (FK) Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Acct Relationship Type Cd (FK) Acct Acct Relationship St Dt (FK) Risk Scenario Id (FK) Collatized Exposure Amt Collatized Exposure LGD Rate Collatized Prob Default Rate Collatized Risk Weight Rate Collatized RWA Amt Seniority Level Cd (FK) Risk Grade Id (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-79 .Agreement. for valuation and haircut metrics at the following levels. 8-80 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Collateral Value and Haircut.00 Collateral Value and Haircuts This view shows the valuation of collateral. These parameters are input to calculations that value the collateral and value haircut adjustments. Exposure Agreement as it relates to Risk Mitigant Agreement (EA to RMA) – COLLATERALIZED EXPOSURE and COLLATIZED EXPSR ADJUSTMENT Exposure Agreement as it relates to Collateral Item (EA to Asset) – EXPOSURE AGMT ASSET VALUE HIST and EXPSR AGMT ASSET VAL ADJ HIST entities Financial Agreement (EA) – ACCOUNT BALANCE SUMMARY DD and FINANCIAL AGMT ADJUSTMENT entities For Basel II calculation purposes parameters are specified by the BIS Committee. This may be useful for nonrisk management purposes at a simplified level. • • • • • Collateral Item (Asset) – COLLATERAL ITEM VALUE and COLLATERAL ITEM ADJUST HIST entities Party Asset – The model also allows for valuation of party assets held by customers outside the institution. Haircuts are adjustments that are made to the value of an asset due to various reasons including a mismatch between the currency of the exposure and the currency of the collateral. H PA PA Asset CA CA RMA H H EA EA EA H ‘H’ in the following figure. or due to a mismatch between the expiration date of the exposure and the expiration date of the asset.Agreement.00. which is not at the abstracted level of Collateral Item and which does not consider haircut adjustments. and haircut rules or parameters. These haircuts are recorded as adjustments in the FS-LDM. Refer to the diagram Banking .Teradata Financial Services Logical Data Model Reference Guide Release 09. shows the levels at which haircut adjustments are recorded. adjustments to the valuation (haircuts). These valuations are in entity ASSET VALUE HIST. for debt securities rated AAA-AA-/A1 with a residual maturity of greater than 5 years the haircut factor for nonsovereign issuers is 0. – BASEL COLLATERAL HAIRCUT PARAM (Basel II Standardized Supervisory Haircut Parameter) y This entity contains the haircut rate (adjustment) to apply when using the standardized supervisory haircut approach when calculating collateral haircut for this classification of financial instruments for the Basel II Accord (June Accord par 151). y This rule contains the haircut factor for financial instrument classifications for a given residual maturity length.08 (8%).Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area • These haircut parameters or rules are found in: – AGMT CLASS ADJUSTMENT PARAM – contains the adjustment rates for a certain classification of exposures when determining the value of the exposure for this agreement. y There is one instance for each haircut rule as it relates to classifying assets. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-81 . y For example. 8-82 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00.Teradata Financial Services Logical Data Model Reference Guide Release 09.00 This page intentionally left blank. Agreement.Collateral Value and Haircut COLLATERAL ITEM CLASS ASSOC Collateral Item Id (FK) Party Asset Class Cd (FK) Collateral Item Class Start Dt is classified as AGREEMENT COLLATERAL ITEM Account Num Account Modifier Num may be a Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) is related to is related with Account Num (FK) Account Modifier Num (FK) Related Account Num (FK) Related Account Modifier Num (FK) Acct Relationship Type Cd (FK) Acct Acct Relationship St Dt PORTFOLIO COLLATERAL ITEM Account Num (FK) Account Modifier Num (FK) ASSET COLLATERAL ITEM Collateral Item Id (FK) EXPSR AGMT TO RISK MTGNT AGMT Exposure Account Num (FK) Exposure Account Modifier Num (FK) Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Acct Relationship Type Cd (FK) Acct Acct Relationship St Dt (FK) Account Num (FK) Account Modifier Num (FK) Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) has adjustment of classifies FINANCIAL AGMT ADJUSTMENT AGREEMENT CLASS VALUE Agreement Class Value Cd Agreement Classification Cd (FK) Parent Agmt Class Value Cd (FK) Agreement Class Value Desc Agreement Class From Meas Agreement Class To Meas Unit Of Measure Cd (FK) Agmt Class Value Start Dttm Agmt Class Value End Dttm Account Modifier Num (FK) Account Num (FK) Risk Scenario Id (FK) Risk Adjustment Metric Type Cd (FK) Financial Agmt Adjustment Amt Financial Agmt Adjustment Rate Financial Agmt Adjustment Cnt Risk Adjustment Reason Type Cd (FK) is parent of has adjustment rule of has collateralization of Agreement Class Value Cd (FK) Agreement Classification Cd (FK) Risk Adjustment Metric Type Cd (FK) Agmt Class Adjust Start Dttm PARTY ASSET PRICE SENSITIVITY Party Party Party Party Asset Asset Asset Asset Value Cd (FK) Class Cd (FK) Sensitivity Cd (FK) Sensitivity Dt Party Asset Sensitivity Rate Party Asset Id (FK) Party Asset Class Cd (FK) Party Asset Class Start Dt Party Asset Class End Dt Party Asset Value Cd (FK) has adjustments of Parent Party Asset Value Cd (FK) Party Asset Value Desc Party Asset Class From Meas Party Asset Class To Meas Unit Of Measure Cd (FK) Party Asset Class Val St Dttm Party Asset Class Val End Dttm Evaluator Party Id (FK) Agmt Asset Value End Dt Asset After Maturity Adj Amt Agmt Asset Preadj Amt Agmt Asset Total Adj Amt Agmt Asset After Adj Amt Agmt Asset Crystallized Amt Asset Crncy After Mat Adj Amt Asset Crncy Preadj Amt Asset Crncy Total Adj Amt Asset Crncy After Adj Amt Asset Crncy Crystallized Amt has adjustments of COLLATERAL ITEM ADJUST HIST PARTY ASSET CLASS ASSOC ASSET VALUE HIST Party Asset Id (FK) Asset Valuation Amount Cd (FK) Asset Value Start Dt Asset Value End Dt Evaluator Party Id (FK) Asset Value Amt Asset Crncy Asset Value Amt Currency Cd (FK) Asset Valuation Method Cd (FK) Asset Valuation Purpose Cd (FK) Inspection Dt (FK) classifies Party Asset Value Cd Party Asset Class Cd (FK) has market sensitivity of Account Num (FK) Account Modifier Num (FK) Collateral Item Id (FK) Asset Contract Role Cd (FK) Risk Scenario Id (FK) Agreement Asset Start Dt (FK) is classified as PARTY ASSET CLASS VALUE Agmt Class Adjust End Dttm Agmt Class Adjust Rate MM Object Id (FK) Asset Insurance Hist Type Cd (FK) Asset Type Cd (FK) Asset Desc Asset Acct Num Asset Next Valuation Dt Asset Next Inspection Dt Valuation Time Period Cd (FK) Asset Host Id Val Collateral Item Value End Dt Collateral Item Eval Party Id (FK) Collateral Item Total Adj Amt Asset Crncy Item Total Adj Amt Collateral Item Post Adj Amt Asset Crncy Item Post Adj Amt Collateral Post Matur Adj Amt Asset Crncy Post Matur Adj Amt Collateral Item Pre Adj Amt Asset Crncy Item Pre Adj Amt EXPOSURE AGMT ASSET VALUE HIST has value adjustments of Collatized Exposure Amt Collatized Exposure LGD Rate Collatized Prob Default Rate Collatized Risk Weight Rate Collatized RWA Amt Seniority Level Cd (FK) Risk Grade Id (FK) Exposure Account Num (FK) Exposure Account Modifier Num (FK) Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Acct Relationship Type Cd (FK) Acct Acct Relationship St Dt (FK) Risk Scenario Id (FK) Risk Adjustment Metric Type Cd (FK) may be a Party Asset Id Exposure Account Num (FK) Exposure Account Modifier Num (FK) Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Acct Relationship Type Cd (FK) Acct Acct Relationship St Dt (FK) Risk Scenario Id (FK) COLLATIZED EXPSR ADJUSTMENT Collateral Item Id (FK) Asset Valuation Amount Cd (FK) Risk Scenario Id (FK) PARTY ASSET COLLATERALIZED EXPOSURE Collatized Portion Adjust Rate Collatized Portion Adjust Amt Collatized Portion Adjust Cnt Risk Adjustment Reason Type Cd (FK) AGMT CLASS ADJUSTMENT PARAM COLLATERAL ITEM VALUE Party Asset Id (FK) has value history of FINANCIAL AGREEMENT Agreement Class Value Cd (FK) Agreement Class End Dt Investment Product Id (FK) Portfolio Product Start Dttm (FK) Portfolio Id (FK) Account Num (FK) Account Modifier Num (FK) Account Portfolio Rel Cd (FK) Account Portfolio Start Dttm (FK) Collateral Item Id (FK) Acct Relationship Type Cd has value of Collateral Item Id (FK) Collateral Item Type Cd AGREEMENT COLLATERAL ITEM is classified as Account Num (FK) Account Modifier Num (FK) Agreement Classification Cd (FK) Agreement Class Start Dt has value of Account Modifier Num (FK) Account Num (FK) Collateral Item Id (FK) Asset Contract Role Cd (FK) Agreement Asset Start Dt Expsr To Collat Zero Ind Acct Acct Relationship End Dt Agreement Categ Cd AGMT AGMT CLASS ASSOC protects Collateral Item Type Cd (FK) Collateral Item Host Id ACCT ACCT RELATIONSHIP EXPSR AGMT TO COLLATERAL ITEM Party Asset Value Cd (FK) Collateral Item Class End Dt Collateral Item Id Collateral Item Id (FK) Asset Valuation Amount Cd (FK) Risk Scenario Id (FK) Risk Adjustment Metric Type Cd (FK) Collateral Value Adj Amt Asset Crncy Collateral Adj Amt Collateral Value Adj Rate Collateral Value Adj Cnt Risk Adjustment Reason Type Cd (FK) BASEL COLLATERAL HAIRCUT PARAM Party Asset Value Cd (FK) Party Class Value Cd (FK) Risk Grade Id (FK) Collateral Haircut Start Dttm Maturity Time Band Scheme Id (FK) Maturity Time Band Id (FK) Collateral Haircut End Dttm Collat Internal Haircut Rate Collat Supervisor Haircut Rate Collat Remargining Time Cd (FK) Collat Haircut Holding Cd (FK) Collat Hold Period Num Party Classification Cd (FK) Party Asset Class Cd (FK) has Basel parameter of is parent of Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret is classification value for EXPSR AGMT ASSET VAL ADJ HIST Account Modifier Num (FK) Account Num (FK) Collateral Item Id (FK) Asset Contract Role Cd (FK) Risk Scenario Id (FK) Agreement Asset Start Dt (FK) Risk Adjustment Metric Type Cd (FK) Agmt Asset Value Adj Amt Asset Crncy Asset Adj Amt Agmt Asset Value Adj Rate Agmt Asset Value Adj Cnt Risk Adjustment Reason Type Cd (FK) .Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Figure 8-29 Banking . . This view shows the various levels where haircuts can be applied such as: • • • • Agreement/Exposure (FINANCIAL AGMT ADJUSTMENT) Collateral Item (COLLATERAL ITEM ADJUST HIST) Collateralized portion of the Exposure per the Collateral Agreement (COLLATIZED EXPSR ADJUSTMENT) Collateralized portion of the Exposure for a given collateral (risk mitigant) item (EXPSR AGMT ASSET VAL ADJ HIST) The structures allow for the capture of any kind of metric at any of these levels.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Haircuts and Adjustments This view shows those entities that contain adjustments/haircuts for risk calculations.Agreement. haircuts and other adjustments can be at various levels. Some example metrics are: • • • Haircut Rate Holding period days used in haircut calculation Calculated haircut amount Figure 8-30 Banking .Haircuts and Adjustments FINANCIAL AGMT ADJUSTMENT Account Modifier Num (FK) Account Num (FK) Risk Scenario Id (FK) Risk Adjustment Metric Type Cd (FK) Financial Agmt Adjustment Amt Financial Agmt Adjustment Rate Financial Agmt Adjustment Cnt Risk Adjustment Reason Type Cd (FK) is metric type for COLLATIZED EXPSR ADJUSTMENT Exposure Account Num (FK) Exposure Account Modifier Num (FK) Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Acct Relationship Type Cd (FK) Acct Acct Relationship St Dt (FK) Risk Scenario Id (FK) Risk Adjustment Metric Type Cd (FK) Collatized Portion Adjust Rate Collatized Portion Adjust Amt Collatized Portion Adjust Cnt Risk Adjustment Reason Type Cd (FK) COLLATERAL ITEM ADJUST HIST RISK ADJUSTMENT METRIC TYPE is metric type for Risk Adjustment Metric Type Cd Risk Adjustment Metric Desc is metric type for is metric type for Collateral Item Id (FK) Asset Valuation Amount Cd (FK) Risk Scenario Id (FK) Risk Adjustment Metric Type Cd (FK) Collateral Value Adj Amt Asset Crncy Collateral Adj Amt Collateral Value Adj Rate Collateral Value Adj Cnt Risk Adjustment Reason Type Cd (FK) EXPSR AGMT ASSET VAL ADJ HIST Account Modifier Num (FK) Account Num (FK) Collateral Item Id (FK) Asset Contract Role Cd (FK) Risk Scenario Id (FK) Agreement Asset Start Dt (FK) Risk Adjustment Metric Type Cd (FK) Agmt Asset Value Adj Amt Asset Crncy Asset Adj Amt Agmt Asset Value Adj Rate Agmt Asset Value Adj Cnt Risk Adjustment Reason Type Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-85 . When doing risk calculations. purchased receivables (factoring). FINANCIAL AGREEMENTs may be fee-based. The account can allow or restrict access by business category. For example. The attribute Acct Categ Cd. letters of credit. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Purchase Type Cd in the PURCHASE TXN ACCOUNT entity tells whether the account is restricted or allows access to business categories associated with the account.Teradata Financial Services Logical Data Model Reference Guide Release 09. interest-based or may be an umbrella agreement (facility) composed of smaller agreements. which is either a LOAN TRANSACTION ACCT or a LOAN TERM ACCOUNT – A LOAN TRANSACTION ACCT. and leasing. and leases.00 Loan and Credit Agreement This logical view describes CREDIT AGREEMENTs that involve providing money or money commitments to customers for products such as loans. – 8-86 Entity PURCHASE ACCT BUS HIST tracks the history of relationships between the purchase account and business categories for which this account can or cannot accept purchases. a purchase account (PURCHASE TXN ACCOUNT) may only allow purchases at gas stations and office supply stores. A supertype entity AGREEMENT contains general information that applies to all types of agreements that a financial institution may be interested in tracking. personal loans. A CREDIT AGREEMENT is classified: • A LOAN ACCOUNT. refer to the ACCOUNT PORTFOLIO entity. These types of agreements involve credit risk. automobile loans. etc. or a purchase account may only be restricted from purchases at a florist.00. investment. identifies whether this AGREEMENT is a FINANCIAL AGREEMENT. as described in the Investment section. This entity does not include agreements where a financial institution acts as a broker or broker-dealer for security transactions. This entity also does not include insurance agreements and policies. personal loans. current accounts. credit cards. such as a credit card does not have a maturity date. A FINANCIAL AGREEMENT contains the agreements that are involved in the enterprise’s banking. For those agreements. and capital markets functions. A LOAN TRANSACTION ACCT may be: y A PURCHASE TXN ACCOUNT contains all credit card accounts that are set up with restrictions to the business category from which the account may or may not accept purchased goods. mortgages. This also includes agreements that a bank might have with other banks and businesses for asset/liability management or for its own internal investment purposes. as the category discriminator. This logical view describes the CREDIT AGREEMENT types of agreements. lines of credit (transaction accounts). The attribute Financial Agreement Categ Cd in FINANCIAL AGREEMENT is a category discriminator that classifies this agreement as a CREDIT AGREEMENT. A LOAN TERM ACCOUNT has a maturity date or term and includes mortgages. Your bank probably purchased these invoices at a discount and now has taken on the risk of collecting.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area • • • • A CURRENT ACCOUNT includes all accounts that may switch from a state of being a loan transaction account to the state of being a deposit transaction account. One instance of this entity represents each individual debt invoice by the obligor. the issuer. Also known as factoring. Within this facility are the deals that draw upon the Facility. You can link the Facility to each Draw (Loan) agreement via the ACCT ACCT RELATIONSHIP entity. Commercial Bill is an agreement that has a limit. which is a type of risk mitigant. and Deposit Transaction Accounts. A LETTER OF CREDIT AGREEMENT is an agreement where one Party pledges to meet the obligation on another agreement should the obligor on that agreement (third party) not meet the obligation. Standby Letters of Credit and other letters of credit. You will need this link to determine when the facility is near its limit. If another party is the guarantor to one of your exposures then it is a THIRD PARTY GUARANTEE AGMT. A LETTER OF CREDIT AGREEMENT includes Traveler's Letters of Credit. the ownership and risk of the invoice is passed onto the factor (financial institution). Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-87 . This agreement sets the limit and has open and expiration dates. A Current Account inherits attributes from Loan. This is the bank's customer's customer (borrower) debt that is now owed to the bank. For example. A FACILITY AGREEMENT is an umbrella agreement that sets the broad terms and conditions of ‘subagreements’ that are linked to it. Loan Transaction Account. A current account is a typical European type of account. PURCH(ased) RECEIVABLE INVOICE represents the actual debt or invoice that is to be collected by your bank from your customer. This entity represents your bank as the guarantor. and those attributes are repeated in this entity. Since there is a commitment by your institution for a certain amount of money this represents a potential credit risk. Deposit. Each draw is a separate agreement and would be a Loan Account in this model. The parties to the agreement and their roles are in the entity ACCOUNT PARTY. Teradata Financial Services Logical Data Model Reference Guide Release 09.00 Figure 8-31 Banking .Loan and Credit Agreement AGREEMENT Account Num Account Modifier Num FINANCIAL AGREEMENT Account Num (FK) Account Modifier Num (FK) Agreement Categ Cd Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) Financial Agreement Categ Cd CREDIT AGREEMENT Account Num (FK) Account Modifier Num (FK) Seniority Level Cd (FK) Reaging Cnt Financing Agmt Past Due Amt Acct Crncy Past Due Amt Financing Agmt Charge Off Amt Acct Crncy Agmt Charge Off Amt Financing Agmt Last Pmt Dt Financing Agmt Last Pmt Amt Acct Crncy Last Pmt Amt Credit Agreement Categ Cd (FK) Obligor Borrowing Purpose Cd (FK) LOAN ACCOUNT Account Num (FK) Account Modifier Num (FK) Security Type Cd (FK) Maturity Cd (FK) Due Day Num Realizable Collateral Val Amt Loan Payoff Amt Acct Crncy Real Collat Amt Acct Crncy Loan Payoff Amt Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) LOAN TERM ACCOUNT Maturity Cd Credit Agreement Categ Cd PURCH RECEIVABLE INVOICE Account Num (FK) Account Modifier Num (FK) Issuer Debtor Account Num (FK) Issuer Debtor Account Mod Num (FK) Debt Due Dt Original Debt Due Amt Acct Crncy Orignl Debt Amt LOAN TRANSACTION ACCT Account Num (FK) Account Modifier Num (FK) FACILITY AGREEMENT Account Num (FK) Account Modifier Num (FK) CURRENT ACCOUNT Loan Transaction Type Cd (FK) Account Num (FK) Account Modifier Num (FK) Loan Term Type Cd (FK) Amortization Method Cd (FK) Amortization End Dt Balloon Amt Original Loan Amt Loan Maturity Dt Loan Settlement Dt Loan Renewal Dt Commit Start Dt Commit End Dt Acct Crncy Balloon Amt Acct Crncy Orignl Loan Amt Loan Transaction Type Cd Account Num (FK) Account Modifier Num (FK) Security Type Cd (FK) LETTER OF CREDIT AGREEMENT Interest Disbm Type Cd (FK) Account Num (FK) Curr Acct Due Day Num Account Modifier Num (FK) Curr Acct Realize Collat Amt Curr Acct Orignl Dep Amt Committed Amt Curr Acct Payoff Amt Acct Crncy Curr Orignl Dep Amt Acct Crncy Curr Collat Amt Acct Crncy Curr Payoff Amt 8-88 PURCHASE TXN ACCOUNT Account Num (FK) Account Modifier Num (FK) Purchase Type Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret has purchase restrictions for PURCHASE ACCT BUS HIST Account Num (FK) Account Modifier Num (FK) Org Business Type Cd (FK) Acct Bus Type Start Dt Acct Bus Type End Dt .00.Agreement. investment. or Certificate of Deposit that has a maturity date. such as checking. and night deposit boxes. A FINANCIAL AGREEMENT contains those agreements that are involved in the banking. A CASH MANAGEMENT agreement involves money management services for customers by means of deposit accounts. This logical view describes CASH MANAGEMENT types of agreements. and capital markets functions of the enterprise. This also includes agreements that a bank might have with other banks and businesses for asset/liability management or for its own internal investment purposes. • A CASH HANDLING agreement provides specialized cash management services such as cash flow management in and out of accounts. currency counting. as described in the Investment section. traveler's checks. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-89 . lock boxes. The attribute Acct Categ Cd. A CASH MANAGEMENT agreement is: • A DEPOSIT ACCOUNT. refer to ACCOUNT PORTFOLIO entity.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Deposit and Cash Management This logical view shows the types of banking Agreements that represent deposits and other cash management products. and specialized cash management services that enable businesses to handle cash. For such agreements. savings. transfer monies. • A DOCUMENT PAYMENT AGMT agreement is a service that provides documents to use as payment instruments. This entity does not include agreements where a financial institution acts as a broker or broker-dealer for security transactions. and certified checks. These instrument names will vary by country. Keogh. and in general make and receive payments. interest-based or may be an umbrella agreement (facility) composed of smaller agreements. where it is a: – DEPOSIT TRANSACTION ACCT such as a checking or savings account that does not have a maturity date – DEPOSIT TERM ACCOUNT such as IRA. like money orders. and time accounts. This entity also does not include insurance agreements and policies. A supertype entity AGREEMENT contains general information that applies to all types of agreements that a financial institution may be interested in tracking. The attribute Financial Agreement Categ Cd in FINANCIAL AGREEMENT is the category discriminator that classifies this agreement as CASH MANAGEMENT. account reconciliation. will identify whether this AGREEMENT is a FINANCIAL AGREEMENT or an INSURANCE AGREEMENT. It also includes certifying checks. as the category discriminator. FINANCIAL AGREEMENTs may be fee-based. Deposit and Cash Management AGREEMENT Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) Agreement Categ Cd FINANCIAL AGREEMENT Account Num (FK) Account Modifier Num (FK) Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) Financial Agreement Categ Cd CASH MANAGEMENT Account Num (FK) Account Modifier Num (FK) Cash Management Categ Cd (FK) Cash Management Categ Cd CASH HANDLING Account Num (FK) Account Modifier Num (FK) DOCUMENT PAYMENT AGMT DEPOSIT ACCOUNT Account Num (FK) Account Modifier Num (FK) Maturity Cd (FK) Interest Disbm Type Cd (FK) Original Deposit Amt Acct Crncy Orignl Deposit Amt DEPOSIT TRANSACTION ACCT Account Num (FK) Account Modifier Num (FK) Account Num (FK) Account Modifier Num (FK) Maturity Cd DEPOSIT TERM ACCOUNT Account Num (FK) Account Modifier Num (FK) Next Term Maturity Dt Grace Period End Dt 8-90 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00.Teradata Financial Services Logical Data Model Reference Guide Release 09.Agreement.00 Figure 8-32 Banking . For both Factoring and Collection Service. Short-term financing conducted on a recourse basis is accounts receivable financing. There are three parties involved in a factoring relationship: • the bank that purchases the receivables (the factor) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-91 . assumes the risk of an obligor default. if it is a collection service agreement. The receivables purchased or the service provided may also be known as Purchased Receivables. The attribute Other Financial Srv Categ Cd in OTHER FINANCIAL SERVICE entity classifies the agreement as either a collection service agreement or a factoring agreement. This type of financing is a type of loan agreement and would be covered in the Loan and Credit Agreement section A Collection Service occurs when the bank provides a service to collect funds from its customer’s customers (the debtor). or ‘issuer’). FINANCIAL AGREEMENT. account holder. The bank does not take on the credit risk when providing Collection Service. and therefore. the agreement between the bank and the business customer who owns the receivables (the bank’s customer or issuer) is an instance of AGREEMENT.. and possibly a third Party (factor) to collect payments due to the bank’s client from its customers (debtors). Factoring occurs when the bank or a third party (acting as a factor) purchases accounts receivable on a nonrecourse basis from a business (Party). and PURCH RECEIVABLE INVOICE. if it is a factoring agreement. and OTHER FINANCIAL SERVICE. The Party that provides this factoring service is a ‘factor.’ Factoring is normally conducted without recourse since a factor performs a credit evaluation before the credit is extended. FINANCIAL AGREEMENT. This can also be derived from the Product Id related to AGREEMENT. These service agreements are executed between the bank. The agreement between the financial institution and its customer who is the issuer is a PURCH RECEIVABLE ISSUER AGMT. or COLLECTION ISSUER AGREEMENT. Purchased Receivables or Factoring The following describes agreements between various parties for factoring services. its customer (e. if it is a factoring agreement. client. As a form of short term financing.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Factoring. it is necessary for the financial institution providing the service to know about each individual debt they will be collecting FS-LDM and Factoring/Collection Services Whether the agreement is a factoring or collection agreement. if it is a collection service agreement. Each debt that is owed by the obligor to the issuer is an instance of AGREEMENT. Purchased Receivable Collection Factoring and Collection Services are services a Financial Institution may provide for its commercial customers. This type of financing is where the accounts receivable is collateral for a loan.g. or COLLECTION DEBT INVOICE. PURCH RECV ISSUER DEBTOR AGMT and PURCH RECEIVABLE INVOICE – one issuer-debtor agreement can be to collect multiple invoices from that debtor. There is one instance for each contract between the issuer and each of the debtors. then there are 100 instances in this entity. Issuer Debtor Account Num and Issuer Debtor Account Mod Num – this is the contract identifier from the issuer's host system of the issuer/debtor contract.00. there are five instances. Issuer Account Num and Issuer Account Modifier Num – this is the contract identifier between the bank and the issuer for whom the bank is to collect money (FK). Example: If the issuer has 100 debtors.Teradata Financial Services Logical Data Model Reference Guide Release 09. Account Num and Account Modifier Num – the invoice number as it is in the issuer’s host system.00 • • the bank's client that issues the receivables (the issuer) the bank's client's customer (debtor) who owes the money PURCH RECEIVABLE INVOICE This entity represents the actual debt or invoice that is to be collected by the bank from the debtor. Relationships between these entities: PURCH RECEIVABLE ISSUER AGMT and PURCH RECV ISSUER DEBTOR AGMT – one bank-issuer agreement can be for many issuer-debtor agreements. This is the bank's customer's customer (borrower) debt that is now owed to the bank. This may also be known as the ‘factoring contract. 8-92 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . If a debtor has five invoices to an issuer.’ Issuer Account Num and Issuer Account Modifier Num – this is the contract identifier between the bank and the issuer for whom the bank is to collect money. One instance for each debt owed the issuer. PURCH RECEIVABLE ISSUER AGMT This Agreement contains information about the agreement between the bank and the issuer for whom the bank is to collect receivables. One instance of this entity represents each individual debt invoice by the obligor. PURCH RECV ISSUER DEBTOR AGMT This Agreement is between the issuer and the issuer’s debtor. Issuer Debtor Account Num and Issuer Debtor Account Mod Num – this is the contract identifier from the issuer's host system of the issuer/debtor contract (FK). Collection Service For collection service. which specifies the role of a party to the agreement – such as issuer. If the cable company sends 1. debtor. COLLECTION DEBT INVOICE Each instance represents an individual debt by the obligor that is to be collected. The issuer retains the debt and the risk for the debt. Collection Service Scenario For example. FINANCIAL AGREEMENT. there are 1. The parties to each of these agreements will vary and are specified in ACCOUNT PARTY with the Account Party Role Cd. a cable company (issuer) has an agreement with the bank for the bank to collect payments from its customers (debtors).000 instances in COLLECTION DEBT INVOICE. The agreement between the bank and the cable company is one instance of AGREEMENT. Payments made by the obligor are each instances of EVENT (not shown). The debt (invoice) owed by the cable company’s customer is an instance of COLLECTION DEBT INVOICE. The bank’s client (issuer) is a Party and the bank client’s customers (debtors) are Parties. or factor. A history of the balance due for each debt is recorded in ACCOUNT BALANCE SUMMARY DD (not shown). Factoring Scenario The following scenario represents a Factoring agreement between two wholesalers and a bank where the debtor to each wholesaler is the same retail merchant. The bank is providing a collection service. and COLLECTION ISSUER AGREEMENT. If the bank (acting as a factor) actually purchased the debt without recourse. the agreement is considered a Factoring agreement as specified in PURCH RECEIVABLE ISSUER AGMT Debt Receivable Agmt Type Cd.000 invoices for collection. The financial institution is providing a collection service.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area All of these relationships could also be stated at the ACCT ACCT RELATIONSHIP level. The retailer has a debt outstanding with each wholesaler. the following entities are involved: COLLECTION ISSUER AGREEMENT This entity represents the agreement between the financial institution and its customer (the issuer) to collect debt on the issuer's behalf. They are stated here between subtypes to show the specific business rules between these entities. Party This scenario involves a retailer who does business with two wholesalers and both wholesalers have executed a factoring contract with the same Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-93 . 00 bank. Depending on the Financial Institution. discount factoring). Account_1 for Wholesaler_1 and Account_2 for Wholesaler_2. The role of the retailer with Account_3 and Account_4 is defined as ‘is debtor for’ in ACCOUNT PARTY. and PURCH RECEIVABLE INVOICE (Account_3). Agreement There are six instances of AGREEMENT and relevant subtypes. FINANCIAL AGREEMENT. The FEATURE describes the terms and conditions upon which the Financial Institution will buy the invoices from factoring customers. The debt to be collected from Retailer_1 that was due to Wholesaler_1 is an instance of AGREEMENT. and PURCH RECEIVABLE INVOICE (Account_4)..Teradata Financial Services Logical Data Model Reference Guide Release 09. FINANCIAL AGREEMENT. Wholesaler_2 (W2) and Retailer_1 (R1).. For each instance of PURCH RECEIVABLE INVOICE. FINANCIAL AGREEMENT. there are many instances in ACCOUNT BALANCE SUMMARY DD to track balance due and other amounts over time. these Features may occur in combination. The debt to be collected from Retailer_1 by the bank that was due to Wholesaler_2 is another instance of AGREEMENT. Product The Product and Feature entities are located in the Product/Feature View in the Banking Extension section. There may be a percentage discount per invoice (e. There are three different instances in the PARTY entity for Wholesaler_1 (W1). a fixed fee per invoice and a fee per time period (e.g. and PURCH RECEIVABLE ISSUER AGMT. The role of the wholesalers with Account_1 and Account_2 is defined as ‘is issuer for’ in ACCOUNT PARTY. y W1 to R1 Agreement y W2 to R1 Agreement y Bank to W1 Agreement y Bank to W2 Agreement y R1 Debt to W1 Account y R1 Debt to W2 Account There are two instances in AGREEMENT. 8-94 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Features can be used to define time limits (and discounts) for payment of invoices.g. All product features that apply to the account are described in ACCOUNT FEATURE.00. There is at least one factoring Product in PRODUCT. There are two instances of PURCH RECV ISSUER DEBTOR AGMT to represent the agreement between Wholesaler 1 and Retailer 1 and Wholesaler 2 and Retailer 1 (Accounts 5 and 6). yearly fee). The balance due is tracked in ACCOUNT BALANCE SUMMARY DD. with the description ‘debt purchase’ in attribute Event Activity Type. Account_1 would be the account referenced in ACCOUNT EVENT for the purchase agreement with Wholesaler_1. and a Financial Account Event with an instance in ACCOUNT EVENT. and FINANCIAL ACCOUNT EVENT. Invoice Payment Invoice_1 is paid by Retailer_1 or by a Party who acts for Retailer_1. The account referenced in ACCOUNT EVENT would be Account_3. refer to Event Overview in the Banking Extension section. on a specific date. ACCOUNT EVENT provides the link between the payment and the purchased invoice. FINANCIAL EVENT. a Financial Event. Event. which may be different from the invoice amount. EVENT records the invoice purchase. and a Financial Account Event with an instance in ACCOUNT EVENT. and FINANCIAL ACCOUNT EVENT.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Event For information about Event entities. Invoice Purchase The Financial Institution buys Invoice_1 from Wholesaler_1 for Retailer_1. This would be an Account Event. The entity EVENT records the payment transaction with the description ‘invoice payment’ in attribute Event Activity Type. Event. The invoice number and the wholesaler’s host account number derive from the PURCH RECEIVABLE INVOICE that is related to the payment EVENT. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-95 . a Financial Event. for an agreed upon amount. which is the debt owed by Retailer 1. This would also be an Account Event. Account_2 would be the account referenced in ACCOUNT EVENT for the purchase agreement with Wholesaler_2. FINANCIAL EVENT. Purchased Receivable AGREEMENT Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) has involvement with ACCOUNT PARTY Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt Account Party End Dt Allocation Pct Account Party Amt Acct Crncy Acct Party Amt FINANCIAL AGREEMENT Account Num (FK) Account Modifier Num (FK) CREDIT AGREEMENT Financial Agreement Categ Cd OTHER FINANCIAL SERVICE Account Num (FK) Account Modifier Num (FK) Other Financial Srv Categ Cd (FK) Account Num (FK) Account Modifier Num (FK) Seniority Level Cd (FK) Reaging Cnt Financing Agmt Past Due Amt Acct Crncy Past Due Amt Financing Agmt Charge Off Amt Acct Crncy Agmt Charge Off Amt Financing Agmt Last Pmt Dt Financing Agmt Last Pmt Amt Acct Crncy Last Pmt Amt Credit Agreement Categ Cd (FK) Obligor Borrowing Purpose Cd (FK) Other Financial Srv Categ Cd COLLECTION ISSUER AGREEMENT Collection Issuer Acct Num (FK) Collection Issuer Acct Mod Num (FK) PURCH RECEIVABLE ISSUER AGMT Issuer Account Num (FK) Issuer Account Modifier Num (FK) has underlying debt of COLLECTION DEBT INVOICE Account Num (FK) Account Modifier Num (FK) Collection Issuer Acct Num (FK) Collection Issuer Acct Mod Num (FK) Original Collection Amt Acct Crncy Orignl Collectn Amt Original Collection Due Dt 8-96 PARTY Party Id Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind ACCOUNT FEATURE is characterized by Agreement Categ Cd Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) has involvement with Debt Receivable Agmt Type Cd (FK) Debt Credit Limit Amt Debt Purchase Discount Amt Purch Receivable Premium Amt Original Debt Amt Total Receivable Value Amt Debt Repayment Method Cd (FK) Receivable Last Audit Dt Receivable Next Audit Dt Borrower Issuer Correlate Rate Acct Crncy Debt Limit Amt Acct Crncy Purch Discount Amt Acct Crncy Debt Premium Amt Acct Crncy Original Debt Amt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Account Num (FK) Account Modifier Num (FK) Feature Id (FK) Account Feature Role Cd (FK) Account Feature Start Dt Account Feature End Dt Overridden Feature Id (FK) Account Feature Amt Account Feature Rate Account Feature Qty Account Feature Num Account Feature UOM Cd (FK) Interest Index Cd (FK) Credit Agreement Categ Cd PURCH RECEIVABLE INVOICE Account Num (FK) Account Modifier Num (FK) Issuer Debtor Account Num (FK) Issuer Debtor Account Mod Num (FK) Debt Due Dt Original Debt Due Amt Acct Crncy Orignl Debt Amt has invoice PURCH RECV ISSUER DEBTOR AGMT Issuer Debtor Account Num (FK) Issuer Debtor Account Mod Num (FK) Issuer Account Num (FK) Issuer Account Modifier Num (FK) has debtor contract .00.00 Figure 8-33 Banking .Teradata Financial Services Logical Data Model Reference Guide Release 09.Agreement.Factoring . The resulting FX buy and/or sell transactions are often not executed on registered exchanges.g. Financial institutions may accumulate surpluses of foreign currency from international loan repayments. such as import-export trade financing. then it may enter into a foreign currency purchase agreement with another party. Forward contracts trade in over-the-counter (OTC) markets whereas Future contracts trade on regulated exchanges. but may be executed in the interbank foreign exchange market. Bank as Seller of Foreign Currency to its Customer From the bank’s perspective as a seller of currency to its customer. then it may enter into a foreign currency purchase for the amount from another institution. The exchange agreement can involve many trade orders and settlements. or its own investment. the customer establishes an account with the bank (e. Exchanges may involve a contractual arrangement for settlement (delivery of sale) of a certain currency amount on a future date (beyond the spot date) at the current market price (i. or from other financing arrangements. A bank may also be a buyer or seller of currency with other institutions for purposes of its own investments or to hedge against price fluctuations. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-97 . The customer sets up a deposit account at your bank in the target currency to contain target funds. A bank may also act as the broker in foreign exchange swaps for its customers. brokers. central banks. Forward Exchange Contract). Should the bank have the currency on hand. on an ongoing basis. to acquire the currency. Bank as Buyer or Seller of Currency If..Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Foreign Exchange This logical view describes agreements where one currency is exchanged for another currency at an agreed upon spot rate. This market is a network of commercial banks. or the bank may act as an investor in foreign exchange swaps. Foreign exchange currency derivative and swap agreements including forwards and futures are discussed in the Investment . seller. If the bank does not have currency available. Your financial institution may be the buyer. and other parties who communicate with each other usually via electronic channels. or broker to the agreement. a bank wants to acquire foreign currency (either for its customers.e. A bank may be a foreign currency supplier to its customers for a fee. it can immediately handle the currency transaction. a deposit account) which the bank may use as a source of funds (and against which it may charge a fee for the execution of the trade). Each bank maintains a record of due to/due from account balances that they have with other banks in the network.Agreement Derivatives and Swap Agreement view in this guide. or to hedge against the risk of loss from price fluctuations). or it may execute a buy order for that amount of currency on an exchange.. Bank as a Buyer or Seller of Currency The agreement between parties to exchange currencies is a FOREIGN EXCHANGE AGREEMENT.Agreement. which is a type of FINANCIAL AGREEMENT. For example. Conversely.e. a ‘nostro’ account denominated in Euros) at Bank B. Bank B may also establish a deposit account (‘vostro’ account) denominated in dollars at Bank A so Bank B may acquire dollars for Euros.Nostro and Vostro Accounts. These are ‘nostro’ accounts. A ‘nostro’ account refers to your bank’s account with another bank.Agreement.Loan and Credit Agreement and Banking .Teradata Financial Services Logical Data Model Reference Guide Release 09. If this is a standing agreement to exchange currencies of these types over time then the quantity may be eliminated because this will change over time. which is located in Germany.Agreement. A ‘vostro’ account refers to the other bank’s deposit account with your bank. (An account can only be in one currency at one time.S. it will initiate a buy order for Euros and transfer the proper amount of dollar funds to cover the purchase into its nostro account at Bank B. In this FOREIGN EXCHANGE AGREEMENT the source and destination currencies are specified along with the quantity/number of units of the source and/or the destination currency. or CURRENT ACCOUNT.00. banks will often have deposit accounts at other foreign banks located in the desired currency’s country. if Bank A’s domestic currency is U. Model Description Bank as a Seller of Currency to its Customers A customer’s deposit account. dollars and it needs Euros. A separate deposit or current account in the destination currency is the destination account for the traded funds (DEPOSIT TRANSACTION ACCT or CURRENT ACCOUNT). In the FS-LDM these are all instances of AGREEMENT subtypes DEPOSIT TRANSACTION ACCT. In both instances. foreign exchange trading desks will initiate and execute the respective buy and sell orders and settlement transactions.Deposit and Cash Management Agreement for information about transaction and current accounts. When Bank A needs Euros. Deposit accounts are set up to contain the traded funds. LOAN TRANSACTION ACCT. which is a type of INVESTMENT AGREEMENT. handle these foreign exchange transactions.’ or FX trading specialist groups within banks.. Bank B will then execute a sell order for the Euros and deposit the proceeds into Bank A’s account.00 Foreign exchange ‘trading desks. and is a type of AGREEMENT. or current account in the currency of the source currency at the bank is the source of funds for the bank to purchase a foreign currency amount. credit card account. it may establish a deposit account (i.) Also refer to logical view Banking . To facilitate currency exchange between banks. Refer to Figure 8-34Figure 8-34 Banking . (Note: The entity ACCOUNT CURRENCY could be used to specify the source and destination 8-98 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Your view of your account balance over time for this nostro account is maintained in ACCOUNT BALANCE SUMMARY DD. A Vostro account or a foreign bank’s demand deposit account held with your bank either in local or foreign currency is a DEPOSIT TRANSACTION ACCT or a CURRENT ACCOUNT. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-99 . gross short.) Other areas of the model specify the parties to the agreement (ACCOUNT PARTY) and the time frames and fees (ACCOUNT FEATURE). and options are discussed in the Investment – Agreement.Event . which has amounts by account and party (trading desk) over time. swaps. forward. Those derivatives are instances of DERIVATIVE AGREEMENT. information about vostro accounts (other bank’s deposits with your bank) is separate instances of ACCOUNT BALANCE SUMMARY DD.Subtyping section of this guide.Derivatives and Swaps section of this guide. Buy and sell orders are tracked as instances of EVENT and its subtypes. Likewise.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area currencies as another design alternative. which keeps balance information for all types of FINANCIAL AGREEMENTs. The parties are the purchaser of the currency and the seller of the currency where your bank is one of the parties. Your bank maintains the account as any other deposit type of account for a given currency. gross long. Foreign exchange derivatives such as future. and book value by trading desk. net short. which is a type of FINANCIAL AGREEMENT. The parties to the agreement are instances of ACCOUNT PARTY. A history of the balance of nostra and vostra accounts by FX trading desk (Party) records in PARTY ACCT BAL SUMMARY DD. Amounts are kept by various amount types such as net long. Your account at another bank (nostro) is an instance of CASH AT OTHER BANKS. whereas spot foreign exchange deals are instances of FOREIGN EXCHANGE AGREEMENT as discussed in this section. Please refer to Investment . 00.Nostro and Vostro Accounts Request for $100 USD for Euro Your Bank Other Bank’s.Agreement.Agreement.Teradata Financial Services Logical Data Model Reference Guide Release 09.00 Figure 8-34 Banking .Nostro and Vostro Accounts shows that nostro accounts are deposit accounts that you have with other banks. 8-100 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Vostro accounts are accounts that other banks have with you. USD Vostro Account with Your Bank Other Bank Your Bank’s Euro Nostro Account with Other Bank Figure 8-34 Banking . These accounts are used mainly for foreign exchange agreements. Foreign Exchange AGREEMENT Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) has currency history of ACCOUNT CURRENCY Currency Use Cd (FK) Account Currency Cd (FK) Account Num (FK) Account Modifier Num (FK) Account Currency Start Dt Account Currency End Dt was used during ACCOUNT PARTY Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt has involvement with Agreement Categ Cd Account Party End Dt Allocation Pct Account Party Amt Acct Crncy Acct Party Amt FINANCIAL AGREEMENT Event Id (FK) Account Num (FK) Account Modifier Num (FK) Account Event Type Cd (FK) ACCOUNT BALANCE SUMMARY DD Account Num (FK) Account Modifier Num (FK) Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) ACCOUNT EVENT has financial history of Financial Agreement Categ Cd INVESTMENT AGREEMENT Account Num (FK) Account Modifier Num (FK) Balance Category Type Cd (FK) Account Metric Type Cd (FK) Acct Bal Summary Start Dttm Acct Bal Summary End Dttm Acct Bal Summary Tm Pd Cd (FK) Account Balance Summary Amt Acct Crncy Balance Summary Amt Account Balance Summary Rate Account Balance Summary Cnt is associated with Account Num (FK) Account Modifier Num (FK) Investment Type Cd (FK) Expected Value Dttm Actual Value Dttm Expected Settlement Dttm Actual Settlement Dttm Payment Timing Type Cd (FK) Investment Purpose Type Cd (FK) Purchase Intent Cd (FK) Investment Type Cd PARTY ACCT BAL SUMMARY DD Account Modifier Num (FK) Account Num (FK) Party Id (FK) Balance Category Type Cd (FK) Account Metric Type Cd (FK) Party Acct Bal Start Dttm (FK) Acct Bal Summary End Dttm (FK) Party Acct Bal End Dttm Party Acct Bal Amt Acct Crncy Party Bal Amt FOREIGN EXCHANGE AGREEMENT Account Num (FK) Account Modifier Num (FK) FX Agreement Type Cd (FK) Destination Currency Cd (FK) Source Currency Cd (FK) FX Destination Currency Qty FX Source Currency Qty Nostra Account Num CASH AT OTHER BANKS Account Num (FK) Account Modifier Num (FK) Other Bank Account Num Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-101 .Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Figure 8-35 Banking .Agreement. deposits and debt instruments (bonds). Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09. An INTEREST BASED AGREEMENT is a type of FINANCIAL AGREEMENT that is a type of AGREEMENT.00.00 Interest Based Agreement 8-102 Interest-based agreements are agreements where the pricing is based on interest rates such as loans. Interest Based Agreement AGREEMENT Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) ACCOUNT RATE has balance rate history of Account Num (FK) Account Modifier Num (FK) Rate Type Cd (FK) Balance Category Type Cd (FK) Account Rate Start Dttm Account Rate End Dttm Account Rate Time Period Cd (FK) Account Rate Agreement Categ Cd FINANCIAL AGREEMENT Account Num (FK) Account Modifier Num (FK) Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) Pricing Method Cd INTEREST BASED AGREEMENT Account Num (FK) Account Modifier Num (FK) Last Reprice Dt Next Reprice Dt Acct Comp Freq Unit Num Acct Comp Freq Time Period Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-103 .Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Figure 8-36 Banking .Agreement. defined by the attribute Asset Use Cd.’ PARTY ASSETs. 8-104 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09. such as a vehicle used in the business. such as ‘holding the account. An asset associated with a party has a specific use for that customer. or factory equipment. can be associated with AGREEMENTs. The attribute Account Party Role Cd specifies the role of the Party toward the Account. It contains the value of the asset for this lease agreement (Acct Leasing Asset Amt) and the asset lease amount (Acct Asset Leasing Amt).00 Leasing A PARTY may have zero. The entity ACCOUNT RENEWAL HISTORY contains leasing contract renewal history. The AGREEMENT ASSET entity subtypes to entity ACCOUNT LEASING ASSET for assets leased to customers like machinery or automobiles. Examples are: for ‘business use’ or ‘for rent. These associations are defined in the AGREEMENT ASSET. or many AGREEMENTs via the associative entity ACCOUNT PARTY. or many assets (PARTY ASSET).00. one.’ A party may have zero. one. Agreement.Leasing PARTY PARTY TO PARTY ASSET Party Id (FK) Party Asset Id (FK) Asset Role Cd (FK) Asset Role Dt PARTY ASSET Party Asset Id MM Object Id (FK) Asset Insurance Hist Type Cd (FK) Asset Type Cd (FK) Asset Desc Asset Acct Num Asset Next Valuation Dt Asset Next Inspection Dt Valuation Time Period Cd (FK) Asset Host Id Val has involvement with Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt has role with AGREEMENT Account Num Account Modifier Num has asset of Agreement Asset End Dt Asset Contract Role Cd Account Num (FK) Account Modifier Num (FK) Asset Contract Role Cd (FK) Party Asset Id (FK) Agreement Asset Start Dt (FK) Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind ACCOUNT PARTY has agreement of ACCOUNT LEASING ASSET has role with Asset Use Cd (FK) Asset Relinquish Dt AGREEMENT ASSET Account Num (FK) Account Modifier Num (FK) Asset Contract Role Cd (FK) Party Asset Id (FK) Agreement Asset Start Dt Party Id Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) has involvement with Account Party End Dt Allocation Pct Account Party Amt Acct Crncy Acct Party Amt ACCT ACCT RELATIONSHIP is related to is related with Account Num (FK) Account Modifier Num (FK) Related Account Num (FK) Related Account Modifier Num (FK) Acct Relationship Type Cd (FK) Acct Acct Relationship St Dt Acct Acct Relationship End Dt ACCOUNT RENEWAL HISTORY has renewal history of Account Num (FK) Account Modifier Num (FK) Contract Start Dttm Contract Term Expiration Dttm Contract Grace Period End Dttm Asset Leasing Value Amt Acct Asset Leasing Amt Acct Crncy Leasing Value Amt Acct Crncy Asset Leasing Amt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-105 .Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Figure 8-37 Banking . a Bank Letter of Credit (also called Acceptance Financing). an amount on behalf of its customer should the customer fail to meet performance expectations. There may also be a collateral pledge agreement associated with this Letter of Credit agreement to assure the bank will be paid if its customer fails to make payment. plus a percentage of the guaranteed amount. The issuing bank will facilitate payment to the supplier. The auto dealer requests from its bank a Standby Letter of Credit be issued and forwarded to the supplier.00.. the amount will vary depending on the performance risk of Company A. A Letter of Credit or a Letter of Guarantee is a credit instrument (agreement) issued by a bank that substitutes the bank’s credit for the customer’s credit. Company A is doing work for company B. fees. method of payment. when cars will be loaded and transported by ship. for a stated period of time and upon the satisfaction of specific conditions. 8-106 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . authorizes a third party (buyer) to draw a draft(s) against the bank up to or for a specified amount on a designated date. Company A will also deposit escrow money with its bank against the Letter of Guarantee. etc. when cars will be delivered to the auto dealer’s showroom. should the auto dealer fail to perform. Company A requests that its bank issue a performance bond payable to Company B should Company A be unable to complete its obligation. Before that date. When the bank issues an L/C or L/G to a customer.Teradata Financial Services Logical Data Model Reference Guide Release 09. when cars will arrive in port. an AGREEMENT is created for which EVENTs may happen. the bank’s customer pays the bank in full to cover the committed obligation amount. Many times.). or guarantees the credit of its customer who has a payment or performance commitment to a third party (beneficiary). This may be done with a bid bond or a performance bond. Company B wants assurance that Company A has sufficient funds to complete the work. guaranteed amount. sometimes despite the fact that the supplier may not even know its customer. expiration date. interest on the amount due. Information regarding the Letter of Credit includes insurance coverage. For example. method of shipment. Company A will pay the bank a fee. The issuing bank will pay Company B remaining amounts due. Standby Letter of Credit scenario: The bank’s customer who is an auto dealer purchased automobiles from an overseas supplier. Letter of Guarantee scenario: The bank issues a Letter of Guarantee to pay the beneficiary of the Letter of Guarantee (which may be another bank or a third party). Therefore.00 Letter of Credit and Letter of Guarantee Business Background A Letter of Credit (LC) and a Letter of Guarantee (LG) are services offered by the bank and. The Letter of Credit guarantees that the issuing bank will stand ready to pay the supplier upon delivery to its customer. therefore. who wishes assurance the autos will be paid for when delivered by the auto dealer. The supplier accepts the Letter of Credit. are PRODUCTs.g. and time tables (e. method of payment. Table 8-2 Letter of Credit and Letter of Guarantee Entity Information Entity Relevant Information PRODUCT Name and description of the L/C or L/G PRODUCT FEATURE (multiple instances) The link between the L/C or L/G PRODUCT and any FEATURE FEATURE (multiple instances) Prod Feat Rel Type Cd. Many letter of credit attributes are handled in existing entities. fee percent.g.. ship. if this amount will change over time or there is more than one kind of limit amount to track. The credit or guarantee amount is a type of ACCOUNT CREDIT LIMIT..Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Representation in the FS-LDM In the context of the FS-LDM. check. It can also be an instance in ACCOUNT CREDIT LIMIT. Insurance information for the asset is PARTY ASSET INSURANCE COVERAGE via PARTY ASSET. which is a type of AGREEMENT. specifies whether the FEATURE is mandatory or optional The name and description of each FEATURE related to the L/C or L/G Standard fee (percentage or fixed amount) ‘Good customer’ fee (percentage or fixed amount and lower than the standard fee) Method of Payment (e. car) Standard collateral percentage ‘Good customer’ collateral percentage (lower than the standard percentage) Standard interest rate ‘Good customer’ interest rate (lower than the standard interest rate) AMOUNT FEATURE The standard fee amount for the L/C or L/G Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-107 . a Letter of Credit or Letter of Guarantee agreement is considered instances of a LETTER OF CREDIT AGREEMENT. wire transfer. An entity LETTER OF CREDIT AGREEMENT contains the Committed Amount. which is a type of CREDIT AGREEMENT. freight train. and time periods) are FEATUREs of the AGREEMENT. method of shipment. The terms and conditions of the AGREEMENT (e. cash) Method of Shipment (e. airplane. which is a type of FINANCIAL AGREEMENT.. The following table provides more information regarding data mapping of letter of credit details to the FS-LDM entities. amount.g.g. For example. a Letter of Credit Agreement could be related to a Collateral Agreement.Teradata Financial Services Logical Data Model Reference Guide Release 09. The currency related to the specific L/C or L/G AGREEMENT The link between the L/C or L/G Agreement with any other Agreement Acct Relationship Type Cd. If this amount will not change over time it can be an attribute in LETTER OF CREDIT AGREEMENT. Lending Ceiling Amount: If there is a constraint on the committed amount limit. specifying the relationship between the L/C or L/G AGREEMENT and the other AGREEMENT. If this amount can change over time this can also be an instance of ACCOUNT CREDIT LIMIT. LETTER OF CREDIT AGREEMENT ACCOUNT CURRENCY ACCT ACCT RELATIONSHIP 8-108 Committed Amt is the maximum amount your institution guarantees to pay to the third party should the obligor not perform.00 Entity RATE FEATURE (multiple instances) Relevant Information The standard/minimum/maximum collateral percentages of the L/C or L/G Fee rate Any applicable interest rates TERM FEATURE (multiple instances) AGREEMENT Standard/minimum/maximum lengths of time of validity for the L/C or L/G Relative time table for tracking of the goods as related to a fixed date.00. there will be multiple instances of AMOUNT FEATURE). specifies the type of limit. such as a ceiling on the potential lending amount that is based on the borrower’s cash flow then this is the amount that is available to lend. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . (Basel II QIS par 274) Limit Type Cd. For example. such as total line of L/C credit Start/end dates allow for limit changes during time. The date the account was signed (Account Signed Dt) The date that the L/C will be issued (Account Open Dt) The date that the L/G will become valid (Account Open Dt) The date that the L/C or L/G will expire (Account Close Dt) ACCOUNT FEATURE Contains any agreement-specific overrides to standard product features ACCOUNT CREDIT LIMIT (via FINANCIAL AGREEMENT and LOAN ACCOUNT) Committed Amount: The minimum/maximum amount of the L/C or L/G (if more than one amount must be specified. the goods are to arrive at departure port ‘x’ days from signing of contract. in the currency as specified in ACCOUNT CURRENCY.g. Via PARTY ASSET INSURER and PARTY ASSET where the role of the party to the asset is the insurer of the asset. refer to Foundation section) The description and the value of the goods to be delivered ACCOUNT ASSET The link between the Asset and the AGREEMENT Asset Contract Role Cd. supplier) and the L/C or L/G AGREEMENT Account Party Role Cd. specifying that the PARTY is the LC or LG beneficiary of the AGREEMENT Acct Crncy Party Acct Amt. refer to Figure 847) Event Activity Type Cd. ACCOUNT STATUS HISTORY Several statuses of the L/C or L/G AGREEMENT EVENT. specifying that the Asset has an L/C relationship with the AGREEMENT PARTY ASSET INSURANCE COVERAGE Insurance coverage information about goods that are the subject of the agreement. collateral percentage. specifying delivery related to the L/C Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-109 . PARTY ASSET. containing the exact amount that was agreed upon. as mentioned above PRODUCT FEATURE (multiple occurrences) The available fees. ASSET VALUE HIST and OTHER ASSET (not shown in the diagram.. interest rate.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Entity Relevant Information ACCOUNT PARTY The link between the PARTY who is the beneficiary (e. ACCOUNT EVENT (not shown in this diagram. etc. 00 This page intentionally left blank. 8-110 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00.Teradata Financial Services Logical Data Model Reference Guide Release 09. Letter of Credit and Letter of Guarantee ACCOUNT PARTY Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt PARTY ASSET Party Asset Id MM Object Id (FK) Asset Insurance Hist Type Cd (FK) Asset Type Cd (FK) Asset Desc Asset Acct Num Asset Next Valuation Dt Asset Next Inspection Dt Valuation Time Period Cd (FK) Asset Host Id Val Account Num Account Modifier Num AGREEMENT ASSET has agreement of has role with Account Num (FK) Account Modifier Num (FK) Asset Contract Role Cd (FK) Party Asset Id (FK) Agreement Asset Start Dt Agreement Asset End Dt PARTY TO PARTY ASSET Party Id (FK) Party Asset Id (FK) Asset Role Cd (FK) Asset Role Dt Asset Use Cd (FK) Asset Relinquish Dt Asset Role Cd has asset of ACCOUNT CURRENCY Currency Use Cd (FK) Account Currency Cd (FK) has currency history of Account Num (FK) Account Modifier Num (FK) Account Currency Start Dt Account Currency End Dt has status history of PARTY ASSET INSURER Party Id (FK) Party Asset Id (FK) Asset Role Cd (FK) Asset Role Dt (FK) ACCOUNT STATUS HISTORY Account Num (FK) Account Modifier Num (FK) Acct Status Start Dttm Acct Status Type Cd (FK) Acct Status Reason Cd (FK) Acct Status End Dttm Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) is related with is related to ACCT ACCT RELATIONSHIP Party Id (FK) Party Asset Id (FK) Asset Role Cd (FK) Asset Role Dt (FK) Insurance Coverage Type Cd (FK) Asset Insurance Start Dttm Account Num (FK) Account Modifier Num (FK) Asset Insurance Coverage Amt Asset Insurance End Dttm Account Modifier Num (FK) Account Num (FK) Limit Type Cd (FK) Credit Limit Start Dttm Credit Limit End Dttm Limit Change Reason Cd (FK) Credit Limit Amt Acct Crncy Credit Limit Amt Credit Auth Origin Type Cd (FK) Account Num (FK) Account Modifier Num (FK) Feature Id (FK) Account Feature Role Cd (FK) Account Feature Start Dt Account Feature End Dt Overridden Feature Id (FK) Account Feature Amt Account Feature Rate Account Feature Qty Account Feature Num Account Feature UOM Cd (FK) Interest Index Cd (FK) FINANCIAL AGREEMENT FEATURE is overridden describes Feature Id Feature Type Cd (FK) Feature Classification Cd (FK) Feature Desc Feature Name Common Feature Name Feature Category Type Cd (FK) Feature Level Cnt Feature Type Cd Feature Id (FK) Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) RATE FEATURE Financial Agreement Categ Cd CREDIT AGREEMENT Account Num (FK) Account Modifier Num (FK) LETTER OF CREDIT AGREEMENT describes DESCRIPTIVE FEATURE Account Num (FK) Account Modifier Num (FK) Credit Agreement Categ Cd Account Num (FK) Account Modifier Num (FK) ACCOUNT FEATURE Agreement Categ Cd Account Num (FK) Account Modifier Num (FK) Related Account Num (FK) Related Account Modifier Num (FK) Acct Relationship Type Cd (FK) Acct Acct Relationship St Dt has credit limit of Product Feature End Dt is characterized by has insurance of PARTY ASSET INSURANCE COVERAGE has terms and conditions of Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind Acct Acct Relationship End Dt ACCOUNT CREDIT LIMIT Product Id (FK) Feature Id (FK) Prod Feat Rel Type Cd (FK) Product Feature Start Dt Product Id AGREEMENT Account Party End Dt Allocation Pct Account Party Amt Acct Crncy Acct Party Amt PRODUCT FEATURE PRODUCT has involvement with Seniority Level Cd (FK) Reaging Cnt Financing Agmt Past Due Amt Acct Crncy Past Due Amt Financing Agmt Charge Off Amt Acct Crncy Agmt Charge Off Amt Financing Agmt Last Pmt Dt Financing Agmt Last Pmt Amt Acct Crncy Last Pmt Amt Credit Agreement Categ Cd (FK) Obligor Borrowing Purpose Cd (FK) Committed Amt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret AMOUNT FEATURE Feature Id (FK) Feature Id (FK) Rate Time Period Cd (FK) Rate Feature Type Cd (FK) Rate Time Period Num Amount Currency Cd (FK) From Feature Amt To Feature Amt Amount Time Period Cd (FK) Amount Time Period Num TERM FEATURE Feature Id (FK) From Time Period Cd (FK) To Time Period Cd (FK) Until Age Cd (FK) From Time Period Num To Time Period Num Until Age Num Rate Feature Type Cd DATE FEATURE Feature Id (FK) Feature Dt OTHER RATE FEATURE Feature Id (FK) Other Feature Rate .Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Figure 8-38 Banking .Agreement. . purchasing securities and selling them (underwriting). These are services offered by banks that act as a clearinghouse for checks and funds transfer. The financial institution earns its money via fees charged. Examples are listed here and in the model.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Other Financial Services This section describes financial services other than deposits and cash management. The types described here change depending on the scope of your institution’s offerings. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-113 . Model Description OTHER FINANCIAL SERVICE is a type of FINANCIAL AGREEMENT.Purchased Receivable. When a customer requests a safe deposit box a contract is signed which limits the bank’s liability for loss or damage to the personal items. • SECURITIES ORIGINATION – this service assists issuers of securities (businesses and governments) in creating their securities. providing a storage facility that is maintained in the vault and is rented to customers to safely keep things that are personally valuable. the customer) establishing a fiduciary relationship with a second party (e. Assets that are managed by the Trust or Estate service are instances of PARTY ASSET. automobile) and the financial arrangements between the two parties.g. Boxes usually come in different sizes and have an associated box number.g.. The service may involve advising the issuer. which is a type of AGREEMENT. fees charged for these services and other terms and conditions of the contract are instances of the ACCOUNT FEATURE entity.. • DEALER AGREEMENT . such that the second party manages property for the benefit of either the first party or others.For the financing business unit of a manufacturer. this would be the agreement between the manufacturer and the dealer that is selling the merchandise (e. OTHER FINANCIAL SERVICEs include: • SAFE DEPOSIT ACCOUNT – is an account and contract for the bank.Agreement . Purchased Receivables (factoring) and Collection services are further described in section Banking .. your financial institution).Factoring . An estate service provides a trust service for planning and selling estates (real estate and personal property) owned at the time of death.ESTATE – A trust service involves one party (e. • CLEARING AND SETTLEMENT – Services that clear and settle payments for financial transactions other than security trades and commodity contracts. and having them distributed to the investing public. For example. Other Financial Services are usually fee-based. or acting as an agent to market securities. • TRUST .g. other than loans and credit agreements and other than investment agreements. Details behind each of these agreements are in other existing entities of the model. Other Financial Services AGREEMENT Account Num Account Modifier Num Agreement Categ Cd FINANCIAL AGREEMENT Account Num (FK) Account Modifier Num (FK) Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) Financial Agreement Categ Cd OTHER FINANCIAL SERVICE Account Num (FK) Account Modifier Num (FK) Other Financial Srv Categ Cd (FK) SECURITIES ORIGINATION Account Num (FK) Account Modifier Num (FK) TRUST_ESTATE Account Num (FK) Account Modifier Num (FK) Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) Other Financial Srv Categ Cd PURCH RECV ISSUER DEBTOR AGMT Issuer Debtor Account Num (FK) Issuer Debtor Account Mod Num (FK) has debtor contract Issuer Account Num (FK) Issuer Account Modifier Num (FK) PURCH RECEIVABLE ISSUER AGMT COLLECTION ISSUER AGREEMENT DEALER AGREEMENT Collection Issuer Acct Num (FK) Collection Issuer Acct Mod Num (FK) has underlying debt of COLLECTION DEBT INVOICE Account Num (FK) Account Modifier Num (FK) SAFE DEPOSIT ACCOUNT Account Num (FK) Account Modifier Num (FK) Deposit Box Size Cd (FK) Safe Deposit Box Num Account Num (FK) Account Modifier Num (FK) Collection Issuer Acct Num (FK) Collection Issuer Acct Mod Num (FK) Original Collection Amt Acct Crncy Orignl Collectn Amt Original Collection Due Dt 8-114 CLEARING AND SETTLEMENT Account Num (FK) Account Modifier Num (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Issuer Account Num (FK) Issuer Account Modifier Num (FK) Debt Receivable Agmt Type Cd (FK) Debt Credit Limit Amt Debt Purchase Discount Amt Purch Receivable Premium Amt Original Debt Amt Total Receivable Value Amt Debt Repayment Method Cd (FK) Receivable Last Audit Dt Receivable Next Audit Dt Borrower Issuer Correlate Rate Acct Crncy Debt Limit Amt Acct Crncy Purch Discount Amt Acct Crncy Debt Premium Amt Acct Crncy Original Debt Amt .00.00 Figure 8-39 Banking .Teradata Financial Services Logical Data Model Reference Guide Release 09.Agreement. the bank is second in line to the collateral. should the obligor default. bank relationship manager. or borrower. there is more than one account holder. creditor. but not all possible roles are shown as subtypes. the bank is first in line to the collateral. servicer. This view shows examples of role types as subtypes to the ACCOUNT PARTY entity. if the obligation is a home loan and a bank has a first trust deed. An AGREEMENT can be associated with many PARTYs and a PARTY (individual or organization) can be associated with many AGREEMENTs. The role code Account Party Role Cd specifies the role(s) the Party has with the AGREEMENT. and it is possible for one PARTY to have multiple roles with the same AGREEMENT. For example. The financial institution could be the investor or the seller of an account. This many-to-many relationship results in the associative entity ACCOUNT PARTY. should the obligor default. Other possible roles that are not subtyped include: beneficiary. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-115 . The Seniority Level Cd refers to the order rank in which the account investor will be paid. The risk seller may retain a servicing role with respect to the account to collect and process payments. If the bank holds a second trust deed. ACCOUNT INVESTOR – party(s) assuming some risk on this account (also known as the obligee. or lender). For joint accounts. ACCOUNT SELLER – party that sold the risk to the investor. Possible roles that a PARTY can have with an AGREEMENT from a banking perspective are: ACCOUNT HOLDER – party(s) who is legally bound by the terms of the contract and also known as the obligor.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Party Roles This logical view shows possible roles that PARTYs have with AGREEMENTs from a banking perspective. and trustee. debtor. 00 Figure 8-40 Banking .Teradata Financial Services Logical Data Model Reference Guide Release 09.Agreement.Party Roles AGREEMENT ACCOUNT PARTY PARTY Party Id Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind has involvement with Account Num Account Modifier Num has involvement with Account Party End Dt Allocation Pct Account Party Amt Acct Crncy Acct Party Amt Account Party Role Cd Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) ACCOUNT INVESTOR ACCOUNT SELLER Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt (FK) Party Id (FK) 8-116 Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt (FK) Party Id (FK) Seniority Level Cd (FK) ACCOUNT HOLDER Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt (FK) Party Id (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00. Each product consists of mandatory and optional FEATUREs. and Features and applies them to the banking business. belonging to a certain feature (like a Card). the entity ACCOUNT FEATURE FEATURE is used to define the change. Account. The attribute Feature Id of ACCOUNT FEATURE points to the chosen feature. application. The entity ACCOUNT FEATURE shows which mandatory and optional FEATUREs are applicable for each AGREEMENT. or quantity for this feature in this account.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Product and Feature This section describes the relationships between Agreements. Examples of these features are rates. The attribute Account Feature Amt of the ACCOUNT FEATURE entity is the agreed upon amount. Application. When the bank and its customer mutually decide that a specific account can deviate from the marketed features belonging to a certain product the ACCOUNT FEATURE entity can represent such change(s). the attribute Overridden Feature Id defines which feature is replaced. Overridden Features. and Quotation Modeling for products and features related to applications and quotations is similar to the modeling of features related to accounts. All these entities are part of the FS-LDM Foundation section in this document. rate. and cards. and quotation: Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-117 . Products. Overridden Features. the attribute AFF Overridden Feature Id in ACCOUNT FEATURE FEATURE defines which (sub) feature is replaced. The attribute Feature Id in ACCOUNT FEATURE FEATURE points to the chosen (sub) feature belonging to the entity ACCOUNT FEATURE. The attribute Account Feat Feat Amt/Rate/Qty in the ACCOUNT FEATURE FEATURE entity is the agreed upon amount for this changed feature in this account. When the bank and its customer decide that a specific account can deviate from the marketed (sub) features (like limit amount). minimum/maximum amounts. Start and End Dates in ACCOUNT FEATURE define the time during which the feature is associated with the account. The following table presents the corresponding entities for account. Features that describe other features are referred to as subfeatures. Product level The entity ACCOUNT FEATURE is used to define the features that are associated with a specific account. Account and Mandatory and Optional Features Each customer AGREEMENT may be associated with one or more PRODUCTs. as defined by the attribute Prod Feat Rel Type Cd in PRODUCT FEATURE. Feature Level Other features that specify details such as limit amount and yearly fee (AMOUNT FEATURE) describe FEATUREs such as Cards. Product and Feature There is one Product with identifier P1 and there are three Features with identifiers F1. Account 2 has a higher limit than the standard limit for that Debit Card. PRODUCT and FEATURE The following tables are examples of how the Account. Both accounts have chosen the Debit Card optional feature. These tables are just a few examples that help explain the data model. Please note that in the presented examples. Product. An optional feature of that same Product is a Debit Card. Scenario: Two accounts each have the same Product (Standard Checking). PRODUCT Product Id Product Name P1 Standard Checking FEATURE Feature Id F1 F2 F3 Feature Name Feature Type Cd Debit Card Standard Card Limit High Card Limit 1 2 2 PRODUCT FEATURE Product Id Feature Id P1 Prod Feat Rel Type Cd F1 2 PRODUCT FEATURE FEATURE 8-118 Product Id Feature Id Related Feature Id Prod Feat Rel Type Cd P1 F1 F2 2 P1 F2 F1 1 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09. not all attributes of the entities are listed. is an optional feature of Product P1.00. For improved readability. alphabetic prefixes have been added to major entity identifiers. F2. and Feature entities are populated. the Debit Card. Table PRODUCT FEATURE shows that Feature F1. and F3.00 Account Application AGREEMENT ACCOUNT FEATURE ACCOUNT FEATURE FEATURE Quotation APPLICATION APPLICATION FEATURE APPLICATION FEATURE FEATURE QUOTATION QUOTATION FEATURE QUOTATION FEATURE FEATURE SAMPLE TABLES: AGREEMENT. In addition. there are no rate. and/or fee features. Feature F2 is an Amount Feature with a value of 500. Feature F3 is also an Amount Feature with a value of 1.000.00 FEATURE TYPE Feature Type Cd Feature Type Desc 1 super feature 2 amount feature 3 rate feature 4 quantity feature 5 term feature 6 descriptive feature FEATURE FEATURE REL Feature Id Related Feature Id Feature Relationship Type Cd F1 F2 2 F2 F1 1 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-119 .000.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area PROD FEAT REL TYPE Prod Feat Rel Type Cd Prod Feat Rel Type Desc 1 Mandatory Feature 2 Optional Feature Feature/Feature Relationship The following five tables show that Feature F1 (the Debit Card) is related to Feature F2.00 F3 1.00 and is not related to any other Feature.00.00. In this example. term. FEATURE Feature Id Feature Name Feature Type Cd F1 Debit Card 1 F2 Standard Card Limit 2 F3 High Card Limit 2 AMOUNT FEATURE Feature Id Feature Amt F2 500. Therefore this Debit Card has a standard limit of 500. 00 . which replaces the Standard Limit Amount (Feature F2). the Debit Card (Feature F1) relates to the High Limit Amount (Feature F3). which is the Debit Card. A1 and A2. ACCOUNT FEATURE FEATURE 8-120 Account Num Account Modifier Num A2 M2 Feature Related Id Feature Id F1 F3 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret AFF Overridden Feature Id Account Feat Feat Amt F2 1.Teradata Financial Services Logical Data Model Reference Guide Release 09. ACCOUNT FEATURE shows that both Accounts have the optional Feature F1. Both Accounts are for Product P1.00 FEATURE REL TYPE Feature Relationship Type Cd Relationship Type Desc 1 describes superfeature 2 is described by subfeature Account and Product There are two Accounts.00. AGREEMENT Account Account Modifier Num A1 M1 Product d P1 A2 M2 P1 ACCOUNT FEATURE Account Num Account Modifier Num A1 Feature Id M1 A2 F1 M2 F1 Account and Feature ACCOUNT FEATURE FEATURE shows that for Account A2.000. Product and Feature QUOTATION FEATURE Quotation Id (FK) Feature Id (FK) Quotation Feature Role Cd (FK) Quotation Feature Start Dt PRODUCT FEATURE PRODUCT Product Id has terms and conditions of Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind describes ACCOUNT PRODUCT HISTORY Account Num (FK) Account Modifier Num (FK) Product Id (FK) Agreement Product Role Cd (FK) Acct Product Assoc Start Dt Product Id (FK) Feature Id (FK) Prod Feat Rel Type Cd (FK) Product Feature Start Dt Product Feature End Dt Account Feature End Dt Overridden Feature Id (FK) Account Feature Amt Account Feature Rate Account Feature Qty Account Feature Num Account Feature UOM Cd (FK) Interest Index Cd (FK) is specific to is overridden has subfeatures Feature Id (FK) Quotation Id (FK) Quotation Feature Role Cd (FK) Quotation Feature Start Dt (FK) Related Feature Id (FK) Related Quote Feature Role Cd (FK) Quotation Feat Feat Start Dt is overridden FEATURE Feature Id is specific to Feature Type Cd (FK) Feature Classification Cd (FK) Feature Desc Feature Name Common Feature Name Feature Category Type Cd (FK) Feature Level Cnt is overridden Quotation Feat Feat End Dt Overridden Feature Id (FK) Quotation Feat Feat Amt Quotation Feat Feat Rate Quotation Feat Feat Qty Quotation Feat Feat Num Quotation Feat Feat UOM Cd (FK) APPLICATION FEATURE FEATURE is overridden is characterized by AGREEMENT Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) is overridden is specific to ACCOUNT FEATURE FEATURE Account Num (FK) Account Modifier Num (FK) Feature Id (FK) Account Feature Role Cd (FK) Account Feature Start Dt (FK) Related Feature Id (FK) Related Acct Feature Role Cd (FK) Account Relatd Feat Start Dt Account Relatd Feat End Dt AFF Overridden Feature Id (FK) Account Feat Feat Amt Account Feat Feat Rate Account Feat Feat Qty Account Feat Feat Num Account Feat Feat UOM Cd (FK) Quotation Categ Cd (FK) Campaign Id (FK) Quote Status Type Cd (FK) Quote Close Reason Cd (FK) Quote Origin Cd (FK) Application Id (FK) Quotation Amt Current Quote Status Start Dt Quotation Open Dt Quotation Expiration Dt Quotation Close Dt Quote Ceiling Amt Acct Crncy Quote Amt Acct Crncy Ceiling Amt Quote Planned Account Open Dt Quote Planned Account Close Dt Agreement Objective Type Cd (FK) has led to is specific to is overridden Acct Product Assoc End Dt may be for product QUOTATION FEATURE FEATURE describes describes Quotation Id is further described by Quotation Feature End Dt Overridden Feature Id (FK) Quotation Feature UOM Cd (FK) Quotation Feature Amt Quotation Feature Rate Quotation Feature Qty Quotation Feature Num ACCOUNT FEATURE Account Num (FK) Account Modifier Num (FK) Feature Id (FK) Account Feature Role Cd (FK) Account Feature Start Dt QUOTATION has terms and conditions of is specific to APPLICATION FEATURE Feature Id (FK) Application Id (FK) Application Feature Role Cd (FK) Application Feature Start Dt Application Feature End Dt Appl Overridden Feature Id (FK) Application Feature UOM Cd (FK) Application Feature Amt Application Feature Rate Application Feature Qty Application Feature Num Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Application Id (FK) Feature Id (FK) Application Feature Role Cd (FK) Application Feature Start Dt (FK) Related Feature Id (FK) Related Appl Featue Role Cd (FK) Appl Related Feature Start Dt Appl Related Feature End Dt Appl FF Overridden Feature Id (FK) Application Feat Feat Amt Application Feat Feat Rate Application Feat Feat Qty Application Feat Feat Num Application Feat Feat UOM Cd (FK) has special has special APPLICATION Application Id Application Completed Dt Promo Id (FK) Planned Account Open Dt Application Received Dt Application Signed Dt Product Group Id (FK) Application Type Cd (FK) Document Id (FK) .Agreement.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Figure 8-41 Banking . . .e. currency.Projected Cash Flow AGREEMENT Account Num Account Modifier Num PROJECTED CASH FLOW Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) has projected cash flow of Cash Flow Id Cash Flow Amount Type Cd (FK) Account Num (FK) Account Modifier Num (FK) Cash Flow Calculation Dttm To Party Id (FK) From Party Id (FK) Cash Flow Dttm Cash Flow Amt Cash Flow Present Value Amt Projected Ledger Balance Amt Cash Flow Currency Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-123 .Agreement. receipt and payment of fees. the projection of cash flow is represented in the entity PROJECTED CASH FLOW. i. principal. Cash flow is important for a bank to understand because it is a measure of its overall liquidity or ability to meet customer demand for funds. For each account and for each type of amount (e. and from/to parties. Cash flow includes items such as payments made by obligors to the bank of principal and interest. fee). the following are provided: projected cash flow date. In the FS-LDM. etc. Figure 8-42 Banking .Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Projected Cash Flow This logical view shows the results of projecting the cash flow for a given account. projected amount (provided in future money terms and net present value terms.. interest.g. and for a given cash flow. payment of interest to depositors. value of the money in today’s terms when accounting for inflation). Cash flow indicates a bank’s source of funds (mostly deposits) and use of funds (mostly loans). by bank subsidiary and by geographical area. It is intended to support Pillar 3 of the Basel Accord. representing the amount thought to be adequate to cover estimated losses in the loan portfolio. Entities LOAN PROVISION BALANCE HIST and LOAN PROVISION CHANGE HIST are specific to Basel II Pillar 3 – Table 4(g and h) reporting requirements. This structure provides for more than one way to calculate provision at the agreement level.’ It is to be used in conjunction with the provision change amounts stored in LOAN PROVISION CHANGE HIST. 8-124 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . and its book value is deducted from this reserve account for loan losses.00. such as specific provision or a general provision that might be allocated down to the agreement level. specifically Table 4's requirement to ‘reconcile changes in allowances for loan impairment. Model Description In the FS-LDM the Asset Loan Loss Reserve account is a GL subtype entity ALLOWANCE FOR LOAN LOSS ACCT. it is removed from the loan portfolio as an earning asset. Both of these are general provisions.Teradata Financial Services Logical Data Model Reference Guide Release 09.00 Provision This view shows how provisions for bad debt are described in the data model. LOAN PROVISION BALANCE HIST tracks the balances of general and specific provisions for losses that have not been recorded directly to the income statement. Recoveries from the liquidation of collateral repossessed from the borrower are credited to the reserve account. More than one type of provision is allowed. Lenders also set aside reserves for nonaccrual loans. Specific Provisions are provision amounts related to a specific exposure or agreement. Loan Loss Provision is a noncash Expense item charged to a bank's earnings when adding to the allowance or Loan Loss Reserve for possible bad debt. in which interest and principal payments are no longer being collected. There is a relationship between an AGREEMENT and a CHART OF ACCOUNT via AGREEMENT TO CHART OF ACCOUNT although all the linked entities are not shown in this diagram. The Loan Loss Provision is reported on the bank's Income Statement as an Expense. Calculated specific provision at the agreement or exposure level is contained in AGREEMENT PROVISION over time. The expense for Loan Loss Provision is entity PROVISION FOR LOAN LOSS ACCT. Loan Loss Reserve is a balance sheet Asset and is a valuation reserve against a bank's total loans on the balance sheet. A General Provision Journal Voucher is created when someone has an idea that a loan portfolio needs to have a reserve which is charged to Loan Loss Reserve and Loan Loss Provision. When a loan is charged off. accounts for GL MAIN ACCOUNT Account Group GL Acct End Dt AGREEMENT Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) participates in ACCOUNT ACCOUNT GROUP Account Account Account Account Chart Of Account Desc Chart Of Account Expire Dttm Account Group Name Account Group Desc Account Group Start Dt Account Group End Dt Analytical Model Id (FK) Account Group Reason Type Cd (FK) Parent Account Group Id (FK) Data Source Cd (FK) contains Num (FK) Modifier Num (FK) Group Id (FK) Assoc Start Dt contains GL Main Account Category Cd BALANCE SHEET GL MAIN ACCOUNT GL Main Account Num (FK) is parent of Bal Sheet GL Main Acct Cd (FK) Bal Sheet GL Main Acct Cd Account Assoc End Dt Acct To Acct Group Relat Cd (FK) describes provision type for AGREEMENT PROVISION Account Num (FK) Account Modifier Num (FK) Provision Type Cd (FK) Agreement Provision Start Dttm Income Stmt GL Main Acct Cd (FK) Income Stmt GL Main Acct Cd ASSET ACCOUNT GL Main Account Num (FK) Asset Account Type Cd (FK) Expense Account Type Cd (FK) Expense Account Type Cd OTHER EXPENSE ACCOUNT LOAN PROVISION CHANGE HIST has changes of GL Main Account Num (FK) GL Main Account Num (FK) Agreement Provision Amt LOAN PROVISION BALANCE HIST INCOME STMT GL MAIN ACCOUNT EXPENSE ACCOUNT is provision type for Period End Dt Provision Ending Bal Amt Chart Of Account Id Account Group Id PROVISION TYPE Party Id (FK) Period Start Dt Geographical Area Id (FK) Provision Type Cd (FK) Risk Scenario Id (FK) CHART OF ACCOUNT ACCOUNT GROUP has risk provision of Provision Type Desc GL Main Account Name GL Main Account Desc Parent GL Main Account Num (FK) GL Main Account Start Dttm GL Main Account End Dttm GL Main Account Category Cd (FK) has chart of account of Account Num Account Modifier Num Provision Type Cd GL Main Account Num Party Id (FK) Period Start Dt (FK) Provision Type Cd (FK) Provision Change Type Cd Geographical Area Id (FK) Risk Scenario Id (FK) Asset Account Type Cd GL Main Account Num (FK) Other Expense Acct Type Cd (FK) Other Expense Acct Type Cd ALLOWANCE FOR LOAN LOSS ACCT GL Main Account Num (FK) PROVISION FOR LOAN LOSS ACCT GL Main Account Num (FK) Period End Dt Provision Change Amt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .GL Chart of Account Balance.Agreement.FM.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Figure 8-43 Banking .Provisions ACCOUNT GROUP TO CHART OF ACCT Chart Of Account Id (FK) Account Group Id (FK) Account Group GL Acct Start Dt The entities that link CHART OF ACCOUNT with GL MAIN ACCOUNT can be found in logical view Foundation . . Credit ratings often derive from credit scores and can include RISK GRADE VALUEs such as ‘excellent.RiskGrade Scheme Id).’ or ‘good. Basel II Standardized approach). fraud scores. refer to Foundation .Cross Subject Area. such as credit risk rating.g. and rating method (e. Grades are discrete values or ‘buckets’ and are many times derived from score values.. or any other kind of financial services account that has credit exposure. In general terms. An Account can have many different scores associated with it over time. An APPLICATION may lead to an AGREEMENT.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Score and Rating This view shows the relationships between accounts. credit card accounts. They can be classified into credit rating schemes or purposes (RISK GRADE VALUE. Application scores often make use of demographic and credit bureau information. and ratings.Cross Subject Area. and bankruptcy scores. probability of default. The history of these scores is maintained in the ACCOUNT SCORE DD entity.Risk Grade Relations in this guide.Analytical Model). Scores can be derived from a model. propensity to buy. as well as credit bureau credit risk scores. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-127 . this area is described in the Foundation Reference section of this document (refer to Foundation . scores. and attrition scores. which includes loan accounts. For more information about grades and scores as they apply to banking.g.. or can be received from third parties. Types of scores that can be maintained for an account include behavioral scores such as overall credit risk. These credit ratings may be derived internally or may be provided by third parties. An Account can also have different credit ratings or grades associated with it over time (ACCOUNT RISK GRADE and RISK GRADE VALUE). The Application Score (APPLICATION SCORE DD) can be determined by the bank issuing the loan or credit card.’ ‘poor.’ Grades are different from scores in that scores are usually predictive in nature and is a continuous number or probability. bankruptcy rating. The entity ACCOUNT RISK GRADE can be used for Basel II in recording the risk grades for a given account for a given rating scheme (e. like credit reporting bureaus. or from an outsourced party. Standard & Poor’s) over time. This score helps determine whether the application is approved or denied. Score and Rating RISK GRADE SCHEME APPLICATION SCORE DD is assigned APPLICATION Risk Rating Method Id (FK) Risk Rating Purpose Cd (FK) Risk Grade Scheme Desc Application Score Val Application Id Application Completed Dt Promo Id (FK) Planned Account Open Dt Application Received Dt Application Signed Dt Product Group Id (FK) Application Type Cd (FK) Document Id (FK) Risk Grade Scheme Id Application Id (FK) Model Id (FK) Model Run Id (FK) led to ANALYTICAL MODEL was used to calculate AGREEMENT TO APPLICATION Application Id (FK) Account Num (FK) Account Modifier Num (FK) Agreement Appl Role Cd (FK) Agmt To Application Start Dt Model Id MODEL RUN Model Id (FK) Model Run Id is run Model Run Dttm Model Status Cd (FK) Model Name Model Desc Model Type Cd (FK) Model Purpose Cd (FK) Model Algorithm Type Cd (FK) Model Source Party Id (FK) Data Source Cd (FK) Agmt To Application End Dt was used to calculate has grading values of AGREEMENT ACCOUNT SCORE DD Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) 8-128 was started from Account Num (FK) Account Modifier Num (FK) Model Id (FK) Model Run Id (FK) RISK GRADE VALUE Risk Grade Id is risk grading for Account Score Val is assigned is associated with ACCOUNT RISK GRADE Account Num (FK) Account Modifier Num (FK) Risk Grade Id (FK) Account Risk Grade Start Dttm Account Risk Grade End Dttm Acct Risk Grade Next Rev Dttm Account Risk Grade Rate Dttm Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Grade Scheme Id (FK) Grade Desc Grade From Val Grade To Val Grade Val Grade Rate Grade Level Num Grade Num Grade Id Start Dttm Grade Id End Dttm .Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 Figure 8-44 Banking .Agreement. The group of loans cannot be split into smaller groups.g. Additionally. but receives the payment streams (both principal and interest). A group of residential mortgages.. Any group of loans with regularly scheduled principal and interest payments can be securitized to collateralize marketable securities also known as ‘asset-backed securities. which are located in a specific geographical area). A financial institution can be the bank that originated the loans and issued the asset-backed security (originating bank). Financial institutions will use securitization as a risk mitigation technique to move assets off the balance sheet and to sell the risk to other parties.g. consumer loans. It is possible however. the group can be sold from institution to institution but it is always sold as a whole package. and tranches where a financial institution may be the buyer.. a mortgage bond. the buyer of the asset-backed security (investing bank). • The ‘custodian or servicer’ is the bank that administers on a day-to-day basis the securitized loan pool(s) by collecting principal and interest payments from obligors and remitting payments to the investors (less servicing fees). or the bank that services the loans and collects servicing fees from the investing banks (custodian bank or servicer). other than the originating financial institution or custodian/servicing bank. • The ‘originating bank’ is the bank that originated the loans. or class of debt security. or other income producing assets and selling them as marketable securities on the open market to investors.’ Many times loans with similar terms and characteristics comprise a group (i. a collateralized mortgage obligation (CMO). or servicer of a group of assets (e. consumer loans. mortgage loans. credit cards.e. leases.000. 15-year fixed rate residential mortgages less than 2 years to maturity with a mortgage balance less than $200. with terms and conditions. leases.) which are packaged and offered to investors as security instruments. seller.) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-129 . The group of loans has an identity and a legal document that describes its loan contents. Following are possible parties to a securitization agreement: • The ‘investing bank’ is an institution.. pools. mortgage certificate. consumer loans. for more than one financial institution to invest in a single group of loans. Background on Securitization Securitization is the process of repackaging residential mortgages. pass-through security).’ A tranche is defined as a part of a capital issue (e.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Securitization Agreement This logical view describes securitization agreements. The group of loans becomes negotiable once its identity has been established – thus. or credit card debts may be used to securitize an asset-backed security issue composed of many ‘individual tranches. unless new identities and associated legal documents are created and assigned to the new loan packages (groups). that may or may not assume the credit risks for the group of collateralized loans. (In the FS-LDM a tranche is also an INVESTMENT PRODUCT. etc. this group of loans can be sold by a bank to another bank. such as Clean Up Call. which is a type of FINANCIAL AGREEMENT. The investor buys tranches which are also INVESTMENT PRODUCTs. which represents the relationship between agreements and parties whereby the role of the selling party is ‘selling or originating institution. which is a type of ACCOUNT ACCOUNT 8-130 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . A SECURITIZATION POOL is a type of ACCOUNT GROUP. Many of these attributes are requirements for Basel II.00. This is the bank acting as the investor.00 The loan obligations comprising each tranche will usually share similar maturity and interest rate characteristics. Another tranche may have a different maturity and offer a different rate of interest (hence.’ The specific loan characteristics of the securitization or indenture agreement from the seller’s perspective are the attributes in the SECURITIZATION SELL AGREEMENT entity. This is the bank acting as the seller. An agreement to invest in a group of loan obligations from the seller institution is an INVESTMENT AGREEMENT that is a type of FINANCIAL AGREEMENT that is also a type of AGREEMENT. The financial institution that originated the securitized loan package can offer ‘shares’ for resale to other institutions in individual tranches. which is a type of RISK MITIGANT AGREEMENT. Other terms and conditions to this selling agreement can be represented in ACCOUNT FEATURE. The individual loan obligations that comprise the securitized package are instances of AGREEMENT.Teradata Financial Services Logical Data Model Reference Guide Release 09. since it is securitized by a pool of loans that mature in 5 years. The tranche may also consist of principal payments only. The PARTYs to an AGREEMENT can be found in ACCOUNT PARTY. Model Description From the Perspective of the Originating Bank or the Investing Bank An agreement to sell a group of loan obligations to an investing institution is a SECURITIZATION SELL AGREEMENT. it would have different issue and market prices). which is also a type of AGREEMENT. but these tranches are never ‘split’ from their original securitized package of collateralized loans. For example. which indicates whether the originating or issuing bank can call (exercise redemption privileges) the mortgage-backed bond or issue of asset-backed securities prior to payoffs of the individual loan exposures. The securitized package (SECURITIZATION POOL) is an instance of ACCOUNT GROUP where each group has an identity. a tranche may be securitized by a group of loan obligations that mature in two years. and therefore one loan’s cash flow can be split between tranches. The relationship of the individual obligations (AGREEMENT) to the securitized package (ACCOUNT GROUP) is in ACCOUNT TO SECURITIZATION POOL. servicing fees. certificate interest. which is at the ACCOUNT GROUP level. another tranche that matures in 10 years. Actual income. This summary entity tracks various Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-131 . Derived information for Basel II Pillar 3 reporting purposes is in entity SECURITIZATION EXPOSURE HIST. Risk metrics at the tranche level are in TRANCHE RISK METRIC. Risk Metrics about an obligor’s exposures within a given securitization pool are in SECURTN POOL OBLIGOR METRIC. The relationship of the securitization pool to the agreement to sell the pool is in SECURTN AGMT TO SECURTN POOL. and IRB Capital Charge. The tranche may also be composed of principal only or interest only cash flows.) Risk metrics associated with securitization agreements (from any perspective) are in ACCOUNT RISK HISTORY. This is where one finds the composition and mix of the securitized package – the loans that make up the pool. expenses. Metrics Calculated risk metrics about the securitization pool created by the originating bank are in SECURTN POOL RISK HIST. For example. other fee income. These metrics include excess spread. Each tranche may be composed of similar assets or loans that one can invest in. and other metrics. the tranche is also an instance of an INVESTMENT PRODUCT offered on the market. A tranche is a pool of money made up of principal and/or interest cash flows from the underlying assets (loans). etc. Asset-Backed Commercial Paper. finance charge. charge-offs. Tranches are offered on the open market as a security. Tranche thickness (T). credit conversion factor. The SECURITIZATION POOL is composed of many SECURITIZATION TRANCHEs. and credit equivalent amount. which relates an AGREEMENT instance to an ACCOUNT GROUP instance. Pool LGD. These include the KIRB (capital charge if this group is not securitized). For this reason a tranche is not considered a group of accounts but is a pool of money from which accounts contribute cash flow. Investors buy into tranches. within a securitized pool there may be a group of loans that mature in 5 years. A tranche has its own identity. Examples are risk weight. or Asset-Backed Security.Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area GROUP. This shows metrics for a given obligor at the pool level. and Supervisory Capital (S). Therefore. Examples include Credit Enhancement Level (L). and profit metrics that are associated with the securitization agreement are in ACCT PROFIT DD and ACCOUNT COST. collections. Another tranche may be composed of only the principal cash flow from that group of accounts. (It is possible for one obligor to have multiple exposures in a pool. ’ Payments come through as EVENTs. mortgage). The bank has a role with the AGREEMENT. 8-132 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . The fee arrangement the bank charges the investing bank(s) is found in ACCOUNT FEATURE. and the amount of securitization exposures incurred during the period.. and risk grade for a given reporting date.g. credit card. defined as the ‘servicing institution. From the Perspective of the Servicing Bank If the bank is the servicer then there is an instance in AGREEMENT and FINANCIAL AGREEMENT for this arrangement. Individual exposures are instances of AGREEMENT. including total current outstanding securitization exposures.Teradata Financial Services Logical Data Model Reference Guide Release 09. It is by the investing/originating/ servicing party. exposure type (e.00 measures of a Bank's asset securitization activity.00. Agreement.Securitization AGREEMENT SECURITIZATION EXPOSURE HIST Account Num Account Modifier Num Party Id (FK) Product Group Id (FK) Risk Grade Id (FK) Securitization Role Cd (FK) Pillar 3 Reporting Start Dt Risk Scenario Id (FK) has securitization metric of participates in Pillar 3 Reporting End Dt Tot Trad Sec Exposure Amt Tot Synth Sec Exposure Amt Period Trad Sec Exp Amt Period Synth Sec Exp Amt Impaired Past Due Sec Exp Amt Period Sec Exp Losses Amt Sec Exp Capital Req Amt Sec Exp Cap Deduction Amt Early Amort Drawn Amt Early Amort Cap Req Amt Securitization Sale Gain Amt PRODUCT GROUP Product Group Id Parent Prod Group Id (FK) Product Group Desc Product Group Start Dt Product Group End Dt Product Group Level Num Product Group Reason Type Cd (FK) parent of ACCOUNT ACCOUNT GROUP PARTY Party Id Account Account Account Account has securitization of Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind contains Num (FK) Modifier Num (FK) Group Id (FK) Assoc Start Dt ACCOUNT GROUP Account Group Id Account Group Name Account Group Desc Account Group Start Dt Account Group End Dt Analytical Model Id (FK) Account Group Reason Type Cd (FK) Parent Account Group Id (FK) Data Source Cd (FK) Party Id (FK) Risk Scenario Id (FK) Account Group Id (FK) Acct Grp Obligor EAD Amt Acct Grp Obligor LGD Amt is calculation scenario for Account Account Account Account SECURTN AGMT TO SECURTN POOL Account Account Account Account Num (FK) Modifier Num (FK) Group Id (FK) Assoc Start Dt (FK) Num (FK) Modifier Num (FK) Group Id (FK) Assoc Start Dt (FK) is related with is related to Account Group Id (FK) Related Account Group Id (FK) Account Group Related Role Cd (FK) Account Group Related Start Dt Account Group Related End Dt Account Group Reason Type Cd Account Group Id (FK) has risk metrics of RISK CALCULATION SCENARIO Risk Scenario Id Risk Calculation Dttm Scenario Trial Cd (FK) Scenario Purpose Cd (FK) Reporting Currency Cd (FK) Risk Calculation Scenario Desc Risk Type Cd (FK) Regulating Geog Area Id (FK) Risk Calc Data Valid From Dttm Risk Calc Data Valid To Dttm may have SECURITIZATION POOL has obligor metrics of Pool Granularity Type Cd (FK) Off Bal Sheet Secur Type Cd (FK) Securitization Type Cd (FK) Grp Loss Given Dflt Rate Grp Prob Default Rate Grp Eff Maturity Cnt Grp Default Guarantee Amt Grp Exposure At Dflt Amt Grp Capital Reqmt Amt Grp Specific Provisn Amt is calculation scenario for Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) Account Group Id (FK) Risk Scenario Id (FK) has risk metric of Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Grp Securitization Rate Grp Exp Highest Risk Rate Grp Gain On Sale Amt Grp Avg Excess Sprd Rate Grp Look Throu Risk Rate Grp Cap Deduction Rate Grp Tier 2 Cap Ded Rate Grp Cr Ln Sprd Trap Rate Grp Cr Ln Erly Amort Rate Grp Below KIRB Amt Grp Above KIRB Ext Amt Grp Above KIRB Int Amt Grp Nominal Exposure Amt Grp SPE Reserve Amt Grp Largst Exp Share Rate Grp Sec Risk Cap Chrg Amt Grp Largest Exp Sum Amt Grp Largest Exposure Amt Grp Risk Cap Chrg Amt Grp Dilut Cap Chrg Amt Risk Expsr Mitigant Type Cd FINANCE EXPOSURE AGREEMENT Financial Agreement Categ Cd Account Num (FK) Account Modifier Num (FK) Risk Review Time Period Cd (FK) Securitization Rate Basel II Asset Class Id (FK) ACCOUNT TO ACCOUNT GROUP OTHER Account Account Account Account Num (FK) Modifier Num (FK) Group Id (FK) Assoc Start Dt (FK) INVESTMENT AGREEMENT Account Num (FK) Account Modifier Num (FK) Investment Type Cd (FK) Expected Value Dttm Actual Value Dttm Expected Settlement Dttm Actual Settlement Dttm Payment Timing Type Cd (FK) Investment Purpose Type Cd (FK) Purchase Intent Cd (FK) SECURITIZATION TRANCHE Tranche Id Investment Product Id (FK) Subordinate Tranche Id (FK) Account Group Id (FK) Seniority Level Cd (FK) Tranche Strip Type Cd (FK) SECURTN POOL RISK HIST Risk Scenario Id (FK) Account Group Id (FK) Acct Acct Acct Acct Acct Acct Acct Account Num (FK) Account Modifier Num (FK) has risk metric of ACCOUNT GROUP RISK HIST is calculation scenario for FINANCIAL AGREEMENT ACCOUNT GROUP RELATED is parent of is scenario for Agreement Categ Cd Acct To Acct Group Relat Cd Account Assoc End Dt Acct To Acct Group Relat Cd (FK) ACCOUNT TO SECURITIZATION POOL has exposures of SECURTN POOL OBLIGOR METRIC Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) is associated with is investment product for Investment Product Id (FK) is subordinate to TRANCHE RISK METRIC Tranche Id (FK) Risk Scenario Id (FK) Tranche Cr Enhance Lvl Rate Tranche Thickness Rate Tranche Supervisory Cap Amt Tranche Tau Supervisory Num Tranche Omega Supervisory Num Tranche Total Swap NPV Amt Tranche Funded Reserve Amt Tranche Size Amt Tranche Swap Value PFE Amt is calculation scenario for Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret INVESTMENT PRODUCT Invest Prod Trade Type Cd (FK) Investment Product Type Cd (FK) Denomination Currency Cd (FK) RISK MITIGANT AGREEMENT Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Risk Mitigant Agmt Type Cd (FK) benefits a TRANCHE TO RISK MITIGANT AGMT Risk Mitigant Agmt Type Cd Risk Mitigant Account Mod Num (FK) Risk Mitigant Account Num (FK) Tranche Id (FK) Tranche to RMA Start Dt Tranche to RMA End Dt SECURITIZATION SELL AGREEMENT Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Clean Up Call Exercise Dt Clean Up Call Amt Original Securitized Amt Gain On Sale Amt .Chapter 8 – Banking Extension Detail Data Model Description Agreement Subject Area Figure 8-45 Banking . . An Event is something that happened that is of interest to track. collection and recovery events. In this section. withdrawals.Settlement Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-135 . credit card authorizations and settlements. this can include deposits. the aspects of Event dedicated to Banking are covered. In general. For banks.Chapter 8 – Banking Extension Detail Data Model Description Event Subject Area Event Subject Area This section describes the FS-LDM Major Subject Area Event. etc.Purchase . opening and closing accounts. Event is described in the Foundation Reference section of this document. check flows. This section describes the following logical views that are specific to the banking function within the Event subject area: • Event Overview • Check • Card Authorization . payments (interest and principal). Examples include deposit. An example is a cash deposit or ATM withdrawal.Cross Subject Area. If an Event involves money and an account. A FINANCIAL EVENT may involve the transfer of funds from one account to another (FUNDS TRANSFER EVENT). Information about the transaction involving the check is found in CHECK EVENT. or both. Account Group Event. settlement request. settlement. • BANK EVENT involves only one customer at your financial institution transacting with you. it is also a FINANCIAL ACCOUNT EVENT. Account Event. One of the accounts involved in this transfer may be with another institution.Document. authorization. and Financial Event are not mutually exclusive. it is also an ACCOUNT EVENT and/or an ACCOUNT GROUP EVENT. Types of Events An EVENT may be a FINANCIAL EVENT if it involves money. Activity Type Every EVENT is assigned a code describing the type of event (Event Activity Type Cd). or neither.00 Event Overview This view shows major bank-related event entities.00. interest charge. Every event is recorded in the model in EVENT. withdrawal.Teradata Financial Services Logical Data Model Reference Guide Release 09. purchase. The entities specific to banking in this view are. balance inquiry. payment. an Event may be one or the other. • INTERBANK EVENT involves a customer at a financial institution and a customer at another financial institution. Following is a scenario that describes the sequence of events for a customer deposit of a check and the internal check events that are triggered as a result. complaint. Information about the check image as a document is found in Foundation . 8-136 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . which are mutually exclusive. • INTRABANK EVENT contains information about money being transferred from a customer's account to an account within the same financial institution. A check may be the document used in the FUNDS TRANSFER EVENT. A FUNDS TRANSFER EVENT is one of the following event types. These interactions and transactions relate directly or indirectly to Customers/Prospects. If the same Event involves an account. An example is an external standing order. dispute. and limit change. product inquiry. counterparties and/or their accounts. • FUNDS TRANSFER EVENT • INTERBANK EVENT • BANK EVENT • CHECK EVENT • INTRABANK EVENT Event EVENT is used to record financial as well as nonfinancial transactions and interactions. events 2 and 3 are Check Events. If the check is a ‘Not on Us’ check. and events 3 and 4 occur only at the home bank. This scenario encompasses the following four events: Table 8-3 Check Event Scenario Num Event Event Location Involved Parties/Accounts 1 Deposit BOFD Account of Payee at BOFD and BOFD 2 Check Event BOFD BOFD and Clearing House 3 Check Event Home Bank Clearing House and Home Bank 4 Withdrawal Home Bank Home Bank and Account of Payor at Home Bank Events 1 and 2 have the same Transaction Id in EVENT. If the check is an ‘On Us’ check. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-137 . Figure 8-46 Check Event Scenario Flow shows check flow information: • from the point where the payee deposits the check (Event 1) at the Bank of First Deposit (BOFD) • through the Clearing House (Event 2) • to the payor’s Home Bank (Event 3) • where the amount of the check is withdrawn from the payor’s account (Event 4). it means that the payor and payee have their accounts held at the same bank and all four events occur within the same bank. Events 3 and 4 have the same Transaction Id in EVENT. If it is an ‘On Us’ check. Events 1 and 4 are Bank Events. a Clearinghouse may not be involved. it means that events 1 and 2 occur only at the BOFD.Chapter 8 – Banking Extension Detail Data Model Description Event Subject Area Scenario: The payee deposits a check at the BOFD (Bank of First Deposit). Events 2 and 3 are events internal to the bank and events 1 and 4 are events known to the customer. followed by a check withdrawal from the payor’s account at the Home Bank. 00 Figure 8-46 Check Event Scenario Flow Event 1 (Deposit Event) Bank of First Deposit Event 2 (Check Event) Clearing House Event 3 (Check Event) Home Bank Event 4 (Withdrawal Event) 8-138 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09.00. Examples are a deposit event and a check event. ‘Yes’ indicates the entity has a corresponding row with the same Event Id. Event .Chapter 8 – Banking Extension Detail Data Model Description Event Subject Area The following table depicts the relationship between various subtype entities. or an authorization event and a settlement event. such as ATM withdrawals at foreign ATMs and electronic payments in merchant shops. Table 8-4 Check Event Scenario Subtype Entity Interrelation EVENT EVENT INDIRECT ACTIVITY ACCOUNT CONTACT CONTACT INTERBANK BANK TYPE EVENT EVENT EVENT EVENT EVENT Cash deposit at branch Yes ATM cash withdrawal Yes Yes Internal standing order Yes Yes External standing order Yes Yes ATM Balance query Yes Yes Yes Yes Cash card payment Yes Yes Yes Yes Check deposit Yes Yes Check Event Yes Check withdrawal Yes Yes Yes FINANCIAL EVENT FINANCIAL DIRECT ACCOUNT CONTACT CHECK EVENT EVENT EVENT Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Event Relationship An event relate to another event (EVENT RELATIONSHIP). In such a case. the attribute Event Locator Red Cd in EVENT TO LOCATOR will specify ‘occurred within.’ Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-139 . For some transactions. the city in which the transaction occurs may be known. The event relationship type specifies the type of relationship between events.Location Relationship The entity EVENT TO LOCATOR associates an EVENT with a LOCATOR. 00.Event.Overview EVENT Event Id is related with is related to EVENT RELATIONSHIP Event Id (FK) Related Event Id (FK) Event Relationship Type Cd (FK) occurred in FINANCIAL ACCOUNT EVENT Event Activity Type Cd (FK) Event Reason Cd (FK) Transaction Id Event Start Dt Event Start Tm Event End Dt Event End Tm Event GMT Start Dt Event GMT Start Tm Account Ind Financial Ind Contact Ind Incident Ind Account Group Ind Consent Ind Financial Account Event Ind Internal Investment Event Ind External Investment Event Ind Customer Portfolio Ind Statement Event Ind Access Device Event Ind Swap Leg Event Ind Opportunity Ind Travel Event Ind Event Alert Ind Causal Event Ind Reward Event Ind EVENT TO LOCATOR Event Id (FK) Locator Id (FK) Event Locator Rel Cd (FK) Event Id (FK) Event Posted Dttm Acct Crncy Posted Amt Event Value Dttm Back Office Event Ind Debit Credit Cd (FK) ACCOUNT GROUP EVENT Event Id (FK) Account Group Id (FK) ACCOUNT EVENT Event Id (FK) FINANCIAL EVENT Event Id (FK) Account Num (FK) Account Modifier Num (FK) Account Event Type Cd (FK) Event Currency Cd (FK) Event Amt Event Local Amt Event Global Amt Financial Event Period Strt Dt Financial Event Period End Dt Financial Event Covered Val Financial Event COA Id (FK) Ledger Batch Id (FK) Funds Transfer Event Ind Financial Event Type Cd (FK) FUNDS TRANSFER EVENT Event Id (FK) Funds Transfer Host Num Funds Transfer Effective Dt Funds Transfer Reference Num Funds Transfer Method Type Cd (FK) Funds Transfer Type Cd (FK) Bank Transfer Event Type Cd (FK) Bank Transfer Event Type Cd INTERBANK EVENT INTRABANK EVENT BANK EVENT Event Id (FK) Interbank Account Num (FK) Interbank Account Modifier Num (FK) Interbank Counter Acct Num 8-140 Event Id (FK) Event Id (FK) Intrabank Intrabank Intrabank Intrabank Account Num (FK) Account Mod Num (FK) Counter Account Num (FK) Counter Acct Mod Num (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Funds Transfer Method Type Cd CHECK EVENT Event Id (FK) Account Modifier Num (FK) Account Num (FK) Check Event Type Cd (FK) Draft Type Cd (FK) .00 Figure 8-47 Banking .Teradata Financial Services Logical Data Model Reference Guide Release 09. NCR’s ImageMark product for check information captures. The check event related to the deposit event is captured in EVENT RELATIONSHIP. a BOFD CHECK EVENT.g. CHECK EVENT is subtyped to BOFD CHECK EVENT (Bank of First Deposit) and HOME BANK CHECK EVENT. then read by document processing equipment. If the information from the Check or Deposit Slip documents are captured by a mechanism. for which a deposit slip may have been used. DEPOSIT SLIP. the information recorded on the Check and Deposit Slip.Cross Subject Area Document.. is captured in entities CHECK IMAGE. A CHECK EVENT. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-141 . and BOFD CHECK IMAGE as described in section Foundation . This was designed to interface with an automated check imaging system (e. which is the channel used to request the transfer of funds. HOME BANK CHECK IMAGE. Entity EVENT TO DOCUMENT relates any DOCUMENT (e.g. HOME BANK CHECK EVENT contains information about the sum of money that is requested by the Bank of First Deposit. a CHECK EVENT is associated with a deposit.. Check or Deposit Slip) to any EVENT. a check is processed via a specific Channel. CHECK EVENT is a type of FUNDS TRANSFER EVENT and records information about the transaction but not about the document. At the Bank of First Deposit. a check event is associated with a bank event (check withdrawal). At the Bank of First Deposit. At the Home Bank. and a HOME BANK CHECK EVENT contain information about the check as it flows through the check clearing system from the Bank of First Deposit (BOFD) to the Home bank.Chapter 8 – Banking Extension Detail Data Model Description Event Subject Area Check Event A CHECK EVENT describes a transaction between two financial institutions that involve a paper check. BOFD CHECK EVENT contains information about the sum of money that it requests transferred from the financial institution (the home bank) from which the check originated. like the Clearinghouse (channel). Event.00 Figure 8-48 Banking .Teradata Financial Services Logical Data Model Reference Guide Release 09.Check EVENT Event Id EVENT TO DOCUMENT is subject of Involves Event Id (FK) Document Id (FK) Event Document Role Cd (FK) DOCUMENT Document Id Time Period Cd (FK) Document Dt Document Period Start Dt Document Period End Dt Document Issuer Num Data Source Cd (FK) Document Description Txt Document Host Num Document Cycle Cd (FK) Document Type Cd (FK) MM Object Id (FK) Document Category Type Cd (FK) Unstructured Text Id (FK) Event Activity Type Cd (FK) Event Reason Cd (FK) Transaction Id Event Start Dt Event Start Tm Event End Dt Event End Tm Event GMT Start Dt Event GMT Start Tm Account Ind Financial Ind Contact Ind Incident Ind Account Group Ind Consent Ind Financial Account Event Ind Internal Investment Event Ind External Investment Event Ind Customer Portfolio Ind Statement Event Ind Access Device Event Ind Swap Leg Event Ind Opportunity Ind Travel Event Ind Event Alert Ind Causal Event Ind Reward Event Ind EVENT RELATIONSHIP is related to Event Id (FK) Related Event Id (FK) is related with Event Relationship Type Cd (FK) FINANCIAL EVENT Event Id (FK) Event Currency Cd (FK) Event Amt Event Local Amt Event Global Amt Financial Event Period Strt Dt Financial Event Period End Dt Financial Event Covered Val Financial Event COA Id (FK) Ledger Batch Id (FK) Funds Transfer Event Ind Financial Event Type Cd (FK) Document Category Type Cd FUNDS TRANSFER EVENT DRAFT Event Id (FK) Draft Document Id (FK) Draft Type Cd (FK) Bank Draft Num Bank Draft Amt Bank Draft Cleared Dttm Draft Image Capture Ind Payment Account Modifier Num (FK) Payment Account Num (FK) Draft Image Capture Ind Funds Transfer Host Num Funds Transfer Effective Dt Funds Transfer Reference Num Funds Transfer Method Type Cd (FK) Funds Transfer Type Cd (FK) Bank Transfer Event Type Cd (FK) CHECK IMAGE Draft Document Id (FK) Check External UDK Num Check Serial Num Issuing Bank Id Payee Name Payor Name Payor Address Txt Payor Telephone Num Payor Fax Num Check Entered Dttm Document Image Type Cd (FK) Document Image Source Cd (FK) Check Image Type Cd (FK) CHANNEL Channel Type Cd (FK) Channel Id Convenience Factor Cd (FK) Channel Status Cd (FK) Channel Name Channel Start Dt Channel End Dt Channel Category Type Cd (FK) Funds Transfer Method Type Cd CHECK EVENT Event Id (FK) Account Modifier Num (FK) Account Num (FK) Check Event Type Cd (FK) Draft Type Cd (FK) Check Image Type Cd was used during BOFD CHECK IMAGE 8-142 Check Event Type Cd HOME BANK CHECK IMAGE Draft Document Id (FK) Draft Document Id (FK) Payor Check Account Num Related External UDK Num Payor Bank Check Txn Code Val Payee Bank Id Acct Num Collecting Bank Num Check Txn Type Cd (FK) BOFD CHECK EVENT Event Id (FK) Channel Id (FK) Channel Type Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret HOME BANK CHECK EVENT Event Id (FK) .00. CardAuthorizationPurchaseSettlement Figure 8-49 Banking .Event.Purchase .Chapter 8 – Banking Extension Detail Data Model Description Event Subject Area This view demonstrates how Event entities may be used to record events related to a credit card purchase.Settlement EVENT Event Id Event Activity Type Cd (FK) Event Reason Cd (FK) Transaction Id Event Start Dt Event Start Tm Event End Dt Event End Tm Event GMT Start Dt Event GMT Start Tm EVENT PARTY Account Ind Financial Ind Event Id (FK) Contact Ind Party Id (FK) Incident Ind Party Role Cd (FK) Account Group Ind Party Event Start Dt has involvement with Consent Ind Financial Account Event Ind Party Event End Dt Internal Investment Event Ind Party Identification Type Cd (FK) External Investment Event Ind Contact Comment Txt Customer Portfolio Ind Unstructured Text Id (FK) Statement Event Ind Access Device Event Ind Swap Leg Event Ind FINANCIAL EVENT Opportunity Ind Event Id (FK) Travel Event Ind Event Alert Ind Event Currency Cd (FK) Causal Event Ind Event Amt Reward Event Ind Event Local Amt Event Global Amt Financial Event Period Strt Dt Financial Event Period End Dt Financial Event Covered Val Financial Event COA Id (FK) ACCOUNT EVENT Ledger Batch Id (FK) Funds Transfer Event Ind Financial Event Type Cd (FK) FINANCIAL ACCOUNT EVENT Event Id (FK) Funds Transfer Host Num Funds Transfer Effective Dt Funds Transfer Reference Num Funds Transfer Method Type Cd (FK) Funds Transfer Type Cd (FK) Bank Transfer Event Type Cd (FK) INTERBANK EVENT Interbank Account Num (FK) Interbank Account Modifier Num (FK) Interbank Counter Acct Num Event Relationship Type Cd (FK) Event Id (FK) Channel Id (FK) Channel Type Cd (FK) Access Medium Type Cd (FK) Language Cd (FK) Authorization Num Promo Type Cd (FK) Direct Contact Ind Contact Initiation Type Cd (FK) ACCESS DEVICE EVENT Access Device Event Id (FK) Access Access Access Access Access Device Num Device Method Type Cd (FK) Device Verifiy Type Cd (FK) Device Id (FK) Medium Type Cd (FK) Event Id (FK) Event Id (FK) ACCESS DEVICE Access Device Type Cd (FK) Contact Followup Cd (FK) Followup Channel Type Cd (FK) Contact Outcome Cd (FK) Customer Tone Cd (FK) Direct Contact Type Cd (FK) Followup Dt Followup Tm Campaign Initiated Ind Access Device Type Cd has number of MOBILE PHONE Access Device Id (FK) MOBILE TELEPHONE NUMBER BANK EVENT DIRECT CONTACT EVENT was used during Access Device Id Event Posted Dttm Acct Crncy Posted Amt Event Value Dttm Back Office Event Ind Debit Credit Cd (FK) Bank Transfer Event Type Cd Event Id (FK) Related Event Id (FK) CONTACT EVENT Account Num (FK) Account Modifier Num (FK) Account Event Type Cd (FK) Event Id (FK) EVENT RELATIONSHIP is related to Event Id (FK) FUNDS TRANSFER EVENT Event Id (FK) is related with Access Device Id (FK) Mobile Telephone Num Start Dt Telephone Number Id (FK) Mobile Telephone Num End Dt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret CARD Access Device Id (FK) Card Type Cd (FK) Card Association Type Cd (FK) Technology Type Cd (FK) Card Num Expiration Dt Card Issue Dt Card Activation Dt Card Deactivation Dt Card Name 8-143 .Authorization .Card . or the merchant bank can send the money to another bank’s account (interbank event). The merchant requests an authorization from the bank (with whom they have a merchant account). Authorization requester (Merchant) 3 Settlement Request Merchant. Scenario: A customer wants to make a purchase at a Merchant using a credit card. At the end of the day the Merchant sends a request for settlement for all credit card purchases to the bank with which they have a merchant contract. Merchant Account 5 Charge to cardholder’s account for purchase Card Holder Account. Merchant Bank 4 Settlement Response Merchant Bank. The authorization response is returned to the merchant. Cardholder Bank The following table shows the interrelation between the various subtype entities for the above events. If the authorization is approved the Merchant allows the purchase. This scenario assumes that the Merchant bank is the same as the Cardholder’s bank. merchant’s checking account). The bank then settles the credit card receipts and sends payment to the Merchant.g.Teradata Financial Services Logical Data Model Reference Guide Release 09.00. 8-144 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . to capture funds from the customer’s account for the purchase. Authorization requester (Merchant) 2 Authorization Response Card Holder Account..00 Credit Card Purchase Scenario: This Scenario demonstrates what happens when there is a purchase using a credit card. Yes indicates entities with a corresponding row with the same Event Id. This scenario encompasses the following credit card specifics: Table 8-5 Purchase Event Scenario Num Event Involved Parties/Accounts 1 Authorization request Card Holder Account. The settlement can be a deposit into another account at the merchant’s bank (e. or a check can be sent to the merchant. terminal) YES YES (e.g.. not both YES Merchant Either INDIRECT CONTACT EVENT or DIRECT CONTACT EVENT. terminal) DIRECT CONTACT EVENT CONTACT EVENT YES FINANCIAL ACCOUNT EVENT ACCESS DEVICE EVENT YES FINANCIAL EVENT ACCOUNT EVENT YES BANK EVENT EVENT ACTIVITY TYPE Authorization Request Event Table 8-6 Purchase Event Scenario Subtype Entity Interrelation (e.g. not both (e.g. telephone) Credit card customer Either INDIRECT CONTACT EVENT or DIRECT CONTACT EVENT.g.. telephone) YES (e. by batch file) YES YES Comments YES Account in ACCOUNT EVENT YES (e. party roles are stored in the EVENT PARTY entity.. request directly to bank with credit card slips) Settlement Response YES YES YES YES YES YES YES Merchant Charge to Credit Card Account YES YES YES YES YES YES YES Credit card customer Note: Each of the above events has several occurrences.g. (e. not both.g...Chapter 8 – Banking Extension Detail Data Model Description Event Subject Area Authorization Response YES YES YES YES Settlement Request YES YES YES YES Credit card customer Either INDIRECT CONTACT EVENT or DIRECT CONTACT EVENT. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-145 .. 00 This page intentionally left blank. 8-146 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09.00. From a banking perspective. In general terms.Chapter 8 – Banking Extension Detail Data Model Description Finance Subject Area Finance Subject Area This section describes the FS-LDM Finance Subject Area. the aspects of financial entities that are dedicated to Banking are covered. In this section. These logical views are discussed in this section: • Asset Account • Expense Account • Liability Account • Revenue Account Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-147 . the internal accounting of the enterprise is described in the Foundation Financial Management section of this document. The Finance subject area includes information about the enterprise’s internal accounting. the general ledger account types specific to a banking function are discussed. 00 Assets are tangible or intangible property owned by a business and having monetary value (its original or replacement cost. or enforceable claims against others. other tangible property such as timber.FM. INTEREST RECEIVABLE is another Banking-specific type of Current Assets. Asset Account refers to a type of General Ledger Account used to track the value of these assets. For accounting purposes. The LOAN GL ACCOUNT and ALLOWANCE FOR LOAN LOSS ACCT are Banking-specific classifications. Figure 8-50 Banking .00. or fair market value).Asset Account ASSET ACCOUNT GL Main Account Num (FK) Asset Account Type Cd (FK) Asset Account Type Cd OTHER ASSET ACCOUNT FIXED ASSET ACCOUNT GL Main Account Num (FK) GL Main Account Num (FK) LOAN GL ACCOUNT ALLOWANCE FOR LOAN LOSS ACCT GL Main Account Num (FK) GL Main Account Num (FK) Other Asset Account Type Cd (FK) Other Asset Account Party Id (FK) Fixed Asset Account Type Cd (FK) CURRENT ASSET ACCOUNT GL Main Account Num (FK) Fixed Asset Account Type Cd Other Asset Account Type Cd Current Asset Acct Type Cd (FK) INVESTMENT ASSET ACCOUNT GL Main Account Num (FK) INTEREST RECEIVABLE Intangble Asset Amortizatn Amt Amortization Method Cd (FK) Intangible Asset Account Cd (FK) DEFERRED CHARGE ACCOUNT SECURITIES ACCOUNT DEPRECIABLE ASSET ACCOUNT GL Main Account Num (FK) GL Main Account Num (FK) Current Asset Acct Type Cd GL Main Account Num (FK) GL Main Account Num (FK) PREPAID EXPENSE ACCOUNT INTANGIBLE ASSET ACCOUNT GL Main Account Num (FK) Security Account Party Id (FK) GL Main Account Num (FK) Prepaid Expense Party Id (FK) NONDEPRECIABLE ASSET ACCOUNT GL Main Account Num (FK) AVAILABLE CASH ACCOUNT GL Main Account Num (FK) OTHER CURRENT ASSET ACCOUNT Intangible Asset Account Cd GL Main Account Num (FK) PATENTS ACCOUNT GL Main Account Num (FK) GOODWILL ACCOUNT ACCOUNTS RECEIVABLE GL Main Account Num (FK) GL Main Account Num (FK) 8-148 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . These range from cash and investments to real estate such as land.Teradata Financial Services Logical Data Model Reference Guide Release 09. etc. Asset Account Typical Assets are illustrated in the Foundation Financial Management Asset Account section. Asset Accounts are usually classified under three groups: Current Assets. Fixed Assets and Other Assets. taxes and other related expenses. building and equipment leases. An EXPENSE ACCOUNT is a type of General Ledger Account that keeps track of these expenses.Expense Account EXPENSE ACCOUNT GL Main Account Num (FK) Expense Account Type Cd (FK) COST OF SALES ACCOUNT Expense Account Type Cd GL Main Account Num (FK) INCOME TAX ACCOUNT GL Main Account Num (FK) NON INTEREST EXPENSE ACCT GL Main Account Num (FK) OTHER EXPENSE ACCOUNT GL Main Account Num (FK) INTEREST EXPENSE ACCOUNT GL Main Account Num (FK) OPERATING EXPENSE ACCOUNT Other Expense Acct Type Cd (FK) GL Main Account Num (FK) Other Expense Acct Type Cd Operating Expns Acct Type Cd (FK) Operating Expns Acct Type Cd SELLING EXPENSE ACCOUNT PROVISION FOR LOAN LOSS ACCT GL Main Account Num (FK) GL Main Account Num (FK) MARKETING EXPENSE ACCOUNT GL Main Account Num (FK) GENERAL AND ADMIN ACCOUNT OTHER OP EXPENSE ACCOUNT GL Main Account Num (FK) GL Main Account Num (FK) FACILITY OP EXPENSE ACCOUNT GL Main Account Num (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-149 .Chapter 8 – Banking Extension Detail Data Model Description Finance Subject Area Expense is the amount spent by a company to run the business and produce goods or services. including salaries. plus the loan loss provision for anticipated bad debt. it may involve fewer or more categories. The NON INTEREST EXPENSE ACCT and PROVISION FOR LOAN LOSS ACCT entities are Banking-specific expenses. NON INTEREST EXPENSE ACCT records fixed operating costs in a bank. Expense Account Typical expenses are illustrated in the Foundation Financial Management Expense Account section.FM. Depending on the type of company. equipment rental. Figure 8-51 Banking . borrowings from the Federal Reserve Bank or other banks. excluding the owner’s equity.00. and Federal Funds traded in the interbank market.Teradata Financial Services Logical Data Model Reference Guide Release 09. liabilities include funds owed by a bank. A DEPOSIT GL ACCOUNT is a Banking specific liability. including time deposits and demand deposits. Liability Account Illustrations in the Foundation Financial Management Liability Account section show Typical Liability Accounts. In banking. or any other form of legally enforceable claim on the company's assets.00 Company liabilities are amounts owed to other parties or organizations representing loans. which calls for asset transfers at a determined future date.Liability Account LIABILITY ACCOUNT GL Main Account Num (FK) Liability Account Type Cd (FK) Liability Account Type Cd NONCURRENT LIABILITY ACCOUNT GL Main Account Num (FK) Noncurrent Liab Acct Type Cd (FK) DEPOSIT GL ACCOUNT OTHER LIABILITY ACCOUNT GL Main Account Num (FK) Noncurrent Liab Acct Type Cd GL Main Account Num (FK) Other Liability Acct Type Cd (FK) DEFERRED INCOME TAX ACCOUNT GL Main Account Num (FK) CURRENT LIABILITY ACCOUNT GL Main Account Num (FK) Current Liab Account Type Cd (FK) DEPRECIABLE ASSET ACCT PAYABLE LONG TERM DEBT ACCOUNT Current Liab Account Type Cd GL Main Account Num (FK) Deprec Asset GL Main Acct Num (FK) AP GL Main Acct Num (FK) DEFERRED REVENUE ACCOUNT GL Main Account Num (FK) may be a RESERVES ACCOUNT GL Main Account Num (FK) ACCOUNTS PAYABLE GL Main Account Num (FK) ACCRUED LIABILITY ACCOUNT GL Main Account Num (FK) SHORT TERM DEBT ACCOUNT GL Main Account Num (FK) CURRENT LONG TERM DEBT ACCOUNT GL Main Account Num (FK) INCOME TAX PAYABLE ACCOUNT GL Main Account Num (FK) 8-150 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Figure 8-52 Banking . expenses.FM. Revenue Account REVENUE ACCOUNT GL Main Account Num (FK) Revenue Account Type Cd (FK) Revenue Account Type Cd SALES REVENUE ACCOUNT GL Main Account Num (FK) NON INTEREST INCOME ACCT GL Main Account Num (FK) INTEREST INCOME ACCOUNT GL Main Account Num (FK) OTHER REVENUE ACCOUNT GL Main Account Num (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-151 .Chapter 8 – Banking Extension Detail Data Model Description Finance Subject Area Revenue Account Revenue (sometimes referred to as income) refers to the amount of money earned by a company. The entity provides details on net income derived from fee-based banking services such as loan service fees. Figure 8-53 Banking . and monthly service charges on deposit accounts. and commissions. Typical Revenue Accounts are illustrated in the Foundation Financial Management Revenue Account section.FM. NON INTEREST INCOME ACCT is a Banking-specific revenue entity. securities underwriting fees. investment advisor fees. other service fees. 00 This page intentionally left blank.00. 8-152 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09. The concept of a Balance Segment. the associated terms and conditions and the Balance Types are represented in the diagram on the following page. it may apply the payment to the balance segment with the lowest interest rate first.g. A Balance Segment can be looked at as a portion of the overall balance that has a given set of terms and conditions. a Purchase during the promotion period or a Purchase outside a promotion period. Each Balance Segment has associated with it its own terms and conditions such as interest rate spread.g. If you open a new credit card account and transfer the balance from another credit card account at another company to this new account within a certain promotion time period (e. When the balance is divided up each division may be referred to as a Balance Segment. 3% of the transferred amount). reduced or waived) for that “promotion period” (e.g. A Balance Segment is of one type such as: • Balance Transfer • Cash Advance • Promotion Period Purchases – purchases during the promotion period • Regular Purchases – purchases after the promotion period An account can have more than one Balance Segment of the same Balance Type. So if an account had three cash Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-153 . Credit Card Balance Segment Credit Card companies many times will have various terms and conditions for different portions of the balance. as in the case of Cash Advance. and term. One good example is a Balance Transfer (“BT”). For example. a Cash Advance. The Balance Type classifies the Balance Segment as a Balance Transfer. 6 months) then they will offer special rates (e. When you make a payment the payment amount is allocated to the various “balance segments” that the balance may be composed of.Chapter 12 – Insurance Extension Detailed Data Model Description Cross Subject Area Cross Subject Area Background This section describes logical views that span major subject areas.. A balance for a credit card account can be composed of many Balance Segments. fees. When a payment comes in the operational application will decide how to apply the money to which balance segment...g. Each logical view described in this section is also a subject area in the Erwin file. The pie is cut up into Balance Segments where one segment represents a portion of the balance that has its own set of terms and conditions.. The whole pie represents the balance of $1000. There may also be a fee associated with the transfer (e. 0%). If spread changes then this becomes a new offer.June 30. Figure 8-54 Example of Credit Card Balance Segments and Conditions Platinum Card Product Balance = $1000.00 as of June 30. 8-154 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . or 14% (Rate 3) depending on application review y 3% transaction fee of transferred amount.00 advance requests each with a different interest rate spread then there would be three Balance Segments each with the same Balance Type of Cash Advance.Dec 30. 2007 Jul 1 2007.Teradata Financial Services Logical Data Model Reference Guide Release 09. 12% (Rate 2). Product: Platinum Credit Card Scenario Terms and Conditions: For Balance Transfers and Purchases for new accounts – Offer 1 y 0% interest rate for first 6 months or 12 months (promotion period) after account opened – depending on application review y After the promotion period the rate has a spread of either 10% (Rate 1). 2007 Balance Transfer and Purchases Cash Advance Rate – 20% spread -Promo Period 6 months -Promo Period Interest Rate 0% -Interest Rate Spread after Promo Period 14% -3% Balance Transfer Fee Cash Advance Rate – 18% spread The following scenario is how the various entities in the FS-LDM would be populated.00. minimum of $3 and max of $200 y For Cash Advances Offer 1 the interest rate is 18% spread. 2007 $350 Balance Transfer Offer 1 $ 300 Cash Advance Offer 1 $250 Cash Advance Offer 2 $75 Purchases Promo Period Offer 1 $25 Regular Purchases Offer 1 Platinum Card Offer 1 Terms Platinum Card Offer 2 Terms Jan 1 2007. You can see that there is a need to track the terms and the balances for the various balance segments and to be able to apply a payment to a given balance segment.g.... 3%) Term 6 months Using a Bill of Material approach we then assemble the pieces (FEATUREs) together to form the terms and conditions for the PRODUCT and the AGREEMENT for the various balance types for a given OFFER. PRODUCT Platinum Credit Card The FS-LDM treats each Balance Segment as a “Feature” and the terms and conditions that describe that Balance Segment as “Feature Features”.g.g... PRODUCT FEATURE (product – feature) • • • • Platinum Credit Card – Balance Transfer Offer 1 Platinum Credit Card – Cash Advance Offer 1 Platinum Credit Card – Promotion Purchase Offer 1 Platinum Credit Card – Regular Purchase Offer 1 PRODUCT FEATURE FEATURE (product – feature – feature) • • • • Platinum Credit Card – Balance Transfer Offer 1 – Promotion Rate 1 (0%) Platinum Credit Card – Regular Purchase Offer 1 – Spread Rate 1 (10%) Platinum Credit Card – Regular Purchase Offer 1 – Spread Rate 2 (12%) Platinum Credit Card – Regular Purchase Offer 1 – Spread Rate 3 (14%) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-155 . Payments get applied to Balance Segment with lowest interest rate first. 14%) Transaction Fee Rate (e. 10%) Spread Rate 2 (e. 0%) Spread Rate 1 (e. Each one of these balances becomes a Balance Segment. 12%) Spread Rate 3 (e. The following relates the FS-LDM to the above business concepts using an example. FEATURE • • • • • • • • • • • • Balance Transfer Offer 1 Balance Transfer Offer 2 Cash Advance Offer 1 Cash Advance Offer 2 Promotion Purchase Offer 1 Regular Purchase Offer 1 Promotion Rate 1 (e.g.g.Chapter 12 – Insurance Extension Detailed Data Model Description Cross Subject Area y y If account goes into default then an interest rate is 20% spread which can change over time and which applies to all balance types. 00. 12%) Feature .Spread Rate (e.Spread Rate (e.g.. 2%) Feature – Promotion Period First 6 months Feature – Promotion Period First 12 months EVENT FEATURE When a payment comes in an application decides how the payment is apportioned to the balance segments – usually the segment with the lowest interest rate gets reduced first.Promotion Purchase Offer 1 ACCOUNT FEATURE FEATURE (account – feature – feature) • • • • Account 1 – Balance Transfer Offer 1 – Promotion Rate 1 (0%) Account 1 – Regular Purchase Offer 1 – Spread Rate 3 (14%)* Account 1 – Balance Transfer Offer 1 – Transaction Fee 2% Account 1 – Balance Transfer Offer 1 – Promotion Term 6 months* *After underwriting review it was decided that this account should have the higher interest rate and a promotion period of 6 months instead of 12.g.. 14%) Feature .Spread Rate (e.Balance Transfer Feature . 0%) Feature . PROMO PRODUCT FEATURE OFFER (Offer – Feature) • • • • • • • • • • • • • • Promo – January 1 to June 30 Promotions Product – Platinum Credit Card Offer – Offer 1 Feature .Balance Transfer Offer 1 Account 1 ... When a purchase comes in the purchase balance is assigned to a balance segment.g..Cash Advance Feature . 10%) Feature .00 • • Platinum Credit Card – Balance Transfer Offer 1 – Transaction Fee (2%) Platinum Credit Card – Balance Transfer Offer 1 – Promotion Term 6 months ACCOUNT FEATURE (account – feature) • • • Account 1 .Cash Advance Offer 1 Account 1 .g. Event • • 8-156 Payment of $100 Payment of $200 Feature Balance Transfer Offer 1 Cash Advance Offer 1 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Transaction Fee Rate (e.Promotion Purchase Feature – Regular Purchase Feature – Spread Rate (e.g.Teradata Financial Services Logical Data Model Reference Guide Release 09. The following diagram depicts the relationships of one feature to another feature and to a feature group. Figure 8-55 Relationship of One Feature to Another Feature for Balance Segments Relationship of one Feature to Another Feature Feature Group Balance Transfer Balance Transfer Offer 1 Rate 1 Rate 2 Balance Transfer Offer 2 Rate 3 Fee Rate 1 Balance Transfer Offer 3 Term 6 mos Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Rate 4 Feature Instances Feature Instances 8-157 . There is a one to zero/one relationship between FEATURE and CREDIT CARD BALANCE CATEGORY to create the link between balance segment feature and the summary balance by account.Chapter 12 – Insurance Extension Detailed Data Model Description Cross Subject Area ACCOUNT BALANCE SUMMARY DD This entity shows the balance for an account for each balance segment (Balance Category Type). Each balance segment can have multiple metrics. 8-158 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank.00.Teradata Financial Services Logical Data Model Reference Guide Release 09. Chapter 8 – Banking Extension Detail Data Model Description Cross Subject Area Figure 8-56 Banking .Credit Card Balance Segment FINANCIAL AGREEMENT Account Num (FK) Account Modifier Num (FK) Agreement Categ Cd EVENT Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) Event Id involves Event Activity Type Cd (FK) Event Reason Cd (FK) Transaction Id Event Start Dt Event Start Tm Event End Dt Event End Tm Event GMT Start Dt Event GMT Start Tm Account Ind Financial Ind Contact Ind Incident Ind Account Group Ind Consent Ind Financial Account Event Ind Internal Investment Event Ind External Investment Event Ind Customer Portfolio Ind Statement Event Ind Access Device Event Ind Swap Leg Event Ind Opportunity Ind Travel Event Ind Event Alert Ind Causal Event Ind Reward Event Ind AGREEMENT Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) EVENT FEATURE Event Id (FK) Feature Id (FK) has summary of ACCOUNT FEATURE METRIC Account Num (FK) Account Modifier Num (FK) Feature Id (FK) Account Feature Start Dt (FK) Account Feature Role Cd (FK) Account Feature Metric Cd (FK) Account Feature Metric Dttm Account Account Account Account Account Event Feature Role Cd (FK) is overridden is specific to is subject of has subfeatures Feature Metric Feature Metric Feature Metric Feature Metric Feature Metric Amt Rate Qty Num UOM Cd (FK) Product Id is promoted via PROMO OFFER ACCOUNT PROMO OFFER was target of promotes Promo Offer Type Cd (FK) Promo Offer Desc Ad Id (FK) Distribution Start Dt Distribution End Dt Redemption Start Dt Redemption End Dt PROMO PRODUCT OFFER Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind Promo Id (FK) Promo Offer Id (FK) Product Id (FK) ACCOUNT BALANCE SUMMARY DD OFFER Account Num (FK) Account Modifier Num (FK) Feature Id (FK) Account Feature Role Cd (FK) Account Feature Start Dt Account Num (FK) Account Modifier Num (FK) Balance Category Type Cd (FK) Account Metric Type Cd (FK) Acct Bal Summary Start Dttm Acct Bal Summary End Dttm PROMO PRODUCT OFFER FEATURE is for promotion of Offer Id Offer Type Cd (FK) Offer Desc Promo Id (FK) Promo Offer Id (FK) Product Id (FK) Feature Id (FK) Prod Feat Rel Type Cd (FK) Product Feature Start Dt (FK) is promoted via offers Acct Bal Summary Tm Pd Cd (FK) Account Balance Summary Amt Acct Crncy Balance Summary Amt Account Balance Summary Rate Account Balance Summary Cnt PRODUCT FEATURE Account Feature End Dt Overridden Feature Id (FK) Account Feature Amt Account Feature Rate Account Feature Qty Account Feature Num Account Feature UOM Cd (FK) Interest Index Cd (FK) is overridden is resulted in Account Num (FK) Account Modifier Num (FK) Promo Offer Id (FK) Promo Id (FK) Account Promo Offer Role Cd (FK) PRODUCT describes Promo Id (FK) Promo Offer Id (FK) ACCOUNT FEATURE Account Num (FK) Account Modifier Num (FK) Feature Id (FK) Account Feature Role Cd (FK) Account Feature Start Dt (FK) Related Feature Id (FK) Related Acct Feature Role Cd (FK) Account Relatd Feat Start Dt Account Num (FK) Account Modifier Num (FK) Product Id (FK) Agreement Product Role Cd (FK) Acct Product Assoc Start Dt Acct Product Assoc End Dt is characterized by ACCOUNT FEATURE FEATURE Account Relatd Feat End Dt AFF Overridden Feature Id (FK) Account Feat Feat Amt Account Feat Feat Rate Account Feat Feat Qty Account Feat Feat Num Account Feat Feat UOM Cd (FK) ACCOUNT PRODUCT HISTORY may be for product has financial history of Product Id (FK) Feature Id (FK) Prod Feat Rel Type Cd (FK) Product Feature Start Dt has terms and conditions of has status of Product Feature End Dt has subfeatures PRODUCT FEATURE FEATURE Product Id (FK) Feature Id (FK) Product Feature Start Dt (FK) Prod Feat Rel Type Cd (FK) Related Feature Id (FK) Prod Related Feat Rel Type Cd (FK) Product Relatd Feat Start Dt describes Product Id (FK) Feature Id (FK) Prod Feat Rel Type Cd (FK) Product Feature Start Dt (FK) Product Feature Status Cd (FK) Product Status Start Dttm is part of Feature Group Id (FK) Feature Id (FK) Feature Assoc Start Dt Feature Id describes Balance Category Type Cd Balance Category Type Desc Balance Category Use Type Cd (FK) FEATURE GROUP Product Relatd Feat End Dt FEATURE BALANCE CATEGORY TYPE Product Status End Dttm FEATURE TO FEATURE GROUP Feature Type Cd (FK) Feature Classification Cd (FK) Feature Desc Feature Name Common Feature Name Feature Category Type Cd (FK) Feature Level Cnt describes PRODUCT FEATURE STATUS Balance Category Use Type Cd Feature Group Id Feature Group Type Cd (FK) Feature Group Start Dt Feature Group End Dt Parent Feature Group Id (FK) Feature Group Name Feature Group Desc parent of Feature Assoc End Dt CREDIT CARD BALANCE SEGMENT describes Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Balance Category Type Cd (FK) Feature Id (FK) is part of may be a .Cross Subject Area . . Models and Risk Grades shows risk grades and scores in one view. For a full description refer to Foundation .Risk Grade Relations. and Foundation .Cross Subject Area.Cross Subject Area.Chapter 8 – Banking Extension Detail Data Model Description Cross Subject Area Models and Risk Grades Figure 8-57 Banking .Risk Grade. Foundation .Score Data. It is a combination of three logical views described in the Foundation chapter.Cross Subject Area. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-161 .Cross Subject Area. 00.Teradata Financial Services Logical Data Model Reference Guide Release 09.00 This page intentionally left blank. 8-162 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Models and Risk Grades RISK RATING METHOD Risk Rating Method Id ACCOUNT RISK GRADE RELAT RISK RATING PURPOSE TYPE Account Num (FK) Account Modifier Num (FK) Risk Grade Id (FK) Account Risk Grade Start Dttm (FK) Related Risk Grade Id (FK) Related Risk Grade Start Dttm (FK) Risk Assessment Relat Cd (FK) Acct Risk Override Start Dttm Risk Rating Purpose Desc Parent Risk Rating Purpose Cd (FK) is related with is grouped into RISK GRADE SCHEME describes Risk Rating Method Id (FK) Risk Rating Purpose Cd (FK) Risk Grade Scheme Desc Account Group Id (FK) Risk Grade Id (FK) Account Group Risk Start Dttm Account Num (FK) Account Modifier Num (FK) Risk Grade Id (FK) Account Risk Grade Start Dttm is value for is risk grading for Product Id (FK) Risk Grade Id (FK) Product Risk Grade Start Dttm Product Group Id (FK) Risk Grade Id (FK) Product Group Risk Grd St Dttm is rating for Product Risk Grade End Dttm Product Risk Grade Rate Dttm AGREEMENT CLASS RISK GRADE Agreement Class Value Cd (FK) Agreement Classification Cd (FK) Risk Grade Id (FK) Agmt Class Risk Grde Strt Dttm AGREEMENT CLASS VALUE Agreement Class Value Cd Agreement Classification Cd (FK) Parent Agmt Class Value Cd (FK) Agreement Class Value Desc Agreement Class From Meas Agreement Class To Meas Unit Of Measure Cd (FK) Agmt Class Value Start Dttm Agmt Class Value End Dttm Agmt Class Risk Grade End Dttm Agmt Class Risk Grde Rate Dttm Grade Scheme Id (FK) Grade Desc Grade From Val Grade To Val Grade Val Grade Rate Grade Level Num Grade Num Grade Id Start Dttm Grade Id End Dttm is parent of Account Num (FK) Account Modifier Num (FK) Model Id (FK) Model Run Id (FK) is credit rating for Parent Party Class Value Cd (FK) Party Class Value Desc Party Classification From Meas Party Classification To Meas Unit Of Measure Cd (FK) Party Class Value Start Dttm Party Class Value End Dttm is parent of has risk grade of Asset Risk Grade End Dttm Asset Risk Grade Rate Dttm Product Id (FK) Analytical Model Id (FK) Model Run Id (FK) was used to calculate is eligibility for is eligibility for is eligibility for PRODUCT RISK GRADE ELIG RULE is related with Feature Credit Rating End Dt Eligibility Restrict Type Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Account Group Score Val is related to Feature Id (FK) Risk Grade Id (FK) Feature Credit Rating Start Dt Product Elig Risk Grade End Dt Eligibility Restrict Type Cd (FK) Account Group Id (FK) Analytical Model Id (FK) Model Run Id (FK) Invest Risk Grade End Dttm Invest Risk Grade Rate Dttm Party Risk Grade End Dttm Party Risk Grade Next Rev Dttm Party Risk Grade Rate Dttm Product Id (FK) Risk Grade Id (FK) Product Elig Risk Grade St Dt Product Score Val ACCOUNT GROUP SCORE DD Investment Product Id (FK) Risk Grade Id (FK) Invest Risk Grade Start Dttm PARTY RISK GRADE Party Id (FK) Risk Grade Id (FK) Party Risk Grade Start Dttm is score for INVESTMENT SECURITY RISK GRADE Geography Risk Grade End Dttm Geography Risk Grade Rate Dttm is risk grading for Model Review Finding Cd (FK) Reviewer Party Id (FK) was used to calculate Risk Grade Assoc End Dt GEOGRAPHY RISK GRADE Analytical Model Id (FK) Model Run Id (FK) Analytical Model Review Dt PRODUCT SCORE DD Risk Grade Id (FK) Related Risk Grade Id (FK) Risk Grade Relation Type Cd (FK) Risk Grade Assoc Start Dt is related to is risk grade for Party Asset Id (FK) Risk Grade Id (FK) Asset Risk Grade Start Dttm Model Id (FK) Model Run Id RISK GRADE TYPE ASSOC is related with is value for ASSET RISK GRADE Party Class Value Cd Party Classification Cd (FK) has review history of Account Score Val is risk grade for Related Model Id (FK) Analytical Model Id (FK) Model Relationship Role Cd (FK) Model Relationship Start Dt Overriding Party Id (FK) Model Relationship End Dt is run Model Run Dttm ACCOUNT SCORE DD FEATURE RISK GRADE ELIG RULE PARTY CLASS VALUE is related with MODEL RUN generates Party Score Val maps to is assigned to Party Class Risk Grd End Dttm Party Class Risk Grd Rate Dttm is related to ANALYTICAL MODEL RUN REVIEW Party Id (FK) Analytical Model Id (FK) Model Run Id (FK) Risk Grade Id (FK) Geographical Area Id (FK) Geography Risk Grade Strt Dttm Party Class Value Cd (FK) Party Classification Cd (FK) Risk Grade Id (FK) Party Class Risk Grade St Dttm MODEL RELATIONSHIP Model Status Cd (FK) Model Name Model Desc Model Type Cd (FK) Model Purpose Cd (FK) Model Algorithm Type Cd (FK) Model Source Party Id (FK) Data Source Cd (FK) PARTY SCORE DD RISK GRADE VALUE PARTY CLASS RISK GRADE has risk grade of ANLY MODEL VAL TO RISK GRD VAL Anly Model Risk Grd Map End Dt Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk is risk grade for Product Grp Risk Grd End Dttm Product Grp Risk Grd Rt Dttm has value of maps to Risk Grade Id PRODUCT RISK GRADE PRODUCT GROUP RISK GRADE End Dttm Value Desc Allowed Val Low Range Val Hi Range Val Model Id (FK) Analytical Model Value Id (FK) Risk Grade Id (FK) Analytical Model Start Dttm (FK) Anly Model Risk Grd Map Str Dt has grading values of Account Group Risk End Dttm Account Group Next Review Dttm Account Group Risk Rate Dttm ACCOUNT RISK GRADE Model Model Model Model Model Model Id Risk Grade Scheme Id ACCOUNT GROUP RISK GRADE relates to Account Risk Grade End Dttm Acct Risk Grade Next Rev Dttm Account Risk Grade Rate Dttm Analytical Analytical Analytical Analytical Analytical Analytical Model Id (FK) Selection Criterion Id (FK) ANALYTICAL MODEL Model Id (FK) Analytical Model Value Id Analytical Model Start Dttm describes Account Risk Override Party Id (FK) Risk Grade Override Rsn Cd (FK) Account Risk Override End Dttm uses criteria of ANALYTICAL MODEL VALUE Reporting Party Id (FK) Analytical Model Id (FK) Risk Rating Method Desc Risk Rating Purpose Cd MODEL CALCULATION CRITERIA used method of PROD FEAT RISK GRADE ELIG RULE Product Id (FK) Feature Id (FK) Prod Feat Rel Type Cd (FK) Product Feature Start Dt (FK) Risk Grade Id (FK) Prod Feat Risk Grade Start Dt Prod Feat Risk Grade End Dt Eligibility Restrict Type Cd (FK) PARTY RISK GRADE RELAT Party Id (FK) Risk Grade Id (FK) Party Risk Grade Start Dttm (FK) Related Risk Grade Id (FK) Related Risk Grade Start Dttm (FK) Risk Assessment Relat Cd (FK) Party Risk Override Start Dttm Party Risk Override Party Id (FK) Risk Grade Override Rsn Cd (FK) Party Risk Override End Dttm .Chapter 8 – Banking Extension Detail Data Model Description Cross Subject Area Figure 8-57 Banking .Cross Subject Area. . and Market Risk as defined by Basel II. Operational Risk.Chapter 8 – Banking Extension Detail Data Model Description Risk Management Risk Management This section describes entities that span subject areas and that are used for risk management purposes. This section describes Credit Risk. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-165 . org. Basel II also provides three levels of sophistication for credit risk calculation where the higher the sophistication. and to base the calculation on individual credit histories and exposures for each asset and counter party associated with the asset. For Basel I and Basel II the capital requirement formula is: Capital (Tier 1 + Tier 2) = at least 8% Total Risk Weighted Asset (RWA) The ratio should be at least 8%.00 Basel II Credit Risk Management Basel II Accord Background The Basel Agreement on International Capital Standards was developed by the Basel Committee.g.Teradata Financial Services Logical Data Model Reference Guide Release 09. however. asset type and compliance level). A motivation for banks to comply is that the more precise the calculations. Note: The Teradata Basel II Data Catalogue can also help a bank identify the data attributes that are needed for Basel II for their situation (e. Basel II requests that banks be more precise calculating risk-weighted assets. and consider the risk to banks of off-balance sheet commitments. 8-166 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . reduce inequality in regulatory rules of different nations. more calculations and data history are required. convertible securities and a portion of loan loss reserves for possible bad loans. It was designed to encourage leading banks to strengthen their capital positions.00. Tier 2 capital includes the bank’s subordinated debt. Tier 1 capital is common stock and retained earnings.bis. which is an organization headquartered in Basel Switzerland and is composed of central bank representatives from countries around the world who meet to establish standards for banks to adopt when calculating capital requirements. the more relief a bank could get from their capital allocation for risk. For more information about the Basel II Accord and access to the actual Accord please link to http://www. Basel I was formally approved in 1988. allowing more money to be reinvested into the bank. The FS-LDM and the Basel II Accord The FS-LDM is not certified to comply with Basel II Credit Risk. Basel II will be formally released in June 2005 and requests compliancy by the end of 2006.. are starting now to collect the data and get their processes and systems in place to comply. but it can be used as a reference guide and framework for organizing and managing the data that a bank has identified as being necessary to comply for implementation of Basel II Credit Risk. Banks. This Basel II Data Catalogue is mapped to FS-LDM. For Basel II. The modifications for Basel II occur in the calculation of the denominator – Risk Weighted Assets. the numerator remains unchanged from Basel I. Basel classifications) y Groups of Parties y Demographics (income. interest rates. guarantor. stock issuer. Agreement and Party Asset subject areas.g. repurchases (repos). letter of credits. guarantor. internal investments. seller. investor) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-167 ..g. guarantees. beneficiary y Collection/default information y Balances/limits/credit equivalent y Risk metrics/internal and external ratings/analytical model score results y Groupings of agreements and individual tranches (securitization and risk metrics) y Maturity dates and other dates y Cash flow – actual and projected y Currency – of the agreement and of the books y Collateralized portion – collateral can cover more than one agreement y Relationship to underlying exposure (for securitization and collateral agreements) y Relationship to other entities in model: – Party (e. foreign exchange contracts. age. y Roles with enterprise – obligor.g.. obligor.. grades and scores (e. gender. etc. probability of default) y Default information (bankruptcy. The following listing describes the general data requirements. type of business. insurer. purchased receivables. investor. securitization agreements.. credit card. debt composition) y Financial statement information y Classifications (e. another financial institution. factoring agreements. competitor. leases. stock exchange. but it is not a complete list.Chapter 8 – Banking Extension Detail Data Model Description Risk Management The information required for Basel II affects the Party. Other Parties. y Examples of types of agreements of interest include front and back office agreements that have an exposure: loans. swaps. collateral agreements. Geographical Areas. fees.g. Collateral. Party Subject Area Data Requirements Party definition: Individuals and Organizations (including households) of interest. marital status) y Relationships to other entities in model – Agreements. employee y Unique ID y Organization Structure y Ownership structure y Ratings. terms. y Terms and conditions of the deal (e. balance minimums) y Classifications of agreements y Parties to the agreement – obligor. Events Agreement Subject Area Data Requirements Agreement definition: A deal between two or more parties that is of interest to the financial institution. guarantor. g. and anything else that has value that can impact a party’s wealth.00 – – – Other Agreements (collateral agreement and underlying exposure. agreements (collateral) Cross Subject Area y Risk Metrics – At Agreement and Agreement Group levels – Includes the following major risk components • Risk Weighted Asset (RWA) • Probability of default (PD) • Loss Given Default (LGD) • Exposure at Default (EAD) • Years to Maturity (M) – Includes interim metrics Note: Data to arrive at PD span other areas in the model and are based on predictive modeling techniques.00.Teradata Financial Services Logical Data Model Reference Guide Release 09. netting) Party Asset (collateral) Events/transactions (default and payment history) Party Asset Subject Area Following is the definition of Party Assets: Tangible and intangible things that have value and belong to parties. S&P. y Asset valuation over time – market and price y Asset value adjustments over time as they relate to the agreement being collateralized (haircuts) y The subject of a collateral agreement y Classifications of assets y Currency – for currency mismatch between loan and collateral y Asset location y Inspection history y Insurance details – if not covered by your institution y Parties to the asset – ownership and claims (liens) and seniority of claims y Collateralized portion that covers an exposure (an asset may cover multiple exposures within and outside your bank). y Includes real estate (commercial and residential). internal) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . jewelry. financial (stocks. deposits with other institutions). securitization underlying agreement. automobile. y 8-168 Risk Grade Results by: – Source (e. An agreement to pledge collateral against a loan is a separate agreement called a collateral agreement. External Credit Reporting Agency. This is important for Basel II purposes because these things can be collateral for an agreement. bonds.. precious metal/stone. y Relationships to other entities: parties (owners and claimants). internal investment (equity).Loan and Credit Agreement Banking .Agreement. collateralized portion.Credit Risk. agreement group (pool).Leasing Banking . Basel I.Commodity Risk Banking . In addition to the logical views in this section.Demographics Data Foundation .Risk Grade Relations Foundation .Projected Cash Flow Banking .Agreement. product groups.Agreement.g.Cross Subject Area.Risk Mitigant Agreement Banking .Agreement.Collateral and Risk Mitigants – all views Banking . Foundation .Foreign Exchange Risk Banking . Default. party. Recovery Foundation .Agreement. IRB approach) Time At the various levels: agreement (exposure).Cross Subject Area.Equity Risk Banking .Foreign Exchange Banking .Classification Foundation .Cross Subject Area.Letter of Credit and Letter of Guarantee Banking .Agreement.Analytical Model Foundation .Party Roles Banking . Purchased Receivable Banking . their product offerings. geography.Agreement.Agreement.Credit Risk.Credit Risk. and how risk is mitigated.Overview Foundation .Party.Chapter 8 – Banking Extension Detail Data Model Description Risk Management – – – Type (e.Credit Report Banking .Agreement.Market Risk. views in other sections may apply to your institution’s data requirements.Market Risk. product. party groups..Factoring. Following are suggested references in other sections of this guide. Each institution’s data requirements differ.Agreement Subtype Detail Banking .Agreement.Score and Rating Banking . securities Data that is required for Risk Management and Basel II cuts across many subject areas in the model.Basel Approach Banking .Cross Subject Area.Agreement.Market Risk.Agreement.Collection.Metric and Scenario Banking .Securitization Banking .Agreement Relationships Banking .Internal Models .Pools Banking .Cross Subject Area.Score Data Foundation .Overview and Summary Banking .Provisions Banking .Market Risk. depending on their risk approach.Agreement.Account Groups Banking . Basel II Standardized approach.Risk Factors Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-169 .Cross Subject Area.Agreement.Interest Rate Risk Banking .Market Risk.Agreement.Agreement.Product and Feature Banking .Party.Credit Risk.Risk Grade Foundation .Agreement. Value at Risk Banking .Stress Test Banking .Risk.Holding Investment .Overview Investment .Agreement.Subtyping Investment .Option Risk Banking .Overview Investment .Basic Indicator Banking .Market Risk.00.Party Asset.Sensitivity Banking .Score and Rating Investment .Overview Banking .Investment Agreement Type Investment .Basel Pillar 3 Banking .Risk.Event.Operational Risk.Standardized Approach Banking .Market Risk.Agreement.Teradata Financial Services Logical Data Model Reference Guide Release 09.Party.Market Risk.Financial Events Investment .Parameter Banking .Party Asset.00 Banking .Product.Product.Market Risk.Party 8-170 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Time Band Banking .Advanced Measurement Approach Banking .Asset Inspection Banking .Party.Party Asset Role Banking .Market Risk.Parameter Tables Banking .Party Type Banking .Internal Models .Market Risk.Event.Agreement.Operational Risk.Market Feeds Investment .Derivatives and Swaps Investment .Event.Basel Approach and Asset Class Banking .Product.Internal Models .Risk.Operational Risk.Agreement. Approaches within each Function are described in entity BASEL II APPROACH. sovereign. For example. Reference the logical view figures for Banking . It also shows how Basel II approach is assigned to various entities. Following are examples of Approaches for each Function. • Functions of Operational Risk: Approaches are Basic Indicator Approach. banks • Credit Risk – retail and Small Medium Enterprise (SME) • Securitization • Operational Risk • Market Risk – Interest Rate Risk • Market Risk – Foreign Exchange Risk • Market Risk – Commodity Risk Within each of the above functions there are various calculation approaches as defined by the Basel II Accord. which describes that the calculation scenario is for that function and approach combination (RISK CALC SCENARIO BASEL APRCH). Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-171 .Chapter 8 – Banking Extension Detail Data Model Description Risk Management Basel Approach and Asset Class This view shows how banking-book exposures are classified for Basel II calculation purposes. • Functions for Corporate Credit Risk: Approaches are Standardized.Credit Risk. and IRB Advanced.Risk. and Supervisory Formula.Basel Approach. Basel Approach The data requirements and calculation rules for Basel II depend on which banking function and banking product type is being measured. There is one code value for each function/approach combination. Entity BASEL FUNCTION TYPE identifies risk functions.Basel Approach and Asset Class and Banking . • Functions for Securitization: Approaches are Ratings Based Approach. and Advanced Measurement Approach Each of the Function and Approach combinations are then assigned to an organization within the financial institution and this assignment is allowed to change over time (ORGANIZATION BASEL APPROACH). Internal Assessment Approach. • Functions for Retail Credit Risk: Approaches are Standardized and IRB Advanced. IRB Foundation. A Function and Approach combination is also assigned to a calculation scenario. one bank subsidiary may adopt the IRB-Advanced approach for corporate exposures and a different subsidiary in another country may adopt the IRB Foundation approach for corporate exposures. Standardized Approach. Following are examples of these functions: • Credit Risk – corporate. 00 Asset Classes Under the Internal Ratings Based approach for Basel II.00. and equity) is each instances of BASEL II ASSET CLASS GROUP.org). The first level of classification (corporate. section III – B. Subtypes of the asset classes are instances of BASEL II ASSET CLASS. sovereign. retail.) • Corporate – Specialized Lending y Project Finance y Object Finance y Commodities Finance y Income-Producing Real Estate y High-Volatility Commercial Real Estate (HVCRE) – Purchased Receivables – Corporate • Sovereign • Bank • Retail – Exposures secured by residential property – Qualifying revolving retail exposures – QRRE (e.bis. For a given exposure (FINANCE EXPOSURE AGREEMENT) the asset class can be derived from the product associated with the agreement. banks must categorize banking-book exposures into broad asset classes. 8-172 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09. credit card) – Purchased Receivables – Retail – All Other Retail exposures • Equity In the FS-LDM these asset classes are considered types of PRODUCT GROUPs.1 to define the following asset classes.g. The asset classes are as follows. (Reference Basel II Accord (www.. bank. Basel Approach and Asset Class AGREEMENT Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) Agreement Categ Cd FINANCIAL AGREEMENT Account Num (FK) Account Modifier Num (FK) Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) has Basel approach of FINANCIAL AGMT BASEL II APRCH Risk Expsr Mitigant Type Cd is Basel II approach for FINANCE EXPOSURE AGREEMENT Agmt Basel Approach End Dt Account Num (FK) Account Modifier Num (FK) Risk Review Time Period Cd (FK) Securitization Rate Basel II Asset Class Id (FK) Account Num (FK) Account Modifier Num (FK) Basel II Approach Type Cd (FK) Basel Function Type Cd (FK) Agmt Basel Approach Start Dt BASEL II APPROACH PRODUCT GROUP Basel II Approach Type Cd Basel Function Type Cd (FK) was the approach during Basel II Approach Desc Product Group Id Parent Prod Group Id (FK) Product Group Desc Product Group Start Dt Product Group End Dt Product Group Level Num Product Group Reason Type Cd (FK) RISK CALC SCENARIO BASEL APRCH is Basel approach for Risk Scenario Id (FK) Basel Function Type Cd (FK) Basel II Approach Type Cd (FK) describes describes parent of ORGANIZATION BASEL APPROACH Product Group Reason Type Cd Org Party Id (FK) Basel II Approach Type Cd (FK) Basel Function Type Cd (FK) Fin Inst Basel Apprch Start Dt BASEL FUNCTION TYPE Basel Function Type Cd Basel Function Type Desc Fin Inst Basel Apprch End Dt ASSET CLASS TO OBLIGOR TYPE BASEL II ASSET CLASS GROUP Basel II Asset Class Group Id (FK) BASEL II ASSET CLASS is composed of Basel II Asset Class Id (FK) Basel II Asset Class Group Id (FK) Haircut Adj Formula Type Cd maps to Party Classification Cd (FK) Party Class Value Cd (FK) Basel II Asset Class Id (FK) Asset To Obligor Start Dt Asset To Obligor End Dt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-173 .Risk.Chapter 8 – Banking Extension Detail Data Model Description Risk Management Figure 8-58 Banking . Credit Risk.00 Figure 8-59 Banking .00.Teradata Financial Services Logical Data Model Reference Guide Release 09.Basel Approach FINANCIAL AGREEMENT Account Num (FK) Account Modifier Num (FK) has Basel approach of Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) FINANCIAL AGMT BASEL II APRCH is Basel II approach for RISK CALC SCENARIO BASEL APRCH Risk Scenario Id (FK) Basel Function Type Cd (FK) Account Num (FK) Account Modifier Num (FK) Basel II Approach Type Cd (FK) Basel Function Type Cd (FK) Agmt Basel Approach Start Dt Agmt Basel Approach End Dt Basel II Approach Type Cd (FK) BASEL II APPROACH was the approach during ORGANIZATION BASEL APPROACH Basel II Approach Type Cd Basel Function Type Cd (FK) Org Party Id (FK) Basel II Approach Type Cd (FK) Basel Function Type Cd (FK) Fin Inst Basel Apprch Start Dt is Basel approach for Basel II Approach Desc describes Fin Inst Basel Apprch End Dt BASEL FUNCTION TYPE Basel Function Type Cd CREDIT RISK HISTORY Party Id (FK) Basel II Approach Type Cd (FK) Basel Function Type Cd (FK) Basel Portfolio Product Grp Id (FK) Basel II Asset Class Group Id (FK) Counterparty Classification Cd (FK) Counterparty Class Value Cd (FK) Geographical Area Id (FK) Period Start Dt Org Business Type Cd (FK) Risk Scenario Id (FK) Period End Dt Drawn Amt EAD on Undrawn Amt Total Impaired Loan Amt Past Due GT 90 Days Amt Past Due GT 180 Days Amt Past Due GT 360 Days Amt Total Specific Provisions Amt Total General Provisions Amt Specific Provision Charge Amt Charge Off Amt Actual Default Rate 8-174 RISK MITIGATION HISTORY Basel Function Type Desc used in used in Basel approach in EQUITY HOLDINGS HISTORY Party Id (FK) Basel II Approach Type Cd (FK) Basel Function Type Cd (FK) Equity Type Product Grp Id (FK) Period Start Dt Public_Private Ind Risk Scenario Id (FK) Period End Dt Balance Sheet Amt Fair Value Amt Publicly Quoted Amt Gain_Loss Amt Total Unrealized Gain_Loss Amt Tot Latent Reval Gain_Loss Amt Capital Requirement Amt Supervisory Transition Amt Grandfathered Amt used in used in CAPITAL REQUIREMENTS HISTORY Party Id (FK) Basel II Approach Type Cd (FK) Basel Function Type Cd (FK) Basel Portfolio Product Grp Id (FK) Period Start Date Risk Scenario Id (FK) Period End Dt Credit Risk Capital Amt Securitization Exp Capital Amt Equity Exp Capital Amt Market IR Risk Capital Amt Market Equity Risk Capital Amt Market FX Risk Capital Amt Market Commod Risk Capital Amt Operational Risk Capital Amt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Party Id (FK) Basel II Approach Type Cd (FK) Basel Function Type Cd (FK) Basel Portfolio Product Grp Id (FK) Period Start Dt Risk Scenario Id (FK) Period End Dt EAD With Fin Collat Amt EAD With Other IRB Collat Amt EAD With Guar_Credit Deriv Amt NON_IRB EXPOSURE HISTORY Party Id (FK) Basel II Approach Type Cd (FK) Basel Function Type Cd (FK) Exposure Type Product Grp Id (FK) Risk Grade Id (FK) Risk Scenario Id (FK) Period Start Dt Period End Dt Exposure at Default Amt Risk Mitigation Amt . Chapter 8 – Banking Extension Detail Data Model Description Risk Management Risk Agreement Relationships This view shows major information that is associated with accounts and agreements used when calculating credit risk. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-175 . This is not a complete list of information entities but gives a sense of framework and major data requirements for account and agreement level information for credit risk. 00.Teradata Financial Services Logical Data Model Reference Guide Release 09. 8-176 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank. Agreement Relationships ACCOUNT RISK GRADE AGREEMENT ASSET Agreement Asset End Dt Account Num Account Modifier Num ACCOUNT ACCOUNT GROUP Account Account Account Account Num (FK) Modifier Num (FK) Group Id (FK) Assoc Start Dt participates in Account Assoc End Dt Acct To Acct Group Relat Cd (FK) PROJECTED CASH FLOW Cash Flow Id Cash Flow Amount Type Cd (FK) Account Num (FK) Account Modifier Num (FK) Cash Flow Calculation Dttm To Party Id (FK) From Party Id (FK) Cash Flow Dttm Cash Flow Amt Cash Flow Present Value Amt Projected Ledger Balance Amt Cash Flow Currency Cd (FK) AGREEMENT CLASS SCHEME TYPE Agreement Classification Cd Agreement Classification Desc Parent Agmt Classification Cd (FK) Agmt Class Scheme Start Dttm Agmt Class Scheme End Dttm rolls up to ACCT ACCT RELATIONSHIP Account Num (FK) Account Modifier Num (FK) Related Account Num (FK) Related Account Modifier Num (FK) Acct Relationship Type Cd (FK) Acct Acct Relationship St Dt has projected cash flow of has collection history of ACCOUNT COLLECTION STATUS Past Due Amount Type Cd (FK) Collection Status Start Dttm Account Num (FK) Account Modifier Num (FK) Collection Status End Dttm Collection Status Type Cd (FK) Collection Past Due Amt Acct Crncy Collec Past Due Amt Days Past Due Cnt is parent of Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) classifies ACCOUNT PRODUCT HISTORY may be for product ACCOUNT CURRENCY Currency Use Cd (FK) Account Currency Cd (FK) Account Num (FK) Account Modifier Num (FK) Account Currency Start Dt Account Currency End Dt has default occurrence of Account Rate End Dttm Account Rate Time Period Cd (FK) Account Rate DEFAULT OCCURRENCE Account Num (FK) Account Modifier Num (FK) Default Dttm Default Outcome Type Cd (FK) Default Reason Type Cd (FK) Default Exposure Amt Acct Crncy Exposure Amt Event Id (FK) may result in Account Num (FK) Account Modifier Num (FK) Account Event Type Cd (FK) DEFAULT RECOVERY ITEM has involvement with ACCOUNT RATE ACCOUNT PARTY has balance rate history of describes Account Num (FK) Account Modifier Num (FK) Risk Scenario Id (FK) ACCOUNT EVENT is classified as Agreement Categ Cd ACCOUNT RISK HISTORY has currency history of was used during Agreement Class Value Cd (FK) Agreement Class End Dt Account Num (FK) Account Modifier Num (FK) Rate Type Cd (FK) Balance Category Type Cd (FK) Account Rate Start Dttm Account Num (FK) Account Modifier Num (FK) Product Id (FK) Agreement Product Role Cd (FK) Acct Product Assoc Start Dt Acct Product Assoc End Dt Acct Status Type Cd (FK) Acct Status Reason Cd (FK) Acct Status End Dttm Account Num (FK) Account Modifier Num (FK) Agreement Classification Cd (FK) Agreement Class Start Dt Account Score Val is characterized by ACCOUNT STATUS HISTORY Account Num (FK) Account Modifier Num (FK) Acct Status Start Dttm Account Num (FK) Account Modifier Num (FK) Model Id (FK) Model Run Id (FK) is assigned has status history of AGMT AGMT CLASS ASSOC AGREEMENT CLASS VALUE Parent Agmt Class Value Cd (FK) Agreement Class Value Desc Agreement Class From Meas Agreement Class To Meas Unit Of Measure Cd (FK) Agmt Class Value Start Dttm Agmt Class Value End Dttm is related to Acct Acct Relationship End Dt is classification scheme for Agreement Class Value Cd Agreement Classification Cd (FK) is related with ACCOUNT SCORE DD Account Risk Grade End Dttm Acct Risk Grade Next Rev Dttm Account Risk Grade Rate Dttm AGREEMENT Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt Account Party End Dt Allocation Pct Account Party Amt Acct Crncy Acct Party Amt ACCOUNT BALANCE SUMMARY DD ACCOUNT FEATURE Account Num (FK) Account Modifier Num (FK) Risk Grade Id (FK) Account Risk Grade Start Dttm is associated with has asset of Account Num (FK) Account Modifier Num (FK) Asset Contract Role Cd (FK) Party Asset Id (FK) Agreement Asset Start Dt Account Num (FK) Account Modifier Num (FK) Collateral Item Id (FK) Default Dttm (FK) Recovery Amt Recovery Currency Cd (FK) Recovery Stop Value Amt Deed in Lieu Of Foreclose Ind Exposure At Default Amt Basel 1 Acct Exposure Amt Expos After Risk Mitigate Amt Collateral Haircut Total Amt Collateral Value Amt Exposure Total Haircut Amt Credit Risk Weighted Asset Amt Total Exposure Amt Correlation Rate Capital Requirement Amt Maturity Adj Sensitivity Rate Loss Given Default Unadj Rate Loss Given Default Adj Rate LGD Collateral Portion Rate LGD Uncollateral Portion Rate Supervisory LGD Amt Expected Loss Amt Expected Loss Expiration Dt Expected Loss Rate Dilution Risk Guarantee Amt Default Risk Guarantee Amt Specific Provision Amt Expected Loss Capital Chrg Amt Write Off Amt Actual Exposure At Default Amt Actual Loss Amt Actual Loss Rate Actual Loss Given Default Amt Actual Recovery Amt Position Pool Seniority Rate Balance Sheet Set Off Ind Effective Maturity Cnt Credit Enhancement Level Rate Risk Weight Rate Supervisory Risk Weight Rate Economic Downturn LGD Est Am Uncovered Portion Risk Rate Maturity Floor Exclusion Ind Trade Unsettle Multiplier Rate Undrawn Amt Agmt Risk Securitization Ind Agmt Risk Internal Invest Ind Agmt Risk Off Bal Sheet Ind Agmt Risk OTC Derivative Ind Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Account Num (FK) Account Modifier Num (FK) Feature Id (FK) Account Feature Role Cd (FK) Account Feature Start Dt Account Feature End Dt Overridden Feature Id (FK) Account Feature Amt Account Feature Rate Account Feature Qty Account Feature Num Account Feature UOM Cd (FK) Interest Index Cd (FK) Account Num (FK) Account Modifier Num (FK) Balance Category Type Cd (FK) Account Metric Type Cd (FK) Acct Bal Summary Start Dttm Acct Bal Summary End Dttm Acct Bal Summary Tm Pd Cd (FK) Account Balance Summary Amt Acct Crncy Balance Summary Amt Account Balance Summary Rate Account Balance Summary Cnt has financial history of ACCOUNT CREDIT LIMIT Account Modifier Num (FK) Account Num (FK) Limit Type Cd (FK) Credit Limit Start Dttm Credit Limit End Dttm Limit Change Reason Cd (FK) Credit Limit Amt Acct Crncy Credit Limit Amt Credit Auth Origin Type Cd (FK) FINANCIAL AGREEMENT PRODUCT Account Num (FK) Account Modifier Num (FK) Product Id Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) has credit limit of has financial history of has risk metric of Risk Expsr Mitigant Type Cd FINANCE EXPOSURE AGREEMENT Account Num (FK) Account Modifier Num (FK) Risk Review Time Period Cd (FK) Securitization Rate Basel II Asset Class Id (FK) describes RISK MITIGANT AGREEMENT Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Risk Mitigant Agmt Type Cd (FK) has adjustment of FINANCIAL AGMT ADJUSTMENT BASEL II ASSET CLASS Basel II Asset Class Id (FK) Basel II Asset Class Group Id (FK) Haircut Adj Formula Type Cd is composed of BASEL II ASSET CLASS GROUP Basel II Asset Class Group Id (FK) Account Modifier Num (FK) Account Num (FK) Risk Scenario Id (FK) Risk Adjustment Metric Type Cd (FK) Financial Agmt Adjustment Amt Financial Agmt Adjustment Rate Financial Agmt Adjustment Cnt Risk Adjustment Reason Type Cd (FK) ACCOUNT SUMMARY DD Account Account Account Account Num (FK) Modifier Num (FK) Summary Start Dttm Summary End Dttm Average Cleared Balance Amt Average Ledger Balance Amt Ending Ledger Balance Amt Ending Cleared Balance Amt Fee Income Amt Total Credit Cnt Total Debit Cnt Collateral Balance Amt Reserve Loan Balance Amt Highest Credit Balance Amt Lowest Debit Balance Amt Total Interest Income Amt Total Interest Expense Amt Interest Balance Amt Tax Equivalent Gross Up Amt Deposit Account Ind Loan Account Ind Future Margin Income Amt Overdraft Balance Amt Drawn Amt Securitization Position Amt Discount On Default Amt Acct Crncy Avg Cleared Bal Amt Acct Crncy Avg Ldgr Bal Amt Acct Crncy End Ldgr Bal Amt Acct Crncy End Clear Bal Amt Acct Crncy Fee Income Amt Acct Crncy Collateral Bal Amt Acct Crncy Reserve Bal Amt Acct Crncy High Cr Bal Amt Acct Crncy Low Dr Bal Amt Acct Crncy Tot Intst Incm Amt Acct Crncy Tot Intst Expns Amt Acct Crncy Intst Bal Amt Acct Crncy Tax Gross Up Amt Acct Crncy Overdraft Bal Amt Acct Crncy Drawn Amt Acct Crncy Position Amt Acct Crncy FMI Amt Acct Crncy Disc On Default Amt Time Period Cd (FK) .Credit Risk.Chapter 8 – Banking Extension Detail Data Model Description Risk Management Figure 8-60 Banking . . Agreement Securitization. • SECURITIZATION POOL – contains only those groups that are a collection of loans and other bank assets that are offered for sale to investors. For example. For more information about securitization go to section Banking . or for tracking accounts that have been grouped and securitized. when calculating credit risk for retail exposures financial institutions may put accounts with similar characteristics into pools and then rate the pool. The criteria for grouping the accounts may be specified in ACCOUNT GROUP CRITERION where there is one instance for each criterion for a given group. Securitization Pools are further divided into SECURITIZATION TRANCHEs which is actually what investors buy into. • Purchased Receivables (or Factoring) Pools (PURCHASED RECEIVABLE POOL) – a collection of purchased receivables that may be grouped for risk calculation purposes. This process is known as securitization and this entity contains one instance for each group or pool of assets that are offered for sale. Pools are essentially groups of accounts or agreements. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-179 . This view shows accounts that have been grouped for credit risk calculation purposes. This entity allows an account to be in many groups. There are several kinds of pools shown. Metrics for the different kinds of pools may be stored in separate entities that relate to the subtype it is measuring: • PURCH RECV POOL RISK HIST for metrics about pools of purchased receivables • SECURTN POOL RISK HIST for metrics about securitization pools • SECURTN POOL OBLIGOR METRIC for metrics about a given obligor in a pool Metrics common to all pools are stored in ACCOUNT GROUP RISK HIST. two criteria for one group are balance >3000 and delinquent more than 120 days. risk calculations. Entity ACCOUNT GROUP identifies the group. • Retail Pools (RETAIL POOL) – a collection of retail accounts that are grouped together. and a group to contain many accounts. A generic method of storing any kink of metric about any kind of pool can be stored in ACCOUNT GROUP RISK TYPE HIST. One agreement in the pool represents one agreement with the bank's customer (not the customer's customer or the invoice).Chapter 8 – Banking Extension Detail Data Model Description Risk Management Credit Risk Pools This view shows how pools are modeled in the FS-LDM. For example. Entity ACCOUNT ACCOUNT GROUP identifies the accounts that make the group. although you are not limited to only these kinds of pools. Usually financial institutions group accounts together for purposes of analysis. Over time an account may change groups. Credit Risk.00.Pools AGREEMENT Account Num Account Modifier Num participates in Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) Account Account Account Account ACCOUNT GROUP RISK TYPE HIST Risk Scenario Id (FK) Account Group Id (FK) Num (FK) Modifier Num (FK) Group Id (FK) Assoc Start Dt Account Assoc End Dt Acct To Acct Group Relat Cd (FK) has risk metrics of Acct Acct Acct Acct Acct Acct Acct is defined by ACCOUNT GROUP Account Group Risk Metric Amt Account Group Risk Metric Rate Account Group Risk Metric Cnt is related with Account Group Name Account Group Desc Account Group Start Dt Account Group End Dt Analytical Model Id (FK) Account Group Reason Type Cd (FK) Parent Account Group Id (FK) Data Source Cd (FK) Account Group Reason Type Cd is related to is parent of PURCHASED RECEIVABLE POOL Account Group Id (FK) RETAIL POOL Account Group Id (FK) SECURITIZATION POOL Account Group Id (FK) Pool Granularity Type Cd (FK) Off Bal Sheet Secur Type Cd (FK) Securitization Type Cd (FK) NETTING POOL has risk metric of Account Group Id (FK) Netting Pool Type Cd Netting Pool Basel Eligib Ind has risk metric of SECURTN POOL OBLIGOR METRIC PURCH RECV POOL RISK HIST Party Id (FK) Risk Scenario Id (FK) Account Group Id (FK) Account Group Id (FK) Risk Scenario Id (FK) Acct Acct Acct Acct Acct Acct Acct Acct Acct may have has obligor metrics of Grp Dilutn Exp Loss Rate Grp Dilution Guarant Amt Grp IRB Def Cap Chrg Rate Grp Dilution Exp Loss Amt Grp Seniority Ind Grp Default Exp Loss Amt Grp Firm Size Num Grp PD Rate Grp LGD Amt Acct Grp Obligor EAD Amt Acct Grp Obligor LGD Amt SECURITIZATION TRANCHE Tranche Id Investment Product Id (FK) Subordinate Tranche Id (FK) Account Group Id (FK) Seniority Level Cd (FK) Tranche Strip Type Cd (FK) is subordinate to PURCH RECV POOL CONTENT has contents of Account Group Id (FK) Risk Scenario Id (FK) Purch Rec Pool Content Type Cd Purch Rec Pool Content Ind 8-180 Account Group Id (FK) Selection Criterion Id (FK) ACCOUNT GROUP RELATED Account Group Id has risk metrics of Grp Loss Given Dflt Rate Grp Prob Default Rate Grp Eff Maturity Cnt Grp Default Guarantee Amt Grp Exposure At Dflt Amt Grp Capital Reqmt Amt Grp Specific Provisn Amt ACCOUNT GROUP CRITERION contains Account Group Id (FK) Risk Metric Type Cd (FK) Risk Scenario Id (FK) ACCOUNT GROUP RISK HIST ACCOUNT ACCOUNT GROUP Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Account Group Id (FK) Related Account Group Id (FK) Account Group Related Role Cd (FK) Account Group Related Start Dt Account Group Related End Dt SECURTN POOL RISK HIST Account Group Id (FK) Risk Scenario Id (FK) Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Grp Securitization Rate Grp Exp Highest Risk Rate Grp Gain On Sale Amt Grp Avg Excess Sprd Rate Grp Look Throu Risk Rate Grp Cap Deduction Rate Grp Tier 2 Cap Ded Rate Grp Cr Ln Sprd Trap Rate Grp Cr Ln Erly Amort Rate Grp Below KIRB Amt Grp Above KIRB Ext Amt Grp Above KIRB Int Amt Grp Nominal Exposure Amt Grp SPE Reserve Amt Grp Largst Exp Share Rate Grp Sec Risk Cap Chrg Amt Grp Largest Exp Sum Amt Grp Largest Exposure Amt Grp Risk Cap Chrg Amt Grp Dilut Cap Chrg Amt .Teradata Financial Services Logical Data Model Reference Guide Release 09.00 Metrics are also stored at the tranche level and this is described in the logical view about Securitization in this chapter. Figure 8-61 Banking . Chapter 8 – Banking Extension Detail Data Model Description Risk Management Credit Risk Metrics and Scenarios The RISK CALCULATION SCENARIO entity contains information about executing the calculation of risk metrics. Refer to entities RISK CALC SCENARIO BASEL APRCH. or operational). For example. The model allows for a given calculation scenario for multiple Basel II function/approach combinations. and RISK CALCULATION SCENARIO. This view shows only credit risk types of metrics related to the calculation scenario. Operational Risk metrics are found in the Operational Risk section of this guide. currency. Market Risk metrics are found in the Market Risk section of this guide. market. whether it is final or trial. the country that provides the requirements for the calculation. With home-host issues for Basel II it is possible for a bank to have branches in multiple countries and those countries have different risk regulations for calculating risk for accounts held in those countries. Each calculation is a different scenario. • ACCOUNT CREDIT RISK TYPE HIST – Metrics about an account or agreement – modeled generically • COLLATERAL ITEM VALUE – Metrics about the calculation of the value of collateral for a collateral item • COLLATERALIZED EXPOSURE Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-181 . Metrics related to the RISK CALCULATION SCENARIO are contained in the following entities: • ACCOUNT GROUP RISK HIST – Metrics about a pool of accounts – modeled specifically • ACCOUNT GROUP RISK TYPE HIST – Metrics about a pool of accounts – modeled generically • ACCOUNT RISK HISTORY – Metrics about an account or agreement – modeled specifically – Risk metrics also can vary depending on the type of agreement: y AGMT RISK METRIC SECURITIZE – metrics for securitization exposures y AGMT RISK METRIC OTC DERIVATV – metrics for Over the Counter Derivatives y AGMT RISK METRIC OFF BAL SHEET – metrics for off balance sheet exposures y AGMT RISK METRIC INT INVEST – metrics for internal investments y AGMT RISK METRIC PURCH REC – metrics for purchased receivable exposures. and the type of risk (credit. Amounts expressed in different currencies are separate instances of RISK CALCULATION SCENARIO. Information about this scenario includes calculation date. for Credit Risk (function) the calculation may include IRB Foundation and IRB Advanced (approaches). There is one instance for each calculation for a given currency regardless of whether it is a final or a trial run. 00 – • • • • • • • 8-182 Metrics about the portion of the exposure that is covered by a collateral item or other risk mitigant item EXPOSURE AGMT ASSET VALUE HIST – Metrics about the relationship of a risk mitigant item to the exposure it is protecting (including adjustments and haircuts) FINANCIAL AGMT ADJUSTMENT – Metrics about adjustments or haircuts at the account or agreement level INVESTMENT PRODUCT RISK METRIC – risk metrics for a financial instrument PURCH RECV POOL RISK HIST – Metrics for purchased receivable pools SECURTN POOL OBLIGOR METRIC – Metrics in a securitization pool for a given obligor. such as total EAD and LGD for the exposures for that pool and that obligor.00. SECURTN POOL RISK HIST – Metrics for a securitization pool TRANCHE RISK METRIC – Metrics for a securitization tranche Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09. Chapter 8 – Banking Extension Detail Data Model Description Risk Management Figure 8-62 Banking .Credit Risk.Metric and Scenario BASEL II APPROACH Basel II Approach Type Cd Basel Function Type Cd (FK) was the approach during Basel II Approach Desc RISK CALC SCENARIO BASEL APRCH COLLATERAL ITEM VALUE Risk Scenario Id (FK) Basel Function Type Cd (FK) FINANCIAL AGMT ADJUSTMENT Account Modifier Num (FK) Account Num (FK) Risk Scenario Id (FK) Risk Adjustment Metric Type Cd (FK) Collateral Item Id (FK) Asset Valuation Amount Cd (FK) Risk Scenario Id (FK) Basel II Approach Type Cd (FK) used the rules for Financial Agmt Adjustment Amt Financial Agmt Adjustment Rate Financial Agmt Adjustment Cnt Risk Adjustment Reason Type Cd (FK) calculated calculated RISK CALCULATION SCENARIO TRANCHE RISK METRIC Risk Scenario Id Tranche Id (FK) Risk Scenario Id (FK) Tranche Cr Enhance Lvl Rate Tranche Thickness Rate Tranche Supervisory Cap Amt Tranche Tau Supervisory Num Tranche Omega Supervisory Num Tranche Total Swap NPV Amt Tranche Funded Reserve Amt Tranche Size Amt Tranche Swap Value PFE Amt is calculation scenario for Risk Calculation Dttm Scenario Trial Cd (FK) Scenario Purpose Cd (FK) Reporting Currency Cd (FK) Risk Calculation Scenario Desc Risk Type Cd (FK) Regulating Geog Area Id (FK) Risk Calc Data Valid From Dttm Risk Calc Data Valid To Dttm ACCOUNT GROUP RISK HIST Risk Scenario Id (FK) Account Group Id (FK) is calculation scenario for is calculation scenario for SECURTN POOL RISK HIST Account Group Id (FK) Risk Scenario Id (FK) COLLATERALIZED EXPOSURE Collatized Exposure Amt Collatized Exposure LGD Rate Collatized Prob Default Rate Collatized Risk Weight Rate Collatized RWA Amt Seniority Level Cd (FK) Risk Grade Id (FK) Grp Loss Given Dflt Rate Grp Prob Default Rate Grp Eff Maturity Cnt Grp Default Guarantee Amt Grp Exposure At Dflt Amt Grp Capital Reqmt Amt Grp Specific Provisn Amt is calculation scenario for calculated is calculation scenario for is calculation scenario for ACCOUNT GROUP RISK TYPE HIST Account Group Id (FK) Risk Metric Type Cd (FK) Risk Scenario Id (FK) Account Group Risk Metric Amt Account Group Risk Metric Rate Account Group Risk Metric Cnt is scenario for INVESTMENT PRODUCT RISK METRIC Investment Product Id (FK) Risk Scenario Id (FK) Inv Inv Inv Inv Prod Zero Haircut Ind Prod Internal Haircut Amt Prod Remargin Freq Day Num Prod Hold Period Day Num Credit Credit Credit Credit Risk Risk Risk Risk Metric Metric Metric Metric Amt Rate Cnt Dttm is calculation scenario for calculated Acct Grp Obligor EAD Amt Acct Grp Obligor LGD Amt Exposure Account Num (FK) Exposure Account Modifier Num (FK) Risk Mitigant Account Num (FK) Risk Mitigant Account Mod Num (FK) Acct Relationship Type Cd (FK) Acct Acct Relationship St Dt (FK) Risk Scenario Id (FK) Agmt Agmt Agmt Agmt calculated risk metric of SECURTN POOL OBLIGOR METRIC Party Id (FK) Risk Scenario Id (FK) Account Group Id (FK) Account Modifier Num (FK) Account Num (FK) Risk Scenario Id (FK) Risk Metric Type Cd (FK) Collateral Item Value End Dt Collateral Item Eval Party Id (FK) Collateral Item Total Adj Amt Asset Crncy Item Total Adj Amt Collateral Item Post Adj Amt Asset Crncy Item Post Adj Amt Collateral Post Matur Adj Amt Asset Crncy Post Matur Adj Amt Collateral Item Pre Adj Amt Asset Crncy Item Pre Adj Amt Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Acct Grp Securitization Rate Grp Exp Highest Risk Rate Grp Gain On Sale Amt Grp Avg Excess Sprd Rate Grp Look Throu Risk Rate Grp Cap Deduction Rate Grp Tier 2 Cap Ded Rate Grp Cr Ln Sprd Trap Rate Grp Cr Ln Erly Amort Rate Grp Below KIRB Amt Grp Above KIRB Ext Amt Grp Above KIRB Int Amt Grp Nominal Exposure Amt Grp SPE Reserve Amt Grp Largst Exp Share Rate Grp Sec Risk Cap Chrg Amt Grp Largest Exp Sum Amt Grp Largest Exposure Amt Grp Risk Cap Chrg Amt Grp Dilut Cap Chrg Amt PURCH RECV POOL RISK HIST Account Group Id (FK) Risk Scenario Id (FK) Acct Acct Acct Acct Acct Acct Acct Acct Acct AGMT RISK METRIC SECURITIZE ACCOUNT CREDIT RISK TYPE HIST Grp Dilutn Exp Loss Rate Grp Dilution Guarant Amt Grp IRB Def Cap Chrg Rate Grp Dilution Exp Loss Amt Grp Seniority Ind Grp Default Exp Loss Amt Grp Firm Size Num Grp PD Rate Grp LGD Amt EXPOSURE AGMT ASSET VALUE HIST Account Num (FK) Account Modifier Num (FK) Collateral Item Id (FK) Asset Contract Role Cd (FK) Risk Scenario Id (FK) Agreement Asset Start Dt (FK) Evaluator Party Id (FK) Agmt Asset Value End Dt Asset After Maturity Adj Amt Agmt Asset Preadj Amt Agmt Asset Total Adj Amt Agmt Asset After Adj Amt Agmt Asset Crystallized Amt Asset Crncy After Mat Adj Amt Asset Crncy Preadj Amt Asset Crncy Total Adj Amt Asset Crncy After Adj Amt Asset Crncy Crystallized Amt has adjustments of EXPSR AGMT ASSET VAL ADJ HIST Account Modifier Num (FK) Account Num (FK) Collateral Item Id (FK) Asset Contract Role Cd (FK) Risk Scenario Id (FK) Agreement Asset Start Dt (FK) Risk Adjustment Metric Type Cd (FK) Agmt Asset Value Adj Amt Asset Crncy Asset Adj Amt Agmt Asset Value Adj Rate Agmt Asset Value Adj Cnt Risk Adjustment Reason Type Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret ACCOUNT RISK HISTORY Account Num (FK) Account Modifier Num (FK) Risk Scenario Id (FK) Exposure At Default Amt Basel 1 Acct Exposure Amt Expos After Risk Mitigate Amt Collateral Haircut Total Amt Collateral Value Amt Exposure Total Haircut Amt Credit Risk Weighted Asset Amt Total Exposure Amt Correlation Rate Capital Requirement Amt Maturity Adj Sensitivity Rate Loss Given Default Unadj Rate Loss Given Default Adj Rate LGD Collateral Portion Rate LGD Uncollateral Portion Rate Supervisory LGD Amt Expected Loss Amt Expected Loss Expiration Dt Expected Loss Rate Dilution Risk Guarantee Amt Default Risk Guarantee Amt Specific Provision Amt Expected Loss Capital Chrg Amt Write Off Amt Actual Exposure At Default Amt Actual Loss Amt Actual Loss Rate Actual Loss Given Default Amt Actual Recovery Amt Position Pool Seniority Rate Balance Sheet Set Off Ind Effective Maturity Cnt Credit Enhancement Level Rate Risk Weight Rate Supervisory Risk Weight Rate Economic Downturn LGD Est Amt Uncovered Portion Risk Rate Maturity Floor Exclusion Ind Trade Unsettle Multiplier Rate Undrawn Amt Agmt Risk Securitization Ind Agmt Risk Internal Invest Ind Agmt Risk Off Bal Sheet Ind Agmt Risk OTC Derivative Ind Account Num (FK) Account Modifier Num (FK) Risk Scenario Id (FK) Securitized Cr Exposure Amt Securitized Drawn Commit Amt Securitized Undrawn Commit Amt Capital Chrg Secrtz Expo Amt Capital Chrg Unsecrtz Expo Amt Securitization Exposure Rate Early Amortization Rate AGMT RISK METRIC OTC DERIVATV Account Num (FK) Account Modifier Num (FK) Risk Scenario Id (FK) Potential Exposure Add On Amt AGMT RISK METRIC OFF BAL SHEET Account Num (FK) Account Modifier Num (FK) Risk Scenario Id (FK) Expos Collat Crncy Adj Amt Credit Conversion Rate Credit Exposure Equivalent Amt Off Bal Sheet Overlap Rate AGMT RISK METRIC INT INVEST Account Num (FK) Account Modifier Num (FK) Risk Scenario Id (FK) Regulatory Equity LGD Rate Internal Invest Risk Free Rate AGMT RISK METRIC PURCH REC Account Num (FK) Account Modifier Num (FK) Risk Scenario Id (FK) Dilution Risk Expect Loss Rate Dilution Risk Expect Loss Amt . . CREDIT RISK HISTORY This summary entity tracks credit risk metrics for the Bank or one of its subsidiaries over time with respect to various dimensions such as exposure type and geographic area. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-185 . FS-LDM ENTITY NAME ENTITY DESCRIPTION BANK CAPITAL HISTORY This summary entity tracks available capital metrics for the Bank or one of its subsidiaries over time. Pillar 3. INSURANCE INTEREST HISTORY This entity tracks the Bank's interests in insurance subsidiaries.Basel Pillar 3. Tables 1 through 12 in Part 4 of the June 2004 Accord describe quantitative disclosure requirements and were the basis for the entity designs described in this section. Intended to support Basel II market disclosure requirements (Pillar 3). Please refer to the data model view Banking . specifically Table 12.Chapter 8 – Banking Extension Detail Data Model Description Risk Management Basel Pillar 3 Reporting This view shows derived entities for Basel II Pillar 3 reporting. particularly Tables 3 and 9. The following are descriptions of the entities in the FS-LDM that relate to one or more Pillar 3 Tables that describe reporting requirements. Credit risk metrics are defined in line with the Basel II Accord and are intended to support Basel market disclosure (Pillar 3) requirements. It is intended to support Pillar 3 market disclosure requirements of Basel II. specifically Table 2. It is classified by major types of exposure. Capital metrics are defined in line with the Basel II Accord and are intended to support Basel market disclosure (Pillar 3) requirements. and any risk weighted investment amounts. specifically Tables 4 and 6. The Tier 1/2 Latent Equity Gain Amts relate to Pillar 3 Table 12.org). Pillar 3 is one of the Basel II requirements for public disclosure. specifically Table 1.bis. The Basel Committee has outlined quantitative disclosure requirements in the Basel II June 2004 Accord – International Convergence of Capital Measurement and Capital Standards.Risk. and is intended to support Basel Pillar 3 reporting for Table 4. Intended to support Basel market disclosure requirements. Refer to Part 4: The Third Pillar – Market Discipline (www. CAPITAL REQUIREMENTS HISTORY This entity tracks the Basel II Capital Requirements related to various types of exposures and risks for a Bank or subsidiary. The definition indicates the Pillar 3 table for the entity. CREDIT MATURITY HISTORY This entity tracks the residual contractual maturity breakdown of the whole portfolio of the Bank or a subsidiary. including the treatment of subsidiary capital surplus/deficiency. EQUITY HOLDINGS HISTORY This entity tracks various metrics related to the equity holdings of the Bank or a subsidiary. . SECURITIZATION EXPOSURE HIST This summary entity tracks various measures of a Bank's asset securitization activity. specifically Table 13. specifically Table 4's requirement for a: reconciliation in changes in the allowances for loan impairment. Pillar 3 (market disclosure).Teradata Financial Services Logical Data Model Reference Guide Release 09. Intended to support Table 5 reporting in the Basel Accord. MARKET RISK IMA HISTORY This entity tracks Basel II market risk values for Banks using the Internal Models Approach (IMA) for calculating the market risk of trading portfolios. Intended to support Basel II market disclosure (Pillar 3) requirements. Intended to support Basel II market disclosure (Pillar 3) requirements. and the amount of securitization exposures incurred during the period. as opposed to interest rate risk in the trading book (which is in market risk). It is intended to support Pillar 3 of the Basel Accord. including total current outstanding securitization exposures. It is intended to support Pillar 3 of the Basel Accord. RISK MITIGATION HISTORY This entity tracks the amounts of risk mitigation over time for a Bank or subsidiary. NON_RETAIL RISK ASSESS HIST This entity tracks risk parameters (e. Intended to support Basel II market disclosure requirements (Pillar 3). LOAN PROVISION CHANGE HIST This entity tracks changes to general and specific provisions for losses not recorded directly to the income statement.00 FS-LDM ENTITY NAME 8-186 ENTITY DESCRIPTION IRRBB HISTORY This entity tracks the interest rate risk in the banking book (IRRBB). PD. For Table 9 see entity Capital Requirements History.00. particularly Table 6. Intended to support Basel II market disclosure (Pillar 3) requirements.g. PD. particularly Table 6. It is to be used in conjunction with the provision change amounts stored in LOAN PROVISION CHANGE HIST. LGD) and exposure values over time for the nonretail portfolios of a Bank or subsidiary. specifically Table 7. NON_IRB EXPOSURE HISTORY This summary entity tracks exposure amounts related to credit portfolios that are subject to the standardized approach or the supervisory risk weight calculation in the IRB approaches. That is. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Intended to support Basel II market disclosure requirements (Pillar 3).g. LGD) and exposure values over time for the retail portfolios of a Bank or subsidiary by retail pool. RETAIL RISK ASSESSMENT HIST This entity tracks risk parameters (e.. particularly Table 10. specifically Table 4's requirement for a: reconciliation in changes in the allowances for loan impairment. it records the value of exposures covered by different types of risk mitigation such as financial collateral. It is to be used in conjunction with the provision balances stored in LOAN PROVISION BALANCE HIST. LOAN PROVISION BALANCE HIST This entity tracks the balances of general and specific provisions for losses not recorded directly to the income statement. Risk.Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Period End Dt Balance Sheet Amt Fair Value Amt Publicly Quoted Amt Gain_Loss Amt Total Unrealized Gain_Loss Amt Tot Latent Reval Gain_Loss Amt Capital Requirement Amt Supervisory Transition Amt Grandfathered Amt Party Id (FK) Basel II Approach Type Cd (FK) Basel Function Type Cd (FK) Equity Type Product Grp Id (FK) Period Start Dt Public_Private Ind Risk Scenario Id (FK) has Basel approach in in equity type in is scenario for is risk grade for is scenario for in used in exposure type in counterparty type in is scenario for in Basel Portfolio in used in has is scenario for Basel portfolio in EQUITY HOLDINGS HISTORY Period Start Dt Period End Dt Exposure at Default Amt Risk Mitigation Amt Party Id (FK) Basel II Approach Type Cd (FK) Basel Function Type Cd (FK) Exposure Type Product Grp Id (FK) Risk Grade Id (FK) Risk Scenario Id (FK) NON_IRB EXPOSURE HISTORY Period End Dt Drawn Amt EAD on Undrawn Amt Total Impaired Loan Amt Past Due GT 90 Days Amt Past Due GT 180 Days Amt Past Due GT 360 Days Amt Total Specific Provisions Amt Total General Provisions Amt Specific Provision Charge Amt Charge Off Amt Actual Default Rate Party Id (FK) Basel II Approach Type Cd (FK) Basel Function Type Cd (FK) Basel Portfolio Product Grp Id (FK) Basel II Asset Class Group Id (FK) Counterparty Classification Cd (FK) Counterparty Class Value Cd (FK) Geographical Area Id (FK) Period Start Dt Org Business Type Cd (FK) Risk Scenario Id (FK) CREDIT RISK HISTORY Period End Dt Share Capital Amt Reserves Amt Subsidiary Minority Int Amt Innovative Instruments Amt Other Capital Instruments Amt Tier 1 Disclosed Reserve Amt Tier 1 Retained Earning Amt Tier 1 Regulatory Ded Amt Tier 1 Other Deductions Amt Tier 1 Unrlzd Equity Gain Amt Tier 1 Latent Equity Gain Amt Tier 2 Capital Amt Tier 2 Unrlzd Equity Gain Amt Tier 2 Latent Equity Gain Amt Tier 2 Revalued Reserve Amt Tier 2 General Provision Amt Tier 2 Hybrid Capital Amt Tier 2 Subordinated Debt Amt Tier 3 Capital Amt Other Capital Deductions Amt Party Id (FK) Period Start Dt Risk Scenario Id (FK) BANK CAPITAL HISTORY Period End Dt Minimum Maturity Years Num Maximum Maturity Years Num Drawn Amt EAD on Undrawn Amt is scenario for is scenario for Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk risk weight grade in Grade Scheme Id (FK) Grade Desc Grade From Val Grade To Val Grade Val Grade Rate Grade Level Num Grade Num Grade Id Start Dttm Grade Id End Dttm Risk Grade Id RISK GRADE VALUE is scenario for is parent of Parent Party Class Value Cd (FK) Party Class Value Desc Party Classification From Meas Party Classification To Meas Unit Of Measure Cd (FK) Party Class Value Start Dttm Party Class Value End Dttm Party Class Value Cd Party Classification Cd (FK) PARTY CLASS VALUE Geographical Area Type Cd (FK) Geographical Area Short Name Geographical Area Name Geographical Area Desc Currency Cd (FK) Geographical Area Id (FK) GEOGRAPHICAL AREA parent of used in in Period End Dt Ownership Pct Voting Power Pct Total Surplus Capital Amt Surplus Cap In Bank Cap Amt Risk Weighted Investment Amt Cap Reqt for RW Investment Amt Party Id (FK) Period Start Dt Risk Scenario Id (FK) INSURANCE INTEREST HISTORY Period End Dt EAD With Fin Collat Amt EAD With Other IRB Collat Amt EAD With Guar_Credit Deriv Amt Party Id (FK) Basel II Approach Type Cd (FK) Basel Function Type Cd (FK) Basel Portfolio Product Grp Id (FK) Period Start Dt Risk Scenario Id (FK) RISK MITIGATION HISTORY Period End Dt Weighted Avg Prob of Dflt Rate Total Exposure Amt Avg LGD Pct Avg Risk Weight Rate Undrawn Commitments Amt Avg EAD Amt Avg Residual Maturity Yrs Num Party Id (FK) Period Start Dt Basel Portfolio Product Grp Id (FK) Retail Pool Id Risk Grade Id (FK) Risk Scenario Id (FK) RETAIL RISK ASSESSMENT HIST Period End Dt Avg Prob of Default Weigh Rate Total Exposure Amt Avg LGD Pct Avg Risk Weight Rate Undrawn Commitments Amt Avg EAD Amt Avg Residual Maturity Yr Num Party Id (FK) Period Start Dt Basel Portfolio Product Grp Id (FK) Risk Grade Id (FK) Risk Scenario Id (FK) NON_RETAIL RISK ASSESS HIST Period End Dt Provision Change Amt Party Id (FK) Period Start Dt (FK) Provision Type Cd (FK) Provision Change Type Cd Geographical Area Id (FK) Risk Scenario Id (FK) LOAN PROVISION CHANGE HIST has changes of Period End Dt Provision Ending Bal Amt Party Id (FK) Period Start Dt Geographical Area Id (FK) Provision Type Cd (FK) Risk Scenario Id (FK) LOAN PROVISION BALANCE HIST Pillar 3 Reporting End Dt Tot Trad Sec Exposure Amt Tot Synth Sec Exposure Amt Period Trad Sec Exp Amt Period Synth Sec Exp Amt Impaired Past Due Sec Exp Amt Period Sec Exp Losses Amt Sec Exp Capital Req Amt Sec Exp Cap Deduction Amt Early Amort Drawn Amt Early Amort Cap Req Amt Securitization Sale Gain Amt Party Id (FK) Product Group Id (FK) Risk Grade Id (FK) Securitization Role Cd (FK) Pillar 3 Reporting Start Dt Risk Scenario Id (FK) SECURITIZATION EXPOSURE HIST Period End Dt Change in Earnings Amt Economic Value Change Amt Party Id (FK) Period Start Dt Currency Cd (FK) Risk Scenario Id (FK) IRRBB HISTORY is scenario for in is scenario for Basel portfolio in in is scenario for is risk grade for Basel portfolio in in is risk grade for is scenario for Basel portfolio in in in is scenario for has has securitization of has in Period End Dt Period High VaR Amt Period Mean VaR Amt Period Low VaR Amt Period End High VaR Amt Period End Mean VaR Amt Period End Low VaR Amt Actual Gain-Loss Amt has securitization metric of in trading portfolio in Parent Prod Group Id (FK) Product Group Desc Product Group Start Dt Product Group End Dt Product Group Level Num Product Group Reason Type Cd (FK) Product Group Id PRODUCT GROUP Basel Function Type Desc Basel Function Type Cd BASEL FUNCTION TYPE describes Basel II Approach Desc Basel II Approach Type Cd Basel Function Type Cd (FK) BASEL II APPROACH Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind Party Id Party Id (FK) Period Start Dt Basel Portfolio Product Grp Id (FK) Basel II Asset Class Group Id (FK) Risk Scenario Id (FK) in is scenario for Party Id (FK) Period Start Date Trading Portfolio Id (FK) Risk Scenario Id (FK) Risk Calculation Dttm Scenario Trial Cd (FK) Scenario Purpose Cd (FK) Reporting Currency Cd (FK) Risk Calculation Scenario Desc Risk Type Cd (FK) Regulating Geog Area Id (FK) Risk Calc Data Valid From Dttm Risk Calc Data Valid To Dttm Risk Scenario Id PARTY is scenario for is scenario for in Basel portfolio in used in is regulating country for MARKET RISK IMA HISTORY RISK CALCULATION SCENARIO CREDIT MATURITY HISTORY Period End Dt Credit Risk Capital Amt Securitization Exp Capital Amt Equity Exp Capital Amt Market IR Risk Capital Amt Market Equity Risk Capital Amt Market FX Risk Capital Amt Market Commod Risk Capital Amt Operational Risk Capital Amt Party Id (FK) Basel II Approach Type Cd (FK) Basel Function Type Cd (FK) Basel Portfolio Product Grp Id (FK) Period Start Date Risk Scenario Id (FK) CAPITAL REQUIREMENTS HISTORY Chapter 8 – Banking Extension Detail Data Model Description Risk Management Figure 8-63 Banking .Basel Pillar 3 . . These are often referred to as ‘haircuts’ within risk management. In the data model refer to subject area Banking .bis. For example. It is used to calculate the counterparty credit risk charge for single name credit derivative transactions in the trading book. There is one instance for each haircut rate. this is the minimum loss given default by classification of collateral.Basel Risk . The parameter entity appears in a red box with paragraph numbers. There is one instance for classification for senior exposures and one instance for classification of senior exposures. This rule contains the haircut factor for financial instrument classifications for a given residual maturity length.08 (8%). Ref June Accord par 287 and 288. for debt securities rated AAA-AA-/A1 with a residual maturity of greater than 5 years the haircut factor for nonsovereign issuers is 0. BASEL II LGD NO COLLAT PARAM This entity contains the parameters to be used when calculating Loss Given Default for exposures that are not secured by recognized collateral under the Foundation IRB approach. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-189 . It is needed since the definition of past due can vary by market participant type. This is for wholesale products. Ref par 707 in June 2004 Accord.Parameter Tables. which refer to the paragraph number in the June 2004 Basel II Accord (www.Chapter 8 – Banking Extension Detail Data Model Description Risk Management Basel II Parameters This view shows entities containing parameter values input to Basel II calculations. BASEL DEFAULT STATUS PARAM This captures whether a particular Account Status and Market Participant Type is classified as in Default (past due). Those entities that contain parameters have the word PARAM or PARAMETER at the end of the entity name. Agreements (exposures) are classified as ‘senior claim not collateralized’ and ‘subordinated claim not collateralized’. Ref par 295 in June 2004 Accord. BASEL II MINIMUM LGD PARAM For secured portions of senior exposures.org) where that parameter is referenced. Entity Name ADD ON FACTOR PARAM Entity Definition This parameter table defines the potential future exposure add-on factors. AGMT CLASS ADJUSTMENT PARAM This entity contains the adjustment rates to be applied to this classification of agreements when determining the value of the exposure for this agreement. BASEL COLLATERAL HAIRCUT PARAM This entity contains the haircut (adjustment) to be applied in the standardized supervisory haircut approach when calculating collateral haircut for this classification of financial instruments for Basel II Accord (June Accord par 151). Within each business line. Ref par 145 in June 2004 Accord BASEL ELIGIBLE GUARANTEE PARAM This entity contains all of the information related to whether a guarantee is eligible as a risk mitigant for Basel II. Parameter 3 = for the Basic Indicator Approach to Operational Risk this is the multiplier (alpha) of gross income – usually set at around 30%. The eligibility is a function of the collateral type. not the whole institution. BASEL PARAMETER This entity contains various values or constants that are used for the Basel calculations..00. gross income is a broad indicator that serves as a proxy for the scale of business operations and thus the likely scale of operational risk exposure within each of these business lines. These haircut values can be used primarily while allocating collateral. commercial banking. It should be noted that in the Standardized Approach gross income is measured for each business line. These values are further used in the E* calculations for Basel II. (12. Parameter 4 = QIS par 279 – the Maturity (M) for 8-190 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . and retail brokerage. BASEL EXPOSURE HAIRCUT PARAM This table lists all the haircut values to be used with exposures. the risk grade and the Basel II approach. Par 654.5 can be derived from this as the reciprocal 100/8) Parameter 2 = the threshold factor above which minority owned investments will be deemed significant. Beta serves as a proxy for the industry-wide relationship between the operational risk loss experience for a given business line and the aggregate level of gross income for that business line. in corporate finance. In the Standardized Approach. This is not a complete list and can be expanded by adding more rules.e. It is a function of the guarantor credit rating.Teradata Financial Services Logical Data Model Reference Guide Release 09. bank activities are divided into eight business lines: corporate finance. trading & sales. Ref par 654 in June 2004 Accord. the indicator is the gross income generated in the corporate finance business line. retail banking. Parameter 1 = the constant of . These are parameters at the level where the only granularity is the date the parameter is effective – it is a global parameter.08 which is the minimum capital requirement ratio. The capital charge for each business line is expressed by multiplying gross income by a factor (denoted beta) assigned to that business line. BASEL OP RISK BETA PARAM This parameter table describes the beta factors for each business lines as defined in June 2004 Accord. agency services. and the type of guarantor. i. payment & settlement.00 Entity Name BASEL ELIGIBLE COLLATERAL PARM Entity Definition This entity identifies those types of collateral including financial instruments that are eligible as collateral when calculating risk per Basel II specifications. the Basel II approach. asset management. Parameter 7 = QIS par 309 – Where a bank is not able to assess the PD of a corporate whose equities it is holding on the same basis as it assesses its debt then a scaling factor of 1. equity. given the PD set by the bank. 10%) (MRA A. interest rate. June 2004 Accord par 599 and 604 CREDIT CONV FACTOR BAND PARAM This is a grouping of credit conversion factors.12) Parameter 12 = Market Risk – Supervisory Discount Rate Parameter 13 = Equity Market Risk Specific Risk Capital Charge (8%) Parameter 14 = Equity Market Risk Specific Risk Capital Charge – Liquid and Well Diversified (4%) Parameter 15 = Market Risk in Relation to Index (2%) for Equity Risk Parameter 16 = MRA B3i – a multiplication factor when calculating Value At Risk. credit and commodity derivates when doing the Foundation approach for corporate exposures is 1 year. Parameter 6 = QIS par 281– the maximum for foreign exchange. credit and commodity derivates when doing the Foundation approach for corporate exposures is 5 years. equity.1. This groups the CCF's as follows: Band 1 .0% Band 2 . credit and commodity derivates when doing the Foundation approach for corporate exposures is 2.0% to 20% Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-191 . Mortgage products may have different criteria from other products.Chapter 8 – Banking Extension Detail Data Model Description Risk Management Entity Name Entity Definition foreign exchange. interest rate. CCF EARLY AMORT PARAM This entity contains the CCF (Credit Conversion Factor) for Retail Credit Line and Non-Retail Credit Line product groups for controlled and uncontrolled early amortization features.5 is applied to the risk weights derived from the corporate curve. Parameter 17 = MRA B3j – Backtesting Plus Factor BASEL RETAIL DEFAULT PARAM The entity identifies whether this status is considered default for retail products. This is used in Europe for reporting to the Committee of European Banking Supervision. equity.5 years Parameter 5 = QIS par 281 – the minimum for foreign exchange.. The Credit Conversion Factor reflects what portion of the undrawn facility is expected to be drawn in the event that the counterparty defaults.g. Parameter 8 = Final Accord par 273 – Firm Size Adjustment Parameter 9 Minimum PD for Corporate or Bank Exposure Parameter 10 = General Provision Limit Parameter 11 = Market Risk Maturity Method Vertical Disallowance Rate (e. interest rate. MARKET PARTICIPANT PARAM This table is a list of market participant types and parameters as listed in the Basel Accord. Horizontal disallowance is a factor that is applied to the net long/short positions between bands for positions such as bond holdings. the capital charge is a function of the type of instrument: Government issued paper Qualifying – issued by public sector and multilateral development banks and others with a certain investment grade Other Refer to the Market Risk Amendment A1. which offers evidence of debt or equity and is issued by an organization that has a strong balance sheet. The Credit Conversion Factor reflects what portion of the undrawn facility is expected to be drawn in the event that the counterparty defaults. HORIZONTAL DISALLOWANCE PARAM This entity contains the horizontal disallowance metric used when calculating market risk for interest rate risk using the standardized approach.00.above 100% CREDIT CONVERSION FACTOR PARAM This entity contains the CCF (Credit Conversion Factor) for Retail Credit Line and NonRetail Credit Line product groups. Reference MRA Table 2 INT RATE RISK CAP CHARGE PARAM When calculating interest rate risk using the standardized approach.4 Ref par 707 in June 2004 Accord for specific risk capital charges for government paper changes.20% to 50% Band 4 . Market participant types as listed in the Basel Accord: - 8-192 Corporate Bank Sovereign SME Corporate SME Retail Retail Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 Entity Name Entity Definition Band 3 . The role code in this entity will indicate if the horizontal disallowance is within or between Time Zones. An investment grade security is an investment instrument. INVESTMENT GRADE PARAM This entity will identify whether a class of industries with a give risk grade are considered investment grade. and is recognized as a leader in its industry.50% to 100% Band 5 .Teradata Financial Services Logical Data Model Reference Guide Release 09. considerable capitalization. other than an insurance policy or fixed annuity. Ref Nov 2005 Accord par 46 Ref Annex 3 of the Nov 2005 Accord.. VALUE AT RISK MULTIPLIER PARAM This entity contains the multiplier factor for scale up the VaR (Value at Risk) model backtest output exceptions. VALUE AT RISK BACKTEST PARAM This entity tracks the Value at Risk (VAR) for a sample of counterparties over time. UNSETTLED TRADE PARAM This table is used to lookup the Risk Multiplier for calculating the capital charge for non-DvP (delivery versus payment) transaction. SPEC LENDING SLOTTING PARAM This table lists the risk weights to be applied to specialized lending exposures under the IRB Slotting Approach.Chapter 8 – Banking Extension Detail Data Model Description Risk Management Entity Name Entity Definition MKT RISK DERIV TRTMNT PARAM This is Market Risk Amendment Tables 4 and 5 that show for a given group of products (e.. PRODUCT MIN HOLD PERIOD PARAM This entity contains the minimum holding period for a group of products such as repurchase (repos) deals. and the multiplier factor is 1.g.g. Ref par 180 in June 2004 Accord. SENIORITY LEVEL PARAMETER This entity contains parameters for Basel II risk calculation purposes based on seniority level. For example. for the party group that has number of exceptions is from '0' to '19'. the exception range zone is green. zero coupon bonds). Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-193 .. YIELD TO MATURITY PARAMETER This entity contains the yield to maturity for an instrument type (e. charge as two positions or one position in each currency). for the party group that has number of exceptions is from 0 to 19. Ref par 180 in June 2004 Accord. TRANSITIONAL ARRANGEMENT PARAM This entity lists the capital floor adjustment to be used. Ref par 180 in June 2004 Accord.g. For example. The minimum holding period is the time that this type of instrument is to be held from the time it is bought until it is sold. government debt security) whether there is a specific risk charge and the method for general market risk charge (e. the exception range zone is 'green'. the multiplier factor is '1'. Transactions where cash is paid without receipt of the security or vice versa expose firms to a risk of loss of the amount of cash paid or securities delivered. Ref par 167 in June 2004 Accord. VALUE AT RISK MULTIPLIER PARAM This entity contains the multiplier factor to scale up the VaR (Value at Risk) model backtest output exceptions. other capital market transactions and secured lending. Teradata Financial Services Logical Data Model Reference Guide Release 09.00. 8-194 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank. Parameter Tables CREDIT CONVERSION FACTOR PARAM TIME BAND is time band for Time Band Desc Band Type Cd (FK) Time Band From Num From Time Period Cd (FK) Time Band To Num To Time Period Cd (FK) Time Band Start Dttm Time Band End Dttm UNSETTLED TRADE PARAM Time Band Id (FK) Time Band Scheme Id (FK) Unsettled Trade Param Start Dt Payment Timing Type Cd (FK) Unsettled Trade Rate Unsettled Trade Param End Dt is party type for Product Group Id (FK) Maturity Time Band Id (FK) Maturity Time Band Scheme Id (FK) CCF Param From Dttm Time Band Id Time Band Scheme Id (FK) is maturity time band for CREDIT CONV FACTOR BAND PARAM CCF Band Id CCF Band Start Dttm BASEL RETAIL DEFAULT PARAM Basel Retail Default End Dttm Basel Retail Default Ind Party Class Value Cd Party Classification Cd (FK) INT RATE RISK CAP CHARGE PARAM market risk parameter Product Group Id Parent Prod Group Id (FK) Product Group Desc Product Group Start Dt Product Group End Dt Product Group Level Num Product Group Reason Type Cd (FK) PRODUCT MIN HOLD PERIOD PARAM capital charge of has risk weight of has minimum holding SPEC LENDING SLOTTING PARAM Minimum Holding End Dt Minimum Holding Time Period Cd (FK) Minimum Holding Period Num Remargin Min Hold Time Cd (FK) has risk weight of Risk Grade Id (FK) Product Group Id (FK) Time Band Id (FK) Time Band Scheme Id (FK) Slotting Param Start Dttm Basel Basel Basel Basel ADD ON FACTOR PARAM Risk Grade Id Agreement Class Value Cd (FK) Agreement Classification Cd (FK) Risk Adjustment Metric Type Cd (FK) Agmt Class Adjust Start Dttm Product Group Reason Type Cd BASEL II ASSET CLASS GROUP Basel II Asset Class Group Id (FK) BASEL II ASSET CLASS Basel II Asset Class Id (FK) has adjustment rule of AGREEMENT CLASS VALUE Agreement Class Value Cd Agreement Classification Cd (FK) has loss given default of Parent Agmt Class Value Cd (FK) Agreement Class Value Desc Agreement Class From Meas Agreement Class To Meas Unit Of Measure Cd (FK) Agmt Class Value Start Dttm Agmt Class Value End Dttm VALUE AT RISK MULTIPLIER PARAM Value At Risk Multiplier Id VaR Multiplier Start Dttm LGD No Collat Param End Dt LGD No Collat Corporate Rate VaR Multiplier End Dttm From Exception Num To Exception Num VaR Multiplier Rate Exception Range Zone Type Cd (FK) HORIZONTAL DISALLOWANCE PARAM Time Band Zone Id (FK) Related Time Band Zone Id (FK) Zone Scheme Id (FK) Related Zone Scheme Id (FK) Time Band Related Role Cd (FK) Mkt Risk Horiz Disallow Rate Basel Basel Basel Basel Parameter Desc Parameter Rate Parameter Amt Parameter End Dt VALUE AT RISK BACKTEST PARAM is market participant type Risk Grade Scheme Id Party Asset Value Cd (FK) Basel Function Type Cd (FK) Basel II Approach Type Cd (FK) Risk Grade Id (FK) Basel Elig Collat Start Dttm PARTY GROUP Org Center Cd (FK) Organization Num Party Group Id Party Group Desc Party Group Name Party Group Start Dt Party Group Data Source Cd (FK) Parent Party Group Id (FK) Party Group Reason Type Cd (FK) is parent of Basel Eligible Collat End Dttm Party Asset Class Cd (FK) Basel Collat Eligibility Ind Basel Eligible Collat LGD Rate has op risk beta of is approach for Transition Arrange End Dttm Transition Cap Floor Adj Rate has VAR of Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Internal Org Party Id (FK) Basel Op Risk Beta Start Dttm Basel Op Risk Beta End Dttm Basel Op Risk Beta Rate Basel II Approach Type Cd Basel Function Type Cd (FK) Basel II Approach Desc TRANSITIONAL ARRANGEMENT PARAM Basel II Approach Type Cd (FK) Basel Function Type Cd (FK) Transition Arrange Start Dttm BASEL OP RISK BETA PARAM classifies is collateral type for BASEL II APPROACH is approach for is parent of Internal Org Party Id (FK) Risk Grade Id (FK) Party Class Value Cd (FK) Investment Grade Start Dttm is credit rating for Party Classification Cd (FK) Basel Agmt Status Default Ind Basel Default Def End Dttm Basel Default Desc Parent Party Asset Value Cd (FK) Party Asset Value Desc Party Asset Class From Meas Party Asset Class To Meas Unit Of Measure Cd (FK) Party Asset Class Val St Dttm Party Asset Class Val End Dttm FINANCIAL INST INT ORG Risk Rating Method Id (FK) Risk Rating Purpose Cd (FK) Risk Grade Scheme Desc INVESTMENT GRADE PARAM BASEL ELIGIBLE COLLATERAL PARM Party Group Id (FK) Backtest Dt Estimated Value At Risk Amt Party Group Exposure Amt Party Group Exposure Diff Amt RISK GRADE SCHEME Party Classification Cd (FK) Investment Grade Ind Investment Grade End Dttm Acct Status Type Cd (FK) Party Class Value Cd (FK) Basel II Approach Type Cd (FK) Basel Function Type Cd (FK) Basel Default Def Start Dttm Party Asset Value Cd Party Asset Class Cd (FK) has Basel parameter of has grading values of is risk grade for Agreement Class Value Cd (FK) Agreement Classification Cd (FK) LGD No Collat Param Start Dt BASEL DEFAULT STATUS PARAM PARTY ASSET CLASS VALUE is used for is composed of BASEL II LGD NO COLLAT PARAM Basel Parameter Id Basel Parameter Start Dt Grade Scheme Id (FK) Grade Desc Grade From Val Grade To Val Grade Val Grade Rate Grade Level Num Grade Num Grade Id Start Dttm Grade Id End Dttm Seniority Levl Param End Dttm Basel II FIRB Senior Ind Seniority Level LGD Rate has loss given default rule of is rating for Basel II Asset Class Group Id (FK) Haircut Adj Formula Type Cd BASEL PARAMETER is parent of Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Seniority Level Cd (FK) Seniority Lvl Param Strt Dttm Minimum LGD Parameter End Dt Minimum Threshold LGD Rate Maximum Threshold LGD Rate Minimum Loss Given Dflt Rate Collateral Haircut End Dttm Collat Internal Haircut Rate Collat Supervisor Haircut Rate Collat Remargining Time Cd (FK) Collat Haircut Holding Cd (FK) Collat Hold Period Num Party Classification Cd (FK) Party Asset Class Cd (FK) RISK GRADE VALUE is risk grade for AGMT CLASS ADJUSTMENT PARAM Param End Dttm Simple RW Rate Internal RW Rate PD LGD RW Rate SENIORITY LEVEL PARAMETER Party Asset Class Cd (FK) Party Asset Value Cd (FK) Minimum LGD Parameter Start Dt Party Asset Value Cd (FK) Party Class Value Cd (FK) Risk Grade Id (FK) Collateral Haircut Start Dttm Maturity Time Band Scheme Id (FK) Maturity Time Band Id (FK) is risk grade for Slotting Param End Dttm Slotting EL Risk Weight Rate Slotting UL Risk Weight Rate is time band for Equity Equity Equity Equity is party type for BASEL II MINIMUM LGD PARAM BASEL COLLATERAL HAIRCUT PARAM Product Group Id (FK) Basel Equity Param Start Dttm parent of is issuer type for Int Rate Risk Cap Crg Rate Int Rate Risk Cap Crg End Dttm BASEL EQUITY RISK WEIGHT PARAM is party type for is parent of Product Group Id (FK) Time To Maturity Period Cd (FK) Time To Maturity Period Num Int Rate Risk Cap Crg St Dttm has yield to maturity PRODUCT GROUP has CCF of Agmt Class Adjust End Dttm Agmt Class Adjust Rate Int Rate Risk Deriv End Dttm General Mkt Risk Crg Type Cd (FK) Specific Risk Charge Ind Yield To Maturity Rate Yield To Maturity End Dt CCF Early Amort End Dttm CCF Early Amort Rate Add On Factor End Dt Credit Derivative Type Cd (FK) Protection Party Type Cd (FK) Qualifying Ref Obligation Ind Add On Rate Product Group Id (FK) Int Rate Risk Deriv Start Dttm Product Group Id (FK) Maturity Remaining Year Qty Yield To Maturity Start Dt Product Group Id (FK) Committed Ind Avg Excess Spread From Rate Avg Excess Spread To Rate Early Amortization Type Cd (FK) CCF Early Amort Start Dttm Product Group Id (FK) Minimum Holding Start Dt Parent Party Class Value Cd (FK) Party Class Value Desc Party Classification From Meas Party Classification To Meas Unit Of Measure Cd (FK) Party Class Value Start Dttm Party Class Value End Dttm MKT RISK DERIV TRTMNT PARAM YIELD TO MATURITY PARAMETER CCF EARLY AMORT PARAM Party Classification Cd (FK) Expsr Haircut Param End Dttm Expsr Supervisor Haircut Rate Expsr Internal Haircut Rate Expsr Holding Period Day Num Expsr Remargin Day Num Add On Factor Id Add On Factor Start Dt is product group for is time band for is product group for Party Classification Cd (FK) Market Participant End Dttm Obligor Doub Deflt Elig Ind Guarantor Doub Deflt Elig Ind Prob Default Floor Cd Market Participnt Pref RW Rate has parent of is product group for Product Group Id (FK) Maturity Time Band Id (FK) Maturity Time Band Scheme Id (FK) Risk Grade Id (FK) Party Class Value Cd (FK) Expsr Haircut Param Start Dttm Party Class Value Cd (FK) Market Participant Start Dttm PARTY CLASS VALUE is time band for BASEL EXPOSURE HAIRCUT PARAM MARKET PARTICIPANT PARAM CCF Band Desc CCF Band From Rate CCF Band To Rate Parent CCF Band Id (FK) CCF Band End Dttm Acct Status Type Cd (FK) Product Group Id (FK) Basel Retail Default Strt Dttm CCF Param To Dttm CCF Std Drawn Rate CCF Std Undrawn Rate CCF FIRB Drawn Rate CCF FIRB Undrawn Rate CCF Internal Drawn Rate CCF Internal Undrawn Rate is Basel approach for is Basel approach for BASEL ELIGIBLE GUARANTEE PARAM Party Class Value Cd (FK) Basel II Approach Type Cd (FK) Basel Function Type Cd (FK) Risk Grade Id (FK) Basel Elig Guarantee Strt Dttm Basel Elig Guarantee End Dttm Party Classification Cd (FK) Basel Eligible Guarantee Ind .Risk.Chapter 8 – Banking Extension Detail Data Model Description Risk Management Figure 8-64 Banking . . Basic Indicator Approach (alpha factor x gross income) This approach applies a factor found in the BASEL PARAMETER entity to the gross income for the enterprise. Figure 8-65 Banking .org for the June 2004 International Convergence of Capital Measurement and Capital Standards (The Basel Accord). The gross income is a balance found in the general ledger (CHART OF ACCOUNT BALANCE). refer to http://www. granularity of the required data also becomes more detailed. The Basel Committee has identified three approaches to capital charge for Operational Risk.Operational Risk. by the Basel Committee.bis. Each approach increases in precision as you move to the next level. Also. As you get more precise. it can be used as a reference guide and framework for organizing and managing the data that a bank has identified as being necessary to comply for their implementation of Basel II Operational Risk. Basel II Operational Risk Even though the FS-LDM has not been ‘certified’ to comply with Basel II Operational Risk. This model is specifically based on the Basel II requirements for Operational Risk. Listed below are the approaches starting with the least precise method.Chapter 8 – Banking Extension Detail Data Model Description Risk Management This logical view shows the entities that may be used to perform operational risk analysis. For supporting information. refer to the document Working Paper on the Regulatory Treatment of Operational Risk dated September 2001.Basic Indicator CHART OF ACCOUNT BALANCE BASEL PARAMETER Basel Parameter Id Basel Parameter Start Dt Basel Basel Basel Basel Parameter Desc Parameter Rate Parameter Amt Parameter End Dt Chart Of Account Id (FK) Set Of Books Cd (FK) COA Bal Start Dttm COA COA COA COA COA COA COA Bal Start Amt Bal End Amt Bal End Dttm Bal Global Crncy Start Amt Bal Global Crncy End Amt Bal Average Amt Avg Bal Global Crncy Amt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-197 . The beta factor is then applied to this exposure amount to arrive at the regulatory capital charge for operational risk. The exposure amount driver can vary depending on the business unit. 8-198 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . For example.Teradata Financial Services Logical Data Model Reference Guide Release 09.00. For Retail Banking it may be annual average assets. For Payment and Settlement it might be annual settlement throughput. The attribute Operational Risk Measure Cd in FINANCIAL INST INT ORG gives meaning to the exposure amount for that business unit. The model provides for a business unit to have more than one business risk measure for operational risk exposure. for Corporate Finance the measure may be gross income. This beta factor is multiplied by an exposure amount for that business unit which is found in BU OP RISK EXPOSURE HIST.00 Standardized Approach (beta factor x exposure for business unit) Each business unit (FINANCIAL INST INT ORG) is assigned a ‘beta factor’ which is found in the BASEL OP RISK BETA PARAM entity. The calculated operational risk amount for that business unit for that risk measure is then stored in BU OP RISK EXPOSURE HIST. and type of risk measurement (e. A ‘gamma factor’ is assigned to each business unit.Standardized Approach PARTY Party Id Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind Party Type Cd INDIVIDUAL Org Party Id (FK) Internal Org Party Id (FK) Operational Risk Measure Cd (FK) Risk Scenario Id (FK) MM Object Id (FK) Ethnicity Cd (FK) Gender Type Cd (FK) Birth Dt Death Dt Org Type Cd (FK) Organization Established Dt Organization Close Dt Op Risk Exposure Amt DD BU Operational Risk Amt Basel II Op Risk Beta Rate INTERNAL ORGANIZATION BU OP RISK EXPOSURE HIST is calculation scenario for ORGANIZATION Individual Party Id (FK) Org Type Cd Internal Org Party Id (FK) has operational risk exposure of Internal Org Type Cd (FK) Internal Org Categ Cd (FK) EXTERNAL ORGANIZATION External Org Party Id (FK) External Org Type Cd (FK) Internal Org Categ Cd External Org Type Cd BUSINESS LINE RISK MEASURE RISK CALCULATION SCENARIO Risk Scenario Id Risk Calculation Dttm Scenario Trial Cd (FK) Scenario Purpose Cd (FK) Reporting Currency Cd (FK) Risk Calculation Scenario Desc Risk Type Cd (FK) Regulating Geog Area Id (FK) Risk Calc Data Valid From Dttm Risk Calc Data Valid To Dttm Internal Org Party Id (FK) Operational Risk Measure Cd (FK) has risk measures of BUSINESS Business Party Id (FK) FINANCIAL INST INT ORG Internal Org Party Id (FK) Org Center Cd (FK) Organization Num is risk measurement for Business Legal Class Cd (FK) Duns Id (FK) Business Category Cd (FK) Business Category Cd has op risk beta of OPERATIONAL RISK MEASURE Operational Risk Measure Cd Operational Risk Measure Desc FINANCIAL INSTITUTION BASEL OP RISK BETA PARAM Internal Org Party Id (FK) Basel Op Risk Beta Start Dttm Financial Institution Party Id (FK) Fincl Institution Type Cd (FK) Bank Num Basel Op Risk Beta End Dttm Basel Op Risk Beta Rate Advanced Measurement Approach (gamma factor x exposure for bus unit/loss type x probability of loss factor x loss given the event factor) This takes the standardized approach a step further and calculates the exposure based on a type of loss and the probability of that loss for a given business unit.Operational Risk.g.Chapter 8 – Banking Extension Detail Data Model Description Risk Management Figure 8-66 Banking .. type of operational loss (e.g. gross sales) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-199 .. theft). . etc. restitution..00. annual average assets.. payment made to incorrect party). Examples of operational loss types are write downs (e.00 combination in entity BU OP RISK TYPE EXPOSURE HIST. theft or fraud). 8-200 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . legal liability (judgment.Teradata Financial Services Logical Data Model Reference Guide Release 09. This entity also contains operational risk exposure. The probability of loss and loss given the event are outputs of separate analytical MODEL RUNs and are stored in separate instances of BUS LINE LOSS SCORE DD. Examples of risk measure drivers are gross income. loss or damage to assets. fines).g.g. loss of recourse (e. The risk driver varies by type of business unit and loss type (attribute Operational Risk Measure Cd). settlement).g. and annual settlement throughput. regulatory and compliance (e. Advanced Measurement Approach PARTY Party Id EVENT PARTY Event Id (FK) Party Id (FK) Party Role Cd (FK) Party Event Start Dt has involvement with was involved with Party Event End Dt Party Identification Type Cd (FK) Contact Comment Txt Unstructured Text Id (FK) EVENT calculates score for Event Id Event Activity Type Cd (FK) Event Reason Cd (FK) Transaction Id Event Start Dt Event Start Tm Event End Dt Event End Tm Event GMT Start Dt Event GMT Start Tm Account Ind Financial Ind Contact Ind Incident Ind Account Group Ind Consent Ind Financial Account Event Ind Internal Investment Event Ind External Investment Event Ind Customer Portfolio Ind Statement Event Ind Access Device Event Ind Swap Leg Event Ind Opportunity Ind Travel Event Ind Event Alert Ind Causal Event Ind Reward Event Ind BUS LINE LOSS SCORE DD Internal Org Party Id (FK) Operational Loss Cd (FK) Analytical Model Id (FK) Model Run Id (FK) Operational Risk Measure Cd (FK) is source for INDIVIDUAL ORGANIZATION Model Id (FK) Model Run Id is run Model Run Dttm has score of Bus Line Loss Type Score Val ANALYTICAL MODEL Individual Party Id (FK) Org Party Id (FK) Model Id Model Status Cd (FK) Model Name Model Desc Model Type Cd (FK) Model Purpose Cd (FK) Model Algorithm Type Cd (FK) Model Source Party Id (FK) Data Source Cd (FK) Org Type Cd (FK) Organization Established Dt Organization Close Dt MM Object Id (FK) Ethnicity Cd (FK) Gender Type Cd (FK) Birth Dt Death Dt Org Type Cd OPERATIONAL LOSS TYPE INTERNAL ORGANIZATION Operational Loss Cd Operational Loss Desc describes Internal Org Party Id (FK) Operational Loss Cd (FK) Risk Scenario Id (FK) Operational Risk Measure Cd (FK) BUSINESS LINE LOSS TYPE MEAS Internal Org Party Id (FK) Operational Loss Cd (FK) Operational Risk Measure Cd (FK) BU OP RISK TYPE EXPOSURE HIST has risk exposure of EVENT ACTIVITY TYPE Event Activity Type Cd Event Activity Type Desc External Org Party Id (FK) External Org Type Cd (FK) BASEL PARAMETER FINANCIAL INST INT ORG is calculation scenario for EVENT COST Internal Org Type Cd (FK) Internal Org Categ Cd (FK) EXTERNAL ORGANIZATION may have operational loss of is risk measure type for is event type Internal Org Party Id (FK) Internal Org Categ Cd BU Loss Operational Risk Amt BU Loss Exposure Amt BU Loss Exposure Cnt Basel II Op Risk Gamma Rate has cost of Event Cost End Dttm Event Cost Amt Party Type Cd MODEL RUN OPERATIONAL RISK MEASURE RISK CALCULATION SCENARIO Cost Type Cd (FK) Event Id (FK) Event Cost Start Dttm Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind Risk Scenario Id Operational Risk Measure Cd Operational Risk Measure Desc Risk Calculation Dttm Scenario Trial Cd (FK) Scenario Purpose Cd (FK) Reporting Currency Cd (FK) Risk Calculation Scenario Desc Risk Type Cd (FK) Regulating Geog Area Id (FK) Risk Calc Data Valid From Dttm Risk Calc Data Valid To Dttm Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Internal Org Party Id (FK) Org Center Cd (FK) Organization Num Basel Parameter Id Basel Parameter Start Dt Basel Basel Basel Basel Parameter Desc Parameter Rate Parameter Amt Parameter End Dt .Chapter 8 – Banking Extension Detail Data Model Description Risk Management Figure 8-67 Banking .Operational Risk. . This section specifically focuses on data requirements for calculating minimum capital for market risk as defined by the 1996 Amendment to the Capital Accord to Incorporate Market Risk (aka Market Risk Amendment or MRA) as published by the Basel Committee on Banking Supervision (www. The financial instruments in the trading book are purchased or sold to facilitate trading for their customers. Banking Book refers to financial instruments held by a financial institution’s customers. These risks include interest rate risk and equity price risk in the Trading Book. and foreign exchange risk and commodities risk throughout the bank. to profit from spreads between the bid/ask spread. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-203 . The following sections are organized by approach.org). There are two main approaches to measuring market risk: • Standardized approach • Internal models approach In some cases banks will use a combination of the two approaches. The standardized method is also organized by instrument type. Trading Book refers to a collection of financial instruments held by a brokerage or bank. Interest rate risk in the banking book is not covered in this section. or to hedge against various types of risk. Affected financial instruments are: • debt securities (bonds) and other interest rate related instruments • equity (stock) instruments • foreign exchange currencies • commodities • options on any of the above instruments – including swaps and derivatives These instruments may exist in the banking or trading book and may be on or off the balance sheet.bis.Chapter 8 – Banking Extension Detail Data Model Description Risk Management Market Risk Market Risk is the risk of losses from changes in market prices. Entity ACCOUNT MARKET RISK TYPE HIST tracks the interim and final metrics when calculating market risk at the agreement level. For example. When calculating swaps they are to be treated as two notional positions. Specific risk applies to each instrument and general market risk applies to long and short positions in different instruments that can be offset. Refer to view Banking .General Market Risk Metrics are at the following levels for general market risk: • Time Band (TIME BAND CALCULATION HIST) • Instrument (INT RATE RISK INSTRUMENT CALC) • Netted Instruments (ACCT GROUP MKT RISK TYPE HIST) • Related time bands (MKT RISK HORIZ DISALLOW CALC) 8-204 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Offsetting is allowed for the same instrument issue.Interest Rate Risk Trading book interest rate risk minimum capital is expressed as two separate charges – specific risk or general market risk. An offset would be a combination of agreements or ACCOUNT GROUP. Interest Rate Risk .Specific Risk Specific Risk is calculated for each individual financial instrument that has the potential of interest rate risk. These agreements can be either in the banking book or the trading book.00. if the agreement is a swap then there would be two financial instruments and each instrument has its own set of market risk metrics. This entity contains interest rate market risk metrics for each financial instrument that is part of an agreement that has market risk.Market Risk . In the FS-LDM each instrument holding would be an AGREEMENT. If the instruments are netted then the specific capital charge is in ACCT GROUP MKT RISK TYPE HIST where the group contains the holdings being netted. Time Bands An instrument position is placed in one time band for interest rate and commodity risk.Teradata Financial Services Logical Data Model Reference Guide Release 09. Specific Risk metrics for interest rate risk are in INT RATE RISK INSTRUMENT CALC if the instruments are not netted (using specific data modeling method) or INSTRUT METRIC TYPE CALC HIST (using generic data modeling method).Time Band for information about the modeling for time bands.00 Standardized Method . Interest Rate Risk . Entity INT RATE RISK CAP CHARGE PARAM contains the parameters when calculating specific interest rate risk. Chapter 8 – Banking Extension Detail Data Model Description Risk Management Parameters that feed the calculations are at the level of: • Time Band (TIME BAND PARAMETER) • Between Time Bands/Zones (HORIZONTAL DISALLOWANCE PARAM) • Product Group (specific risk) – INT RATE RISK CAP CHARGE PARAM Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-205 . 8-206 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00.00 This page intentionally left blank.Teradata Financial Services Logical Data Model Reference Guide Release 09. Market Risk.Chapter 8 – Banking Extension Detail Data Model Description Risk Management Figure 8-68 Banking .Interest Rate Risk AGREEMENT ACCOUNT ACCOUNT GROUP Account Account Account Account Num (FK) Modifier Num (FK) Group Id (FK) Assoc Start Dt Account Num (FK) Account Modifier Num (FK) Product Id (FK) Agreement Product Role Cd (FK) Acct Product Assoc Start Dt may be for product Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) participates in Account Num (FK) Account Modifier Num (FK) Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) Metric Metric Metric Metric INSTRUT METRIC TYPE CALC HIST Agmt Agmt Agmt Agmt Credit Credit Credit Credit Risk Risk Risk Risk Metric Metric Metric Metric Amt Rate Cnt Dttm capital charge of Time Band Desc Band Type Cd (FK) Time Band From Num From Time Period Cd (FK) Time Band To Num To Time Period Cd (FK) Time Band Start Dttm Time Band End Dttm has bands of Time Band Parameter End Dttm Time Band Parameter Rate TIME BAND SCHEME Time Band Scheme Id Time Band Scheme Desc Time Band Scheme Start Dt Time Band Scheme End Dt Time Band Scheme Purpose Cd (FK) has bands of is related with Risk Scenario Id is calculation scenario for Risk Calculation Dttm Scenario Trial Cd (FK) Scenario Purpose Cd (FK) Reporting Currency Cd (FK) Risk Calculation Scenario Desc Risk Type Cd (FK) Regulating Geog Area Id (FK) Risk Calc Data Valid From Dttm Risk Calc Data Valid To Dttm is calculation scenario for has final maturity time band of is next interest fix time band for Time Band Related Role Cd Time Band Related Role Desc describes Product Group Id (FK) Time To Maturity Period Cd (FK) Time To Maturity Period Num Int Rate Risk Cap Crg St Dttm Int Rate Risk Cap Crg Rate Int Rate Risk Cap Crg End Dttm calculated is time band for TIME BAND CALCULATION HIST has calculations of Risk Scenario Id (FK) Time Band Id (FK) Time Band Scheme Id (FK) Time Band Metric Type Cd (FK) has calculations of Time Band Metric Amt TIME BAND RELATED TIME BAND ROLE TYPE INT RATE RISK CAP CHARGE PARAM has final position calc of is related to Time Band Id (FK) Time Band Scheme Id (FK) Related Time Band Id (FK) Related Time Band Scheme Id (FK) Time Band Related Role Cd (FK) parent of RISK CALCULATION SCENARIO calculated risk metric of Time Band Id Time Band Scheme Id (FK) Time Band Id (FK) Time Band Scheme Id (FK) Time Band Parameter Type Cd (FK) Time Band Parameter Start Dttm groups Parent Prod Group Id (FK) Product Group Desc Product Group Start Dt Product Group End Dt Product Group Level Num Product Group Reason Type Cd (FK) is calculation scenario for TIME BAND TIME BAND PARAMETER Invest Prod Trade Type Cd (FK) Investment Product Type Cd (FK) Denomination Currency Cd (FK) Product Group Id describes maturity for Netted Market Risk Group Cd (FK) Investment Product Id (FK) is risk scenario for Mkt Risk Acct Grp Metric Amt Mkt Risk Acct Grp Metric Rate Time Band Scheme Id (FK) Time Band Id (FK) Account Group Id (FK) Prod Assoc End Dt INVESTMENT PRODUCT PRODUCT GROUP Agmt Mkt Risk Cap Charge Amt Instrument Position Amt Time Band Scheme Id (FK) Next Position Time Band Id (FK) Final Position Time Band Id (FK) Specific Int Rate Risk Amt Account Group Id (FK) Risk Scenario Id (FK) Risk Metric Type Cd (FK) NETTED MARKET RISK GROUP PROD GROUP ASSOCIATION Product Id (FK) Product Group Id (FK) Prod Assoc Start Dt Product Id (FK) Agreement Product Role Cd (FK) Account Num (FK) Account Modifier Num (FK) Acct Product Assoc Start Dt (FK) Risk Scenario Id (FK) Amt Rate Cnt Dttm ACCT GROUP MKT RISK TYPE HIST Account Group Reason Type Cd Product Type Cd is part of INT RATE RISK INSTRUMENT CALC is parent of has market risk metric of is final position type for Agmt Instrument Metric Amt Instrument Crncy Metric Amt Agmt Instrument Metric Rate Current Position Time Band Id (FK) Current Position Type Cd (FK) Final Position Time Band Id (FK) Final Position Type Cd (FK) Time Band Scheme Id (FK) Account Modifier Num (FK) Account Num (FK) Risk Scenario Id (FK) Risk Metric Type Cd (FK) Account Modifier Num (FK) Account Num (FK) Risk Scenario Id (FK) Risk Metric Type Cd (FK) Risk Risk Risk Risk Position Type Desc ACCOUNT CREDIT RISK TYPE HIST ACCOUNT MARKET RISK TYPE HIST Market Market Market Market Position Type Cd Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind Product Id (FK) Account Num (FK) Account Modifier Num (FK) Agreement Product Role Cd (FK) Acct Product Assoc Start Dt (FK) Risk Scenario Id (FK) Risk Metric Type Cd (FK) FINANCIAL AGREEMENT ACCOUNT GROUP Agmt Agmt Agmt Agmt has market risk of is position type for has specific interest rate market risk of has risk type calc of Account Group Name Account Group Desc Account Group Start Dt Account Group End Dt Analytical Model Id (FK) Account Group Reason Type Cd (FK) Parent Account Group Id (FK) Data Source Cd (FK) POSITION TYPE Agreement Categ Cd has risk of Account Group Id Product Id describes Acct Product Assoc End Dt Account Assoc End Dt Acct To Acct Group Relat Cd (FK) contains PRODUCT ACCOUNT PRODUCT HISTORY Account Num Account Modifier Num HORIZONTAL DISALLOWANCE PARAM Time Band Related Role Cd Time Band Zone Id (FK) Related Time Band Zone Id (FK) Zone Scheme Id (FK) Related Zone Scheme Id (FK) Time Band Related Role Cd (FK) Mkt Risk Horiz Disallow Rate Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret MKT RISK HORIZ DISALLOW CALC Risk Scenario Id (FK) Time Band Zone Id (FK) Related Time Band Zone Id (FK) Zone Scheme Id (FK) Related Zone Scheme Id (FK) Time Band Related Role Cd (FK) Mkt Risk Horiz Disallow Amt has horizontal disallowance calc of . . Entity MKT RISK NATIONAL MKT GROUP contains the agreements for financial instruments such as equities that are grouped according to the national market the security belongs for general market risk calculation purposes. long and short) are offset to arrive at a single net long or net short position to which a specific and general market risk charge will apply. Entity EQUITY RISK NETTED GROUP contains the equity holdings that can be combined for netting purposes when calculating market risk.g. This also includes derivative products and stock indices.Chapter 8 – Banking Extension Detail Data Model Description Risk Management Standardized Method . Equity Risk . Swap instruments and are treated as two positions.6 Entity EQUITY RISK NETTED GROUP contains market risk calculations for equity holdings that are being netted. Long and short positions in the same instrument issue can be reported on a net basis. all positions (e. Refer to Market Risk Amendment A2.General Market Risk General Risk is derived from specific risk and is the difference between the sum of the longs and the sum of the shorts for a given equity instrument.Equity Risk Equities in the trading book apply to long and short positions in all equity instruments and instruments that behave like equities. Derivatives other than Options are converted to positions in the underlying.. This is considered a group of Agreements (holdings) where there is one instance for all long positions in an equity and another instance for all short positions in that equity (MKT RISK ACCT GROUP CALC HIST). For example. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-209 . For Options each national market is treated as a separate underlying. If there are multiple agreements/holdings for the same equity issue.Specific Market Risk Specific Risk is interested in long and short positions for the same issue of a given equity. This is a group of the holdings that are being netted for purposes of market risk calculations. a future in a given equity may be offset against an opposite cash position in the same equity. Positions are grouped and netted and metrics are calculated for the group. INSTRUT METRIC TYPE CALC HIST has metrics for each instrument (PRODUCT) for each holding (AGREEMENT). Equity Risk . 8-210 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 This page intentionally left blank. Market Risk.Chapter 8 – Banking Extension Detail Data Model Description Risk Management Figure 8-69 Banking .Equity Risk ACCOUNT PRODUCT HISTORY AGREEMENT Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) participates in ACCOUNT ACCOUNT GROUP Account Account Account Account Num (FK) Modifier Num (FK) Group Id (FK) Assoc Start Dt Account Assoc End Dt Acct To Acct Group Relat Cd (FK) Agreement Categ Cd Agmt Agmt Agmt Agmt Account Group Id Account Group Name Account Group Desc Account Group Start Dt Account Group End Dt Analytical Model Id (FK) Account Group Reason Type Cd (FK) Parent Account Group Id (FK) Data Source Cd (FK) Market Market Market Market Risk Risk Risk Risk Account Num (FK) Account Modifier Num (FK) Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) has risk type calc of Metric Metric Metric Metric Account Modifier Num (FK) Account Num (FK) Risk Scenario Id (FK) Risk Metric Type Cd (FK) Credit Credit Credit Credit Risk Risk Risk Risk Metric Metric Metric Metric Product Type Cd INVESTMENT PRODUCT Investment Product Id (FK) Amt Rate Cnt Dttm Invest Prod Trade Type Cd (FK) Investment Product Type Cd (FK) Denomination Currency Cd (FK) is calculation scenario for is final position type for RISK CALCULATION SCENARIO Risk Scenario Id ACCT GROUP MKT RISK TYPE HIST Account Group Id (FK) Risk Scenario Id (FK) Risk Metric Type Cd (FK) Mkt Risk Acct Grp Metric Amt Mkt Risk Acct Grp Metric Rate Time Band Scheme Id (FK) Time Band Id (FK) is calculation scenario for Risk Calculation Dttm Scenario Trial Cd (FK) Scenario Purpose Cd (FK) Reporting Currency Cd (FK) Risk Calculation Scenario Desc Risk Type Cd (FK) Regulating Geog Area Id (FK) Risk Calc Data Valid From Dttm Risk Calc Data Valid To Dttm is market risk calc scenario for Account Group Id (FK) Netted Market Risk Group Cd (FK) Product Id (FK) Account Num (FK) Account Modifier Num (FK) Agreement Product Role Cd (FK) Acct Product Assoc Start Dt (FK) Risk Scenario Id (FK) Risk Metric Type Cd (FK) Agmt Instrument Metric Amt Instrument Crncy Metric Amt Agmt Instrument Metric Rate Current Position Time Band Id (FK) Current Position Type Cd (FK) Final Position Time Band Id (FK) Final Position Type Cd (FK) Time Band Scheme Id (FK) calculated risk metric of NETTED MARKET RISK GROUP Account Group Id (FK) ACCOUNT CREDIT RISK TYPE HIST is calculation scenario for Account Group Reason Type Cd MKT RISK NATIONAL MKT GROUP has risk of Agmt Agmt Agmt Agmt Amt Rate Cnt Dttm Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind INSTRUT METRIC TYPE CALC HIST has market risk of has market risk metric of is parent of describes FINANCIAL AGREEMENT Account Modifier Num (FK) Account Num (FK) Risk Scenario Id (FK) Risk Metric Type Cd (FK) ACCOUNT GROUP Product Id Acct Product Assoc End Dt ACCOUNT MARKET RISK TYPE HIST contains PRODUCT Account Num (FK) Account Modifier Num (FK) Product Id (FK) Agreement Product Role Cd (FK) Acct Product Assoc Start Dt may be for product Netted Market Risk Group Cd EQUITY NETTED GRP RISK HIST National Market Geo Area Id (FK) EQUITY RISK NETTED GROUP Account Group Id (FK) has market risk calc of Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Risk Scenario Id (FK) Account Group Id (FK) Equity Netted Position Amt Position Type Cd (FK) is position type for POSITION TYPE Position Type Cd Position Type Desc describes position for . . Gold is dealt with as a foreign currency because its volatility is more in line with foreign currencies.Chapter 8 – Banking Extension Detail Data Model Description Risk Management Standardized Method . 2. Calculate overall long and short positions across currency types (refer to Table 6 in MRA) for the shorthand method.. So there are metrics at the following levels: • Underlying instrument (currency) within an agreement – INSTRUT METRIC TYPE CALC HIST • Currency type/position – CURRENCY POSITION METRIC HIST • Position type – POSITION FX METRIC HIST Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-213 . 3.Foreign Exchange Risk Foreign exchange in this context includes holding any foreign currency including gold. USD) (CURRENCY POSITION METRIC HIST). Following is the process for calculating minimum capital. what is our short position for USD?). Calculate metrics for each type of currency (e. first we need to measure the exposure for each underlying currency instrument for each agreement (INSTRUT METRIC TYPE CALC HIST).g. Measure the exposure in each single currency position (e. To do this..g. and banks manage gold in a manner similar to foreign currencies. 1. This is used to calculate capital (POSITION FX METRIC HIST). Teradata Financial Services Logical Data Model Reference Guide Release 09. 8-214 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank.00. Chapter 8 – Banking Extension Detail Data Model Description Risk Management Figure 8-70 Banking .Market Risk.Foreign Exchange Risk PRODUCT ACCOUNT PRODUCT HISTORY AGREEMENT Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) may be for product Product Id describes Account Num (FK) Account Modifier Num (FK) Product Id (FK) Agreement Product Role Cd (FK) Acct Product Assoc Start Dt Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind Acct Product Assoc End Dt has market risk of Agreement Categ Cd Product Type Cd INSTRUT METRIC TYPE CALC HIST FINANCIAL AGREEMENT Account Num (FK) Account Modifier Num (FK) Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) has risk of Product Id (FK) Account Num (FK) Account Modifier Num (FK) Agreement Product Role Cd (FK) Acct Product Assoc Start Dt (FK) Risk Scenario Id (FK) Risk Metric Type Cd (FK) is final position type for is position type for POSITION TYPE Position Type Cd Position Type Desc INVESTMENT PRODUCT is position type for Agmt Instrument Metric Amt Instrument Crncy Metric Amt Agmt Instrument Metric Rate Current Position Time Band Id (FK) Current Position Type Cd (FK) Final Position Time Band Id (FK) Final Position Type Cd (FK) Time Band Scheme Id (FK) Investment Product Id (FK) Invest Prod Trade Type Cd (FK) Investment Product Type Cd (FK) Denomination Currency Cd (FK) POSITION FX METRIC HIST Position Type Cd (FK) Risk Metric Type Cd (FK) Risk Scenario Id (FK) Investment Product Type Cd FX Position Amt CURRENCY PRODUCT is calculation scenario for ACCOUNT CREDIT RISK TYPE HIST Account Modifier Num (FK) Account Num (FK) Risk Scenario Id (FK) Risk Metric Type Cd (FK) Agmt Agmt Agmt Agmt Credit Credit Credit Credit Risk Risk Risk Risk Metric Metric Metric Metric Amt Rate Cnt Dttm is calculation scenario for Currency Investment Product Id (FK) is position type for RISK CALCULATION SCENARIO Risk Scenario Id calculated risk metric of Risk Calculation Dttm Scenario Trial Cd (FK) Scenario Purpose Cd (FK) Reporting Currency Cd (FK) Risk Calculation Scenario Desc Risk Type Cd (FK) Regulating Geog Area Id (FK) Risk Calc Data Valid From Dttm Risk Calc Data Valid To Dttm CURRENCY POSITION METRIC HIST is calculation scenario for Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Currency Investment Product Id (FK) Position Type Cd (FK) Risk Scenario Id (FK) Risk Metric Type Cd (FK) FX Position Currency Amt is currency for . . . Commodity instruments are grouped by commodity and position type (long or short). Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-217 .Chapter 8 – Banking Extension Detail Data Model Description Risk Management Standardized Method Commodities Risk This section covers data requirements for calculating minimum capital standards for commodities including precious metals but excluding gold. soybeans). and precious metals. The time band scheme is assigned to a commodity. minerals (including oil). see foreign exchange risk. A commodity is any physical product that can be traded on a secondary market and includes products such as agricultural products (e. One group for each time band is as follows: • Short matched position amount • Long matched position amount • Short carry forward amount • Long carry forward amount Each group goes through a calculation to come up with a capital charge for that group in that time band. This is in entity ACCT GROUP MKT RISK TYPECALC HIST Metrics at the time band level are in TIME BAND CALCULATION HIST. For gold.g. Refer to Table 11 in MRA. All bands in that scheme are for the same commodity since there is one table for each commodity. 00.Teradata Financial Services Logical Data Model Reference Guide Release 09.Market Risk.Commodity Risk ACCOUNT PRODUCT HISTORY AGREEMENT Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) may be for product Account Num (FK) Account Modifier Num (FK) Product Id (FK) Agreement Product Role Cd (FK) Acct Product Assoc Start Dt CURRENCY Currency Cd (FK) Acct Product Assoc End Dt ACCT GROUP MKT RISK TYPE HIST ACCOUNT ACCOUNT GROUP participates in Account Account Account Account Account Group Id (FK) Risk Scenario Id (FK) Risk Metric Type Cd (FK) Num (FK) Modifier Num (FK) Group Id (FK) Assoc Start Dt Account Assoc End Dt Acct To Acct Group Relat Cd (FK) Mkt Risk Acct Grp Metric Amt Mkt Risk Acct Grp Metric Rate Time Band Scheme Id (FK) Time Band Id (FK) contains describes maturity for has market risk metric of ACCOUNT GROUP Account Group Id has bands of Time Band Desc Band Type Cd (FK) Time Band From Num From Time Period Cd (FK) Time Band To Num To Time Period Cd (FK) Time Band Start Dttm Time Band End Dttm is parent of Account Group Id (FK) RISK CALCULATION SCENARIO Risk Calculation Dttm Scenario Trial Cd (FK) Scenario Purpose Cd (FK) Reporting Currency Cd (FK) Risk Calculation Scenario Desc Risk Type Cd (FK) Regulating Geog Area Id (FK) Risk Calc Data Valid From Dttm Risk Calc Data Valid To Dttm has calculations of is related to TIME BAND PARAMETER Z is calculation scenario for is related with Account Group Reason Type Cd NETTED MARKET RISK GROUP is reporting currency for Risk Scenario Id TIME BAND Time Band Id Time Band Scheme Id (FK) Account Group Name Account Group Desc Account Group Start Dt Account Group End Dt Analytical Model Id (FK) Account Group Reason Type Cd (FK) Parent Account Group Id (FK) Data Source Cd (FK) Currency Name ISO Currency Cd (FK) TIME BAND RELATED Time Band Id (FK) Time Band Scheme Id (FK) Time Band Parameter Type Cd (FK) Time Band Parameter Start Dttm Time Band Id (FK) Time Band Scheme Id (FK) Related Time Band Id (FK) Related Time Band Scheme Id (FK) Time Band Related Role Cd (FK) Time Band Parameter End Dttm Time Band Parameter Rate Netted Market Risk Group Cd (FK) TIME BAND SCHEME Time Band Scheme Id Time Band Scheme Desc Time Band Scheme Start Dt Time Band Scheme End Dt Time Band Scheme Purpose Cd (FK) TIME BAND CALCULATION HIST has bands of has calculations of Time Band Scheme Purpose Cd Z COMMODITY Investment Product Id (FK) Unit Of Measure Cd (FK) Commodity Type Cd (FK) 8-218 COMMODITY TIME BAND SCHEME is forTime Band Scheme Id (FK) Investment Product Id (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Risk Scenario Id (FK) Time Band Id (FK) Time Band Scheme Id (FK) Time Band Metric Type Cd (FK) Time Band Metric Amt .00 Figure 8-71 Banking . the instrument can be slotted into two time bands. In the simplified approach.Options There are three approaches for calculating market risk for options: • Simplified approach • Delta-plus method • Scenario approach In the simplified approach to calculating market risk capital requirements for options. vega.Chapter 8 – Banking Extension Detail Data Model Description Risk Management Standardized Method . The data requirements and representation in the FS-LDM for simplified and delta-plus methods are discussed. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-219 . or commodities as previously described). If an instrument has a long and short position depending on the time frame. In the FS-LDM for Options. The delta-plus method uses the sensitivity parameter or ‘Greek letters’ associated with options to measure their market risk. Refer to Sensitivity and Greeks logical view. the positions for the options and the associated underlying instrument. See page 34 of the MRA where a three year floating bond decomposes into one debt security and five call options. foreign exchange. These risk numbers are generated and then added to the capital charges for the relevant underlying (interest rate-related instruments. equivalent holdings are grouped (ACCOUNT GROUP) and capital charge is a metric in ACCT GROUP MKT RISK TYPE HIST. for interest rate options each position is slotted in a time band. In the delta plus method. equities. are not subject to the standardized approach but are ‘carved out’ and subject to separately calculated capital charges that incorporate both general and specific market risk. Option risk includes delta. and gamma sensitivity risk metrics to calculate for each position. Calculations for options for other instruments are included in the subject area views for the instruments described in this section. The scenario approach uses simulation techniques to calculate changes in the value of an options portfolio for changes in the level and volatility of its associated underlyings. each instrument involved in the option is an instance in ACCOUNT PRODUCT HISTORY entity where each instrument is considered a product. There are six instances of ACCOUNT PRODUCT HISTORY and each is slotted in a time band. cash or forward. Teradata Financial Services Logical Data Model Reference Guide Release 09.00 This page intentionally left blank.00. 8-220 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Market Risk.Option Risk AGREEMENT Account Num Account Modifier Num Agreement Categ Cd describes has risk type calc of Account Num (FK) Account Modifier Num (FK) Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) has risk of Product Id is final position type for POSITION TYPE Product Script Id (FK) Product Type Cd (FK) Position Type Cd Product Desc Position Type Desc Product Name Host Prod Id is position type for Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind Product Type Cd ACCOUNT CREDIT RISK TYPE HIST Account Modifier Num (FK) Account Num (FK) Risk Scenario Id (FK) Risk Metric Type Cd (FK) Agmt Agmt Agmt Agmt has sensitivity of Credit Credit Credit Credit Risk Risk Risk Risk Metric Metric Metric Metric Account Modifier Num (FK) Account Num (FK) Bank Risk Factor Type Cd (FK) Invest Agmt Risk Factor Dttm Num (FK) Modifier Num (FK) Group Id (FK) Assoc Start Dt INVESTMENT PRODUCT Investment Product Id (FK) ACCOUNT MARKET RISK TYPE HIST Account Modifier Num (FK) Account Num (FK) Risk Scenario Id (FK) Risk Metric Type Cd (FK) RISK CALCULATION SCENARIO contains ACCOUNT GROUP Account Group Id Account Group Name Account Group Desc Account Group Start Dt Account Group End Dt Analytical Model Id (FK) Account Group Reason Type Cd (FK) Parent Account Group Id (FK) Data Source Cd (FK) has market risk metric of is parent of Account Group Reason Type Cd is calculation scenario for Risk Calculation Dttm Scenario Trial Cd (FK) Scenario Purpose Cd (FK) Reporting Currency Cd (FK) Risk Calculation Scenario Desc Risk Type Cd (FK) Regulating Geog Area Id (FK) Risk Calc Data Valid From Dttm Risk Calc Data Valid To Dttm Agmt Agmt Agmt Agmt Market Market Market Market Account Group Id (FK) Netted Market Risk Group Cd (FK) National Market Geo Area Id (FK) Risk Risk Risk Risk Metric Metric Metric Metric is calculation scenario for Invest Prod Trade Type Cd (FK) Investment Product Type Cd (FK) Denomination Currency Cd (FK) Amt Rate Cnt Dttm is calculation scenario for has final position calc of TIME BAND ACCT GROUP MKT RISK TYPE HIST is calculation scenario for Time Band Id Time Band Scheme Id (FK) Account Group Id (FK) Risk Scenario Id (FK) Risk Metric Type Cd (FK) Mkt Risk Acct Grp Metric Amt Mkt Risk Acct Grp Metric Rate Time Band Scheme Id (FK) Time Band Id (FK) MKT RISK NATIONAL MKT GROUP Account Group Id (FK) is time band for Product Id (FK) Risk Metric Type Cd (FK) Risk Scenario Id (FK) Amt Rate Cnt Dttm calculated risk metric of Risk Scenario Id Agmt Instrument Metric Amt Instrument Crncy Metric Amt Agmt Instrument Metric Rate Current Position Time Band Id (FK) Current Position Type Cd (FK) Final Position Time Band Id (FK) Final Position Type Cd (FK) Time Band Scheme Id (FK) VOLATILITY RISK CALC HIST Agreement Risk Factor Rate Account Assoc End Dt Acct To Acct Group Relat Cd (FK) Product Id (FK) Account Num (FK) Account Modifier Num (FK) Agreement Product Role Cd (FK) Acct Product Assoc Start Dt (FK) Risk Scenario Id (FK) Risk Metric Type Cd (FK) is underlying product for AGREEMENT MARKET RISK FACTOR ACCOUNT ACCOUNT GROUP NETTED MARKET RISK GROUP PRODUCT Acct Product Assoc End Dt FINANCIAL AGREEMENT participates in has market risk of Account Num (FK) Account Modifier Num (FK) Product Id (FK) Agreement Product Role Cd (FK) Acct Product Assoc Start Dt may be for product Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) Account Account Account Account INSTRUT METRIC TYPE CALC HIST ACCOUNT PRODUCT HISTORY Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret describes maturity for Time Band Desc Band Type Cd (FK) Time Band From Num From Time Period Cd (FK) Time Band To Num To Time Period Cd (FK) Time Band Start Dttm Time Band End Dttm .Chapter 8 – Banking Extension Detail Data Model Description Risk Management Figure 8-72 Banking . . A Time Band may roll up to Zones. 1 to 3.g. commodity instruments. Examples: For interest rate risk: • Assumed yield change rate • Risk weight rate Commodity risk: • Spread rate Time Band Related This entity shows relationships between bands that are outside the hierarchy of bands within a scheme. Example: MRA Table 1 for Maturity Method for Interest Rate Risk Time Band This entity represents an actual time band (e. 3 to 6. For example.Time Band Time bands are used when calculating market risk capital requirements for interest rate instruments. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-223 .Chapter 8 – Banking Extension Detail Data Model Description Risk Management Standardized Method . Reference Table 2 in MRA for interest rate risk. Table 7 for commodity risk. Refer to MRA Tables 1 and 2 for interest rate risk. Time Bands 0 to 1.’ then the time band is maturity of 3 to 6 months. and option instruments. For example.. Reference MRA Tables 1 and 10 Time Band Parameter This entity contains parameters used to calculate interest rate risk using the duration method. For example. Time Band Scheme This entity defines a table for time banding. A Time Band may also be a Zone. row in a parameter table) for a given scheme (table). Tables 1 and 2 in the MRA give examples of Time Bands. and 6 through 12 make up Zone 1. if the scheme is ‘Interest Rate Risk Time Band for Coupons 3% or More. This entity also relates Time Bands to Zones. Examples are the risk weight and the assumed change in yield. in Market Risk the horizontal disallowance is between Zones which is a type of Band. Teradata Financial Services Logical Data Model Reference Guide Release 09. Example: Vertical disallowance – once the instrument positions are slotted in time bands.00 Time Band Calculation Hist This entity contains market risk metrics at the time band level. this information is derived from the positions in the band.00.Market Risk. Figure 8-73 Banking .Time Band TIME BAND PARAMETER Time Band Id (FK) Time Band Scheme Id (FK) Time Band Parameter Type Cd (FK) Time Band Parameter Start Dttm Time Band Parameter End Dttm Time Band Parameter Rate has bands of TIME BAND Time Band Id Time Band Scheme Id (FK) TIME BAND SCHEME Time Band Scheme Id Time Band Scheme Desc Time Band Scheme Start Dt Time Band Scheme End Dt Time Band Scheme Purpose Cd (FK) has bands of Time Band Desc Band Type Cd (FK) Time Band From Num From Time Period Cd (FK) Time Band To Num To Time Period Cd (FK) Time Band Start Dttm Time Band End Dttm is related to TIME BAND CALCULATION HIST has calculations of Time Band Metric Amt is related with TIME BAND RELATED Time Band Id (FK) Time Band Scheme Id (FK) Related Time Band Id (FK) Related Time Band Scheme Id (FK) Time Band Related Role Cd (FK) 8-224 Risk Scenario Id (FK) Time Band Id (FK) Time Band Scheme Id (FK) Time Band Metric Type Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . and options • Currencies • Interest rate indexes • Assets such as real estate • Agreements such as holding in instruments Physical and financial asset characteristics that can affect their valuation include liquidity and deterioration. • Theta or time decay risk – the time decay of an option – how much the value of the option changes as it moves closer to its expiration date • Rho or discount rate risk – the change in value of an option in response to a change in interest rate. For the Internal Models Approach to Market Risk there must be a set of risk factors corresponding to interest rates for each currency (MRA B3). bond. • Vega or volatility – the sensitivity of the option to changes in the volatility of the underlying instrument. • Beta – for a security instrument or portfolio of security instruments beta is a factor that measures volatility by comparison to the market as a whole. For market risk they can include the following: Market Risk Factors: • Interest rate • Foreign exchange • Equity • Commodity • Credit spread • Swap spread • Vega (volatility) For an option it also includes Greek measures of price sensitivity: • Delta – the degree to which an option's value is affected by a small change in the price of the underlying instrument. • Gamma or convexity risk – the degree to which the option's delta changes as the reference price of the instrument underlying the option changes. Risk Factors associated with market risk for financial instruments are listed in reference entity BANK RISK FACTOR. The risk factor is then applied to the subject it is measuring: • Investment Product – financial instrument such as stock.Chapter 8 – Banking Extension Detail Data Model Description Risk Management Internal Models Risk Factors (Sensitivity) Risk Factors are used for the delta-plus method when calculating capital charges for Options. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-225 . Teradata Financial Services Logical Data Model Reference Guide Release 09.00 Figure 8-74 Banking .Market Risk.00.Sensitivity INTEREST INDEX RISK FACTOR Interest Index Cd (FK) Bank Risk Factor Type Cd (FK) Interest Index Risk Factr Dttm InterestIndex Risk Factr Rate INVESTMENT PRODUCT RISK FACTOR Investment Product Id (FK) Bank Risk Factor Type Cd (FK) Invest Prod Risk Factor Dttm Invest Prod Risk Factor Rate PARTY ASSET PRICE SENSITIVITY Party Party Party Party Asset Asset Asset Asset Value Cd (FK) Class Cd (FK) Sensitivity Cd (FK) Sensitivity Dt Party Asset Sensitivity Rate describes risk factor for describes risk factor for CURRENCY RISK FACTOR Currency Cd (FK) Bank Risk Factor Type Cd (FK) Currency Risk Factor Dttm Currency Risk Factor Rate BANK RISK FACTOR describes risk factor for describes Bank Risk Factor Type Cd Bank Risk Factor Type Desc Risk Type Cd (FK) PARTY ASSET SENSITIVITY TYPE Party Asset Sensitivity Cd describes risk factor for AGREEMENT MARKET RISK FACTOR Account Modifier Num (FK) Account Num (FK) Bank Risk Factor Type Cd (FK) Invest Agmt Risk Factor Dttm Agreement Risk Factor Rate 8-226 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Party Asset Sensitivity Desc . Chapter 8 – Banking Extension Detail Data Model Description Risk Management Internal Models Market Risk Factors This section addresses MRA section B3 – Internal Models Approach – Specification of Market Risk Factors. Market Risk Factors exist at various levels as represented in the relationship between BANK RISK FACTOR and various subjects of the measurement such as: • Interest Rate Index • Yield Curve Maturity Segments • Currency • Currency Exchange Rate • Agreement (investment holding) • Business Type • Investment Product • Investment Product Groupings Market Risk Types fare categories of market forces that can affect an instrument's price (BANK RISK FACTOR): • Interest rates • Foreign exchange rates • Equity price • Commodity price • Credit spread • Swap spread • Volatility (vega) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-227 . Internal Models .Risk Factors INTEREST INDEX Interest Index Cd YIELD CURVE MATURITY SEGMENT is assigned to a Yield Curve Maturity Seg Id Yield Curve Maturity Seg Desc Interest Index Time Period Cd (FK) Interest Index Desc Interest Index Currency Cd (FK) Yield Curve Maturity Seg Id (FK) has rate history of INDEX RATE HIST Rate Effective Dt Interest Index Cd (FK) Interest Index Rate PRODUCT GROUP has risk factor of YIELD CURVE MATUR RISK FACTR INTEREST INDEX RISK FACTOR Yield Curve Maturity Seg Id (FK) Bank Risk Factor Type Cd (FK) Yield Curve Maturity Seg Dttm Interest Index Cd (FK) Bank Risk Factor Type Cd (FK) Interest Index Risk Factr Dttm Yield Curve Maturity Seg Rate InterestIndex Risk Factr Rate describes risk factor for Product Group Id (FK) Bank Risk Factor Type Cd (FK) Invest Prod Grp Risk Fact Dttm Parent Prod Group Id (FK) has risk factor of Product Group Desc Product Group Start Dt Product Group End Dt Product Group Level Num Product Group Reason Type Cd (FK) Invest Prod Grp Risk Fact Rate describes risk factor for describes risk factor for describes risk factor for is currency for INVESTMENT PRODUCT RISK FACTOR Investment Product Id (FK) Bank Risk Factor Type Cd (FK) Invest Prod Risk Factor Dttm Invest Prod Risk Factor Rate CURRENCY BANK RISK FACTOR Currency Cd (FK) Bank Risk Factor Type Cd Currency Name ISO Currency Cd (FK) Bank Risk Factor Type Desc Risk Type Cd (FK) describes risk factor for BUSINESS TYPE RISK FACTOR describes risk factor for CURRENCY RISK FACTOR Currency Cd (FK) Bank Risk Factor Type Cd (FK) has sensitivity ofCurrency Risk Factor Dttm Currency Risk Factor Rate Currency Trans Rate Type Cd (FK) Target Currency Cd (FK) Source Currency Cd (FK) Currency Trans Start Dttm (FK) Bank Risk Factor Type Cd (FK) Crncy Exchng Risk Factor Dttm 8-228 Business Type Risk Factor Rate Account Modifier Num (FK) Account Num (FK) Bank Risk Factor Type Cd (FK) Invest Agmt Risk Factor Dttm Agreement Risk Factor Rate describes risk factor for CURRENCY TRANSLATION RATE HIST Crncy Exchng Risk Factor Rate is source currency Org Business Type Cd (FK) Bank Risk Factor Type Cd (FK) Business Type Risk Factor Dttm AGREEMENT MARKET RISK FACTOR describes risk factor for CURRENCY EXCHANGE RISK FACTOR is target currency Product Group Id INVEST PROD GROUP RISK FACTOR has risk factor of has risk factor of Source Currency Cd (FK) Target Currency Cd (FK) Currency Trans Rate Type Cd (FK) Currency Trans Start Dttm Currency Trans End Dttm Target To Source Currency Rate Source To Target Currency Rate Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret parent of .00.Teradata Financial Services Logical Data Model Reference Guide Release 09.Market Risk.00 Figure 8-75 Banking . Each instance represents a loss event with a given amount (MRA B5-5). BANK ACTUAL RISK LOSS When doing stress testing banks should have a record of actual amounts for their largest losses over a reporting period. exchange rate.Chapter 8 – Banking Extension Detail Data Model Description Risk Management Internal Models Stress Test The purpose of stress testing is to determine the size (not frequency) of potential loss related to specific scenario. equity price. The calculation that tells us how much a portfolio might lose in such a scenario is a ‘stress test. STRESS TEST RESULT This entity contains the result of a stress test such as the Loss Amount for a given risk factor.’ STRESS TEST ACCOUNT GROUP This entity identifies a group of agreements or 'portfolio' that is being tested or stressed as a result of this test. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-229 . A scenario may consist of extreme changes in the value of a risk factor (interest rate. commodity price). credit spread. 00.00 Figure 8-76 Banking .Stress Test RISK CALCULATION SCENARIO Risk Scenario Id BANK RISK FACTOR RISK TYPE Bank Risk Factor Type Cd Risk Type Cd is risk type for Risk Type Desc Risk Calculation Dttm Scenario Trial Cd (FK) Scenario Purpose Cd (FK) Reporting Currency Cd (FK) Risk Calculation Scenario Desc Risk Type Cd (FK) Regulating Geog Area Id (FK) Risk Calc Data Valid From Dttm Risk Calc Data Valid To Dttm has risk factor of is risk type for BANK ACTUAL RISK LOSS Bank Actual Loss Id Scenario Purpose Cd Risk Type Cd (FK) Bank Risk Factor Type Cd (FK) Bank Loss Reporting Start Dt Bank Loss Reporting End Dt Bank Actual Loss Amt Bank Loss Type Cd (FK) has risk factor of is factor being measured Z STRESS TEST RESULT STRESS TEST CALC SCENARIO Risk Scenario Id (FK) Stress Test Type Cd (FK) Stress Test Begin Dt Stress Test End Dt is testing Bank Risk Factor Type Desc Risk Type Cd (FK) Bank Risk Factor Type Cd (FK) Risk Scenario Id (FK) Stress Test Result Metric Cd has result of has criterion of STRESS TEST CRITERION Stress Test Result Amt Stress Test Risk Factor Rate Risk Scenario Id (FK) Selection Criterion Id (FK) STRESS TEST ACCOUNT GROUP Account Group Id (FK) Risk Scenario Id (FK) SELECTION CRITERION is criterion for ACCOUNT GROUP Account Group Id is part of a Account Group Name Account Group Desc Account Group Start Dt Account Group End Dt Analytical Model Id (FK) Account Group Reason Type Cd (FK) Parent Account Group Id (FK) Data Source Cd (FK) is parent of 8-230 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Selection Criterion Id Selection Criterion Desc Data Category Cd (FK) .Internal Models .Teradata Financial Services Logical Data Model Reference Guide Release 09.Market Risk. • The unit of the currency which will be used to denominate the value at risk (VaR). in other words. but its market value tomorrow is not known. It is typically used by security houses or investment banks to measure the market risk of their asset portfolios (market value at risk). semivariance (or downside risk) and expected shortfall. rather than the probability of a given amount to be lost. in that it represents the amount to be lost with a given probability. • The confidence level at which the estimate is made. a change in the value of its portfolio would not result in a decrease of more than $4 million during 1 day. Other measures of risk include volatility/standard deviation. (Wikipedia) The business questions for VAR are: • "What is the most I can . for example. Instead.e. Its market value in US dollars today is known. the output from the calculation ($4 million in the above example) is the maximum amount at risk (the value at risk) for that confidence level. The key thing to note is that the target confidence level (95% in the above example) is the given parameter here. it reflects the riskiness of the portfolio based on the portfolio's current composition. with a probability of 5%. This implies that (provided usual conditions will prevail over the 1 day) the bank can expect that. The typical holding period is 1 day. As such.with a 95% or 99% level of confidence . the length of time over which one plans to hold the assets in the portfolio .expect to lose in dollars over the next month? Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-231 . with a probability of 95%. even a holding period of 1 year is appropriate. or. The VaR is the maximum amount at risk to be lost from an investment (under 'normal' market conditions) over a given holding period.the "holding period").. The investment bank holding that portfolio might report that its portfolio has a 1-day VaR of $4 million at the 95% confidence level. that. Consider a trading portfolio. it is the converse of shortfall probability. VaR has three parameters: • The time horizon (period) to be analyzed (i. Popular confidence levels usually are 99% and 95%.Chapter 8 – Banking Extension Detail Data Model Description Risk Management Internal Models Value at Risk Value at risk (VaR) is a measure of how the market value of an asset or of a portfolio of assets is likely to decrease over a certain time period (usually over 1 day or 10 days) under usual conditions. but is actually a very general concept that has broad application. at a particular confidence level. Note that VaR cannot anticipate changes in the composition of the portfolio during the day. to compute capital requirements under the European Capital Adequacy Directive (CAD). the value of its portfolio will decrease by $4 million or more during 1 day. For some problems. although 10 days are used. "Portfolio" in this context refers to a grouping of holdings being measured. the Holding and the Account Group (Portfolio) levels in entities PRODUCT VALUE AT RISK. 8-232 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09.00.with 95% or 99% confidence expect to lose over the next year? In the FS-LDM the VAR calculations are stored at the Product. HOLDING VALUE AT RISK and PORTFOLIO VALUE AT RISK respectively.00 • "What is the maximum percentage I can . Market Risk.Internal Models .Value at Risk ACCOUNT GROUP PORTFOLIO VALUE AT RISK Account Group Id contains Account Group Id (FK) Risk Scenario Id (FK) has VAR of Account Group Name Account Group Desc Account Group Start Dt Account Group End Dt Analytical Model Id (FK) Account Group Reason Type Cd (FK) Parent Account Group Id (FK) Data Source Cd (FK) Portfolio Holding Period Cd (FK) Portfolio Holding Period Num Portfolio VAR Confidence Rate Portfolio VAR Amt Portfolio VAR Rate is calc scenario for is parent of PRODUCT ACCOUNT ACCOUNT GROUP Account Account Account Account Product Id Num (FK) Modifier Num (FK) Group Id (FK) Assoc Start Dt Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind Account Assoc End Dt Acct To Acct Group Relat Cd (FK) participates in has VAR of PRODUCT VALUE AT RISK Product Id (FK) Risk Scenario Id (FK) Product Product Product Product Product AGREEMENT Account Num Account Modifier Num has involvement with Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) RISK CALCULATION SCENARIO is calc scenario for describes ACCOUNT PRODUCT HISTORY may be for product Account Num (FK) Account Modifier Num (FK) Product Id (FK) Agreement Product Role Cd (FK) Acct Product Assoc Start Dt Risk Scenario Id Risk Calculation Dttm Scenario Trial Cd (FK) Scenario Purpose Cd (FK) Reporting Currency Cd (FK) Risk Calculation Scenario Desc Risk Type Cd (FK) Regulating Geog Area Id (FK) Risk Calc Data Valid From Dttm Risk Calc Data Valid To Dttm Acct Product Assoc End Dt HOLDING VALUE AT RISK has VAR of Account Num (FK) Account Modifier Num (FK) Risk Scenario Id (FK) is calc scenario for Holding Time Period Cd (FK) Holding Time Period Num Holding VAR Confidence Rate Holding VAR Amt Holding VAR Rate ACCOUNT PARTY Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt Holding Period Cd (FK) Holding Period Num VAR Confidence Rate VAR Amt VAR Rate has involvement with Account Party End Dt Allocation Pct Account Party Amt Acct Crncy Acct Party Amt VALUE AT RISK MULTIPLIER PARAM Value At Risk Multiplier Id VaR Multiplier Start Dttm VaR Multiplier End Dttm From Exception Num To Exception Num VaR Multiplier Rate Exception Range Zone Type Cd (FK) PARTY GROUP PARTY Party Group Id Party Id Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind BASEL PARAMETER Basel Parameter Id Basel Parameter Start Dt Basel Basel Basel Basel is described by PARTY PARTY GROUP describes Party Group Desc Party Group Name Party Group Start Dt Party Group Data Source Cd (FK) Parent Party Group Id (FK) Party Group Reason Type Cd (FK) Party Id (FK) Party Group Id (FK) Party Party Group Start Dt Party Party Group End Dt Party To Party Grp Reason Cd (FK) Parameter Desc Parameter Rate Parameter Amt Parameter End Dt is parent of has VAR of VALUE AT RISK BACKTEST PARAM Party Group Id (FK) Backtest Dt Estimated Value At Risk Amt Party Group Exposure Amt Party Group Exposure Diff Amt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-233 .Chapter 8 – Banking Extension Detail Data Model Description Risk Management Figure 8-77 Banking . These parameters include: INT RATE RISK CAP CHARGE PARAM When calculating interest rate risk using the standardized approach.g. 8-234 MKT RISK DERIV TRTMNT PARAM Market Risk Amendment Tables 4 and 5 show whether there is a specific risk charge for a given group of products (e. charge as two positions or as one position in each currency).00 Market Risk Parameter Various parameters as specified by the Market Risk Amendment are used during the calculation for capital charges for market risk.Teradata Financial Services Logical Data Model Reference Guide Release 09.g. zero coupon bonds). government debt security)..00.. capital charge is a function of the type of instrument as follows: – Government issued paper – 0% – Qualifying – issued by public sector and multilateral development banks and others with a certain investment grade.60% – Other – 8% Refer to the Market Risk Amendment A1. YIELD TO MATURITY PARAMETER This entity contains the yield to maturity for an instrument type (e..g. It is used for Market Risk calculation using the duration method for standardized approach where the zero coupon yield is needed to calculate the present value of future cash flow.4 Ref par 707 in June 2004 Accord for specific risk capital charges for government paper changes.25% and 1. Rate depends on residual term to maturity and is between 0. and the method for general market risk charge (e. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Parameter YIELD TO MATURITY PARAMETER MKT RISK DERIV TRTMNT PARAM Product Group Id (FK) Maturity Remaining Year Qty Yield To Maturity Start Dt Product Group Id (FK) Int Rate Risk Deriv Start Dttm Yield To Maturity Rate Yield To Maturity End Dt Int Rate Risk Deriv End Dttm General Mkt Risk Crg Type Cd (FK) Specific Risk Charge Ind has yield to maturity market risk parameter PRODUCT GROUP INT RATE RISK CAP CHARGE PARAM Product Group Id Parent Prod Group Id (FK) Product Group Desc Product Group Start Dt Product Group End Dt Product Group Level Num Product Group Reason Type Cd (FK) capital charge of Product Group Id (FK) Time To Maturity Period Cd (FK) Time To Maturity Period Num Int Rate Risk Cap Crg St Dttm Int Rate Risk Cap Crg Rate Int Rate Risk Cap Crg End Dttm parent of Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 8-235 .Chapter 8 – Banking Extension Detail Data Model Description Risk Management Figure 8-78 Banking .Market Risk. 8-236 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00.00 This page intentionally left blank.Teradata Financial Services Logical Data Model Reference Guide Release 09. The data model structures described in this chapter build upon the entities described in the Foundation section and are specific to the insurance function in an organization.Chapter 9 Insurance Extension About this Chapter This chapter describes the Insurance Extension for the Teradata Financial Services LDM. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 9-1 . 00. 9-2 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09.00 This page intentionally left blank. sales and service channels. transactions/events. and informational environments. and Property and Casualty insurance companies to develop experience and profitability on policyholder segments. The data model provides the capability to support large amounts of detailed data for long periods of time in a data warehouse. The data model is designed to answer business questions like: What happened? Why did it happen? What will happen? Life or Property and Casualty insurance company data environment is complex and extensive. This data model provides the backbone for decision-support. analytical. The logical data model’s focus is on Life or Property and Casualty insurance customers. product lines. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 9-3 . The logical data model becomes the starting point for the physical database design. This is particularly important to the Life.Chapter 9 – Insurance Extension What is the Teradata Financial Services Logical Data Model Insurance Extension? What is the Teradata Financial Services Logical Data Model Insurance Extension? Introduction The Financial Services Logical Data Model Insurance Extension is a generic logical data model intended to serve as a working template for financial institutions that sell insurance products and for stand-alone insurance companies. products. and providers. The physical manifestation of this logical model is intended for implementation on a Teradata Relational Database Management System (RDBMS). Detailed contract and claims transactions are sourced from operational systems and contain all relevant elements in customer transactions to feed this environment. contracts. combined with the power of parallel processing. Teradata offers proven decision support scalability from gigabytes to terabytes and beyond. Teradata’s ease of use. and communication campaigns. Detail data is intended to capture a complete record of Life or Property and Casualty insurance transactions for each policyholder. allows it to achieve query performance and throughput levels unsurpassed by conventional RDBMS systems today. It simplifies managing the data warehouse environment by distributing data and balancing workloads automatically. 00.Teradata Financial Services Logical Data Model Reference Guide Release 09. 9-4 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank. All FS-LDM Extensions build on the Foundation and contain entities that are specific to their businesses. This Section is for the Insurance Extension. This chapter describes the Insurance extension and the parts of the Foundation that it builds upon. Figure 9-1 FS-LDM Extensions Foundation Insurance Extension Investment Extension Banking Extension Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 9-5 . This figure shows the relationship between the FS-LDM components. they work together and share common entities. which builds on the Foundation. like customers and their addresses. The FS-LDM Foundation contains entities that are common across all FS-LDM Extensions.Chapter 9 – Insurance Extension Fit with other Teradata FS-LDM Extensions Fit with other Teradata FS-LDM Extensions Figure 9-1 shows how the Teradata FS-LDM Insurance Extension relates to other extensions of the FS-LDM. 9-6 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank.Teradata Financial Services Logical Data Model Reference Guide Release 09.00. Chapter 10 Insurance Extension – Business Value About this Chapter This chapter describes the Business Value of the Insurance Extension of the Teradata Financial Services LDM. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 10-1 . Teradata Financial Services Logical Data Model Reference Guide Release 09. 10-2 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00.00 This page intentionally left blank. acquisition of new business. agents/brokers. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 10-3 . and third-party administrators. such as: • Fierce competition from traditional and nontraditional businesses • Profitability issues • Rapid evolution of traditional distribution channels • Better informed and more demanding customers • Increased health care costs • Regulatory reporting • Risk Management These factors are forcing providers to take a holistic view of the individual customer. It shows business events including premium and claims transactions. including providers. and discrete line of insurance. claim payments. The business model and related data model revolves around the individual or group member. new claims. minor line. It accommodates all legal and organization structures for the industry. They focus on the following aspects: • Customer retention to improve lifetime customer value and recovery of acquisition costs • Customer acquisition to gain market share while reducing acquisition costs and only targeting potentially ‘high value’ customers • Customer growth to increase purchases by identifying customers (across policies) having identifiable characteristics that suggest they will purchase additional insurance Figure 10-1 shows the major functional areas of a business model for insurance. cancellations. reinstatements. and reserves. closed claims. They must develop marketing programs that address customer needs with the right products at the right time and through the right distribution channels. but also accommodates other parties of interest.Chapter 10 – Insurance Extension Business Value Business Context Business Context Today Insurance providers are facing growing business challenges. It associates and relates insurance products by major line. renewals. 00 Figure 10-1 Business Context Model M ARKETING CUSTOMER Channel Direct Agent/Broker Alternative New Business Renewals Reinstatements Cancellations Policy Information Policyholder Claimant Paid Loss 10-4 Acquisition Retention Profitability UNDERW RITING Direct Bill Statement Pay Account Current Reported Claim Campaign Target Marketing Prem ium W ritten Prem ium Earned Policy Line of Business Class of Business Coverage Lim it CLAIM S Claims Administration Custom er Knowledge Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Commissions .Teradata Financial Services Logical Data Model Reference Guide Release 09.00. and that data is used to help plan and target future campaigns. The business selects the most promising segment and designs a communication campaign to profitably serve that market. Figure 10-2 Closed Loop Market Strategy Market Strategy Campaign Results Product/Service Offer Customer-Centric Data Campaign Execution Marketing Promotion Customer-centric data stands at the center of the customer life cycle. Finally. the responses to the campaigns provide more customer data. Figure 10-2 illustrates the process. The market is divided into managed segments for target marketing. the results of the campaign are measured against the predicted outcomes and used to refine and optimize the process for the next campaign cycle.Chapter 10 – Insurance Extension Business Value Business Objective Business Objective Teradata’s analytical solutions are designed to help achieve the following business objectives: • To enable insurers to focus the company’s efforts on using Customer Relationship Management and Enterprise Risk Management to maximize profitability • To deepen the relationship with the most profitable customers by helping cross-selling and up-selling them the products they need or want • To use available marketing resources more effectively by targeting more precisely those customers who are most likely to respond to a campaign or offer. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 10-5 . These objectives are achieved by a closed-loop process in which customer data is used to help target communication campaigns. 00.Teradata Financial Services Logical Data Model Reference Guide Release 09. 10-6 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank. The business scope for insurance is illustrated in the following figure. Figure 10-3 FS-LDM Insurance Extension Business Scope Individual Group Life Commercial Personal Property & Casualty Insurance Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 10-7 . Together. The scope of Property and Casualty Insurances are Commercial and Personal lines of business. the FS-LDM Foundation and Insurance Extension become an integrated model. The scope of Life Insurance is Individual and Group products.Chapter 10 – Insurance Extension Business Value Business Scope of FS-LDM Insurance Extension Business Scope of FS-LDM Insurance Extension The FS-LDM Insurance Extension builds on the entities in the FS-LDM Foundation. The business scope of the Insurance Extension consists of Life Insurance and Property and Casualty Insurance business areas. 10-8 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09.00 This page intentionally left blank.00. These questions are divided here into the following three categories: • • • General Business Questions Life Insurance Business Questions Property and Casualty Insurance Business Questions Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 10-9 . This section lists some of the major questions that insurers are faced with and where the FS-LDM and a Teradata data warehouse can enable answers. Many other questions can be answered. The lists are intended to indicate the range and depth of information that can be obtained from the warehouse if it is populated with data. however the lists are not exhaustive.Chapter 10 – Insurance Extension Business Value Business Questions Business Questions The FS-LDM enables businesses that provide insurance to answer many questions critical to their success and to successful customer relations management. Customer Questions • • • • • • Who are our most profitable customers? Who are our least profitable customers? How much business has been gained? What is the dispersion of business by line of business (LOB)? Which customers produce the most revenue? Who are our new customers by LOB? Sales Channel Questions • • What is the profile of each sales channel? Who is the customer by sales channel and LOB? Retention Questions • • What is the profitability of customers by tenure? What is the retention rate by LOB and by class? Cross Selling Questions • How profitable are targets for additional business (or endorsements)? Underwriting Questions • • • • • 10-10 What is the estimated underwriting profit? What is the premium and loss ratio for all exceptions to the underwriting rule/manual rates/rating deviation? How does the in-force business of any LOB match the pricing assumptions and marketing mix of that line? Claims-Related Questions What are the incurred losses. losses paid and loss adjustment expenses paid by product or LOB? Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 General Business Questions These questions apply to all businesses and are questions any of them would want answered.00.Teradata Financial Services Logical Data Model Reference Guide Release 09. Customer Questions Who are the named insureds by the following attributes: age. risk category. Who are the legacy (>1 year) named insureds? They can be by any one of the named insured attributes. sex. Who are the new policy owners? They can be listed by any policy owner attribute or sales channel. web agents.g. Summary Questions • • • • Who are the new (<1 year) named insureds? They can be listed by any named insured attributes. call center or agent? What is the distribution of reasons for purchase? Distribution Related Questions • • • • • • • • Which production sources are losing the highest percentage of in-force business? What are the attributes of the distribution channels: direct-mail.)? What is the frequency of policy owner contact? What is the predominant point of contact with policy owners. occupation. types of policies.. number of policies. location. Who are the policy owners? They can be listed by any policy owner attribute and/or sales channel. and tenure? By policy owner attribute: • • • • What are reasons for policy owner contact (e. others. call center. marital status. income. independent agents? What is the fastest growing production source for new business? Which production sources provide the most business? What percentage of lifetime value (net present value) was paid to acquire the new customers. change of beneficiaries. by source of production? Which production sources have the largest percentage of decrease in new business? By source of production: • How many customer cancellations or surrenders were there during a specified time period: how many policies were not taken? Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 10-11 . questions. size of policy. etc. sales channel.Chapter 10 – Insurance Extension Business Value Business Questions Life Insurance Business Questions These are questions that every life insurance company wants answered. premium or face amount of policy. by sales channel? Who are the most profitable production sources? How many policies were replaced. They are critical to an understanding of the customers and the business. captive agents. have been incurred? What is the agent profile. turnover rate. by any policy owner attribute? In what sequence have policy owners purchased products. length of service. policy dividends. accelerated death benefits. disability benefits and waiver of premium claims for disability? What was the total amount paid in death benefits last year.00 • • • • • What was the value of all customer cancellations or surrenders during a specified time period? What acquisition costs. by field office and geography? Cross Selling-Related Questions • • • • • • What product combinations have the best loss/benefit ratios (this may include life and P&C products)? Which policy owners are most likely to buy another product? What additional products were sold to current policy owners. by underwriter. by distribution channel? How does the addition of relinquishment of a requirement affect timeliness and profit? How much business is in the pipeline. matured endowments. including commission. but are likely to purchase. retained assets.Teradata Financial Services Logical Data Model Reference Guide Release 09.00. annuity payments. surrender values under life. by named insured attributes? Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . status. surrender values under annuity. by any policy owner attribute? Which are our most commonly sold product combinations? Underwriting-Related Questions • • • • • • What is the risk level of the business. and duration? How many applications were accepted from a particular risk class? What is the premium-to-benefit ratio for all exceptions to the underwriting-rule/manual-rates/rating deviation? How long does an underwriter take to make an underwriting decision? Benefits-Related Questions • • • 10-12 What are the effects of early claim intervention on shortening the duration or reducing the severity and frequency of claims? (For disability income) What were the total benefit amounts paid for life insurance. annuity contracts. reason. by source of hire. and geography? Where are the sources of production located versus the distribution of policy owners? What are the lines of insurance for which the agents are licensed. within a given time interval? What products have policy owners not purchased. Chapter 10 – Insurance Extension Business Value Business Questions Investment-Related Questions By policy owner attributes. distribution channel. and outstanding loans? What investment options have been chosen? Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 10-13 . accumulated dividends. policy types. and geography: • • What is the value of whole life policies. 00 Property and Casualty Insurance Business Questions These are questions that every property and casualty insurance company should want answered.Teradata Financial Services Logical Data Model Reference Guide Release 09. They are critical to understanding the customers and the business: Customer Related Questions • • • • • • • • • • • • • • • • Who are our most profitable customers? How much business has been gained? What is the dispersion of business by Line of Business (LOB)? Who are our most revenue-producing customers? Who are our least profitable customers? What LOBs have my customers not purchased (but should have)? Who are our new customers by LOB? What additional LOB have we sold to current customers? How many customers’ cancellations are there? Where are our customers concentrated? Who are our least revenue-producing customers? In what sequence have my customers purchased products? How many customer premium-bearing endorsements (amendments) are there? What are the types and frequencies of customer contacts? Who are the customers that we should try to sell additional business to? What is the strike/closure ratio of quotes to sales? What is the dollar value wasted? Distribution (Source of Production) Related Questions By production source (by LOB and across all lines): • • • • • • • • What is the source of production profile? Who is our customer by source of production by LOB? Who are the fastest growing agents? Who are the fastest declining agents? Where are the sources of production located? What is the average paid commission? What is the quality of business by distribution? How long does it take for agent/broker to pay insureds’ premiums to insurers? Retention Related Questions • • • • • • 10-14 What is the profitability of customers by tenure? What is the retention rate by LOB and by Class? What is the lifetime value upon renewal? Which of the customers are most likely to leave? What is the actual value of reducing churn by a given amount? What effect did a rate change have on retention/cancellations? Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00. losses paid.Chapter 10 – Insurance Extension Business Value Business Questions • • • What is the loss ratio of the customers by tenure? How many policies have voluntarily cancelled or have not been renewed (company cancelled)? How many policies are at renewal? Cross Selling Related Questions • • • • • • What LOBs have the customers not purchased (but should have)? What profitable customers are targets for additional business (or endorsements)? How much new business do existing customers purchase? Which are the most commonly cross-sold LOB pairs and triplets and what are the loss ratios by product combination? For all customer types. and loss adjustment expenses paid by product or LOB? What are the salvage. subrogation. and reinsurance recoveries on paid losses? What is the basis for determining IBNR (Incurred but Not Reported) Claims? How long does it take to process/close a claim by Third Party Administration? (What is the efficiency of claims handling?) What is the average cost of a claim by Third Party Administration? Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 10-15 . what types of coverage do they have now? What is the strike/closure ratio of quotes to sales? Underwriting Related Questions • • • • • • • • • What is the estimated underwriting profit? How does in force business of any LOB match pricing assumptions and marketing mix of that line? What is the combined ratio of each product? What is my written premium? How much business is in the pipeline? Are we using reinsurance effectively? Are we paying the right price? What is the efficiency of the process life cycle? How can I make it more efficient? How long does it take the underwriter to approve/decline a risk? How does relinquishing a requirement affect timeliness and profit? Claims Related Questions • • • • • • • • What is the difference between the estimated loss at time of claim (reporting) and the actual (ultimate) amount paid? What factors have the greatest impact upon loss development? What are the effects of early claim intervention on shortening duration or reducing the severity and frequency of claims? What are the incurred losses. 00. 10-16 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank.Teradata Financial Services Logical Data Model Reference Guide Release 09. providing a spiff for all renewals. • Agent Segment 1 – 95% • Agent Segment 2 – 90% • Agent Segment 3 – 75% • Agent Segment 4 – 85% Immediately. can provide the data foundation from which to conduct these types of analyses. Table 10-1 Business Problems Addressed by the CRMs for Life Insurance Business Use Problem Description CEO of a Life Insurance Company (Bill) called an urgent meeting with the VPs of Sales (Joe) and Marketing (Jane) and challenged them to grow revenue by 10% and profitability by 15% for the next 3 years. a special agent incentive program was deployed. The result pointed to a segment of agents with belowaverage retention rates. reducing churn rate of 10% • Acquire new customers • Cross-sell complementary products to existing customers To achieve these aggressive growth goals. retention of whole life policies by agent was analyzed. They planned growth through three key areas using the capabilities of the newly installed Teradata Warehouse: • Retain current customer base. Additionally. Joe and Jane could identify persistency/retention rates for the company’s top 5 products: • Term Life – 95% • Whole Life – 80% • Universal Life – 98% • Variable Universal – 95% • Second to die whole – 95% With whole life the key area of focus. when populated. Through the data warehouse using the FS-LDM and analysis tools. in order to improve overall whole life retention.Chapter 10 – Insurance Extension Business Value Life Insurance Scenarios Life Insurance Scenarios Table 10-1 contains examples of business problems within a Life Insurance business. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 10-17 . These actions ensured that agent productivity improved and customers did not switch to the competition at renewal time. they had to address three areas simultaneously! Scenario #1 Retention Step one in improving retention and reducing churn was to analyze lapses in existing policies by product and then by (captive) agent. The FS-LDM. a self-study-training program on selling and retaining whole life customers was implemented for Agent Segment #3. Campaigns were then developed and launched by product. to determine the key characteristics (propensities) to purchase. and channel within 1 week Examples of campaigns included: Campaign 1 • Product: Variable Universal Life • Product Profitability: High • Preferred Channel: Captive Agents • Campaign Deployed: Target list of prospects distributed to sales force with instructions to contact within 30 days Campaign 2 • Product: Whole Life • Product Profitability: Medium • Preferred Channel: Out Bound Call Center Agents • Campaign Deployed: Target list of prospects distributed to the center with a targeted script describing the whole life offer. more effective targeting of and prospecting for potential clients was needed. benefits. From this analysis. a listing of best prospects was generated for each product. These profiles were then run against external data purchased from an outside vendor. and local agent for follow-up Campaign 3 Scenario #3 Cross-Sell 10-18 • Product: Term • Product Profitability: Low • Preferred Channel: Direct Mail • Campaign Deployed: Direct Mail letter sent with a Call to Action to 1) call 1-800 number for quote or 2) visit web site for on-line quote Joe and Jane realized that incrementally growing the portfolio of the existing customer base was the best opportunity to meet the long-term revenue objectives. due to switching policies from one type to another. Agents were primarily responsible for identifying prospects for insurance products. supported by high-level air cover from the corporate office. and using analytical modeling.00. they analyzed the current customer base to identify the best prospects for additional high-profit Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . To achieve this goal. Scenario #2 Acquisition In order to increase acquisition of new customers.00 Business Use Description Another option might be to further segment the agents to find if there was a correlation between low-retention rates for whole life. product profitability. but high sales of variable universal.Teradata Financial Services Logical Data Model Reference Guide Release 09. and develop specific campaigns to support penetration via multiple channels. The first step was to analyze the products purchased by the customer base. Joe and Jane knew that this needed to change immediately! The company had to be more proactive in identifying the best prospects for agents. and simultaneously mailed a high impact mail campaign outlining the value of a variable annuity and preparing the client for a call by their agent.Chapter 10 – Insurance Extension Business Value Life Insurance Scenarios Business Use Description products and immediately executed campaigns to secure the incremental business. since they needed to act on information before the competition discovered the opportunity or the offer relevance disappeared. They then launched the following campaigns: Campaign 1 • Customer Propensity to Buy: Very high • Most Appropriate Channel: Direct call by captive agents • Campaign Deployed: Target list of prospects distributed to sales force with instructions to contact within 30 days. They needed the ability to rapidly exploit newly acquired customer information to develop offers optimized for value by insurance company (profitability) and customer (offer relevancy). Speed was critical. The initial analysis involved modeling customers who had purchased variable universal life products and customers who had purchased variable annuity products. Campaign 3 Scenario #4 EventDriven Marketing — Cross-Selling • Customer Propensity to Buy: low • Most Appropriate Channel: direct mail • Campaign Deployed: Direct mail letter sent with call-to-action— (1) to call local agent for additional information or (2) to contact call center for additional information.S. They developed and implemented the following event-driven. but they needed additional information to more finely hone the campaigns. with follow-up by the out-bound call center. a highly profitable product. Campaign 2 • Customer Propensity to Buy: high and medium • Most Appropriate Channel: investment seminar invitation • Campaign Deployed: A geographical analysis of customers in this category was performed and one-hour investment seminars were planned for 20 key locations throughout the U. Joe and Jane had been able to launch a number of targeted campaigns in a short period of time. Prospects were mailed a personalized invitation to the seminar. This profile was run against the current base of customers with variable universal life policies and prioritized. Customers with variable universal life policies were deemed to be the best candidates. The profiles of these customers were merged to provide a target profile of the best prospects for variable annuities. They targeted increased sales of variable annuities. cross-sell campaigns: Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 10-19 . Leads of prospects not able to attend were immediately forwarded to the appropriate agent. Yet they knew that they were still missing a significant opportunity. 00 Business Use Description Campaign #1 A customer mailed notification of change of address for a life policy to the insurance company. Based on tracking web clicks. The insurance company launched an investment campaign the next day through the noted customer channel of preference (investment specialist in call center contacts customer in office between 3:00pm and 5:00pm). The call-center agent called to confirm the change of address and described the offer. Propensity models identified the most likely candidates to buy an annuity. with additional spiff to agent provided he made a sale within 30 days • Medium Value Customers: A call center agent contacted the Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .) in the order of profitability to the company and relevance to the customer. etc. consolidation of payments of multiple policies. Customers were categorized by their value and by their profitability to the insurance company.Teradata Financial Services Logical Data Model Reference Guide Release 09. etc. The customer purchased an investment product and discussed additional needs for the new residence with the call center agent who contacted the local insurance agent with the lead.00. Problem: Joe and Jane wanted to consolidate cross-BU information and develop campaigns to up-sell/cross-sell to customers with a high likelihood of purchase through the most appropriate channel Potential Scenario #1 The Marketing Manager wanted to rapidly execute a cross-sell campaign for an annuity offer directed toward current life insurance customers. A campaign was automatically developed and sent to a call center agent. the database dynamically identified and prioritized potential cross-sell opportunities (increase value of policy. The local agent was immediately emailed with all the relevant information about the call. On learning the beneficiary was a new spouse. The Customer viewed diversified funds information. 10-20 • High Value Customers: A special-annuity-offer lead was sent to the agent. the customer profile was dynamically scored for propensity to buy securities. and campaigns were prioritized and deployed using the most appropriate and cost-effective channel. Campaign #3 Customer called the call center to change the beneficiary on a life policy. The new address was in an affluent section of town. precipitating new scoring of the customer as having a high propensity to purchase an investment product (and possibly purchase P&C policies for the new residence). offer. The customer was identified as a high-value customer. The customer expressed interest in the offer and agreed to an appointment with local agent. additional policy for spouse. Campaign #2 The customer used the insurance company web site to change the address and browsed through the ‘spotlight’ web page that highlights investment options. with follow up by agent if customer showed an interest. The CRMS identified customers who have paid-up whole life insurance policies. Customers are identified via segmentation. etc. was sent to customer The Marketing Manager wanted to up-sell existing whole life insurance policyholders with complementary products. no activity. disability insurance. IRA. credit card. 20+ years since inception. and specific campaigns are initiated via call center. • Potential Scenario #2 Low Value Customer: A direct mail piece describing the offer and including agent name and web site address. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 10-21 . These are prime candidates for ‘age’ appropriate products such as financial planning services. and are older than age 21.Chapter 10 – Insurance Extension Business Value Life Insurance Scenarios Business Use Description customer directly. 00 This page intentionally left blank.00. 10-22 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 11-1 .Chapter 11 Insurance Extension – High Level Data Models About this Chapter This chapter describes High Level Data Models for the Insurance Extension of the Teradata Financial Services LDM. 00.Teradata Financial Services Logical Data Model Reference Guide Release 09. 11-2 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank. These high level views provide an understanding of the types of things that are contained in the model without overwhelming detail.Insurance Extension Model Levels Model Levels This section shows two high-level data model views of the FS-LDM Insurance Extension. and general business rules used in the model. It is at a very high level of abstraction and sets the detailed data model scope. The Detailed Model takes the Conceptual Model to the lowest level of detail – the attribute level. The following figure shows the relationship between high to low level data models. The Detailed Level Data Model is the lowest level of detail and is described in Chapter 12. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 11-3 . This is because abstraction is required when going from one level to another level. philosophy. The two levels presented in this section are: • Subject Area Data Model • Conceptual Level Data Model The Subject Area data model shows things of major significance to the business. To explain the Detailed Model we have divided it into logical views where each view explains a business concept. The conceptual model also establishes semantics. These concepts become the building blocks upon which all other details in the data model are based. The purpose of these high level views is to show the essence of the model and to simplify understanding. An entity name in the Conceptual Model may be different from the entity name in the Detailed Model. The Conceptual Level Data Model takes the Subject Area Data Model one step further in detail but is still at a conceptual level. Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 Figure 11-1 Data Model Levels 11-4 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . These concepts become the building blocks upon which all other details in the data model are based. common business terms may not appear. one. or many AGREEMENTs. An AGREEMENT can be related to one or many PARTYs. and a PARTY can have zero. It sets the detailed data model scope. Because of the level of abstraction. the relationship between PARTY and AGREEMENT is many-to-many. Lines show relationships between subject areas. For example. These business terms emerge in model details. For health insurers the AGREEMENTs can also be provider contracts. Examples include: • Insurance Coverage is considered a type of Product Feature • Customer is a type of Party • Agent is a type of Party Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 11-5 .Chapter 11 – Insurance Extension High Level Data Models Subject Area Model Subject Area Model Subject Area Model Diagram Description The Subject Area Model shows things of major significance to the business. There is a very high level of abstraction. The boxes represent subject areas. This diagram shows only major relationships – not all possible relationships. In the Insurance business these AGREEMENTs are also known as policies. Crow’s foot symbols represent the target of a ‘many’ relationship. Most subject areas have many-to-many relationships. The v ehic le by whic h a part y may int erac t wit h t he f inanc ial ins t it ut ion. PARTY A n indiv idual. CHANNEL INTERNAL ORGANIZATION A P art y t hat is a unit of bus ines s . c ondit ions and f eat ures . Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . elec t ronic addres s . 11-6 S omet hing of int eres t t hat happened t hat may or may not inv olv e c ont ac t wit h t he c us t omer. EVENT PRODUCT A ny mark et able or t radable produc t or s erv ic e inc luding t erms .00 Figure 11-2 Subject Area Data Model Not al l rel ati onshi ps are PARTY ASSET Tangible or int angible it ems AGREEMENT A c ont rac t or deal bet ween part ies t hat is of int eres t .Teradata Financial Services Logical Data Model Reference Guide Release 09. FINANCE The int ernal ac c ount ing of t he bus ines s .00. bus ines s or group of indiv iduals of int eres t t o t he f inanc ial ins t it ut ion. LOCATION A phy s ic al addres s . CAMPAIGN A c ommunic at ion plan t o deliv er a mes s age. geographic or s pat ial area. The entity names described in this section may differ from names that are used in the final detailed level logical model. It reflects things that the enterprise deals with every day in the course of performing their jobs. This model is represented in Figure 11-3. • Internal Organization • Location • Finance • Campaign • Channel In the description of the Conceptual Model in this section. This Conceptual Model extends the following FS-LDM Major Subject Areas: • Party • Party Asset • Product • Agreement • Event At the Conceptual Model level. and events are what cause the business to operate. We look both inside and outside the environment. The purpose of this model is to communicate major entities and relationships in the model.Chapter 11 – Insurance Extension High Level Data Models Conceptual Level Data Model Conceptual Level Data Model This section describes the FS-LDM Insurance Extension Conceptual Model. They can also be events such as a telephone call or a claim submission. outside the workplace. These things and events are represented as entities in the entity-relationship diagram. Business things and events exist within the workplace. and outside the company. Shaded entities in the model represent major subject area entities. These major things are the basic building blocks a business needs to function. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 11-7 . the following FS-LDM Major Subject Areas are not affected by the Insurance Extension. a product. The Conceptual Model takes the Subject Area Model a step further. These things and events usually correspond to real life things such as an application form. a major business thing or event is capitalized and corresponds to an entity in the entityrelationship diagram in Figure 11-3. or person. 00.00 Figure 11-3 Insurance Conceptual Data Model UNDERWRITING CLASS RISK CATEGORY LOCATION AGREEMENT RELATED APPLICATION MEDICAL HISTORY ELIGIBILITY REQUIREMENT QUOTATION FEATURE RELATED PARTY RELATED PRODUCT AGREEMENT FEATURE PRIVACY OPTION PACKAGE PARTY PARTY GROUP CHANNEL PARTY ASSET REINSURANCE COVERAGE AUTHORIZATION SERVICE PREMIUM HISTORY SALVAGE SESSION CLAIM CAMPAIGN PROVIDER EVENT TANGIBLE ASSET INDIVIDUAL CLAIM RELATED ORGANIZATION HOUSEHOLD INSURANCE AGREEMENT CLAIM EVENT EVENT RELATED insurance category CLAIM ADJUDICATION CLAIM LEGAL ACTION LIFE POLICY CONTACT EVENT INCIDENT SUBROGATION P&C POLICY FINANCIAL EVENT INTERNAL ORGANIZATION 11-8 AGREEMENT EVENT Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09. employee. claims adjusters. or a HOUSEHOLD. and households share many of the same attributes and relationships. lawyers. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 11-9 . that is an INDIVIDUAL or an ORGANIZATION. and appraisers. A HOUSEHOLD is a group of individuals formed as a family or that has some personal relationship. An ORGANIZATION is any group of INDIVIDUALs formed for a professional or business purpose that is of interest to the insurance company. We have combined INDIVIDUAL. We refer to these relationships as ‘roles’ that one PARTY has with another PARTY. risk categorization for a PARTY is shown in the relationship of PARTY to RISK CATEGORY. competitor. or part of a household. Examples of PROVIDERs are auto body repair shops. can be a PROVIDER of goods or services. Examples of relationships are customer. supplier. A PARTY. ORGANIZATION. agent. An Employee is the role a PARTY has with the company. In the conceptual model. Since insurance company’s Internal Organizations and the employees are both PARTYs. PARTYs can be grouped into groups for actuarial purposes and pricing decisions.Chapter 11 – Insurance Extension High Level Data Models Conceptual Level Data Model Party A PARTY is an INDIVIDUAL. an ORGANIZATION. organizations. Underwriting a Party involves categorizing and pricing risk for the PARTY. A PARTY’s medical history and medical conditions are kept in the entity MEDICAL HISTORY in the conceptual model. An Employee is an INDIVIDUAL. and HOUSEHOLD into a superset called PARTY to represent all three. The underwriting class assigned to a PARTY is shown in the relationship between PARTY and UNDERWRITING CLASS. The entity PARTY GROUP represents these PARTY groupings. PARTY RELATED represents any relationship one PARTY has to another PARTY. family. This is because individuals. An INDIVIDUAL is any person of interest to the insurance company. Employees may report to many other Employees in a matrix management structure. The relationship between the company and its employees are represented in PARTY RELATED in the Conceptual Model. this management relationship is one of the many role relationships shown in PARTY RELATED. prospect relationships. rent. categorization of risk for a PARTY ASSET is shown in the relationship of PARTY ASSET to RISK CATEGORY. 11-10 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 Party Asset A PARTY may have PARTY ASSETs to insure. lease. In the conceptual model. A PARTY can have many roles with the PARTY ASSET such as own. or use.00. Underwriting a PARTY ASSET involves categorizing and pricing risk for a PARTY ASSET. A PARTY ASSET may have SALVAGE title and value. The underwriting class assigned to a PARTY ASSET is shown in the relationship between PARTY ASSET and UNDERWRITING CLASS. Over time PARTY ASSET values may change.Teradata Financial Services Logical Data Model Reference Guide Release 09. TANGIBLE ASSETs include motor vehicles and real estate. A PACKAGE is a marketable group of PRODUCTs. ELIGIBILITY REQUIREMENTs may restrict the PRODUCTs and the FEATUREs that are allowed for a policy. FEATUREs can be related to other FEATUREs as represented in the FEATURE RELATED entity. For example. or constraints associated with the PRODUCT. such as age or occupation. such as property damage. or they may be restricted based on certain life events like marriage or the birth of a child. and SERVICE features such as medical procedures or home inspection services. medical or dental. deductibles and limits. For example. COVERAGE features. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 11-11 . the insurance coverage feature can be related to a limit feature or a service feature may be related to a deductible feature. conditions. FEATUREs are the terms. FEATURE examples for an insurance product include fees. A PRODUCT may be a PACKAGE. PRODUCTS are described by FEATUREs. a PRODUCT or FEATURE may be limited by a party characteristic. bodily injury.Chapter 11 – Insurance Extension High Level Data Models Conceptual Level Data Model Product PRODUCT contains all products and services that are marketed by the insurance company or by their competitors. 00. This entity can be used to capture the relationship of a group policy and the individual member policies associated with the group policy. the subscriber. referring party. or the provider. or for financial recovery for property and casualty. selling agent. Other PARTYs may be related to a policy with roles such as beneficiary. An AGREEMENT can also represent contracts between parties such as the provider and the insurance company. the subscriber. and SERVICE features. The AGREEMENT RELATED entity is used to represent relationships between AGREEMENTs. An INSURANCE AGREEMENT that is a policy can be structured to support PRODUCTs or product PACKAGEs that provide insurance coverage for a party’s life expectancy and well being (LIFE POLICY). AGREEMENT contains all deals and contracts of interest to the insurance company. The PREMIUM HISTORY may also be stated for a given COVERAGE for a given policy PARTYs may have many roles with AGREEMENTs. These may be standard FEATUREs describing the PRODUCT to which the AGREEMENT is linked. and/or may be additional FEATUREs negotiated by the insurance company. An INSURANCE AGREEMENT can be associated with PREMIUM HISTORY. and/or may be different FEATUREs negotiated by the insurance company. overriding the standard FEATUREs. AGREEMENTs are described by FEATUREs. In addition. or provider. A QUOTATION may lead to an AGREEMENT (policy). if property or people are damaged or destroyed (P&C POLICY). and service provider.00 Agreement A PARTY may complete an APPLICATION for one or more PRODUCTs. and limits. which represents the history of the amounts of money that need to be paid for the policy. 11-12 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . deductibles. co-owner. Examples of insurance FEATUREs can include fees. Policyholders and named insureds are roles that a customer can have with a policy.Teradata Financial Services Logical Data Model Reference Guide Release 09. An insurance policy may be for individual or group memberships. one. such as Property Damage. insurance COVERAGE. A Business (PARTY) that is an insurance broker may offer QUOTATIONs to a Customer (PARTY). A QUOTATION offers one or more PRODUCTs. are types of FEATUREs that can be associated with an AGREEMENT. An APPLICATION may lead to zero. or many QUOTATIONs. such as home inspections. A PARTY ASSET can be insured by an AGREEMENT (policy) to insure against the possibility of financial loss as shown in the relationship between PARTY ASSET and AGREEMENT. REINSURANCE agreements are a type of AGREEMENT that identifies another AGREEMENT that establishes stakeholders (PARTYs) who participate in liability payouts as a result of a CLAIM.Chapter 11 – Insurance Extension High Level Data Models Conceptual Level Data Model A policy may have a domicile relationship with the Insurance business such as a policy is ‘owned’ by an insurance agent office. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 11-13 . This is another example of an AGREEMENT-PARTY relationship. Underwriting an AGREEMENT involves categorizing and pricing risk for the AGREEMENT. categorization of risk for an AGREEMENT is shown in the relationship of AGREEMENT to RISK CATEGORY. The underwriting class assigned to an AGREEMENT is shown in the relationship between AGREEMENT and UNDERWRITING CLASS. In the conceptual model. call center. For example. such as a premium payment. agent phone number. web site. An EVENT that is a FINANCIAL EVENT involves money. An AGREEMENT EVENT is a type of EVENT.Teradata Financial Services Logical Data Model Reference Guide Release 09. which is related to a single AGREEMENT (policy). 11-14 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .g. these are two EVENTs (inquiry and payment) and one SESSION. EVENTs occur via a CHANNEL such as mail. For example. Examples of FINANCIAL EVENTs include receiving premium payments.00 Events EVENT is used to record financial transactions as well as nonfinancial transactions and interactions. or in a person at an office. A SESSION is a group of EVENTs that involve contact. if a customer uses the Internet to do a Policy Coverage inquiry and to transfer money to pay the premium. An EVENT can be a mixture of CONTACT EVENT. a payment made in person at an office is all three types. paying claim payments. the customer) was involved in the interaction either directly or indirectly. and paying commissions. and FINANCIAL EVENT. An EVENT may be a CONTACT EVENT where a PARTY (e..00. AGREEMENT EVENT. These interactions and transactions relate directly or indirectly to Customers/Prospects and other parties and/or their agreements such as insurance policies or reinsurance agreements. CLAIMs submitted within the same batch. Many PARTYs can be related to a CLAIM with roles such as claimant. or are requesting reimbursement for services performed. approver. PARTY ASSETs can be the subject of insurance CLAIMs. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 11-15 . A CLAIM incident may have occurred at a specific LOCATION. accident. or patient. or service provider. some of which are: • Submitting the CLAIM to the insurance company • An insurance company payout for the CLAIM • An INCIDENT. A CLAIM can be related to service AUTHORIZATIONs that are to be performed or that have been performed. Many PARTYs can be associated with an AUTHORIZATION. or CLAIMs that are related because they are for the same INCIDENT. A CLAIM may be related to many insurance policies. or episode. patient. This is demonstrated in the conceptual model by the relationship between PARTY ASSET and CLAIM. Insurance CLAIMs are related to AGREEMENTs (policies). Coverage related to the claim is maintained in the relationship between FEATURE and the CLAIM.Chapter 11 – Insurance Extension High Level Data Models Conceptual Level Data Model Claim and Event Although claim is not labeled one of the FS-LDM major subject areas. A CLAIM can be associated with many EVENTs (CLAIM EVENT). it is a major area for the insurance industry and is included under the Event umbrella. Examples of this include relationship between the submittal EVENT for a CLAIM and the EVENT of the Claim payout. insured. The entity EVENT RELATED represents the relationships between EVENTs. suffered property damage. The services or procedures being claimed are represented by the relationship of FEATURE to the CLAIM. Roles that a PARTY can have with an authorization include requester. A type of legal action is SUBROGATION where the insurance company tries to recover loss from a responsible third party. bodily injury. Another example would be between an INCIDENT and a Claim submittal EVENT. A few examples of these relationships include a CLAIM replacing a CLAIM. Information regarding legal actions such as a lawsuit related to a claim is found in the relationship between CLAIM and CLAIM LEGAL ACTION. A PARTY submits an insurance CLAIM when they have experienced a financial loss. The CLAIM RELATED entity represents any relationship one CLAIM has with another CLAIM. In Property and Casualty insurance. related to the CLAIM A CLAIM can be related to many CLAIM ADJUDICATIONs which are decisions for financial settlement of the CLAIM. Teradata Financial Services Logical Data Model Reference Guide Release 09.00 This page intentionally left blank. 11-16 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00. which are subsets of the model used to explain particular concepts. For noninsurance specific details. shaded entities in data views denote Insurance only entities. refer to the Chapter 4. This chapter contains the lowest level of detail for the logical data model. Product. Detailed Data Model in the Foundation. and Event. This section also illustrates the model in terms of its logical data views. This chapter covers major subject areas that have insuranceonly entities. In the Insurance Extension of the FS-LDM.Chapter 12 Insurance Extension – Detailed Data Model Description About this Chapter This chapter describes the FS-LDM Insurance Extension in detail. such as Party. It is presented at the attribute level in third normal form. Agreement. refer to the Investment Extension section. For noninsurance specific details regarding Investment Products. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-1 . Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 This page intentionally left blank. 12-2 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-3 .Chapter 12 – Insurance Extension Detailed Data Model Description Party Subject Area Party Subject Area This section describes the FS-LDM Major Subject Area Party. additional general aspects of party are covered. In this section. party is described in the Foundation Reference section of this document. aspects of party dedicated to Insurance are covered. In general. Also. A PARTY that is either an INDIVIDUAL or an ORGANIZATION can be a PROVIDER of goods or services. An Organization may be an EXTERNAL ORGANIZATION or an INTERNAL ORGANIZATION. health care providers. Examples of Individuals of interest are customers. or HOUSEHOLD that is of interest to the insurance company. insurance agents.Party.00.Overview PARTY Party Id Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind Party Type Cd ORGANIZATION PROVIDER Org Party Id (FK) Party Id (FK) Org Type Cd (FK) Organization Established Dt Organization Close Dt Provider Type Cd (FK) Provider Fiscal Period End Dt INDIVIDUAL Org Type Cd Individual Party Id (FK) MM Object Id (FK) Ethnicity Cd (FK) Gender Type Cd (FK) Birth Dt Death Dt HOUSEHOLD Household Id (FK) EXTERNAL ORGANIZATION External Org Party Id (FK) External Org Type Cd (FK) 12-4 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret INTERNAL ORGANIZATION Internal Org Party Id (FK) Internal Org Type Cd (FK) Internal Org Categ Cd (FK) . and contacts at businesses. but is not more than one. A party is. ORGANIZATION. Individual.00 Party Overview A PARTY is an INDIVIDUAL. Organizations. Figure 12-1 Insurance . Organization. Examples of PROVIDER include healthcare providers. or Household. insured members. Individuals. claims adjusters.Teradata Financial Services Logical Data Model Reference Guide Release 09. lawyers. insurance brokers. and appraisers. prospects. auto body repair shops. or Households are subtypes of Party. individuals related to customers. or with. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-5 . Another example of a PARTY relationship is the relationship between Individual and Household. For example. Federal Tax Identification number. PRODUCT PARTY.. Parties that are Internal Organizations report to other Internal Organizations in various reporting structures (e. an employee can perform as an insurance sales and marketing representative for the employer. or team structure). The data model tracks these changes over time. such as the party ‘develops’ or ‘sells’ a Product. An example of a relationship between PARTYs is Employee-Employer and specific information can be kept in the EMPLOYMENT AGREEMENT HIST entity. Examples of external identification types include Social Security Number. Medicaid Provider number. A party may have many roles with a Product. Information about this type of party relationship can be maintained in the INDIVIDUAL HOUSEHOLD entity. project. Family health conditions related to an individual member are maintained in FAMILY HEALTH CONDITION. This entity details the party issuing the certification as well as the party receiving the certification. The medical history of an individual subscriber’s family members or dependents is found in FAMILY MEDICAL HISTORY.g. PARTY IDENTIFICATION. etc.Chapter 12 – Insurance Extension Detailed Data Model Description Party Subject Area Relationship and History The entity PARTY PARTY RELATIONSHIP HIST specifies the relationship between PARTYs. National Provider number. Certification details for a party are kept in PARTY CERTIFICATION HIST. If these functions are applicable to a specific area the relationship is further defined in the entity PARTY PARTY FUNCT GEOG. PARTY PRODUCT FUNCTION specifies the functions for the role that the PARTY has with PRODUCT. another party for a given relationship role. An example is an employee may be an insurance sales representative for their employer only in the geographical area known as the northeast region. The medical history of an individual is kept in the entity INDIVIDUAL MEDICAL HISTORY. Medicare Provider number. formal structure. The PARTY PARTY RELATIONSHIP HIST entity can be used to maintain this information. A PARTY can have many external or internal identifications. Party Host number. The PARTY PARTY FUNCTION entity contains information about various functions one party has for. Passport number. within the employer-employee party relationship role. Health conditions associated with an individual member are maintained in INDIVIDUAL HEALTH CONDITION. 00.Teradata Financial Services Logical Data Model Reference Guide Release 09.00 This page intentionally left blank. 12-6 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Chapter 12 – Insurance Extension Detailed Data Model Description Party Subject Area Figure 12-2 Insurance .Relationship and History PARTY IDENTIFICATION Party Id (FK) Party Identification Type Cd (FK) Party Identification Start Dt Party Id Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind issued is related to is related with INDIVIDUAL MEDICAL HISTORY Individual Party Id (FK) Data Source Cd (FK) Medical History Start Dt Medical History End Dt Physical Exam Dt General Medical Status Cd (FK) Last Menstrual Period Dt Last X_Ray Dt Estimated Due Dt PARTY PARTY RELATIONSHIP HIST Relates Party Id (FK) Party Relationship Role Cd (FK) Related Party Id (FK) Party Relationship Start Dttm has function of Party Party Function End Dt within is identified by Party Identification End Dt Party Identification Val Issuing Party Id (FK) Party Id Categ Cd (FK) Party Id Receipt Dt PARTY PARTY FUNCTION Relates Party Id (FK) Related Party Id (FK) Party Relationship Role Cd (FK) Party Relationship Start Dttm (FK) Function Cd (FK) Party Party Function Start Dt PARTY has certification of Party Party Party Party Party Type Cd experiences over time is involved with PRODUCT PARTY Relationship End Dttm Structure Type Cd (FK) Rel Status Reason Cd (FK) Rel Status Type Cd (FK) Party Function Geog End Dt PARTY CERTIFICATION HIST Relates Party Id (FK) Related Party Id (FK) Party Relationship Role Cd (FK) Party Relationship Start Dttm (FK) Certification Type Cd (FK) Party Cert Type Start Dt Certification Score Num Certification Cost Amt Party Cert Type End Dt Individual Party Id (FK) Health Condition Type Cd (FK) Health Condition Start Dt Party Product Role Cd (FK) Party Id (FK) Product Id (FK) Product Party Start Dt PARTY PARTY FUNCT GEOG Relates Party Id (FK) Related Party Id (FK) Party Relationship Role Cd (FK) Party Relationship Start Dttm (FK) Function Cd (FK) Party Party Function Start Dt (FK) Geographical Area Id (FK) Party Function Geog Start Dt INDIVIDUAL HEALTH CONDITION Party Structure Type Cd has health condition of Product Party End Dt has function of INDIVIDUAL FAMILY HEALTH CONDITION Individual Party Id (FK) EMPLOYMENT AGREEMENT HIST MM Object Id (FK) Ethnicity Cd (FK) Gender Type Cd (FK) Birth Dt Death Dt Relates Party Id (FK) Related Party Id (FK) Party Relationship Role Cd (FK) Party Relationship Start Dttm (FK) has health condition of FAMILY MEDICAL HISTORY PARTY PRODUCT FUNCTION INDIVIDUAL HOUSEHOLD Relates Party Id (FK) Related Party Id (FK) Party Relationship Role Cd (FK) Party Relationship Start Dttm (FK) Individual Household Score Qty Party Prod Function End Dt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Individual Party Id (FK) Party Relationship Role Cd (FK) Health Condition Type Cd (FK) Family Health Cond Start Dt Family Health Cond End Dt Family Health Cond Val Employee Id Employment Type Cd (FK) Work Hours Cnt Product Id (FK) Party Id (FK) Party Product Role Cd (FK) Product Party Start Dt (FK) Function Cd (FK) Party Prod Function Start Dt Data Source Cd (FK) Health Condition End Dt Health Condition Val has family medical history in Individual Party Id (FK) Party Relationship Role Cd (FK) Family Medic Hist Dt Age At Death Num Age If Alive Num .Party. . Terms are according to the agency commission schedule and instructions. unlike an agent. a subtype of PARTY APPLICATION. contains the commission percentage that the agent is entitled to receive and how the agent is to be paid. The premium percentage generated by a sold insurance policy constitutes the commission for a specific agent or broker and is found in AGENT BROKER ACCOUNT DETAIL. such as new business or policy renewal. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-9 . An insurance broker.Chapter 12 – Insurance Extension Detailed Data Model Description Party Subject Area Agent An insurance agent (independent or captive/exclusive) or insurance broker is a PARTY. the associations are found in PRODUCT PARTY. If the portfolio is defined on the level of PRODUCT. which is a subtype of ACCOUNT PARTY. This entity also includes the type of commission paid. represents the insured. The agent/broker sells and services the PRODUCT GROUP in his/her portfolio as defined by PRODUCT GROUP PARTY. AGENT APPLICATION DETAIL also indicates whether there is an AGENT REPORT for this application (Agent Report Ind). The entity AGENT APPLICATION DETAIL. and is either an INDIVIDUAL or an ORGANIZATION. not the insurance company. The certification details of a party who is an insurance specialist are found in PARTY CERTIFICATION HIST. Teradata Financial Services Logical Data Model Reference Guide Release 09.00. 12-10 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank. Chapter 12 – Insurance Extension Detailed Data Model Description Party Subject Area Figure 12-3 Insurance .Party.Agent AGREEMENT Account Num Account Modifier Num ACCOUNT PARTY PARTY is involved with PARTY PARTY RELATIONSHIP HIST Relates Party Id (FK) Party Relationship Role Cd (FK) Related Party Id (FK) Party Relationship Start Dttm Party Party Party Party Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind has involvement with is related with is related to PARTY APPLICATION Org Type Cd (FK) Organization Established Dt Organization Close Dt MM Object Id (FK) Ethnicity Cd (FK) Gender Type Cd (FK) Birth Dt Death Dt involves PRODUCT GROUP involves Parent Prod Group Id (FK) Product Group Desc Product Group Start Dt Product Group End Dt Product Group Level Num Product Group Reason Type Cd (FK) PRODUCT PARTY is involved with Account Num (FK) Account Modifier Num (FK) Account Party Start Dt (FK) Account Party Role Cd (FK) Party Id (FK) applyed by AGENT APPLICATION DETAIL Agent Commission Option Cd (FK) Agent Participation Type Cd (FK) Commission Share Pct Agent Report Ind APPLICATION Product Id Application Id Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind Application Completed Dt Promo Id (FK) Planned Account Open Dt Application Received Dt Application Signed Dt Product Group Id (FK) Application Type Cd (FK) Document Id (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) Commission Type Cd (FK) Commission Rate Contract Party Role Cd parent of PRODUCT Account Party Role Cd AGENT BROKER ACCOUNT DETAIL Party Id (FK) Application Id (FK) Contract Party Role Cd (FK) Application Party Start Dt (FK) Product Group Id Product Group Party End Dt Product Party End Dt Application Party End Dt Individual Party Id (FK) Org Party Id (FK) Certification Score Num Certification Cost Amt Party Cert Type End Dt Party Product Role Cd (FK) Party Id (FK) Product Id (FK) Product Party Start Dt Party Id (FK) Application Id (FK) Contract Party Role Cd (FK) Application Party Start Dt INDIVIDUAL ORGANIZATION Relates Party Id (FK) Related Party Id (FK) Party Relationship Role Cd (FK) Party Relationship Start Dttm (FK) Certification Type Cd (FK) Party Cert Type Start Dt Party Id (FK) Party Product Role Cd (FK) Product Group Id (FK) Product Group Party Start Dt Account Party End Dt Allocation Pct Account Party Amt Acct Crncy Acct Party Amt has involvement with is involved with Party Type Cd PARTY CERTIFICATION HIST PRODUCT GROUP PARTY has involvement with Party Id Relationship End Dttm Structure Type Cd (FK) Rel Status Reason Cd (FK) Rel Status Type Cd (FK) has certification of Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt AGENT REPORT Party Id (FK) Application Id (FK) Contract Party Role Cd (FK) Application Party Start Dt (FK) Regular Premium Period Cd (FK) Underwrite Class Cd (FK) Premium Payment Mode Cd (FK) Currency Cd (FK) Premium Amt Regular Premium Period Num See Child Ind Cash Received Ind Forms Delivered Ind Forms Received Ind Appl Written Location Ind Replacement Insurance Ind . . g. The entity PARTY IDENTIFICATION stores the driver’s license number in the attribute Party Identification Val. the entity PARTY DRIVING LIC HIST contains the history of this driver’s license identification..Chapter 12 – Insurance Extension Detailed Data Model Description Party Subject Area Party Driving History A party may have many associated forms of identification. information on accidents and convictions is stored in PARTY AUTO DRIVING HIST. motor bike. like a driver’s license (PARTY DRIVING LICENSE). For each type of motor vehicle for which the Individual has a driving license. For each motorized vehicle associated with a Party (e.Party. or boat). Figure 12-4 Insurance . truck.Driving History PARTY IDENTIFICATION PARTY Party Id (FK) Party Identification Type Cd (FK) Party Identification Start Dt Party Id has role with Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind is identified by Party Identification End Dt Party Identification Val Issuing Party Id (FK) Party Id Categ Cd (FK) Party Id Receipt Dt issued PARTY TO PARTY ASSET Party Identification Type Cd Party Id (FK) Party Asset Id (FK) Asset Role Cd (FK) Asset Role Dt Asset Use Cd (FK) Asset Relinquish Dt has driving PARTY AUTO DRIVING HIST Party Asset Id (FK) Party Id (FK) Asset Role Dt (FK) Asset Role Cd (FK) Driving Hist Dt Violation Forgiven Ind Last Accident Dt Accident Cnt Accident Points Diminish Dt Minor Conviction Cnt Penalty Points Cnt Accident Forgiven Dt Major Conviction Cnt Accident Forgiven Ind Party Type Cd PARTY DRIVING LICENSE INDIVIDUAL Individual Party Id (FK) MM Object Id (FK) Ethnicity Cd (FK) Gender Type Cd (FK) Birth Dt Death Dt Party Identification Type Cd (FK) Party Identification Start Dt (FK) Party Id (FK) has license PARTY DRIVING LIC HIST MOTOR VEHICLE TYPE Motor Vehicle Type Cd Motor Vehicle Type Desc classifies Party Identification Start Dt (FK) Party Id (FK) Party Identification Type Cd (FK) Motor Vehicle Type Cd (FK) Drivers Lic Issue Dt Drivers Lic First Issued Dt Drivers Lic Expire Dt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-13 . automobile. The attribute Drivers Lic First Issued Dt specifies the date the individual received his first driver’s license for each type of vehicle. bus. or Dentist.00. like types of medical degrees and specialty training are located in PARTY CERTIFICATION HIST. cardiologist.Teradata Financial Services Logical Data Model Reference Guide Release 09. There are many specialty PROVIDER types (PROVIDER SPECIALTY HIST). and is found in PROVIDER STATUS HISTORY. PROVIDER status can include active. for example. Medical Clinic. Certifications issued to the provider. such as Pharmacist.00 A PARTY who provides goods or services is a PROVIDER.Provider PARTY CERTIFICATION HIST PARTY PARTY RELATIONSHIP HIST PARTY Party Id is related with Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind is related to PROVIDER SANCTION HIST Party Id (FK) Sanction Type Cd (FK) Provider Sanction Start Dt Provider Sanction End Dt Relates Party Id (FK) Party Relationship Role Cd (FK) Related Party Id (FK) Party Relationship Start Dttm Party Party Party Party has certification of Relationship End Dttm Structure Type Cd (FK) Rel Status Reason Cd (FK) Rel Status Type Cd (FK) Party Id (FK) has status history of Provider Type Cd (FK) Provider Fiscal Period End Dt has speciality of Provider Specialty End Dt 12-14 Party Id (FK) Provider Status Start Dttm Provider Status End Dttm Provider Status Type Cd (FK) Provider Status Reason Cd (FK) Provider Type Cd PROVIDER SPECIALTY HIST Party Id (FK) Specialty Type Cd (FK) Provider Specialty Start Dt Certification Score Num Certification Cost Amt Party Cert Type End Dt PROVIDER STATUS HISTORY PROVIDER has sanction of Relates Party Id (FK) Related Party Id (FK) Party Relationship Role Cd (FK) Party Relationship Start Dttm (FK) Certification Type Cd (FK) Party Cert Type Start Dt HEALTH PROVIDER Party Id (FK) Health Provider Type Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Party Provider One type of PROVIDER supplies healthcare services (HEALTH PROVIDER). or litigation specialist. inactive.Party. Figure 12-5 Insurance . Many types of sanctions (restrictions) can be imposed on a Provider (PROVIDER SANCTION HIST). surgeon. or under review. The Health Provider Type Cd is used to further categorize HEALTH PROVIDERs. insurance specialist. INSURED PROVIDER SELECT HIST includes the reason the provider was selected/deselected for the affiliation with the insured.Party. Insured Party Provider Figure 12-6 Insurance . The relationship between a HEALTH PROVIDER and the ACCOUNT INSURED PARTY is represented in the entity INSURED PROVIDER SELECT HIST. like primary care physician.Provider ACCOUNT PARTY Party Id (FK) Account Num (FK) Account Modifier Num (FK) has involvement with Account Party Role Cd (FK) Account Party Start Dt Account Party End Dt Allocation Pct Account Party Amt Acct Crncy Acct Party Amt PARTY Party Id Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind Account Party Role Cd ACCOUNT INSURED PARTY Account Num (FK) Account Modifier Num (FK) Account Party Start Dt (FK) Account Party Role Cd (FK) Party Id (FK) Member Num PROVIDER selects Party Id (FK) Provider Type Cd (FK) Provider Fiscal Period End Dt INSURED PROVIDER SELECT HIST Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Start Dt (FK) Account Party Role Cd (FK) Provider Selection Role Cd (FK) Provider Party Id (FK) Provider Select Start Dt Provider Type Cd HEALTH PROVIDER Party Id (FK) Health Provider Type Cd (FK) is selected Provider Selection Rsn Cd (FK) Provider Deselect Rsn Cd (FK) Provider Selection End Dt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-15 .Chapter 12 – Insurance Extension Detailed Data Model Description Party Subject Area A Party insured by a health policy (ACCOUNT INSURED PARTY) can select provider affiliations (HEALTH PROVIDER).Insured Party . The attribute Provider Selection Role Cd defines the provider’s affiliation with the insured. sex. an insurance company examines various personal risk factors (INSURANCE RISK FACTOR TYPE) associated with a PARTY. or being overweight) (PARTY INSURANCE RISK FACTOR). drugs. tobacco.Party. UNDERWRITE CLASSes can be assigned to insured parties (INSURED PARTY UNDERWRITE CLASS) as determined by the insurance company. physical condition. This information is then used to place PARTYs into various risk categories (PARTY INSURANCE RISK CATEGORY). and family and personal health (e. occupation.. use of alcohol.00 To determine the underwriting risk associated with a PARTY. Party Risk Figure 12-7 Insurance . such as applicant’s age.00.Teradata Financial Services Logical Data Model Reference Guide Release 09.Party Risk PARTY is assigned Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind PARTY INSURANCE RISK CATEGORY Party Id (FK) Insurance Risk Category Cd (FK) ACCOUNT PARTY has involvement with Party Id INSURANCE RISK FACTOR RELATED Related Insur Risk Factor Cd (FK) Insurance Risk Factor Cd (FK) Insur Risk Factor Rel Cd (FK) Insur Risk Factor Rel Start Dt Account Party End Dt Allocation Pct Account Party Amt Acct Crncy Acct Party Amt Insur Risk Factor Rel End Dt has risk factor relates to relates with PARTY INSURANCE RISK FACTOR Party Id (FK) Insurance Risk Factor Cd (FK) Party Risk Factor Start Dt describes Party Risk Factor End Dt INSURANCE RISK FACTOR TYPE Insurance Risk Factor Cd Insurance Risk Factor Desc INSURANCE RISK CATEGORY Parent Insur Risk Category Cd (FK) Insurance Risk Category Desc INSUR RISK FACTOR RISK CATEG classifies Insurance Risk Category Cd (FK) Insurance Risk Factor Cd (FK) Risk Factor Risk Categ Strt Dt roles up to Risk Factor Risk Categ End Dt Account Party Role Cd is risk factor classifies Insurance Risk Category Cd Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt is risk factor ACCOUNT INSURED PARTY Account Num (FK) Account Modifier Num (FK) Account Party Start Dt (FK) Account Party Role Cd (FK) Party Id (FK) Member Num INS RISK FACTOR UNDERWRT CLASS Insurance Risk Factor Cd (FK) Underwrite Class Cd (FK) is assigned INSURED PARTY UNDERWRITE CLASS describes UNDERWRITE CLASS Underwrite Class Cd Underwrite Class Desc Insurance Risk Category Cd (FK) classifies describes Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Start Dt (FK) Account Party Role Cd (FK) Underwrite Class Cd (FK) Party Underwrite Class Strt Dt Party Underwrite Class End Dt 12-16 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .g. avocation. Party Asset is described in the Foundation Reference section of this document. In this section. PARTY ASSET is not to be confused with the accounting of internal assets such as earned premium and income from investments which are the insurance company’s financial assets.Chapter 12 – Insurance Extension Detailed Data Model Description Party Asset Subject Area Party Asset Subject Area This section describes the FS-LDM Major Subject Area Party Asset. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-17 . Party Asset is covered from an insurance standpoint. A PARTY ASSET is a tangible or intangible thing that has value and exists in the real world inside or outside of the enterprise. In general. or a detached house. a lorry. or insurance refused. make. parcel address. REAL ESTATE. A MOTOR VEHICLE may be a 4-wheel passenger car. daily commute distance. REAL ESTATE (land and attached structures) may be an apartment. A live ANIMAL has identification. Other information also used for identification purposes is gender. such as no claim history. or home office. a semidetached house. the history is recorded in REAL ESTATE REBUILD AMT HIST. model. A VEHICLE MONITORING DEVICE such as a GPS device. a boat (VESSEL). like owner or renter. A PARTY ASSET may have an insurance history. A party’s driving history in a specific automobile is found in PARTY AUTO DRIVING HIST. and other animals. date of death. Examples are second car. A motor is identified by its Vehicle Identification Number (VIN) which is a 17-digit alphanumeric that provides valuable information concerning the vehicle's serial number. and if applicable. 12-18 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . claim history. one.Teradata Financial Services Logical Data Model Reference Guide Release 09. an ANIMAL. and estimated annual distance. PARTY ASSET TO LOCATOR specifies the possible locator. where the PARTY asset is located. The party may have a specific role with the customer asset. address. JEWELRY. MOTOR VEHICLE HIST contains motor vehicle information that can change over time such as the license plate number. as defined by the attribute Asset Role Cd.. latitude and altitude coordinates. etc. zoo animals. or many assets (PARTY TO PARTY ASSET). A party asset may have value changes over time (ASSET VALUE HIST). INVENTORY or other (OTHER ASSET). a motor bicycle. If the estimate of the cost to rebuild (reproduce) the real estate property varies over time. Information about the real estate property that changes over time can be maintained in REAL ESTATE HIST. and year. a VEHICLE MONITORING DEVICE. The attribute Asset Insurance Hist Type Cd specifies the history. may be a device placed inside a vehicle for purposes of measuring and reporting a vehicle’s location as defined by longitude. registered cattle and herds.00 Party Assets Party Assets A party may have zero. horses.00. as specified by the attribute Real Estate Type Cd. An asset associated with a party has a specific use as defined by the attribute Asset Use Cd. options. The estimated cost to rebuild damaged or destroyed real estate (replacement or reproduction cost) covered by property insurance can be specified. date of birth. or a bus. Types of Party Assets An asset may be a MOTOR VEHICLE. Breed type and animal type further describe livestock. This is commonly for official business such as registration for tax and health purposes. It is not the intention of subtype OTHER ASSET to include items such as life and limb. damage codes. Codes for vehicles might include passenger restrictive device codes. These are defined at Product level as Product Features (i. these codes might include construction codes. Details of Party Assets To specify the numerous details of party assets. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-19 . For real estate property. Please refer to the Accidental Death and Dismemberment example in the section on Product Features. and performance codes. protection codes. EQUIPMENT ASSET may be machinery.e. earthquake codes. or supplies. a list of codes can be used (ASSET DETAIL TYPE). The entity ASSET DETAIL CODE ASSOC associates party assets with these description codes.Chapter 12 – Insurance Extension Detailed Data Model Description Party Asset Subject Area INVENTORY has no attributes. hearing and eyesight. mandatory and optional coverage).. voice. The value of a PARTY ASSET and therefore of INVENTORY. is in ASSET VALUE HIST. tools. The subtype OTHER ASSET can be used for personal property objects not yet classified. and sprinkler codes. Equipment registration numbers are in Equipment Registration Num. or income. such as musical instruments or art objects. antitheft device codes. Teradata Financial Services Logical Data Model Reference Guide Release 09. 12-20 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00.00 This page intentionally left blank. Chapter 12 – Insurance Extension Detailed Data Model Description Party Asset Subject Area Figure 12-8 Insurance .Party Assets PARTY AUTO DRIVING HIST Party Asset Id (FK) Party Id (FK) Asset Role Dt (FK) Asset Role Cd (FK) Driving Hist Dt Violation Forgiven Ind Last Accident Dt Accident Cnt Accident Points Diminish Dt Minor Conviction Cnt Penalty Points Cnt Accident Forgiven Dt Major Conviction Cnt Accident Forgiven Ind PARTY ASSET PARTY TO PARTY ASSET has driving Party Id (FK) Party Asset Id (FK) Asset Role Cd (FK) Asset Role Dt ASSET DETAIL CODE ASSOC Party Asset Id MM Object Id (FK) Asset Insurance Hist Type Cd (FK) Asset Type Cd (FK) Asset Desc Asset Acct Num Asset Next Valuation Dt Asset Next Inspection Dt Valuation Time Period Cd (FK) Asset Host Id Val has role with Asset Use Cd (FK) Asset Relinquish Dt PARTY ASSET TO LOCATOR Party Asset Id (FK) Locator Id (FK) Party Asset Locator Role Cd (FK) Party Asset Locator Start Dt has address of Asset Type Cd MOTOR VEHICLE HIST Party Asset Id (FK) Motor Vehicle Hist Start Dttm Motor Vehicle Hist End Dttm Drivable Ind has history of Motor Vehicle Desc Color Desc Seat Belt Ind Air Bag Ind Alarm Type Cd (FK) License Plate Num Annual Distance Meas Daily Commute Distance Meas Commuting Days Num Lead Paint Ind Party Asset Id (FK) ASSET VALUE HIST Party Asset Id (FK) Asset Valuation Amount Cd (FK) Asset Value Start Dt OTHER ASSET Party Asset Id (FK) Jewelry Metal Type Cd (FK) Jewelry Type Cd (FK) Jewelry Gem Type Cd (FK) Party Asset Id (FK) Animal Breed Type Cd (FK) Animal Type Cd (FK) Animal Registration Num Animal Birth Dt Animal Death Dt Gender Type Cd (FK) VEHICLE MONITORING DEVICE Party Asset Id (FK) Real Estate Hist Start Dttm Model Id (FK) Vehicle Device Serial Num EQUIPMENT ASSET Party Asset Id (FK) VESSEL Equipment Registration Num Equipment Type Cd (FK) Party Asset Id (FK) INVENTORY Party Asset Id (FK) Vessel Registration Num Party Asset Id (FK) REAL ESTATE REAL ESTATE REBUILD AMT HIST Party Asset Id (FK) Rebuild Amt Start Dt Party Asset Id (FK) has history for Rebuild Amt End Dt Real Estate Rebuild Amt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Asset Value End Dt Evaluator Party Id (FK) Asset Value Amt Asset Crncy Asset Value Amt Currency Cd (FK) Asset Valuation Method Cd (FK) Asset Valuation Purpose Cd (FK) Inspection Dt (FK) REAL ESTATE HIST Party Asset Id (FK) FINANCIAL ASSET Financial Asset Categ Cd (FK) Financial Asset Maturity Dt Fin Asset Short Maturity Dt Asset Detail Desc JEWELRY ANIMAL ASSET DETAIL TYPE Asset Detail Cd has value history of Other Asset Registration Num MOTOR VEHICLE Motor Vehicle Type Cd (FK) Vehicle Manufacturer Cd (FK) Body Type Cd (FK) Transmission Type Cd (FK) Modification Cd (FK) Manufacture Year Num Series Name Model Name Door Cnt Engine Volume Meas Motor Vehicle Serial Num Engine Power Meas Length Meas Day Time Lamp Ind Asset Detail Assoc End Dt Party Asset Id (FK) Party Asset Locator End Dt classifies Party Asset Id (FK) Asset Detail Cd (FK) Asset Detail Assoc Start Dt has detail of Real Estate Type Cd (FK) Construction Type Cd (FK) Construction Dt Rl Est First Assess Rebld Amt Rebuild Amt First Assess Dt has history of Real Estate Hist End Dttm Fireplace Cnt Fire Extinguisher Cnt Smoke Alarm Ind Age Of Structure Num Woodstove Cnt Fire Alarm Ind Burglar Alarm Ind Deadbolt Lock Ind Roof Construction Type Cd (FK) Reception Room Cnt Bedroom Cnt Outbuilding Cnt Building Story Cnt Real Estate Area Meas .Party Asset. . Factors like antilock brakes.Chapter 12 – Insurance Extension Detailed Data Model Description Party Asset Subject Area To determine the amount of Risk associated with a PARTY ASSET. the presence of a swimming pool or whether an insured’s property is located outside the fire district or zone can increase insurance risk. or antitheft devices.Party Asset. ACCT INSURED ASSETs can also be related to various underwriting classes (INSURED ASSET UNDERWRITE CLASS). GPS device. PARTY ASSETs are assigned to categories of risk (ASSET INSURANCE RISK CATEGORY). Party Asset Risk Figure 12-9 Insurance . can reduce underwriting risk while other factors such as not using fire resistive construction and materials.Party Asset Risk PARTY ASSET Party Asset Id AGREEMENT ASSET Account Num (FK) Account Modifier Num (FK) Asset Contract Role Cd (FK) Party Asset Id (FK) Agreement Asset Start Dt has agreement of MM Object Id (FK) Asset Insurance Hist Type Cd (FK) Asset Type Cd (FK) Asset Desc Asset Acct Num Asset Next Valuation Dt Asset Next Inspection Dt Valuation Time Period Cd (FK) Asset Host Id Val Agreement Asset End Dt has detail of describes INSURANCE RISK FACTOR RELATED Party Asset Id (FK) Asset Detail Cd (FK) Asset Detail Assoc Start Dt Related Insur Risk Factor Cd (FK) Insurance Risk Factor Cd (FK) Insur Risk Factor Rel Cd (FK) Insur Risk Factor Rel Start Dt Asset Detail Assoc End Dt Insur Risk Factor Rel End Dt ASSET INSURANCE RISK FACTOR Party Asset Id (FK) Insurance Risk Factor Cd (FK) Asset Risk Factor Start Dt describes Asset Risk Factor End Dt ACCT INSURED ASSET Account Num (FK) Account Modifier Num (FK) Party Asset Id (FK) Asset Contract Role Cd (FK) Agreement Asset Start Dt (FK) Acct Insur Asset Amt Account Asset Premium Amt Acct Insured Asset Reins Ind Acct Crncy Acct Insur Ast Amt Acct Crncy Asset Premium Am Party Asset Id (FK) Insurance Risk Category Cd (FK) is assigned to ASSET DETAIL CODE ASSOC has Asset Contract Role Cd ASSET INSURANCE RISK CATEGORY INSURANCE RISK FACTOR TYPE relates with Insurance Risk Factor Cd relates to Insurance Risk Factor Desc is assigned is risk factor classifies INS RISK FACTOR UNDERWRT CLASS Insurance Risk Factor Cd (FK) Underwrite Class Cd (FK) INSUR RISK FACTOR RISK CATEG Insurance Risk Category Cd (FK) Insurance Risk Factor Cd (FK) Risk Factor Risk Categ Strt Dt classifies Risk Factor Risk Categ End Dt INSURED ASSET UNDERWRITE CLASS Asset Contract Role Cd (FK) Account Num (FK) Account Modifier Num (FK) Underwrite Class Cd (FK) Party Asset Id (FK) Agreement Asset Start Dt (FK) Asset Underwrite Class Strt Dt Asset Underwrite Class End Dt classifies INSURANCE RISK CATEGORY Insurance Risk Category Cd describes UNDERWRITE CLASS Underwrite Class Cd describes Underwrite Class Desc Insurance Risk Category Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Parent Insur Risk Category Cd (FK) Insurance Risk Category Desc roles up to 12-23 . an insurance company evaluates various underwriting risk factors (INSURANCE RISK FACTOR TYPE) associated with the PARTY ASSET (ASSET INSURANCE RISK FACTOR). and intangible (life and liability) (PARTY INSURABLE INTEREST). deductibles. limits. The insured would not take out insurance on someone or something they did not have a legal or financial interest in. It can include the automobile.00 Party Asset Insurable Interest Insurable interest is the thing that you are insuring.. hence the term “insurable interest”. the life.g. coinsurance) are represented in AGMT INSURABLE INT FEAT FEAT. 12-24 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . the house. For Enterprise Risk Management it is necessary to know information about the insurable interest and its relationship to the policy to determine its risk and the exposure to that risk. the liability. car) (ASSET INSURABLE INTEREST). Facts about those coverages (e. It is an “insurable interest” which indicates that the insured has an interest in what is being insured. Coverages for any insurable interest are represented by AGMT INSURABLE INT FEATURE such as Bodily Injury.00. In the FS-LDM we created an abstraction called INSURABLE INTEREST which includes tangible things being insured (house.Teradata Financial Services Logical Data Model Reference Guide Release 09. Insurable Interest CLAIMANT INSUR INTEREST STATUS Claimant Insur Int Status Dttm Claim Id (FK) Insurable Interest Id (FK) Party Id (FK) Party Claim Role Cd (FK) Party Claim Start Dttm (FK) has status of PARTY CLAIM INSURABLE INTEREST Claim Id (FK) Party Id (FK) Party Claim Role Cd (FK) Party Claim Start Dttm (FK) Insurable Interest Id (FK) Claimant Insur Int Status Cd (FK) is insured by INSURABLE INTEREST METRIC INSURABLE INTEREST Insurable Interest Id CLAIM INSURABLE INTEREST Claim Id (FK) Insurable Interest Id (FK) involves in Insurable Interest Categ Cd (FK) Insur Interest Expos Type Cd (FK) Catatrophe Exposure Ind is measured by Insur Interest Insur Interest Insur Interest Insur Interest Insur Interest Insur Interest Insur Interest Claim Insurable Int Type Cd (FK) Insurable Interest Categ Cd may be a Party Id Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind Z Metric Metric Metric Metric Metric Metric Metric Amt Rate Cnt Val Meas UOM Cd (FK) Tm Pd Cd (FK) is insured by Z PARTY Insurable Interest Id (FK) Insurable Interest Metric Cd (FK) Insur Interest Metric St Dttm PARTY INSURABLE INTEREST Party Insurable Interest Id (FK) AGREEMENT INSURABLE INTEREST Party Id (FK) Z ASSET INSURABLE INTEREST may be a Asset Insurable Interest Id (FK) Z Account Num (FK) Account Modifier Num (FK) Insurable Interest Id (FK) Agmt Insurable Int Role Cd (FK) Agmt Insurable Int Strt Dt Agmt Insurable Int End Dt Party Asset Id (FK) has feature of PARTY ASSET INSURANCE AGREEMENT Party Asset Id MM Object Id (FK) Asset Insurance Hist Type Cd (FK) Asset Type Cd (FK) Asset Desc Asset Acct Num Asset Next Valuation Dt Asset Next Inspection Dt Valuation Time Period Cd (FK) Asset Host Id Val Account Num (FK) Account Modifier Num (FK) AGMT INSURABLE INT FEATURE insures Life Line Ind Property Casualty Ind Health Ind Insurance Agreement Categ Cd (FK) Account Num (FK) Account Modifier Num (FK) Insurable Interest Id (FK) Agmt Insurable Int Role Cd (FK) Agmt Insurable Int Strt Dt (FK) Feature Id (FK) Agmt Ins It Feat Start Dt Agmt Ins Int Feat End Dt has subfeature of AGMT INSURABLE INT FEAT FEAT Account Num (FK) Account Modifier Num (FK) Insurable Interest Id (FK) Agmt Insurable Int Role Cd (FK) Agmt Insurable Int Strt Dt (FK) Agmt Ins It Feat Start Dt (FK) Feature Id (FK) Related Feature Id (FK) Agmt Ins Int Feat Feat Strt Dt Agmt Ins Int Feat Feat End Dt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-25 .Chapter 12 – Insurance Extension Detailed Data Model Description Party Asset Subject Area Figure 12-10 Insurance .Party Asset. One type of title is Salvage Title. etc) for Salvage recovery for MTD. vs. Those types of parts may also be valued (PARTY ASSET PART VALUATION). Asset Role Cd describes a party that owns the asset.00 Party Asset Salvage Salvage is damaged property an insurer takes over to reduce its loss after paying a claim. Which vehicles do we not yet have keys for? This is tracked in PARTY ASSET SALVAGE STATUS which tracks the vehicle in the process of becoming salvage. Entity PARTY ASSET TITLE tracks the changes to the title for that asset for that party. This logical view also shows recall information such as which assets and which asset parts have been recalled (PARTY ASSET RECALL and PARTY ASSET PART RECALL). poor and salvage. commercial vehicle. The damage assessment of an asset can be tracked in PARTY ASSET DAMAGE ASSESSMENT such as “totaled” or “partially totaled”. such as badly-damaged cars. 4. What is our performance (timing. 3.00. Salvage related business questions include: 1.Teradata Financial Services Logical Data Model Reference Guide Release 09. (Insurers that paid claims on cargoes lost at sea now have the right to recover sunken treasures. 2. fair.) Salvage charges are the costs associated with recovering that property. sales value. private passenger. Which vehicles are incurring storage charges and have not yet been picked up? Storage costs are in entity PARTY ASSET COST. Which vehicles do we not yet have titles for? Entity PARTY TO PARTY ASSET. good. a specific vehicle may have a certain type of tire. this year vs. by damage type / peril)? This information can be derived from the underlying data but is summarized in entity PARTY ASSET SALVAGE SUMMARY. is tracked in PARTY ASSET CONDITION such as excellent. For example. 12-26 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . The condition of the asset. Insurers receive salvage rights over property on which they have paid claims. PARTY ASSET SALVAGE STATUS contains status information including whether the vehicle has been picked up. by property type (boat. Assets may be composed of other assets types (PARTY ASSET PARTY CLASS). last year? Show the information by geography. which may be a different classification from damage assessment. Salvage PARTY ASSET RELATED PARTY ASSET CONDITION Party Asset Id (FK) Party Asset Condition Type Cd (FK) Party Asset Condition Type Dt Party Asset Id (FK) Related Party Asset Id (FK) Party Asset Related Type Cd (FK) Party Asset Related Start Dt Asset Ranking Party Id (FK) Party Asset Related End Dt has condition rank of is related to is related with PARTY ASSET RECALL Party Asset Id (FK) Party Asset Recall Dt was recalled ASSET VALUE HIST Asset Value End Dt Evaluator Party Id (FK) Asset Value Amt Asset Crncy Asset Value Amt Currency Cd (FK) Asset Valuation Method Cd (FK) Asset Valuation Purpose Cd (FK) Inspection Dt (FK) PARTY ASSET PART VALUATION has damage of Party Asset Id (FK) Party Asset Part Type Cd (FK) Party Asset Id has value history of Party Asset Id (FK) Party Asset Damage Cd (FK) Party Asset Damage Report Dt PARTY ASSET PART CLASS PARTY ASSET Party Asset Id (FK) Asset Valuation Amount Cd (FK) Asset Value Start Dt PARTY ASSET DAMAGE ASSESSMENT MM Object Id (FK) Asset Insurance Hist Type Cd (FK) Asset Type Cd (FK) Asset Desc Asset Acct Num Asset Next Valuation Dt Asset Next Inspection Dt Valuation Time Period Cd (FK) Asset Host Id Val has part type of has appraisal of is part for Party Asset Id (FK) Party Asset Part Type Cd (FK) Asset Valuation Amount Cd (FK) Party Asset Part Valuation Dt Party Asset Prt Value Party Id (FK) Party Asset Part Valuation Amt PARTY ASSET PART RECALL PARTY ASSET PART TYPE has recall history of Party Asset Part Type Cd Party Asset Part Recall Dt Party Asset Id (FK) Party Asset Part Type Cd (FK) Party Asset Part Type Desc is classified as Asset Valuation Purpose Cd PARTY TO PARTY ASSET has role with Party Id (FK) Party Asset Id (FK) Asset Role Cd (FK) Asset Role Dt is becoming PARTY ASSET APPRAISAL PARTY ASSET SALVAGE STATUS Party Asset Id (FK) Asset Valuation Amount Cd (FK) Asset Value Start Dt (FK) Party Asset Id (FK) Party Asset Salvage Status Cd Party Asset Salv Stat Start Dt Asset Appraisal Reason Cd (FK) Asset Role Cd has cost of Party Id (FK) Party Asset Id (FK) Asset Role Cd (FK) Asset Role Dt (FK) Party Asset Title Type Cd (FK) Party Asset Title Start Dt PARTY ASSET OWNER has title of Party Asset Title End Dt Party Id (FK) Party Asset Id (FK) Asset Role Cd (FK) Asset Role Dt (FK) PARTY ASSET COST RECOVERY Party Asset Recovery Amt Party Asset Class End Dt Party Asset Value Cd (FK) classifies PARTY ASSET TITLE Party Asset Cost End Dttm Time Period Cd (FK) Party Asset Cost Amt Party Asset Id (FK) Party Asset Recovery Amt Cd Party Asset Cost Recovery Dt Party Asset Id (FK) Party Asset Class Cd (FK) Party Asset Class Start Dt Party Asset Salv Stat End Dt PARTY ASSET COST Party Asset Id (FK) Cost Type Cd (FK) Party Asset Cost Start Dttm Asset Use Cd (FK) Asset Relinquish Dt PARTY ASSET CLASS ASSOC Party Asset Title Type Cd has recovery amount of PARTY ASSET SALVAGE TITLE Party Id (FK) Party Asset Id (FK) Asset Role Cd (FK) Asset Role Dt (FK) Party Asset Title Type Cd (FK) Party Asset Title Start Dt (FK) PARTY ASSET JUNK TITLE Party Id (FK) Party Asset Id (FK) Asset Role Cd (FK) Asset Role Dt (FK) Party Asset Title Type Cd (FK) Party Asset Title Start Dt (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret PARTY ASSET CLASS VALUE Party Asset Value Cd Party Asset Class Cd (FK) Parent Party Asset Value Cd (FK) Party Asset Value Desc Party Asset Class From Meas Party Asset Class To Meas Unit Of Measure Cd (FK) Party Asset Class Val St Dttm Party Asset Class Val End Dttm is asset class for is parent of PARTY ASSET SALVAGE SUMMARY Party Asset Value Cd (FK) Party Asset Class Cd (FK) Peril Type Cd (FK) Party Asset Damage Cd (FK) Party Asset Salvage Start Dt Party Asseet Salvage End Dt Time Period Cd (FK) Salvage Recovery Amt Salvage Cost Amt .Party Asset.Chapter 12 – Insurance Extension Detailed Data Model Description Party Asset Subject Area Figure 12-11 Insurance . . In this section. Product is described in the Foundation Reference section of this document. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-29 . In general terms. Product is covered from an insurance standpoint.Chapter 12 – Insurance Extension Detailed Data Model Description Product Subject Area Product Subject Area This section describes the FS-LDM Major Subject Area Product. Product groups such as Line of Business. Start dates and end dates can indicate past. Line of Insurance. Homeowners. A marketable product can be in many Packages and a Package can contain many marketable products. is broker for. The package is usually marketed at a lower price than the two stand-alone products. Some examples include: is agent for. 12-30 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Product and Product Package A marketable insurance package policy may consist of any combination of insuring agreements that combine coverage as marketable products. The structure of Product Group is such that a Product can be in many groups. Another example is the combination of a standard real estate policy and a special earthquake policy. Each related party is an individual. present.Teradata Financial Services Logical Data Model Reference Guide Release 09. A marketable insurance product has a name. A PRODUCT GROUP is not a marketable product. The date after which the product is no longer marketed is its discontinuance or end date. The date on which the product is first announced to the public is its inception or start date. A Party can have many roles with a product (PRODUCT PARTY) or product group (PRODUCT GROUP PARTY). PRODUCT GROUPs can be grouped into higher level groups to form a hierarchical structure. and not applicable in. business owners. and future marketable products and services. present. and future products. and Book of Insurance are examples of a hierarchy. all Property and Casualty Policies. Start and end dates indicate if the relationship between the party and the product. such as Standard Automobile Policy or Comprehensive Life Policy and Major Medical Policy. Product . valid in. Product . Examples of relationships between products and addresses are: marketed in. Product Group Products can be organized in a structure called PRODUCT GROUPs. and a Product Group can consist of many Products (PROD GROUP ASSOCIATION). A PRODUCT can be classified as either an INDIVIDUAL OFFERING or a PACKAGE OFFERING.Locator Relationship Products may have relationships with geographical addresses (PRODUCT TO LOCATOR). These relationships have a start date and an end date. or household. and develops. organization. A PRODUCT GROUP contains insurance products that are similar such as all Automobile Policies. is in the present. and garage policies are examples of a PACKAGE OFFERING policy.00 Product Overview Product PRODUCT consists of past. or will be in the future. or all Health Care Policies. This product-package relationship is shown in the entity PRODUCT PACKAGE. or product group was in the past.Party Relationship PRODUCTs and PRODUCT GROUPs may have relationships with many parties.00. Chapter 12 – Insurance Extension Detailed Data Model Description Product Subject Area Product .Channel Relationship Products may be related to channel types (PROD CHANNEL TYPE XREF).Overview PRODUCT TO LOCATOR Product Id (FK) Prod Feat Locator Rel Cd (FK) Locator Id (FK) Product Locator Start Dt Product Locator End Dt PRODUCT GROUP Product Group Id Parent Prod Group Id (FK) Product Group Desc Product Group Start Dt Product Group End Dt Product Group Level Num Product Group Reason Type Cd (FK) has location of parent of groups involves PRODUCT Product Id Product Package Type Cd INDIVIDUAL OFFERING Product Id (FK) Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind PACKAGE OFFERING Package Product Id (FK) Product Type Cd is part of PROD GROUP ASSOCIATION Product Id (FK) Product Group Id (FK) Prod Assoc Start Dt Prod Assoc End Dt is involved with PROD CHANNEL TYPE XREF Product Id (FK) Channel Type Cd (FK) Product Channel Type Role Cd (FK) Prod Channel Start Dt PRODUCT GROUP PARTY Prod Channel End Dt consists of Party Id (FK) Party Product Role Cd (FK) Product Group Id (FK) Product Group Party Start Dt Product Group Party End Dt is part of PRODUCT PARTY PRODUCT PACKAGE Package Product Id (FK) Product Id (FK) INSURANCE PRODUCT Product Id (FK) Insurance Type Cd (FK) is involved with Party Product Role Cd (FK) Party Id (FK) Product Id (FK) Product Party Start Dt Product Party End Dt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-31 .Product. One example is that claims for certain products may be submitted via specified channel types only. Figure 12-12 Insurance . Feature Relationship FEATUREs describe a PRODUCT’s terms and conditions and such a feature may further be described by one or more additional features. and associated features. one. Example of an insurance feature: Feature Name: Accidental Death and Dismemberment Feature Desc: A supplementary benefit rider or endorsement that indemnifies (pays) a stated benefit to the insured or his/her beneficiary in addition to the basic death benefit of a life insurance policy. Product . A feature has a name. or many FEATUREs and a FEATURE can describe zero.00 Features Product Features Marketable stand-alone PRODUCTs and products contained in a package (PRODUCT PACKAGE) are defined by product features (FEATURE). one. A product can be associated with mandatory and optional features. the insured must die within 90 days of the accident and be age 60 or less. one. defined by Prod Feat Rel Type Cd. Common Feature Name: Accidental Death and Dismemberment coverage Mandatory and Optional Features One or more features may describe a Product (PRODUCT FEATURE). or many PRODUCTs that are parts of Packages (PRODUCT PACKAGE FEATURE). This additional benefit payment amount is payable only if the insured dies other than from natural causes.Teradata Financial Services Logical Data Model Reference Guide Release 09. or more Products (PRODUCT FEATURE). 12-32 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00. An insurance product may have one or more coverage features that may have exceptions and coverage limitations as well as an absolute dollar amount and waiting time or elimination period amount deductibles (features). PRODUCT PKG FEAT FEAT contains features that further describe features that are part of a product package. The Accidental Death and Dismemberment benefit rider in the example above is an optional feature. A predetermined schedule is used to compensate an insured for parts of the body that are lost or for death by accident. Often. A FEATURE may describe zero. Another example is a personal automobile policy (PAP) that has mandatory features for Personal Injury Protection (PIP) in states with no fault automobile insurance and Property Damage Liability Insurance. and a commonly used abbreviation. PRODUCT FEATURE FEATURE contains valid combinations of products. time and age limits are applied to this benefit. and an optional feature for Bodily Injury Liability to cover bodily injury to a third party. for example.Feature . a description. or has two limbs dismembered or loses the sight in both eyes as the result of an accident. A PRODUCT can have zero. features. Chapter 12 – Insurance Extension Detailed Data Model Description Product Subject Area Feature .Cause of Loss Reason Relationship PRODUCT. The attribute Excluded Ind is used to specify excluded or named perils. FEATURE.Locator Relationship Features may have relationships with geographical addresses (FEATURE TO LOCATOR).Features PRODUCT FEATURE FEATURE Product Id (FK) Feature Id (FK) Product Feature Start Dt (FK) Prod Feat Rel Type Cd (FK) Related Feature Id (FK) Prod Related Feat Rel Type Cd (FK) Product Relatd Feat Start Dt PRODUCT FEATURE has subfeatures Product Id (FK) Feature Id (FK) Prod Feat Rel Type Cd (FK) Product Feature Start Dt PRODUCT has terms and conditions of Product Feature End Dt is combined with Product Relatd Feat End Dt PROD FEAT LOSS INCL EXCL describes FEATURE Feature Id describes describes Feature Type Cd (FK) Feature Classification Cd (FK) Feature Desc Feature Name Common Feature Name Feature Category Type Cd (FK) Feature Level Cnt PRODUCT PKG FEAT FEAT Product Id (FK) Package Product Id (FK) Feature Id (FK) Prod Feat Rel Type Cd (FK) Prod Pkg Feature Start Dt (FK) Related Feature Id (FK) Prod Pkg Related Feat Rel Cd (FK) Prod Pkg Relatd Feat Start Dt Prod Pkg Relatd Feat End Dt is associated with Product Id (FK) Feature Id (FK) Peril Type Cd (FK) Prod Feat Loss Start Dt Prod Feat Loss End Dt Excluded Ind FEATURE TO LOCATOR has geographical areas of Feature Id (FK) Prod Feat Locator Rel Cd (FK) Locator Id (FK) Feature Address Start Dt Product Id Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind describes PERIL TYPE Peril Type Cd Peril Type Desc Feature Address End Dt is part of PRODUCT PACKAGE FEATURE describes has subfeatures Product Id (FK) Package Product Id (FK) Feature Id (FK) Prod Feat Rel Type Cd (FK) Prod Pkg Feature Start Dt PRODUCT PACKAGE has terms and conditions of Package Product Id (FK) Product Id (FK) Prod Pkg Feature End Dt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-33 . Figure 12-13 Insurance . and not applicable in. valid in.Product. Examples of relationships between features and addresses are. Product/Feature . marketed in. and PERIL TYPE are associated in the entity PROD FEAT LOSS INCL EXCL. These relationships have start and end dates. In the FEATURE entity.00. the following must be specified: (1) which unit of time is used. or a liability limit amount. such as the expired date for paying benefits. and (3) the end of time.00 Feature Subtyping In entity FEATURE. For all three aspects. the number of office visits permitted. DESCRIPTIVE FEATURE specifies those features that do not have a metric associated with it but state a condition such as 'Insurance Card issued for product. 12-34 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . such as the time interval before benefits are paid. which is a subtype of RATE FEATURE. or the maximum number of days covered. weeks.' DATE FEATURE specifies those features that are specific dates that could describe a product other than the product start and end dates. like days. a minimum lump sum amount. It specifies (1) how much time must elapse. the attribute Feature Category Type Cd indicates the category of Feature. examples of quantity include the number of therapy sessions allowed. For the aspect end of a time period. (2) the length of time. FEATURE is the supertype that contains information about all features. months.Teradata Financial Services Logical Data Model Reference Guide Release 09.’ AMOUNT FEATURE specifies terms and conditions that are dollar amounts such as a deductible amount. can be used to capture the participation percentage or limit amount of coverage for insurance. the attribute Feature Type Cd indicates the feature type for classification purposes. Following are subtypes of FEATURE based on Feature Type Cd: • AMOUNT FEATURE • TERM FEATURE • QUANTITY FEATURE • DESCRIPTIVE FEATURE • RATE FEATURE • DATE FEATURE The attribute Other Feature Rate in the OTHER RATE FEATURE entity. For insurance. or years. TERM FEATURE specifies three periods of time for insurance coverage. QUANTITY FEATURE specifies terms and conditions that may be a quantity. Examples include deductible amounts that are a percentage of the covered claim amount. Two specific categories of a feature are COVERAGE FEATURE or SERVICE FEATURE. and (2) how many units apply. the unit of time may be specified as ‘until retirement. such as the maximum time interval that benefits are paid. SERVICE FEATUREs in health insurance are those medically related services covered by a policy. Dental Coverage.Product. Accidental Death and Dismemberment. Other examples of services eligible for reimbursement include hospital room and board. ambulance service to and from a hospital. and operating room expenses. X-rays. insurance coverage (versus exclusions) represents perils insured against. In property insurance. properties and locations covered. individuals insured. MRIs or dental procedures such as tooth fillings or fluoride treatments. and Medical Coverage. Examples include specific medical procedures such as CAT scans. Figure 12-14 Insurance .Feature Subtyping FEATURE Feature Id Feature Type Cd (FK) Feature Classification Cd (FK) Feature Desc Feature Name Common Feature Name Feature Category Type Cd (FK) Feature Level Cnt Feature Category Type Cd SERVICE FEATURE Service Feature Id (FK) COVERAGE FEATURE Coverage Feature Id (FK) AMOUNT FEATURE Insurance Coverage Type Cd (FK) Feature Id (FK) Feature Type Cd Amount Currency Cd (FK) From Feature Amt To Feature Amt Amount Time Period Cd (FK) Amount Time Period Num RATE FEATURE Feature Id (FK) DESCRIPTIVE FEATURE Rate Time Period Cd (FK) Rate Feature Type Cd (FK) Rate Time Period Num Feature Id (FK) TERM FEATURE Rate Feature Type Cd Feature Id (FK) From Time Period Cd (FK) To Time Period Cd (FK) Until Age Cd (FK) From Time Period Num To Time Period Num Until Age Num DATE FEATURE Feature Id (FK) Feature Dt OTHER RATE FEATURE Feature Id (FK) Other Feature Rate QUANTITY FEATURE Feature Id (FK) Quantity Time Period Cd (FK) Quantity Unit Of Measure Cd (FK) Feature Qty Feature Time Period Num Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-35 . and limits of indemnification.Chapter 12 – Insurance Extension Detailed Data Model Description Product Subject Area COVERAGE FEATUREs are features that are insurance coverages or protections under an insurance policy such as Property Damage. or hospital stays. it can define limits.Product. maximum number of therapy sessions. or all exceptions and limitations of coverage.Teradata Financial Services Logical Data Model Reference Guide Release 09. deductibles. and is not valid in. such as all deductibles.00 Feature Relations Related Features FEATURE FEATURE REL tracks the relationships between product features over time.Feature Relations FEATURE TO LOCATOR Feature Id (FK) Prod Feat Locator Rel Cd (FK) Locator Id (FK) Feature Address Start Dt Feature Address End Dt has geographical areas of FEATURE FEATURE TO FEATURE GROUP Feature Id Feature Group Id (FK) Feature Id (FK) Feature Assoc Start Dt is part of Feature Assoc End Dt is part of Feature Type Cd (FK) Feature Classification Cd (FK) Feature Desc Feature Name Common Feature Name Feature Category Type Cd (FK) Feature Level Cnt FEATURE FEATURE REL is related to Feature Relationship Type Cd (FK) Related Feature Id (FK) Feature Id (FK) Feature Rel Start Dt is related with Feature Rel End Dt has address FEATURE GROUP Feature Group Id Feature Group Type Cd (FK) Feature Group Start Dt Feature Group End Dt Parent Feature Group Id (FK) Feature Group Name Feature Group Desc FEAT FEAT REL TO LOCATOR Feature Id (FK) Related Feature Id (FK) Feature Relationship Type Cd (FK) Feature Rel Start Dt (FK) Locator Id (FK) Feat Feat Address Start Dt Feat Feat Address End Dt parent of 12-36 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Figure 12-15 Insurance . For insurance. A feature group contains features that are similar. Examples of these relationships include. The structure of feature groups is arranged such that a feature can be in many groups and a group can consist of many features. and time elements for specific coverage features. is marketed in. Product FEATUREs are organized in a structure called FEATURE GROUPs. or Accidental Death and Dismemberment.00. premiums. is valid in. or for specific service features like office visits. This structure allows for one product feature to be described by other product features. such as Property Damage Liability. Features and Feature Feature Relationships can have associations with addresses (FEATURE TO LOCATOR and FEAT FEAT REL TO LOCATOR). Agreement is described in the Foundation Reference section in this document. In general terms.Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Agreement Subject Area This section describes the FS-LDM Major Subject Area Agreement. In this section. the aspects of Agreement that are dedicated to Insurance are covered. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-37 . Insurance (life) Accounts and Applications for Insurance (life) Accounts may be related to investment products through portfolios. may have the status of an acceptance (opened account). endorsements. and Agreement. and Portfolio. an application. the issuance of a policy by the company constitutes acceptance. Application. Dates Some AGREEMENT attributes that specify a date include: Account Signed Dt The date the conditions of the account were agreed upon by the financial institution and the involved party(s) Account Processing Dt 12-38 The date the account was entered into the financial institution’s data processing system Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . the account number is usually the policy number.Teradata Financial Services Logical Data Model Reference Guide Release 09. INSURANCE QUOTATION. Quotation Preceding the establishment of an AGREEMENT. The account number and an account modifier uniquely identify the agreement. For Applications. Details regarding the relationships between the Insurance Accounts and the Insurance Accounts with the portfolios can be found in the two Investment views. In Life Insurance. Depending on the procedures adopted by the insurance company. should the insurer decide to accept the risk. riders. A single application form submitted by a prospective insured (Party) may cause the insurance company to make several quotations from which the Party may choose. since the initial premium is almost always submitted with the application. Agreement. Application. Agreement and Portfolio Details. signed by a prospective insured. For information that is specific to insurance. or modify the coverage offered. The written documents of a contract AGREEMENT for insurance also include forms. An account modifier is optional if the account number or policy number uniquely identifies the agreement.00 Agreement Overview Customer AGREEMENTs record details of arrangements between the insurance company and other parties. the agreement with a customer for a specified product is usually a policy or a contract.00. In Property and Casualty Insurance. special forms (APPLICATION FORM) can be used. the modifier is this additional attribute that makes the agreement instance unique. In such a case. For insurance companies. For insurance companies. and LIFE LINE QUOTATION. and attachments. The answers to the questions can be found in the attribute Response Txt in the entity APPLICATION QUESTION RESPONSE. the prospective insured may complete an APPLICATION and the insurance company may make a QUOTATION. AGREEMENT and QUOTATION are subtyped respectively in INSURANCE AGREEMENT. submitting an application to the company is usually considered an offer. Some companies require another attribute to uniquely identify the agreement such as a line of insurance identifier or a system number. total loss reserves. it is included here because it is a common practical requirement. this date might be the date and time the insurance becomes effective. The attributes listed in this entity are intended as recommendations and depending on implementation. This model demonstrates two ways derivable amounts can be associated with an INSURANCE AGREEMENT. Collection Status The insurance policy may have several collection statuses over time. The relationship is defined by means of a relation code. such as premium balance amounts. other appropriate attributes can be added. derivable information should not be represented in a logical model. and unearned premiums. Planned Account Open Dt The date the account is planned to open Insurance Agreement Summary Each INSURANCE AGREEMENT is associated with derivable summary account information at the end of a time period.Address Relationship The associative entity AGREEMENT TO LOCATOR relates locators with agreements. The entity INSURANCE ACCOUNT HISTORY is a more specific approach to associating amounts with policy. Examples of relation codes are: • address at which the contract was/will be signed • territorial area for which rates and tariffs were used to set up the agreement • State or Country where laws and regulations govern the agreement • policy territorial limitation for inland marine liability insurance coverage that states a claim must occur in the policy territory. The first is in the entity POLICY METRIC. Agreement . 60 days overdue. Even though technically. It is the more general approach. or in collections.Product Relationship ACCOUNT PRODUCT HISTORY keeps track of all products associated with an AGREEMENT at one point in time and over time.Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Account Open Dt The date the account became effective Account Close Dt The date the account was closed Attributes in APPLICATION that specify a date are: Application Completed Dt The date the application was completed by the party applying for the account. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-39 . The attribute Insurance Metric Type Cd specifies the kind of policy metric. 30 days overdue. These statuses may include current. In insurance. This is maintained in the entity ACCOUNT COLLECTION STATUS. Agreement . 00 This page intentionally left blank.00.Teradata Financial Services Logical Data Model Reference Guide Release 09. 12-40 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Overview AGREEMENT TO APPLICATION was started from AGREEMENT Account Num Account Modifier Num ACCOUNT COLLECTION STATUS Past Due Amount Type Cd (FK) Collection Status Start Dttm Account Num (FK) Account Modifier Num (FK) Collection Status End Dttm Collection Status Type Cd (FK) Collection Past Due Amt Acct Crncy Collec Past Due Amt Days Past Due Cnt has collection history of AGREEMENT TO LOCATOR Account Num (FK) Account Modifier Num (FK) Contract Locator Rel Cd (FK) Locator Id (FK) Account Locator Start Dt has locator of Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) APPLICATION Application Id (FK) Account Num (FK) Account Modifier Num (FK) Agreement Appl Role Cd (FK) Agmt To Application Start Dt led to Document Id (FK) is associated with ACCOUNT PRODUCT HISTORY Account Num (FK) Account Modifier Num (FK) Product Id (FK) Agreement Product Role Cd (FK) Acct Product Assoc Start Dt Acct Product Assoc End Dt describes External Agreement Ind EXTERNAL AGREEMENT Account Num (FK) Account Modifier Num (FK) External Agreement Num External Agreement Type Cd (FK) is used for has details of has response of Product Id Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind APPLICATION QUESTION RESPONSE Application Id (FK) Application Form Question Num (FK) Document Id (FK) Application Response Num Application Response Txt Quotation Id INSURANCE QUOTATION Agreement Categ Cd has renewal history of Contract Term Expiration Dttm Contract Grace Period End Dttm has policy history of POLICY METRIC Account Num (FK) Account Modifier Num (FK) Insurance Metric Type Cd (FK) Policy Metric Start Dt Policy Metric End Dt INSURANCE AGREEMENT Account Num (FK) Account Modifier Num (FK) has amount history Life Line Ind Property Casualty Ind Health Ind Insurance Agreement Categ Cd (FK) POLICY METRIC CHANGE HISTORY Account Num (FK) Account Modifier Num (FK) Policy Summary Dttm Time Period Cd (FK) Premium Rev Net Change Amt Acct Crncy Premium Rev NC Amt Surcharge Rev Net Change Amt Acct Crncy Surchrg Rev NC Amt Lump Sum Rev Net Change Amt Acct Crncy Lump Sum Rev NC Amt Unearn Prem Rev Net Change Amt Acct Crncy Unearn Prem NC Amt Loan Ledger Bal Net Change Amt Acct Crncy Loan Ledger NC Amt Written Premium Net Change Amt Acct Crncy Written Prem NC Amt Insurance Type Cd LIFE LINE QUOTATION Quotation Id (FK) Fund Source Type Cd (FK) Life Line Strategy Type Cd (FK) Lump Sum Amt Maturity Dt Policy Initial Payment Amt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret has led to QUOTATION Quotation Id (FK) ACCOUNT RENEWAL HISTORY Time Period Cd (FK) Policy Amt Policy Rate Policy Cnt Acct Crncy Policy Amt Unit Of Measure Cd (FK) Application Form Start Dt Application Form End Dt Product Id (FK) Product Group Id (FK) PRODUCT Account Locator End Dt Account Num (FK) Account Modifier Num (FK) Contract Start Dttm Application Completed Dt Promo Id (FK) Planned Account Open Dt Application Received Dt Application Signed Dt Product Group Id (FK) Application Type Cd (FK) Document Id (FK) APPLICATION FORM Agmt To Application End Dt may be for product Application Id Regular Premium Period Cd (FK) Insurance Type Cd (FK) Premium Payment Mode Cd (FK) Deviation Pct Discount Amt Discount Reason Desc Premium Amt Regular Premium Period Num Document Id (FK) Quotation Categ Cd Quotation Categ Cd (FK) Campaign Id (FK) Quote Status Type Cd (FK) Quote Close Reason Cd (FK) Quote Origin Cd (FK) Application Id (FK) Quotation Amt Current Quote Status Start Dt Quotation Open Dt Quotation Expiration Dt Quotation Close Dt Quote Ceiling Amt Acct Crncy Quote Amt Acct Crncy Ceiling Amt Quote Planned Account Open Dt Quote Planned Account Close Dt Agreement Objective Type Cd (FK) .Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Figure 12-16 Insurance .Agreement. . and the party performing the underwriting (UNDERWRITER PARTY APPLICATION). Any underwriting notes for a given application requirement are captured in APPL UNDERWRITE REQMT TEXT. The latter determines underwriting risk requirements (APPL UNDERWRT REQMT) in order to charge the proper premium and identifies the underwriting exceptions and limitations (APPL UNDERWRT EXCEPT) for the APPLICATION. Underwriting Examples of underwriting requirements include asset inspection or appraisal. Figure 12-17 Insurance .Agreement. The former is classified by the attribute Underwrite Class Cd. PARTY APPLICATION contains all parties that are related to the application. Of special interest are party/parties applying for insurance (INSURED PARTY APPLICATION).Underwriting APPLICATION Application Id APPL UNDERWRITE REQMT STATUS Application Id (FK) Underwriting Reqmt Type Cd (FK) Underwriting Status Cd (FK) Appl Underwrite St Start Dttm Appl Underwrite St End Dttm Application Completed Dt Promo Id (FK) Planned Account Open Dt has status of Application Received Dt Application Signed Dt Product Group Id (FK) Application Type Cd (FK) Document Id (FK) APPL UNDERWRITE REQMT TEXT Application Id (FK) Underwriting Reqmt Type Cd (FK) Appl Underwrite Text Dttm has comment of APPL UNDERWRT REQMT Parent Insur Risk Category Cd (FK) Insurance Risk Category Desc roles up to Underwriting Reqmt Type Cd (FK) Application Id (FK) describes PARTY APPLICATION Party Id (FK) Contract Party Role Cd (FK) Application Party Start Dt (FK) APPL UNDERWRT EXCEPT has underwriting exceptions in Insurance Risk Category Cd has underwriting requirements in Application Id (FK) Underwriting Reqmt Type Cd (FK) Appl Underwrite Reqmt Txt INSURANCE RISK CATEGORY involves Party Id (FK) Application Id (FK) Contract Party Role Cd (FK) Application Party Start Dt Application Party End Dt UNDERWRITE CLASS Underwrite Class Cd Underwrite Class Desc Insurance Risk Category Cd (FK) is requirement for describes Contract Party Role Cd Party Id (FK) Contract Party Role Cd (FK) Application Party Start Dt (FK) UNDERWRITER PARTY APPLICATION specifies underwriting exceptions Party Id (FK) Application Id (FK) Contract Party Role Cd (FK) Application Party Start Dt (FK) INSURED PARTY APPLICATION Party Id (FK) Application Id (FK) Contract Party Role Cd (FK) Application Party Start Dt (FK) Underwrite Class Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-43 .Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Underwriting occurs at the APPLICATION level when evaluating new policies. The underwriting status leading up to a decision on the application requirement is tracked in APPL UNDERWRITE REQMT STATUS. 00. a policy for an organization (COMMERCIAL INSURANCE POLICY).00 Insurance Agreement Type From a line of business perspective. or beneficiary (party). an INSURANCE AGREEMENT is either a PROPERTY CASUALTY AGREEMENT or a LIFE LINE AGREEMENT or both.Teradata Financial Services Logical Data Model Reference Guide Release 09. or life line policy: 12-44 • Pension and Life: lump sum distribution of vested accumulated retirement benefits to pension plan participant at retirement (separation date) or death benefit payout to designated beneficiary as a lump sum distribution (single payment instead of installments) • Annuity: single lump sum amount paid by buyer at inception of annuity contract (installment payments can also be made during the accumulation period) to the financial institution to fund the annuity contract or a lump sum refund annuity payment to the beneficiary when the annuitant dies before receipt of total income at least equal to the annuity premiums paid. An INSURANCE AGREEMENT (whether Life or P&C) can also be a policy for an individual (INDIVIDUAL INSURANCE POLICY). a policy for a group which is composed of members. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . pension plan. depending on the sort of annuity contract. and the financial institution at contract inception. pension plan participant. and it may be a policy for the members that are part of the group (GROUP MEMBER INSURANCE). the attribute Lump Sum Amt specifies the single amount of money that is transferred between the annuity buyer. as in the case of a group life policy (GROUP INSURANCE POLICY). The INSURANCE AGREEMENT may be a REINSURANCE AGREEMENT where risk(s) are being bought or sold form/to another insurance company. and at separation date or when the stated period ends. In LIFE LINE AGREEMENT. Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Figure 12-18 Insurance .Agreement.Insurance Agreement Type INSURANCE AGREEMENT Account Num (FK) Account Modifier Num (FK) Life Line Ind Property Casualty Ind Health Ind Insurance Agreement Categ Cd (FK) Insurance Agreement Categ Cd LIFE LINE AGREEMENT PROPERTY CASUALTY AGREEMENT Account Num (FK) Account Modifier Num (FK) REINSURANCE AGREEMENT Account Num (FK) Account Modifier Num (FK) Reinsurance Acct Num (FK) Reinsurance Acct Modifier Num (FK) Life Line Strategy Type Cd (FK) Maturity Dt Lump Sum Amt Reinsurance Plan Type Cd (FK) Reinsurance Contract Type Cd (FK) Reinsurance Trigger Type Cd (FK) Reinsurance Note Txt Reinsurance Bus Covered Txt INDIVIDUAL INSURANCE POLICY Account Num (FK) Account Modifier Num (FK) GROUP INSURANCE POLICY Account Num (FK) Account Modifier Num (FK) COMMERCIAL INSURANCE POLICY Account Num (FK) Account Modifier Num (FK) GROUP MEMBER INSURANCE Account Num (FK) Account Modifier Num (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-45 . and dormant. Coverage is often reinstated automatically for the remainder of the policy term when the condition that triggered suspension is corrected.00 Status and History The general status of an AGREEMENT is tracked by ACCOUNT STATUS HISTORY. Attributes Insur Acct Status Type Cd and Insur Status Reason Type Cd indicate the in-force status of the insurance account.Teradata Financial Services Logical Data Model Reference Guide Release 09. ACCOUNT RENEWAL HISTORY contains a history of renewals for this policy. such as late premium payment. All general attributes applicable to an insurance account are found in INSURANCE ACCOUNT HISTORY.00. inactive. INSURANCE AGREEMENT contains no nonprimary key attributes apart from three indicators and a category discriminator. 12-46 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . such as first/renewed period or temporarily suspended and the reason for the coverage interruption status. Examples of the status of an agreement are active. These include the next expiration date (which may be the renewal date) and the discount code. Status and History AGREEMENT Account Num Account Modifier Num describes current ACCOUNT STATUS TYPE Acct Status Type Cd Acct Status Type Desc describes ACCOUNT RENEWAL HISTORY Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) Account Num (FK) Account Modifier Num (FK) Contract Start Dttm has renewal history of Contract Term Expiration Dttm Contract Grace Period End Dttm Agreement Categ Cd INSURANCE AGREEMENT Account Num (FK) Account Modifier Num (FK) Life Line Ind Property Casualty Ind Health Ind Insurance Agreement Categ Cd (FK) has collection history of has history in INSURANCE ACCOUNT HISTORY has status history of ACCOUNT STATUS HISTORY Account Num (FK) Account Modifier Num (FK) Acct Status Start Dttm Acct Status Type Cd (FK) Acct Status Reason Cd (FK) Acct Status End Dttm ACCOUNT COLLECTION STATUS Past Due Amount Type Cd (FK) Collection Status Start Dttm Account Num (FK) Account Modifier Num (FK) Collection Status End Dttm Collection Status Type Cd (FK) Collection Past Due Amt Acct Crncy Collec Past Due Amt Days Past Due Cnt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Account Num (FK) Account Modifier Num (FK) Insurance Status Start Dttm Insurance Status End Dttm Regular Premium Period Cd (FK) Regular Premium Period Num Insur Status Reason Type Cd (FK) Insur Acct Status Type Cd (FK) Premium Amt Acct Crncy Premium Amt Expiration Dttm Installment Charge Amt Acct Crncy Installmnt Chrg Amt Premium Payment Mode Cd (FK) 12-47 .Agreement.Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Figure 12-19 Insurance . For an annuity contract sold by an insurance company.’ the premium must be paid every six months. These time spans are defined by the attributes Regular Premium Period Cd and Regular Premium Period Num. and written premium. or annual) income benefit amount that the insurance company pays to the annuitant (party) during the liquidation period. The entity INSURANCE ACCOUNT HISTORY is a more specific approach for associating various amounts with the policy.Teradata Financial Services Logical Data Model Reference Guide Release 09. the attribute Premium Amt specifies the monthly (or quarterly. The attribute Account Party Role Cd defines the role of a party towards the agreement. Other Amounts This model demonstrates two ways that derivable metrics can be associated with an INSURANCE AGREEMENT. such as premium balance amounts. Examples of amount types could be premium balance amount. total claims paid amount. Party and Asset are the lowest levels on which premium amounts are specified and are described in the Insurance .00 Metric and Premium Premium Amounts INSURANCE ACCOUNT HISTORY contains current and past premium amounts at the policy level. and current and past time period spans associated with the premium payments. semiannual. One example of such a role occurrence is ‘pays the premium for. For all other insurance policies. total loss reserves. total loss reserves. The first is represented in the entity POLICY METRIC. This is the more general approach. The attribute Insurance Metric Type Cd specifies different kinds of policy amounts. The attributes listed in this entity are intended as recommendations and depending on implementation.’ 12-48 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . unearned premium. appropriate attributes can be added. this attribute specifies the premium amount that must be paid by the policyholder to the insurance company. If the period code indicates ‘month’ and the period value contains ‘6.Agreement.Party and Feature view (refer to Figures 12-24 and 12-25).Agreement. Metrics at Various Levels Metrics including premium amounts can be stored at the following levels: • Policy – POLICY METRIC (general approach) or INSURANCE ACCOUNT HISTORY (specific approach) • Policy Coverage – POLICY COVERAGE METRIC • Policy Coverage for a Party – POLICY PARTY COVERAGE METRIC • Policy Coverage for an Asset – POLICY ASSET COVERAGE METRIC • Policy coverage for an insurable interest – POLICY INS INT COVERAGE METRIC Payer of Premium The entity ACCOUNT PARTY is used to associate parties with agreements.00. and unearned premiums.Asset and Feature view and the Insurance . ACCOUNT PARTY can be used to specify who is pays the policy premium. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-49 . or an employer of the insured. If two or more parties contribute to the premium payment. such as the insured. the attribute Allocation Pct can specify for each party the percentage allocation of premium to be paid.Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Thus. 12-50 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09.00 This page intentionally left blank.00. Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Figure 12-20 Insurance .Metric and Premium AGREEMENT AGREEMENT ASSET Account Num Account Modifier Num PARTY Party Id Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind has involvement with ACCOUNT PARTY Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt Account Party End Dt Allocation Pct Account Party Amt Acct Crncy Acct Party Amt has asset of Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) Agreement Asset End Dt POLICY METRIC CHANGE HISTORY Agreement Categ Cd Account Num (FK) Account Modifier Num (FK) Policy Summary Dttm INSURANCE AGREEMENT Account Num (FK) Account Modifier Num (FK) Life Line Ind Property Casualty Ind Health Ind Insurance Agreement Categ Cd (FK) has policy history of Time Period Cd (FK) Premium Rev Net Change Amt Acct Crncy Premium Rev NC Amt Surcharge Rev Net Change Amt Acct Crncy Surchrg Rev NC Amt Lump Sum Rev Net Change Amt Acct Crncy Lump Sum Rev NC Amt Unearn Prem Rev Net Change Amt Acct Crncy Unearn Prem NC Amt Loan Ledger Bal Net Change Amt Acct Crncy Loan Ledger NC Amt Written Premium Net Change Amt Acct Crncy Written Prem NC Amt has involvement with AGMT PARTY FEATURE Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt (FK) Feature Id (FK) Party Relatd Feat Start Dt Overridden Feature Id (FK) Acct Party Feature End Dt Asset Contract Role Cd ACCT INSURED ASSET Account Num (FK) Account Modifier Num (FK) Party Asset Id (FK) Asset Contract Role Cd (FK) Agreement Asset Start Dt (FK) Acct Insur Asset Amt Account Asset Premium Amt Acct Insured Asset Reins Ind Acct Crncy Acct Insur Ast Amt Acct Crncy Asset Premium Amt Account Num (FK) Account Modifier Num (FK) Feature Id (FK) Account Feature Role Cd (FK) Account Feature Start Dt Insurable Interest Categ Cd (FK) Insur Interest Expos Type Cd (FK) Catatrophe Exposure Ind is insured by INSURANCE ACCOUNT HISTORY has history in Account Feature End Dt Overridden Feature Id (FK) Account Feature Amt Account Feature Rate Account Feature Qty Account Feature Num Account Feature UOM Cd (FK) Interest Index Cd (FK) has amount history Account Num (FK) Account Modifier Num (FK) Insurance Status Start Dttm Insurance Status End Dttm Regular Premium Period Cd (FK) Regular Premium Period Num Insur Status Reason Type Cd (FK) Insur Acct Status Type Cd (FK) Premium Amt Acct Crncy Premium Amt Expiration Dttm Installment Charge Amt Acct Crncy Installmnt Chrg Amt Premium Payment Mode Cd (FK) has features in ACCT INSURED ASSET FEAT Account Num (FK) Account Modifier Num (FK) Feature Id (FK) Party Asset Id (FK) Asset Contract Role Cd (FK) Agreement Asset Start Dt (FK) Acct Asset Feature Start Dt Acct Asset Feature End Dt Overridden Feature Id (FK) has amount history of POLICY PARTY COVERAGE METRIC Time Period Cd (FK) Policy Party Coverage Amt Policy Party Coverage Rate Policy Party Coverage Cnt Acct Crncy Pol Prty Cov Amt Unit Of Measure Cd (FK) Insurable Interest Id ACCOUNT FEATURE has amount of Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt (FK) Feature Id (FK) Party Relatd Feat Start Dt (FK) Insurance Metric Type Cd (FK) Policy Party Cov Met Start Dt Policy Party Cov Met End Dt INSURABLE INTEREST insures is characterized by has features in Account Num (FK) Account Modifier Num (FK) Asset Contract Role Cd (FK) Party Asset Id (FK) Agreement Asset Start Dt POLICY COVERAGE METRIC Account Modifier Num (FK) Account Num (FK) Feature Id (FK) Account Feature Start Dt (FK) Account Feature Role Cd (FK) Insurance Metric Type Cd (FK) Policy Cov Metric Start Dt Policy Cov Metric End Dt Time Period Cd (FK) Policy Coverage Amt Policy Coverage Rate Policy Coverage Cnt Acct Crncy Policy Cov Amt Unit Of Measure Cd (FK) has amount of POLICY METRIC Account Num (FK) Account Modifier Num (FK) Insurance Metric Type Cd (FK) Policy Metric Start Dt Policy Metric End Dt POLICY ASSET COVERAGE METRIC PREMIUMs ARE A TYPE OF METRIC Time Period Cd (FK) Policy Amt Policy Rate Policy Cnt Acct Crncy Policy Amt Unit Of Measure Cd (FK) Feature Id (FK) Acct Asset Feature Start Dt (FK) Account Modifier Num (FK) Asset Contract Role Cd (FK) Party Asset Id (FK) Agreement Asset Start Dt (FK) Account Num (FK) Insurance Metric Type Cd (FK) Policy Asset Cov Metric St Dt Policy Asset Cov Metric End Dt Time Period Cd (FK) Policy Asset Cov Amt Policy Asset Cov Rate Policy Asset Cov Cnt Acct Crncy Pol Asset Cov Amt Unit Of Measure Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret AGREEMENT INSURABLE INTEREST Account Num (FK) Account Modifier Num (FK) Insurable Interest Id (FK) Agmt Insurable Int Role Cd (FK) Agmt Insurable Int Strt Dt Agmt Insurable Int End Dt has feature of AGMT INSURABLE INT FEATURE Account Num (FK) Account Modifier Num (FK) Insurable Interest Id (FK) Agmt Insurable Int Role Cd (FK) Agmt Insurable Int Strt Dt (FK) Feature Id (FK) Agmt Ins It Feat Start Dt Agmt Ins Int Feat End Dt has amount of POLICY INS INT COVERAGE METRIC Account Num (FK) Insurable Interest Id (FK) Agmt Insurable Int Role Cd (FK) Agmt Insurable Int Strt Dt (FK) Agmt Ins It Feat Start Dt (FK) Account Modifier Num (FK) Insurance Metric Type Cd (FK) Feature Id (FK) Pol Ins Int Cov Met Start Dt Pol Ins It Cov Met End Dt Time Period Cd (FK) Policy Ins Int Coverage Amt Acct Crncy Ins Int Cov Amt Policy Ins Int Coverage Rate Policy Ins Int Coverage Cnt Unit Of Measure Cd (FK) .Agreement. . • Obligatory or Treaty reinsurance – is for a group or portfolio of policies. • Surplus reinsurance – the reinsurer does not participate in the risk. The direct insurer becomes the “cedant”. Reinsurance is the transfer of risk that a direct insurer assumes by way of insurance contracts with the insured to a second insurance carrier. individual policies or certain risks within a policy can be reinsured. • Non proportional reinsurance – no predetermined ratio.Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Reinsurance The entity ACCT ACCT RELATIONSHIP can be used to associate a reinsured policy risk (account) with the policy account(s) that is (are) reinsuring it. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-53 . This is a view into the agreement to reinsure. There may be deductibles and a not to exceed amount. The reinsurance company accepts a share of the risk. The reinsurer can also sell a share of the risk to another reinsurer which is called retrocession. Cession is the transfer of risk to the reinsurance company. There can be creative variations to the terms of the contracts and the rules which govern which risks for which policy for which policy portfolio are reinsured. from the perspective of the seller and the buyer. The quota defines how liability. The direct insurer is obligated to cede the agreed upon share of risks and the reinsurer is obligated to accept the risk There are also different ways the premiums and losses are divided between the parties to the reinsurance agreement: • Proportional Reinsurance – the losses and premiums are divided based on terms specified in the reinsurance contract. premiums and losses are distributed between the insurer and the reinsurer. and becomes the retroceding company. • Quota share reinsurance – the reinsurer assumes an agreed upon fixed percentage (quota) of all the insurance policies by a direct insurer within a particular branch or branches defined by the treaty. Entire books of business. The retrocessionaire accepts a share of the risk for which it is liable. the reinsurer. Acct Relationship Type Cd is used to define the relationship between accounts such as ‘is reinsured by’ or reinsures. It is also possible that the insurer also reinsures other policies or that the insurer’s entire business is reinsurance. It is possible that the policy has been reinsured which will reduce the exposure of this policy to the direct insurer. Losses are apportioned based on the amount of the loss as defined by the treaty terms. The direct insurer retains all the risk up to a certain amount of liability. who has no direct contractual relationship with the insured. There are also different types of reinsurance agreements: • Facultative reinsurance – the direct insurer chooses which risks to reinsure and the reinsure chooses which risks to insure. The reinsurer accepts liability on the surplus over the limit. As the buyer of a reinsurance you may not have access to the details of the underlying policies. The limit amount is an instance of FEATURE and is an AMOUNT FEATURE.geographic area – included (GEOGRAPHICA AREA SUBJECT) y houses worth over $1 million .00 In the FS-LDM the reinsurance agreement is a REINSURANCE AGREEMENT which is a type of AGREEMENT. The rules for selecting the risks that make up the reinsurance agreement are specified in REINSURANCE AGMT RESTRICTION. The terms and conditions of the reinsurance agreement are instances of ACCOUNT FEATURE. A reinsurance agreement can have many combinations of restrictions. If only certain coverages for certain insurable interests are being reinsured then that is represented in REINSURANCE UNDERLY COVERAGE. The policies being reinsured are in ACCT ACCT RELATIONSHIP. if the reinsurance agreement is restricted to houses in Florida worth over $1million then the restrictions are: y Florida .asset classification – included (ASSET CLASSIFICATION SUBJECT) Each restriction for each agreement is one instance. For example. The subtypes to the SUBJECT entity contain the restriction instances.00. There is one instance for each restriction value.000 (Feature) covers a specific car (insurable interest) for a given policy (Agreement). Entity AGMT INSURABLE INT FEAT FEAT contains those features that describe other features for a given insurable interest for a given policy being reinsured. 12-54 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09. For example. the attachment point is a limit where the portion of the risk above the limit is assumed by the reinsurer and below the limit is assumed by the ceding company. This model will then allow you to go from the restriction rule to the underlying policies and coverages that satisfy that rule. For example: Bodily Injury (Feature) with limit of $500. is overridden RISK AGMT INSURABLE INT FEAT FEAT is reinsured by Account Num (FK) Account Modifier Num (FK) Insurable Interest Id (FK) Agmt Insurable Int Role Cd (FK) Agmt Insurable Int Strt Dt (FK) Agmt Ins It Feat Start Dt (FK) Feature Id (FK) Related Feature Id (FK) Agmt Ins Int Feat Feat Strt Dt Agmt Ins Int Feat Feat End Dt REINSURANCE AGREEMENT is coverage for FEATURE reinsures Z Feature Id REINSURANCE AGMT RESTRICTION REINSURANCE AGREEMENT Reinsurance Acct Num (FK) Reinsurance Acct Modifier Num (FK) Reinsurance Restrict Role Cd (FK) Subject Id (FK) Reinsurance Acct Num (FK) Reinsurance Acct Modifier Num (FK) Reinsurance Plan Type Cd (FK) Reinsurance Contract Type Cd (FK) is restricted by Cd (FK) Reinsurance Trigger Type Reinsurance Note Txt Reinsurance Bus Covered Txt Feature Type Cd (FK) Feature Classification Cd (FK) Feature Desc Feature Name Common Feature Name Feature Category Type Cd (FK) Feature Level Cnt REINSURANCE RESTRICTION RULES is a is restriction for SUBJECT Z Subject Id FEATURE SUBJECT Subject Type Cd (FK) Subject Id (FK) Feature Id (FK) Subject Type Cd Z Z PRODUCT GROUP SUBJECT Subject Id (FK) Product Group Id (FK) is a Z Z Z PARTY CLASSIFICATION SUBJECT Subject Id (FK) Party Class Value Cd (FK) Party Classification Cd (FK) Z is a Z PARTY GROUP SUBJECT Subject Id (FK) ASSET CLASSIFICATION SUBJECT Subject Id (FK) Subject Id (FK) Party Group Id (FK) Party Asset Value Cd (FK) Party Asset Class Cd (FK) Z is a PRODUCT GROUP AGREEMENT CLASS SUBJECT Z is a PARTY SUBJECT Subject Id (FK) Z Parent Prod Group Id (FK) Product Group Desc Product Group Start Dt Product Group End Dt Product Group Level Num Product Group Reason Type Cd (FK) parent of Party Class Value Cd Party Classification Cd (FK) Parent Party Class Value Cd (FK) Party Class Value Desc Party Classification From Meas Party Classification To Meas Unit Of Measure Cd (FK) Party Class Value Start Dttm Party Class Value End Dttm is parent of PARTY GROUP Z PARTY ASSET CLASS VALUE Party Group Id Party Group Desc Party Group Name Party Group Start Dt Party Group Data Source Cd (FK) Parent Party Group Id (FK) Party Group Reason Type Cd (FK) is parent of is a Party Asset Value Cd Party Asset Class Cd (FK) Parent Party Asset Value Cd (FK) Party Asset Value Desc Party Asset Class From Meas Party Asset Class To Meas Unit Of Measure Cd (FK) Party Asset Class Val St Dttm Party Asset Class Val End Dttm is parent of GEOGRAPHIC AREA SUBJECT Agreement Class Value Cd (FK) Agreement Classification Cd (FK) Subject Id (FK) Z Geographical Area Id (FK) Party Id (FK) PARTY CLASS VALUE Product Group Id Z Z is a Z GEOGRAPHICAL AREA Geographical Area Id (FK) PARTY Party Id Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Geographical Area Type Cd (FK) Geographical Area Short Name Geographical Area Name Geographical Area Desc Currency Cd (FK) Z AGREEMENT GROUP SUBJECT Subject Id (FK) Account Group Id (FK) is a Z is a ACCOUNT GROUP AGREEMENT CLASS VALUE Agreement Class Value Cd Agreement Classification Cd (FK) Parent Agmt Class Value Cd (FK) Agreement Class Value Desc Agreement Class From Meas Agreement Class To Meas Unit Of Measure Cd (FK) Agmt Class Value Start Dttm Agmt Class Value End Dttm is parent of Account Group Id Account Group Name Account Group Desc Account Group Start Dt Account Group End Dt Analytical Model Id (FK) Account Group Reason Type Cd (FK) Parent Account Group Id (FK) Data Source Cd (FK) is parent of .Reinsurance AGREEMENT is related with is related to ACCT ACCT RELATIONSHIP Account Num (FK) Account Modifier Num (FK) Related Account Num (FK) Related Account Modifier Num (FK) Acct Relationship Type Cd (FK) Acct Acct Relationship St Dt Acct Acct Relationship End Dt UNDERLYING POLICIES BEING REINSURED ACCOUNT FEATURE Account Num Account Modifier Num Agreement Categ Cd Z INSURANCE AGREEMENT Account Num (FK) Account Modifier Num (FK) Feature Id (FK) Account Feature Role Cd (FK) Account Feature Start Dt Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) is characterized by REINSURANCE UNDERLY COVERAGE Underlying Account Mod Num (FK) Underlying Account Num (FK) Insurable Interest Id (FK) Agmt Insurable Int Role Cd (FK) Agmt Insurable Int Strt Dt (FK) Agmt Ins It Feat Start Dt (FK) Agmt Ins Int Feat Feat Strt Dt (FK) Feature Id (FK) Related Feature Id (FK) Reinsurance Acct Num (FK) Reinsurance Acct Modifier Num (FK) Life Line Ind Property Casualty Ind Health Ind Insurance Agreement Categ Cd (FK) Insurance Agreement Categ Cd describes Account Feature End Dt Overridden Feature Id (FK) Account Feature Amt Account Feature Rate Account Feature Qty Account Feature Num Account Feature UOM Cd (FK) Interest Index Cd (FK) REINSURED RISK Account Num (FK) Account Modifier Num (FK) Terms of the Reinsurance Agreement such as the attachment point.Agreement.Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Figure 12-21 Insurance . . Agreement Risk INSURANCE RISK FACTOR RELATED AGREEMENT APPLICATION Application Id involves Application Completed Dt Promo Id (FK) Planned Account Open Dt Application Received Dt Application Signed Dt Product Group Id (FK) Application Type Cd (FK) Document Id (FK) belongs to PARTY APPLICATION Party Id (FK) Application Id (FK) Contract Party Role Cd (FK) Application Party Start Dt Application Party End Dt APPLICATION INSUR RISK CATEG Application Id (FK) Appl Risk Category Start Dt Related Insur Risk Factor Cd (FK) Insurance Risk Factor Cd (FK) Insur Risk Factor Rel Cd (FK) Insur Risk Factor Rel Start Dt Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) Insur Risk Factor Rel End Dt relates to relates with INSURANCE RISK FACTOR TYPE Insurance Risk Factor Cd classifies Insurance Risk Factor Desc belongs to ACCOUNT INSURANCE RISK CATEG Account Num (FK) Account Modifier Num (FK) Acct Risk Category Start Dt Insurance Risk Category Cd (FK) Acct Risk Category End Dt Insurance Risk Category Cd (FK) Appl Risk Category End Dt INSUR RISK FACTOR RISK CATEG Contract Party Role Cd describes Party Id (FK) Application Id (FK) Contract Party Role Cd (FK) Application Party Start Dt (FK) Underwrite Class Cd (FK) Risk Factor Risk Categ End Dt describes INSURED PARTY APPLICATION UNDERWRITE CLASS describes INSURANCE RISK CATEGORY Underwrite Class Cd Underwrite Class Desc Insurance Risk Category Cd (FK) Insurance Risk Category Cd (FK) Insurance Risk Factor Cd (FK) Risk Factor Risk Categ Strt Dt describes Insurance Risk Category Cd classifies Parent Insur Risk Category Cd (FK) Insurance Risk Category Desc roles up to Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-57 .Agreement. An insurance company’s underwriting rating classes (UNDERWRITE CLASS) can also be associated with an INSURANCE RISK CATEGORY.Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Agreement Risk The entity INSURANCE RISK CATEGORY can be used to define as many risk classifications as are needed by the insurance company. Insured parties who have the same characteristics can be grouped and assigned to an underwriting rate class (INSURED PARTY APPLICATION) for rate-making purposes. Applications. ACCOUNT INSURANCE RISK CATEG. agreements. and risk factors can all be assigned to various risk categories (APPLICATION INSUR RISK CATEG. and INSUR RISK FACTOR RISK CATEG). Figure 12-22 Insurance . and features. Both policies have the optional coverage of Property Damage Liability. the entity ACCOUNT FEATURE is used to define such change(s). anesthesia. Product Level In the rare case that the insurer and insured decide that a specific policy (agreement) will deviate from the packaged product level elements and standard features which comprise an insurance product. Property Damage Liability. The entity ACCOUNT FEATURE shows which FEATUREs are applicable for each AGREEMENT. deductible amounts. Each product may consist of mandatory and optional FEATUREs. X-rays.00. as defined by the attribute Prod Feat Rel Type Cd in PRODUCT FEATURE. ACCOUNT PRODUCT HISTORY. Scenario: Two policies are issued. medicines. each for the same product (Standard Motorist insurance). Overridden Features. The following sample tables help to explain the relationships between products. or conditions for coverage) belonging to a certain feature (such as coverage). the entity ACCOUNT FEATURE FEATURE is used to define the change.00 Product and Feature Agreement Mandatory and Optional Features At any one moment and over time. An available optional coverage (feature) is a High Deductible that replaces the Standard Deductible that allows an insured to self-insure expected losses – those of high frequency and low severity. The attribute Feature Id in ACCOUNT FEATURE FEATURE points to the chosen (sub)feature belonging to the entity ACCOUNT FEATURE. and covered medically related expenses (services) including medical or dental procedures or treatments such as surgery.Teradata Financial Services Logical Data Model Reference Guide Release 09. Overridden Features. the attribute AFF Overridden Feature Id in ACCOUNT FEATURE FEATURE defines which (sub)feature is replaced. the attribute Overridden Feature Id defines which product element or standard/basic coverage feature has been overridden or replaced. and operating room expenses. In the given example please note that not all entity attributes are listed. alphabetic prefixes have been added to major entity identifiers. Policy # 2 12-58 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Examples of features are insurance exceptions and coverage limitations such as Personal Injury Protection. The attribute Feature Id of ACCOUNT FEATURE points to the chosen feature(s). optionally. and premium amounts. For improved readability. Feature Level FEATUREs such as Personal Injury Protection (PIP) coverage are described by other features that specify details such as standard or basic liability limits. Start date (inception) and end date (expiration) in ACCOUNT FEATURE define the date and. exceptions/exclusions. each customer AGREEMENT is allowed to be associated with more than on product. time of day during which the feature was associated with the agreement. In the rare case that the insurer and insured decide that a specific policy (agreement) will deviate from the packaged (sub) features (such as a standard limit or deductible amount. policies. Table PRODUCT FEATURE shows that Feature F1. the deductible amount for the Property Damage Liability coverage is $100.Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area has chosen the High Deductible feature that replaces the Standard Deductible feature. Property Damage Liability coverage. and is not related to any other Feature. PRODUCT Product Id Product Name P1 Standard Automobile FEATURE Feature Id Feature Name Feature Type Cd F1 Property Damage Liability 1 F2 Standard Deductible 2 F3 High Deductible 2 PRODUCT FEATURE Product Id Feature Id Prod Feat Rel Type Cd P1 F1 2 PROD FEAT REL TYPE Prod Feat Rel Type Cd Prod Feat Rel Type Desc 1 Mandatory Feature 2 Optional Feature Feature/Feature Relationship The following five sample tables show that Feature F1 (Property Damage Liability coverage) is related to Feature F2. term and fee features. Product and Feature There is one Product with identifier P1 and there are three Features. In this example.00. and F3. F2. Feature F3 is also an Amount Feature. Feature F2 is an Amount Feature with a value of $100. with identifiers F1. with a value of $250. So. there are no rate. is an optional feature of Product P1.00. FEATURE Feature Id Feature Name Feature Type Cd F1 Property Damage Liability 1 F2 Standard Deductible 2 F3 High Deductible 2 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-59 . The entity ACCOUNT FEATURE shows that both Agreements have the Feature F1. Both Agreements are for Product P1. which replaces the Standard Deductible (Feature F2). 12-60 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Property Damage Liability (Feature F1) is related to the High Deductible (Feature F3).00 AMOUNT FEATURE Feature Id Feature Amt F2 100.Teradata Financial Services Logical Data Model Reference Guide Release 09.00. ACCOUNT PRODUCT HISTORY Account Num Account Num Modifier Product Id A1 M1 P1 A2 M2 P1 ACCOUNT FEATURE Account Num Account Modifier Num Feature Id A1 M1 F1 A2 M2 F1 Agreement and Feature ACCOUNT FEATURE FEATURE shows that for Agreement A2.00 F3 250. A1 and A2. which is coverage for Property Damage Liability.00 FEATURE TYPE Feature Type Cd Feature Type Desc 1 super feature 2 amount feature 3 rate feature 4 fee feature 5 term feature PRODUCT FEATURE FEATURE Product Id Feature Id Related Feature Id Feature Relationship Type Cd P1 F1 F2 2 ( standard) P1 F1 F3 1 ( optional) Agreement and Product There are two Agreements. application. Here follow the corresponding entities for agreement. Table 12-1 Entities for Agreement. Application. and Quotation Agreement Application Quotation AGREEMENT APPLICATION QUOTATION ACCOUNT FEATURE APPLICATION FEATURE QUOTATION FEATURE ACCOUNT FEATURE FEATURE APPLICATION FEATURE FEATURE QUOTATION FEATURE FEATURE Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-61 . Application. and Quotation Note: The modeling for insurance products and features related to applications and quotations is similar to the modeling related to agreements. and quotation.Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area ACCOUNT FEATURE FEATURE Account Num Account Modifier Num Feature Id Related Feature Id AFF Overridden Feature Id A2 M2 F1 F3 F2 Agreement. 00. 12-62 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank.Teradata Financial Services Logical Data Model Reference Guide Release 09. Agreement.Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Figure 12-23 Insurance .Product and Feature AGREEMENT Account Num Account Modifier Num QUOTATION Quotation Id Quotation Categ Cd (FK) Campaign Id (FK) Quote Status Type Cd (FK) Quote Close Reason Cd (FK) Quote Origin Cd (FK) Application Id (FK) Quotation Amt Current Quote Status Start Dt Quotation Open Dt Quotation Expiration Dt Quotation Close Dt Quote Ceiling Amt Acct Crncy Quote Amt Acct Crncy Ceiling Amt Quote Planned Account Open Dt Quote Planned Account Close Dt Agreement Objective Type Cd (FK) is characterized by Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) has subfeatures Account Num (FK) Account Modifier Num (FK) Feature Id (FK) Account Feature Role Cd (FK) Account Feature Start Dt (FK) Related Feature Id (FK) Related Acct Feature Role Cd (FK) Account Relatd Feat Start Dt Account Relatd Feat End Dt AFF Overridden Feature Id (FK) Account Feat Feat Amt Account Feat Feat Rate Account Feat Feat Qty Account Feat Feat Num Account Feat Feat UOM Cd (FK) may be for product APPLICATION FEATURE FEATURE Account Num (FK) Account Modifier Num (FK) Feature Id (FK) Account Feature Role Cd (FK) Account Feature Start Dt Application Id (FK) Feature Id (FK) Application Feature Role Cd (FK) Application Feature Start Dt (FK) Related Feature Id (FK) Related Appl Featue Role Cd (FK) Appl Related Feature Start Dt Account Feature End Dt Overridden Feature Id (FK) Account Feature Amt Account Feature Rate Account Feature Qty Account Feature Num Account Feature UOM Cd (FK) Interest Index Cd (FK) ACCOUNT FEATURE FEATURE describes Appl Related Feature End Dt Appl FF Overridden Feature Id (FK) Application Feat Feat Amt Application Feat Feat Rate Application Feat Feat Qty Application Feat Feat Num Application Feat Feat UOM Cd (FK) is overridden is overridden has special is overridden is specific to is specific to FEATURE Feature Id ACCOUNT PRODUCT HISTORY Account Num (FK) Account Modifier Num (FK) Product Id (FK) Agreement Product Role Cd (FK) Acct Product Assoc Start Dt PRODUCT FEATURE Product Id (FK) Feature Id (FK) Prod Feat Rel Type Cd (FK) Product Feature Start Dt Product Feature End Dt Acct Product Assoc End Dt Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind describes describes is overridden PRODUCT FEATURE FEATURE PRODUCT Product Id Feature Type Cd (FK) Feature Classification Cd (FK) Feature Desc Feature Name Common Feature Name Feature Category Type Cd (FK) Feature Level Cnt has subfeatures describes has led to ACCOUNT FEATURE has terms and conditions of APPLICATION Application Id Application Completed Dt Promo Id (FK) Planned Account Open Dt Application Received Dt Application Signed Dt Product Group Id (FK) Application Type Cd (FK) Document Id (FK) Product Id (FK) Feature Id (FK) Product Feature Start Dt (FK) Prod Feat Rel Type Cd (FK) Related Feature Id (FK) Prod Related Feat Rel Type Cd (FK) Product Relatd Feat Start Dt Product Relatd Feat End Dt is specific to is overridden is specific to is specific to QUOTATION FEATURE Quotation Id (FK) Feature Id (FK) Quotation Feature Role Cd (FK) Quotation Feature Start Dt Quotation Feature End Dt Overridden Feature Id (FK) Quotation Feature UOM Cd (FK) Quotation Feature Amt Quotation Feature Rate Quotation Feature Qty Quotation Feature Num has terms and conditions of has special Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret is overridden is further described by APPLICATION FEATURE Feature Id (FK) Application Id (FK) Application Feature Role Cd (FK) Application Feature Start Dt Application Feature End Dt Appl Overridden Feature Id (FK) Application Feature UOM Cd (FK) Application Feature Amt Application Feature Rate Application Feature Qty Application Feature Num QUOTATION FEATURE FEATURE Feature Id (FK) Quotation Id (FK) Quotation Feature Role Cd (FK) Quotation Feature Start Dt (FK) Related Feature Id (FK) Related Quote Feature Role Cd (FK) Quotation Feat Feat Start Dt Quotation Feat Feat End Dt Overridden Feature Id (FK) Quotation Feat Feat Amt Quotation Feat Feat Rate Quotation Feat Feat Qty Quotation Feat Feat Num Quotation Feat Feat UOM Cd (FK) . . independent agent. the share percentage of commission compensation and how commissions are paid to the agent. Quotation and Party The relationships between QUOTATION and PARTY are similar to those between agreements and parties. additional information is to be found in the entity AGENT BROKER ACCOUNT DETAIL. captive/exclusive agent.. what role the agent plays in the application (i. and applications and parties. Examples include. For every PARTY that has a role toward an AGREEMENT.Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Agreement Application. Quotation. there is an instance in ACCOUNT PARTY. The attribute Account Party Role Cd specifies the role. The LIFE LINE QUOTATION entity is a type of Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-65 . the underwriting class code assigned to that party is found in the entity INSURED PARTY APPLICATION. and Party Agreement and Party Many different parties are involved with agreements (policies). agent of record. If the attribute Account Party Role Cd in ACCOUNT PARTY indicates the party has a role of insured. Examples of commission types are new business and renewed account. If the attribute Contract Party Role Cd in PARTY APPLICATION specifies an agent. general agent). If the attribute Contract Party Role Cd in PARTY APPLICATION specifies the party to be insured.e. The entity INSURANCE QUOTATION specifies information for an insurance quotation. This is further shown by UNDERWRITER PARTY APPLICATION. ACCOUNT INSURED PARTY contains information specific to the parties insured by the policy. additional information is found in the entity AGENT APPLICATION DETAIL. Those relationships are defined in the entity PARTY QUOTATION. Those relationships are defined in the entity PARTY APPLICATION. Examples of these roles are: • insured person • beneficiary • payer of the premium • agent for this agreement • broker for this agreement If the attribute Account Party Role Cd in ACCOUNT PARTY specifies an agent of record or a broker. such as the commission rate as a percentage of the premium generated and the commission type code. Application and Party The relationships between APPLICATION and PARTY are similar to those between agreements and parties as described above. The attribute Contract Party Role Cd in PARTY APPLICATION may specify the party who will do the underwriting for the application. Teradata Financial Services Logical Data Model Reference Guide Release 09.00. 12-66 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 insurance quotation that contains the information specific to a quote for life insurance. and Party APPLICATION AGREEMENT TO APPLICATION Application Id (FK) Account Num (FK) Account Modifier Num (FK) Agreement Appl Role Cd (FK) Agmt To Application Start Dt was started from AGREEMENT Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) has led to Agmt To Application End Dt ACCOUNT PARTY has involvement with Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt Account Party End Dt Allocation Pct Account Party Amt Acct Crncy Acct Party Amt PARTY QUOTATION Application Id Application Completed Dt Promo Id (FK) Planned Account Open Dt Application Received Dt Application Signed Dt Product Group Id (FK) Application Type Cd (FK) Document Id (FK) AGENT BROKER ACCOUNT DETAIL led to Party Quotation End Dt has party of QUOTATION involves Quotation Id PARTY APPLICATION Party Id (FK) Application Id (FK) Contract Party Role Cd (FK) Application Party Start Dt Application Party End Dt Account Party Role Cd Party Id (FK) Quotation Id (FK) Contract Party Role Cd (FK) Party Quotation Start Dt Contract Party Role Cd Account Num (FK) Account Modifier Num (FK) Account Party Start Dt (FK) Account Party Role Cd (FK) Party Id (FK) Quotation Categ Cd (FK) Campaign Id (FK) Quote Status Type Cd (FK) Quote Close Reason Cd (FK) Quote Origin Cd (FK) Application Id (FK) Quotation Amt Current Quote Status Start Dt Quotation Open Dt Quotation Expiration Dt Quotation Close Dt Quote Ceiling Amt Acct Crncy Quote Amt Acct Crncy Ceiling Amt Quote Planned Account Open Dt Quote Planned Account Close Dt Agreement Objective Type Cd (FK) Quotation Categ Cd INSURANCE QUOTATION Quotation Id (FK) Regular Premium Period Cd (FK) Insurance Type Cd (FK) Premium Payment Mode Cd (FK) Deviation Pct Discount Amt Discount Reason Desc Premium Amt Regular Premium Period Num Document Id (FK) Commission Type Cd (FK) Commission Rate Insurance Type Cd AGENT APPLICATION DETAIL ACCOUNT INSURED PARTY Account Num (FK) Account Modifier Num (FK) Account Party Start Dt (FK) Account Party Role Cd (FK) Party Id (FK) Member Num INSURED PARTY APPLICATION Party Id (FK) Application Id (FK) Contract Party Role Cd (FK) Application Party Start Dt (FK) UNDERWRITER PARTY APPLICATION Party Id (FK) Application Id (FK) Contract Party Role Cd (FK) Application Party Start Dt (FK) Underwrite Class Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Party Id (FK) Application Id (FK) Contract Party Role Cd (FK) Application Party Start Dt (FK) Agent Commission Option Cd (FK) Agent Participation Type Cd (FK) Commission Share Pct Agent Report Ind LIFE LINE QUOTATION Quotation Id (FK) Fund Source Type Cd (FK) Life Line Strategy Type Cd (FK) Lump Sum Amt Maturity Dt Policy Initial Payment Amt .Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Figure 12-24 Insurance . Quotation.Agreement.Application. . In many cases. Application. are subtyped as shown in the diagram (APPL INSURED ASSET. art. The attribute Acct Insured Asset Reins Ind in this entity indicates whether this insured customer asset should be reinsured. To separate collateral value from insured value. and boats. furs. such as a building. In the world of BancAssurance. can be associated with APPLICATIONs. These associations are defined in APPLICATION ASSET. The entity ACCT INSURED ASSET not only contains the attribute Acct Insur Asset Amt. QUOTE INSURED ASSET and ACCT INSURED ASSET). This allows specification of the premium on an insured customer asset level. jewelry. the three association entities between customer asset and application. the same customer asset. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-69 . QUOTATION ASSET and AGREEMENT ASSET. the banking side is not shown in this diagram. quotation. and Asset PARTY ASSETs such as automobiles. QUOTATIONs. Quotation. but also the attribute Account Asset Premium Amt. can be collateral for one (loan) account and an insured object for another (insurance) account. the collateral value of the building will not be the same as the insured value of the building. houses. and account.Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Agreement. and AGREEMENTs. respectively. Teradata Financial Services Logical Data Model Reference Guide Release 09. 12-70 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank.00. Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Figure 12-25 Insurance - Agreement.Agreement, Application, Quotation and Asset APPLICATION Application Id AGREEMENT TO APPLICATION Application Id (FK) Account Num (FK) Account Modifier Num (FK) Agreement Appl Role Cd (FK) Agmt To Application Start Dt was started from AGREEMENT Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) has led to Agmt To Application End Dt ACCOUNT PARTY has involvement with Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt Account Party End Dt Allocation Pct Account Party Amt Acct Crncy Acct Party Amt PARTY QUOTATION Application Completed Dt Promo Id (FK) Planned Account Open Dt Application Received Dt Application Signed Dt Product Group Id (FK) Application Type Cd (FK) Document Id (FK) AGENT BROKER ACCOUNT DETAIL Party Quotation End Dt has party of Quotation Id PARTY APPLICATION Party Id (FK) Application Id (FK) Contract Party Role Cd (FK) Application Party Start Dt Contract Party Role Cd Account Num (FK) Account Modifier Num (FK) Account Party Start Dt (FK) Account Party Role Cd (FK) Party Id (FK) led to QUOTATION involves Application Party End Dt Account Party Role Cd Party Id (FK) Quotation Id (FK) Contract Party Role Cd (FK) Party Quotation Start Dt Quotation Categ Cd (FK) Campaign Id (FK) Quote Status Type Cd (FK) Quote Close Reason Cd (FK) Quote Origin Cd (FK) Application Id (FK) Quotation Amt Current Quote Status Start Dt Quotation Open Dt Quotation Expiration Dt Quotation Close Dt Quote Ceiling Amt Acct Crncy Quote Amt Acct Crncy Ceiling Amt Quote Planned Account Open Dt Quote Planned Account Close Dt Agreement Objective Type Cd (FK) Quotation Categ Cd INSURANCE QUOTATION Quotation Id (FK) Regular Premium Period Cd (FK) Insurance Type Cd (FK) Premium Payment Mode Cd (FK) Deviation Pct Discount Amt Discount Reason Desc Premium Amt Regular Premium Period Num Document Id (FK) Commission Type Cd (FK) Commission Rate Insurance Type Cd AGENT APPLICATION DETAIL ACCOUNT INSURED PARTY Account Num (FK) Account Modifier Num (FK) Account Party Start Dt (FK) Account Party Role Cd (FK) Party Id (FK) Member Num INSURED PARTY APPLICATION Party Id (FK) Application Id (FK) Contract Party Role Cd (FK) Application Party Start Dt (FK) UNDERWRITER PARTY APPLICATION Party Id (FK) Application Id (FK) Contract Party Role Cd (FK) Application Party Start Dt (FK) Underwrite Class Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Party Id (FK) Application Id (FK) Contract Party Role Cd (FK) Application Party Start Dt (FK) Agent Commission Option Cd (FK) Agent Participation Type Cd (FK) Commission Share Pct Agent Report Ind LIFE LINE QUOTATION Quotation Id (FK) Fund Source Type Cd (FK) Life Line Strategy Type Cd (FK) Lump Sum Amt Maturity Dt Policy Initial Payment Amt Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Asset and Feature It is not uncommon that several PARTY ASSETs are insured by just one policy (AGREEMENT). Some of the features associated with the policy (defined in ACCOUNT FEATURE), such as COVERAGE FEATUREs or SERVICE FEATUREs, need not apply to all Insured Assets (ACCT INSURED ASSET). The entity ACCT INSURED ASSET FEAT associates insured assets with the appropriate account features such as exclusions/exceptions and coverages (COVERAGE FEATURE) and covered services (SERVICE FEATURE). Any features including exclusions, conditions of coverage, limits, and deductibles that further describe a feature such as a coverage or service for the insured asset, are specified by means of ACCT INSUR ASSET FEAT FEAT. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-73 Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 This page intentionally left blank. 12-74 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Figure 12-26 Insurance - Agreement.Asset and Feature AGREEMENT PARTY ASSET Party Asset Id MM Object Id (FK) Asset Insurance Hist Type Cd (FK) Asset Type Cd (FK) Asset Desc Asset Acct Num Asset Next Valuation Dt Asset Next Inspection Dt Valuation Time Period Cd (FK) Asset Host Id Val has agreement of AGREEMENT ASSET Account Num (FK) Account Modifier Num (FK) Asset Contract Role Cd (FK) Party Asset Id (FK) Agreement Asset Start Dt has asset of ACCOUNT FEATURE is characterized by Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) Account Num (FK) Account Modifier Num (FK) Feature Id (FK) Account Feature Role Cd (FK) Account Feature Start Dt is overridden Account Feature End Dt Overridden Feature Id (FK) Account Feature Amt Account Feature Rate Account Feature Qty Account Feature Num Account Feature UOM Cd (FK) Interest Index Cd (FK) describes FEATURE Feature Id Feature Type Cd (FK) Feature Classification Cd (FK) Feature Desc Feature Name Common Feature Name Feature Category Type Cd (FK) Feature Level Cnt describes Agreement Asset End Dt is overridden Feature Category Type Cd SERVICE FEATURE Service Feature Id (FK) Asset Contract Role Cd ACCT INSUR ASSET FEAT FEAT ACCT INSURED ASSET FEAT ACCT INSURED ASSET Account Num (FK) Account Modifier Num (FK) Party Asset Id (FK) Asset Contract Role Cd (FK) Agreement Asset Start Dt (FK) Acct Insur Asset Amt Account Asset Premium Amt Acct Insured Asset Reins Ind Acct Crncy Acct Insur Ast Amt Acct Crncy Asset Premium Amt has features in Account Num (FK) Account Modifier Num (FK) Feature Id (FK) Party Asset Id (FK) Asset Contract Role Cd (FK) Agreement Asset Start Dt (FK) Acct Asset Feature Start Dt describes is overridden has subfeatures Acct Asset Feature End Dt Overridden Feature Id (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Account Num (FK) Account Modifier Num (FK) Asset Contract Role Cd (FK) Feature Id (FK) Related Feature Id (FK) Party Asset Id (FK) Agreement Asset Start Dt (FK) Acct Asset Feature Start Dt (FK) Asset Relatd Feat Start Dt AAFF Overridden Feature Id (FK) Asset Relatd Feat End Dt COVERAGE FEATURE Coverage Feature Id (FK) Insurance Coverage Type Cd (FK) Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Party and Feature It is not uncommon that several PARTYs are insured by just one policy (AGREEMENT). Some of the features associated with the policy (defined in ACCOUNT FEATURE), such as coverages (COVERAGE FEATURE) and covered services (SERVICE FEATURE), need not apply to all insured parties (ACCOUNT INSURED PARTY). The entity AGMT PARTY FEATURE associates insured parties with appropriate account features. Any features such as limits and deductibles that further describe other features such as coverage or service for the insured party, can be specified in AGMT PARTY FEATURE FEATURE. Group Policies If an individual is covered by means of a natural group contract or policy (such as through an employer group) then the contract between the insurance company and the employer is one instance of AGREEMENT. Each contact between the employee and the insurance company would also be an instance in AGREEMENT. The attribute INSURANCE AGREEMENT.Insurance Account Type Cd specifies the type of agreement such as individual, master policy, or true group plan. The relationship between the employer and employee (AGREEMENTs) are linked in ACCT ACCT RELATIONSHIP. The employee may have family members or dependents also covered under the employee AGREEMENT. All the covered lives, including employees, under a master group contract would be instances in ACCOUNT INSURED PARTY. Each covered life may also have its own coverages and allowed services. Coverages and services for each covered life are in AGMT PARTY FEATURE FEATURE. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-77 Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 This page intentionally left blank. 12-78 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Figure 12-27 Insurance - Agreement.Party and Feature ACCOUNT FEATURE Account Num (FK) Account Modifier Num (FK) Feature Id (FK) Account Feature Role Cd (FK) Account Feature Start Dt is characterized by Account Num Account Modifier Num has involvement with Life Line Ind Property Casualty Ind Health Ind Insurance Agreement Categ Cd (FK) Feature Id Feature Type Cd (FK) Feature Classification Cd (FK) Feature Desc Feature Name Common Feature Name Feature Category Type Cd (FK) Feature Level Cnt is overridden describes Overridden Feature Id (FK) Acct Party Feature End Dt Feature Category Type Cd has features in has subfeatures Account Party End Dt Allocation Pct Account Party Amt Acct Crncy Acct Party Amt SERVICE FEATURE AGMT PARTY FEATURE FEATURE Account Party Role Cd Account Num (FK) Account Modifier Num (FK) Account Party Start Dt (FK) Account Party Role Cd (FK) Party Id (FK) FEATURE Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt (FK) Feature Id (FK) Party Relatd Feat Start Dt Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt ACCOUNT INSURED PARTY Account Num (FK) Account Modifier Num (FK) AGMT PARTY FEATURE ACCOUNT PARTY Agreement Categ Cd INSURANCE AGREEMENT describes Account Feature End Dt Overridden Feature Id (FK) Account Feature Amt Account Feature Rate Account Feature Qty Account Feature Num Account Feature UOM Cd (FK) Interest Index Cd (FK) AGREEMENT Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) is overridden Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt (FK) Feature Id (FK) Party Relatd Feat Start Dt (FK) Related Feature Id (FK) Acct Party Feature Start Dt APFF Overridden Feature Id (FK) Party Relatd Feat End Dt Member Num Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Service Feature Id (FK) COVERAGE FEATURE Coverage Feature Id (FK) Insurance Coverage Type Cd (FK) describes is overridden Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area External Insurance It may be necessary to keep information about insurance policies that are not held by your institution. This may be of interest for mortgagers to understand Policy the fire and earthquake insurance for the structure being mortgaged. It is also of interest to record life insurance for an account holder. For risk management purposes, it is of interest to know how much a piece of collateral is insured. Policies held outside your institution can be tracked as another type of AGREEMENT in EXTERNAL AGREEMENT. All the coverages would be tracked in the same entities as internal agreements as shown in the diagram. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-81 00. 12-82 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09.00 This page intentionally left blank. External Insurance Policy PARTY TO PARTY ASSET PARTY ACCOUNT PARTY Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt has involvement with Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind Party Relationship Role Cd Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) Asset Use Cd (FK) Asset Relinquish Dt Relates Party Id (FK) Party Relationship Role Cd (FK) Related Party Id (FK) Party Relationship Start Dttm Party Party Party Party has involvement with Account Num Account Modifier Num is related with PARTY PARTY RELATIONSHIP HIST Account Party End Dt Allocation Pct Account Party Amt Acct Crncy Acct Party Amt AGREEMENT is related to Party Id (FK) Party Asset Id (FK) Asset Role Cd (FK) Asset Role Dt has role with Party Id PARTY PARTY INSURER Insurer Party Id (FK) Insured Party Id (FK) Party Relationship Role Cd (FK) Party Relationship Start Dttm (FK) Relationship End Dttm Structure Type Cd (FK) Rel Status Reason Cd (FK) Rel Status Type Cd (FK) Asset Role Cd PARTY ASSET INSURER Party Id (FK) Party Asset Id (FK) Asset Role Cd (FK) Asset Role Dt (FK) has coverage of has insurance of PARTY PARTY INSURANCE COVERAGE Insurer Party Id (FK) Insured Party Id (FK) Party Relationship Role Cd (FK) Party Relationship Start Dttm (FK) Insurance Coverage Type Cd (FK) Insurance Coverage Start Dttm External Agreement Ind is for Account Num (FK) Account Modifier Num (FK) Party Insurance Coverage Amt Insurance Coverage End Dttm EXTERNAL AGREEMENT Account Num (FK) Account Modifier Num (FK) External Agreement Num External Agreement Type Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret is for PARTY ASSET INSURANCE COVERAGE Party Id (FK) Party Asset Id (FK) Asset Role Cd (FK) Asset Role Dt (FK) Insurance Coverage Type Cd (FK) Asset Insurance Start Dttm Account Num (FK) Account Modifier Num (FK) Asset Insurance Coverage Amt Asset Insurance End Dttm .Chapter 12 – Insurance Extension Detailed Data Model Description Agreement Subject Area Figure 12-28 Insurance .Agreement. . Although this is not one of the 10 major subject areas listed for the FS-LDM. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-85 . The diagram in Figure 12-29 shows all major entities in the Insurance Claim. it is an extremely important subject area for insurance.Claim Overview logical view.Chapter 12 – Insurance Extension Detailed Data Model Description Claim Subject Area Claim Subject Area This section describes the FS-LDM Subject Area Claim. 12-86 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09.00 This page intentionally left blank.00. Claim Overview PARTY CLAIM CLAIM STATUS HISTORY Claim Id (FK) Party Id (FK) Party Claim Role Cd (FK) Party Claim Start Dttm Claim Id (FK) Claim Status Start Dt has party involvement with is followed up by CLAIM RELATED CLAIM FOLLOW UP was involved with PARTY Party Id Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind is follow up party Claim Id (FK) Follow Up Channel Type Cd (FK) Follow Up Party Id (FK) Claim Follow Up Type Cd (FK) Claim Follow Up Dt Claim Follow Up Tm Claim Authorization Id CLAIM AMOUNT Claim Service Amount Val Unit Of Measure Cd (FK) Auth Approval Type Cd (FK) Account Num (FK) Claim Authorization Id (FK) Account Modifier Num (FK) CLAIM SERVICE DATE Party Id (FK) Claim Auth Application Dt Claim Id (FK) is linked to Party Claim Auth Role Cd (FK) Claim Auth Approval Dt Claim Service Start Dttm (FK) Party Claim Auth Start Dt Claim Auth Approv Per End Dt Claim Service Line Cnt Claim Auth Actual End Dt Claim Service Sequence Num (FK) Party Claim Auth End Dt Claim Auth End Reason Cd (FK) Claim Service Date Type Cd (FK) Peril Type Cd (FK) Feature Id (FK) Claim Auth Approv Per Start Dt Claim Authorization Num Claim Service Dttm Level of Service Cd (FK) CLAIM SERVICE FEATURE STATUS Claim Auth Type Cd (FK) Claim Service Start Dttm (FK) has status of Claim Id (FK) Claim Service Status Start Dt Claim Service Sequence Num (FK) Feature Id (FK) CLAIM SERVICE ASSET PARTY CLAIM AUTH PARTY ASSET Claim Service Start Dttm (FK) Claim Id (FK) Party Asset Id (FK) Claim Service Sequence Num (FK) Feature Id (FK) Party Asset Id MM Object Id (FK) Asset Insurance Hist Type Cd (FK) Asset Type Cd (FK) Asset Desc Asset Acct Num Asset Next Valuation Dt Asset Next Inspection Dt Valuation Time Period Cd (FK) Asset Host Id Val Claim Id (FK) Claim Amount Type Cd (FK) Claim Amount Sequence Num is customer asset for has amount of Claim Amount Val Unit Of Measure Cd (FK) has services has amount of Claim Id (FK) Feature Id (FK) Claim Service Start Dttm Claim Service Sequence Num Claim Type Cd (FK) Legal Action Id (FK) Peril Type Cd (FK) Claim Service End Dttm Level of Service Cd (FK) Host Claim Suffix Num Claim Service Statute Dt is characteristic of claims is against Claim Type Cd (FK) Claim Media Type Cd (FK) Orignl Claim Currency Cd (FK) Claim Submittal Type Cd (FK) Accident Type Cd (FK) Claim Category Type Cd (FK) Additional Insur Plan Ind Employment Related Ind Attorney Involvement Ind Claim Num Claim Payment Mode Cd (FK) Claim Obligation Type Cd (FK) Subrogation Eligible Cd (FK) Subrogation Elig Reason Cd (FK) CLAIM SERVICE FEATURE has dates of Account Num (FK) Account Modifier Num (FK) Claim Id (FK) Account Claim Rel Type Cd (FK) Account Claim Rel Start Dt CLAIM can have Claim Service Start Dttm (FK) Claim Id (FK) Claim Amount Type Cd (FK) Claim Service Sequence Num (FK) Feature Id (FK) ACCT CLAIM Claim Dttm Claim Id CLAIM SERVICE AMOUNT CLAIM AUTHORIZATION CLAIM DATE Claim Id (FK) Claim Date Type Cd (FK) is related to is related with Claim Id (FK) Claim Authorization Id (FK) can be for has dates of Claim Rel End Dt CLAIM CLAIM AUTH is related to Claim Srv Status Rsn Type Cd (FK) Claim Service Status Type Cd (FK) Claim Service Status End Dt Claim Id (FK) Related Claim Id (FK) Claim Relationship Type Cd (FK) Claim Rel Start Dt Claim Follow Up Id Claim Status End Dt Claim Status Reason Type Cd (FK) Claim Status Type Cd (FK) has status of Party Claim End Dttm Account Claim Rel End Dt has claim of CLAIM TO DOCUMENT has attachments of Document Id (FK) Claim Id (FK) Proof Of Loss Ind participates in INSURANCE AGREEMENT Account Num (FK) Account Modifier Num (FK) is for Life Line Ind Property Casualty Ind Health Ind Insurance Agreement Categ Cd (FK) LEGAL ACTION Legal Action Id is associated with Legal Legal Legal Legal Court Legal Action Desc Action Suit Num Action Start Dt Action End Dt Location Locator Id (FK) Action Type Cd (FK) FEATURE CLAIM CLAIM GROUP Claim Group Id (FK) Claim Id (FK) Claim Assoc Start Dt Claim Assoc End Dt CLAIM GROUP Feature Id Feature Type Cd (FK) Feature Classification Cd (FK) Feature Desc Feature Name Common Feature Name Feature Category Type Cd (FK) Feature Level Cnt CLAIM COVERAGE Claim Id (FK) Coverage Feature Id (FK) is associated with Legal Action Id (FK) Claim Coverage Statute Dt associated with is for Feature Category Type Cd CLAIM SERVICE COVERAGE Claim Id (FK) Claim Service Start Dttm (FK) Coverage Feature Id (FK) Claim Service Sequence Num (FK) Feature Id (FK) SERVICE FEATURE COVERAGE FEATURE Service Feature Id (FK) Claim Reserve Amt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret participates in Coverage Feature Id (FK) Insurance Coverage Type Cd (FK) is associated to Claim Group Id Claim Group Type Cd (FK) Claim Group Start Dt Claim Group End Dt Parent Claim Group Id (FK) parent of .Claim.Chapter 12 – Insurance Extension Detailed Data Model Description Claim Subject Area Figure 12-29 Insurance . . These can include things like radiology films. The attribute Proof of Loss Ind specifies whether a particular document serves as written proof of loss for the claim. received. The lowest level of detail for the claim is maintained in CLAIM SERVICE FEATURE. or more follow-ups (CLAIM FOLLOW UP). physical therapy certifications. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-89 . settlement. Claims and Claim Services have statuses that are recorded for them. reported. or death certificates. paid. or verifying the claim. such as sending a replacement vehicle. such as an automobile accident. and shipped. such as insufficient coverage or insufficient evidence of loss. This entity contains services or procedures that were submitted on the claim. is defined by the attribute Claim Follow Up Type Cd in the entity CLAIM FOLLOW UP. A CLAIM may have many dates recorded in CLAIM DATE. For example recorded. or for reimbursable services that were performed such as dental services or medical procedures under a group or individual policy. one. such as incurred. documented.Chapter 12 – Insurance Extension Detailed Data Model Description Claim Subject Area Claim Service Status History In general terms a CLAIM is a request for payment by an insured for indemnification by an insurance company. The date for any CLAIM SERVICE FEATURE is recorded in CLAIM SERVICE DATE. assessing damage. This request is either submitted for a loss incurred caused by an incident. Examples of these statuses include paid. or earthquake. A CLAIM may have zero. Supporting documentation associated with a claim is maintained in the CLAIM TO DOCUMENT entity. and settled. These entities also include as an attribute the reason for the status. paid. or under adjudication. rejected. The type of investigative follow-up. The status for the claim is recorded in CLAIM STATUS HISTORY and the status for the claim service is recorded in CLAIM SERVICE FEATURE STATUS. 12-90 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank.00.Teradata Financial Services Logical Data Model Reference Guide Release 09. Claim Service Status History CLAIM STATUS HISTORY CLAIM Claim Id (FK) Claim Status Start Dt Claim Id CLAIM SERVICE FEATURE has status of CLAIM SERVICE FEATURE STATUS Claim Service Start Dttm (FK) Claim Id (FK) Claim Service Status Start Dt Claim Service Sequence Num (FK) Feature Id (FK) Claim Id (FK) Feature Id (FK) Claim Service Start Dttm Claim Service Sequence Num Claim Type Cd (FK) Legal Action Id (FK) Peril Type Cd (FK) Claim Service End Dttm Level of Service Cd (FK) Host Claim Suffix Num Claim Service Statute Dt has services CLAIM TO DOCUMENT Document Id (FK) Claim Id (FK) Proof Of Loss Ind has attachments of Claim Type Cd (FK) Claim Media Type Cd (FK) Orignl Claim Currency Cd (FK) Claim Submittal Type Cd (FK) Accident Type Cd (FK) Claim Category Type Cd (FK) Additional Insur Plan Ind Employment Related Ind Attorney Involvement Ind Claim Num Claim Payment Mode Cd (FK) Claim Obligation Type Cd (FK) Subrogation Eligible Cd (FK) Subrogation Elig Reason Cd (FK) has status of CLAIM FOLLOW UP is followed up by has dates of Claim Srv Status Rsn Type Cd (FK) Claim Service Status Type Cd (FK) Claim Service Status End Dt has dates of CLAIM SERVICE DATE Claim Id (FK) Claim Service Start Dttm (FK) Claim Service Line Cnt Claim Service Sequence Num (FK) Claim Service Date Type Cd (FK) Feature Id (FK) Claim Service Dttm Time Period Cd (FK) Document Dt Document Period Start Dt Document Period End Dt Document Issuer Num Data Source Cd (FK) Document Description Txt Document Host Num Document Cycle Cd (FK) Document Type Cd (FK) MM Object Id (FK) Document Category Type Cd (FK) Unstructured Text Id (FK) Claim Follow Up Id Claim Id (FK) Follow Up Channel Type Cd (FK) Follow Up Party Id (FK) Claim Follow Up Type Cd (FK) Claim Follow Up Dt Claim Follow Up Tm is against DOCUMENTis document for Document Id Claim Status End Dt Claim Status Reason Type Cd (FK) Claim Status Type Cd (FK) ACCT CLAIM Account Num (FK) Account Modifier Num (FK) Claim Id (FK) Account Claim Rel Type Cd (FK) Account Claim Rel Start Dt Account Claim Rel End Dt has claim of INSURANCE AGREEMENT Account Num (FK) Account Modifier Num (FK) Life Line Ind Property Casualty Ind Health Ind Insurance Agreement Categ Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret CLAIM DATE Claim Id (FK) Claim Date Type Cd (FK) Claim Dttm .Chapter 12 – Insurance Extension Detailed Data Model Description Claim Subject Area Figure 12-30 Insurance .Claim. . auto body repair service can be covered under property damage coverage. The specification of the CLAIM SERVICE FEATURE is the most detailed level of a claim. Examples of COVERAGE FEATUREs include medically related expenses or personal property damage. theft. or to the CLAIM detail as represented in the CLAIM SERVICE FEATURE entity. hurricane. This specifies the services or procedures that are being reported on this claim. SERVICE FEATUREs represent services such as automobile body repair work. The CLAIM SERVICE FEATURE can be related to an insurance coverage. In the U.. Information such as start and end dates and lawsuit numbers related to legal action brought by an insured or insurer for CLAIM SERVICE FEATURE or CLAIM COVERAGE is found in LEGAL ACTION. Insurance companies can chose to relate perils such as arson. A claim can be submitted for one or many SERVICE FEATUREs. FEATURE UNIFIED COVERAGE provides the link between FEATUREs and UNIFIED COVERAGE. CLAIM SERVICE FEATURE STATUS contains the history of claim statuses at this detailed level. or heart attacks. to the CLAIM level as represented in the CLAIM PERIL entity.S. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-93 .Chapter 12 – Insurance Extension Detailed Data Model Description Claim Subject Area Claim and Feature A FEATURE for insurance purposes can be classified in a SERVICE FEATURE or a COVERAGE FEATURE. The entity CLAIM SERVICE COVERAGE associates coverage to the service or procedure provided. earthquake. Unified Coverage Codes are used when two or more insurance companies are involved in a claim. For example. 12-94 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank.Teradata Financial Services Logical Data Model Reference Guide Release 09.00. Chapter 12 – Insurance Extension Detailed Data Model Description Claim Subject Area Figure 12-31 Insurance .Claim.Claim and Feature FEATURE Feature Id Feature Type Cd (FK) Feature Classification Cd (FK) Feature Desc Feature Name Common Feature Name Feature Category Type Cd (FK) Feature Level Cnt CLAIM Claim Id Claim Type Cd (FK) Claim Media Type Cd (FK) Orignl Claim Currency Cd (FK) Claim Submittal Type Cd (FK) Accident Type Cd (FK) Claim Category Type Cd (FK) Additional Insur Plan Ind Employment Related Ind Attorney Involvement Ind Claim Num Claim Payment Mode Cd (FK) Claim Obligation Type Cd (FK) Subrogation Eligible Cd (FK) Subrogation Elig Reason Cd (FK) CLAIM COVERAGE is for is associated with Legal Action Id Legal Legal Legal Legal Court Legal has cause of associated with Legal Action Id (FK) Claim Coverage Statute Dt LEGAL ACTION Action Desc Action Suit Num Action Start Dt Action End Dt Location Locator Id (FK) Action Type Cd (FK) Feature Category Type Cd Feature Id (FK) Unified Coverage Type Cd (FK) Feat Unif Coverage Start Dt Feat Unif Coverage End Dt SERVICE FEATURE Coverage Feature Id (FK) Service Feature Id (FK) Insurance Coverage Type Cd (FK) describes is associated to UNIFIED COVERAGE Unified Coverage Type Cd CLAIM SERVICE COVERAGE Claim Id (FK) Claim Service Start Dttm (FK) Coverage Feature Id (FK) Claim Service Sequence Num (FK) Feature Id (FK) Unif Coverage Type Categ Cd (FK) Unif Coverage Categ Start Dt (FK) Unified Coverage Type Desc Unif Coverage Type Start Dt Unif Coverage Type End Dt UNIFIED COVERAGE CATEG describes Unif Coverage Type Categ Cd Unif Coverage Categ Start Dt Unif Coverage Type Categ Desc Unif Coverage Categ End Dt Claim Reserve Amt is for CLAIM PERIL Claim Id (FK) Peril Type Cd (FK) FEATURE UNIFIED COVERAGE COVERAGE FEATURE Claim Id (FK) Coverage Feature Id (FK) is characteristic of is associated with is associated with Claim Id (FK) Feature Id (FK) Claim Service Start Dttm Claim Service Sequence Num has services CLAIM SERVICE FEATURE STATUS Claim Service Start Dttm (FK) Claim Id (FK) Claim Service Status Start Dt Claim Service Sequence Num (FK) Feature Id (FK) Claim Srv Status Rsn Type Cd (FK) Claim Service Status Type Cd (FK) Claim Service Status End Dt CLAIM SERVICE DATE CLAIM SERVICE FEATURE has status of Claim Type Cd (FK) Legal Action Id (FK) Peril Type Cd (FK) Claim Service End Dttm Level of Service Cd (FK) Host Claim Suffix Num Claim Service Statute Dt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret has dates of Claim Id (FK) Claim Service Start Dttm (FK) Claim Service Line Cnt Claim Service Sequence Num (FK) Claim Service Date Type Cd (FK) Feature Id (FK) Claim Service Dttm . . respectively. Examples of claim or claim service amount types include requested amount. An example is when one claim replaces another claim. which are maintained in CLAIM AMOUNT and CLAIM SERVICE AMOUNT. A claim can be related to a CLAIM GROUP for the purpose of conducting analysis such as grouping all claims related to a traffic accident. number of x-rays. Parties related to the amounts associated with the claim or claim service. are found in PARTY CLAIM AMOUNT and PARTY CLAIM SERVICE AMOUNT entities. CLAIM AMOUNT TYPE is used to identify the kind of claim amount.Chapter 12 – Insurance Extension Detailed Data Model Description Claim Subject Area Claim Amount and Claim Related Claims and claim services have various amounts related to them. claimed amount and consumed amount. Claims can be related to each other for various reasons. and the reimbursable amount. These party/amount relationships associated with a claim or claim service include: • the automobile repair shop that charged a fee • the amount charged for legal fees from a law firm Claim coverage amounts are in the CLAIM COVERAGE AMOUNT entity. or grouping all claims paid within a certain time period (CLAIM CLAIM GROUP). Examples are. One claim can also be specifically related to another claim (CLAIM RELATED). Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-97 . 12-98 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank.00.Teradata Financial Services Logical Data Model Reference Guide Release 09. Claim Amount and Claim Related CLAIM RELATED Claim Id (FK) Related Claim Id (FK) Claim Relationship Type Cd (FK) Claim Rel Start Dt CLAIM CLAIM GROUP Claim Rel End Dt CLAIM COVERAGE CLAIM COVERAGE AMOUNT Claim Id (FK) Coverage Feature Id (FK) Claim Amount Type Cd (FK) has amount of Claim Coverage Amount Val Claim Coverage UOM Cd (FK) Claim Type Cd (FK) Legal Action Id (FK) Peril Type Cd (FK) Claim Service End Dttm Level of Service Cd (FK) Host Claim Suffix Num Claim Service Statute Dt Party Claim Srv End Dt Hospice Employed Provider Ind has services has party involvement with parent of PARTY CLAIM Claim Type Cd (FK) Claim Media Type Cd (FK) Orignl Claim Currency Cd (FK) Claim Submittal Type Cd (FK) Accident Type Cd (FK) Claim Category Type Cd (FK) Additional Insur Plan Ind Employment Related Ind Attorney Involvement Ind Claim Num Claim Payment Mode Cd (FK) Claim Obligation Type Cd (FK) Subrogation Eligible Cd (FK) Subrogation Elig Reason Cd (FK) Claim Id (FK) Party Id (FK) Party Claim Role Cd (FK) has party involvement with Party Claim Start Dttm Party Claim End Dttm has amount of CLAIM AMOUNT Claim Amount Val Unit Of Measure Cd (FK) describes PARTY CLAIM SERVICE AMOUNT CLAIM SERVICE AMOUNT is for party Claim Service Start Dttm (FK) Claim Id (FK) Claim Amount Type Cd (FK) Claim Service Sequence Num (FK) Feature Id (FK) CLAIM AMOUNT TYPE describes Claim Service Amount Val Unit Of Measure Cd (FK) describes Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret has amount of PARTY CLAIM AMOUNT Claim Id (FK) Party Id (FK) Party Claim Role Cd (FK) Party Claim Start Dttm (FK) Claim Amount Type Cd (FK) Claim Amount Sequence Num (FK) Claim Id (FK) Claim Amount Type Cd (FK) Claim Amount Sequence Num has amount of is associated with Feature Id (FK) Party Id (FK) Claim Id (FK) Claim Service Start Dttm (FK) Party Claim Role Cd (FK) Party Claim Srv Start Dt (FK) Claim Amount Type Cd (FK) Claim Service Sequence Num (FK) participates in Claim Id Claim Id (FK) Feature Id (FK) Claim Service Start Dttm Claim Service Sequence Num Feature Id (FK) Party Id (FK) Claim Id (FK) Claim Service Start Dttm (FK) Party Claim Role Cd (FK) Party Claim Srv Start Dt Claim Service Sequence Num (FK) Claim Group Type Cd (FK) Claim Group Start Dt Claim Group End Dt Parent Claim Group Id (FK) CLAIM CLAIM SERVICE FEATURE PARTY CLAIM SERVICE Claim Group Id is related to is for Legal Action Id (FK) Claim Coverage Statute Dt participates in Claim Assoc End Dt is related with Claim Id (FK) Coverage Feature Id (FK) CLAIM GROUP Claim Group Id (FK) Claim Id (FK) Claim Assoc Start Dt Claim Amount Type Cd Claim Amount Type Desc is for party .Claim.Chapter 12 – Insurance Extension Detailed Data Model Description Claim Subject Area Figure 12-32 Insurance . . An example is a maximum dollar amount for automobile repair work. there is an end date and a withdrawal reason code. When the authorization is granted. A CLAIM AUTHORIZATION can be related to claim level (CLAIM CLAIM AUTH). Claim authorizations can be related to events (CLAIM AUTH EVENT RELATED). These authorizations include referrals and authorizations for services performed or to be performed. A CLAIM AUTHORIZATION has an identifying number. the attribute Claim Auth Event Role Cd specifies it. such as approved minimum and maximum amounts. A claim authorization is linked to one AGREEMENT (policy). a previously granted claim authorization may be withdrawn. although one agreement (policy) may have many claim authorizations. An authorization may be associated with many claims (CLAIM CLAIM AUTH) and with many claim features such as coverages and services (CLAIM AUTHORIZATION FEATURE). A CLAIM AUTHORIZATION is requested by the party (who is an individual) for which the permission is intended. an application date and an approval date. or requested and approved units are found in the CLAIM AUTH AMOUNT entity. Due to changing circumstances. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-101 . it may have a maximum time limit and/or a maximum claim amount. The relationship between parties and claim authorizations is contained in the entity PARTY CLAIM AUTH. CLAIM AUTHORIZATION FEATURE also identifies the procedures (as a type of optional Feature) required on the authorization. CLAIM AUTHORIZATIONs can be related to each other (CLAIM AUTH RELATED). The entity CLAIM AUTHORIZATION contains authorization information. In the case where the event is the INCIDENT that caused the authorization. as in a case where one claim authorization is replaced by a different authorization or one request causes additional different services to be authorized. A party (who is an individual or an employee) grants a CLAIM AUTHORIZATION. or is requested by the party (which is a business. In such a case.Chapter 12 – Insurance Extension Detailed Data Model Description Claim Subject Area Claim Authorization In some cases certain coverages can be claimed only if an authorization has been granted prior to work being performed. such as an auto repair shop) that has to administer the treatment. Amounts that are associated with the authorization. 00 Figure 12-33 Insurance .00.Claim.Claim Authorization AGREEMENT Account Num Account Modifier Num CLAIM AUTHORIZATION FEATURE Claim Authorization Id (FK) Authorization Feature Id (FK) Authorization Feature Dt Requested Auth Feature Qty authorizes CLAIM AUTH RELATED Claim Authorization Id (FK) Related Claim Authorization Id (FK) Claim Auth Rel Type Cd (FK) Claim Auth Rel Start Dt is related with is related to Claim Auth Rel End Dt PARTY CLAIM AUTH Claim Authorization Id (FK) Party Id (FK) Party Claim Auth Role Cd (FK) Party Claim Auth Start Dt CLAIM AUTHORIZATION Claim Authorization Id Auth Approval Type Cd (FK) is linked to Account Num (FK) Account Modifier Num (FK) Claim Auth Application Dt Party Claim Auth End Dt Claim Auth Approval Dt Claim Auth Approv Per End Dt Claim Auth Actual End Dt has amount of Claim Auth End Reason Cd (FK) CLAIM AUTH AMOUNT Peril Type Cd (FK) Claim Auth Approv Per Start Dt Claim Auth Amount Type Cd (FK) Claim Authorization Num Claim Authorization Id (FK) Level of Service Cd (FK) Unit Of Measure Cd (FK) Claim Auth Type Cd (FK) Claim Auth Amount Val Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) has claim authorization of can be for is requested/reviewed in Claim Id Claim Type Cd (FK) Claim Media Type Cd (FK) Orignl Claim Currency Cd (FK) Claim Submittal Type Cd (FK) Accident Type Cd (FK) Claim Category Type Cd (FK) Additional Insur Plan Ind Employment Related Ind Attorney Involvement Ind Claim Num Claim Payment Mode Cd (FK) Claim Obligation Type Cd (FK) Subrogation Eligible Cd (FK) Subrogation Elig Reason Cd (FK) can have CLAIM CLAIM AUTH Claim Id (FK) Claim Authorization Id (FK) EVENT Event Id CLAIM AUTH EVENT RELATED Claim Authorization Id (FK) Event Id (FK) is for Claim Auth Event Role Cd (FK) INCIDENT Incident Event Id (FK) Incident Type Cd (FK) Catastrophe Name Incident Reserve Amt Host Catastrophe Reference Num 12-102 CLAIM Event Activity Type Cd (FK) Event Reason Cd (FK) Transaction Id Event Start Dt Event Start Tm Event End Dt Event End Tm Event GMT Start Dt Event GMT Start Tm Account Ind Financial Ind Contact Ind Incident Ind Account Group Ind Consent Ind Financial Account Event Ind Internal Investment Event Ind External Investment Event Ind Customer Portfolio Ind Statement Event Ind Access Device Event Ind Swap Leg Event Ind Opportunity Ind Travel Event Ind Event Alert Ind Causal Event Ind Reward Event Ind Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09. An insurable interest can be an asset (ASSET INSURABLE INTEREST) or a life (PARTY INSURABLE INTEREST). while the damaged asset is being repaired. such as the object of the loss. The attribute Claim Asset Assoc Type Cd contains the code for the type of association between the claim and the asset. When it is important to note which asset was involved with a particular claim service. CLAIM ASSET is a type of insurable interest for this claim (CLAIM INSURABLE INTEREST).Chapter 12 – Insurance Extension Detailed Data Model Description Claim Subject Area Claim and Assets When party assets are involved with a CLAIM. The attribute Motor Vehicle Ind is the subtype discriminator for CLAIM MOTOR VEHICLE. details of the asset and the related CLAIM are found in CLAIM ASSET. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-103 . the entity CLAIM SERVICE ASSET can be used. or replacement asset. The CLAIM MOTOR VEHICLE entity provides details describing the vehicle at the time the claim was made. Claim and Assets INSURABLE INTEREST Insurable Interest Id involves in Insurable Interest Categ Cd (FK) Insur Interest Expos Type Cd (FK) Catatrophe Exposure Ind CLAIM Claim Id is for insurable interest CLAIM INSURABLE INTEREST Claim Id (FK) Insurable Interest Id (FK) Claim Insurable Int Type Cd (FK) Claim Type Cd (FK) Claim Media Type Cd (FK) Orignl Claim Currency Cd (FK) Claim Submittal Type Cd (FK) Accident Type Cd (FK) Claim Category Type Cd (FK) Additional Insur Plan Ind Employment Related Ind Attorney Involvement Ind Claim Num Claim Payment Mode Cd (FK) Claim Obligation Type Cd (FK) Subrogation Eligible Cd (FK) Subrogation Elig Reason Cd (FK) Insurable Interest Categ Cd CLAIM SERVICE FEATURE Claim Id (FK) Feature Id (FK) Claim Service Start Dttm Claim Service Sequence Num has services Claim Type Cd (FK) Legal Action Id (FK) Peril Type Cd (FK) Claim Service End Dttm Level of Service Cd (FK) Host Claim Suffix Num Claim Service Statute Dt Z ASSET INSURABLE INTEREST Asset Insurable Interest Id (FK) Party Asset Id (FK) Z Z PARTY INSURABLE INTEREST claims Party Insurable Interest Id (FK) Party Id (FK) CLAIM SERVICE ASSET Claim Insurable Int Type Cd Z Claim Service Start Dttm (FK) Claim Id (FK) Party Asset Id (FK) Claim Service Sequence Num (FK) Feature Id (FK) CLAIM ASSET Claim Id (FK) Insurable Interest Id (FK) Claim Asset Assoc Type Cd (FK) Motor Vehicle Ind Claim Asset Amt Acct Crncy Claim Asset Amt Orignl Claim Currency Cd (FK) Orignl Crncy Claim Asset Amt Motor Vehicle Ind Z CLAIM MOTOR VEHICLE is customer asset for PARTY ASSET Party Asset Id MM Object Id (FK) Asset Insurance Hist Type Cd (FK) Asset Type Cd (FK) Asset Desc Asset Acct Num Asset Next Valuation Dt Asset Next Inspection Dt Valuation Time Period Cd (FK) Asset Host Id Val Claim Id (FK) Insurable Interest Id (FK) Passenger Cnt 12-104 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret may be a .00 Figure 12-34 Insurance .00.Claim.Teradata Financial Services Logical Data Model Reference Guide Release 09. Chapter 12 – Insurance Extension Detailed Data Model Description Claim Subject Area Claim and Party Any PARTY that is involved in a CLAIM or CLAIM SERVICE FEATURE will have an instance in PARTY CLAIM or PARTY CLAIM SERVICE. respectively. This could be another insurance company or the insured party. etc. The THIRD PARTY would be anyone other than the insured who is the subject of the claim. The SUBSCRIBING PARTY related to the claim would be a subscriber insured under the policy that the claim is being reported against. Examples of these relationships include: • the employee responsible for processing the claim • the person who was injured in the road accident • the medical facility (hospital. In the entity PARTY CLAIM. The SUBMITTING PARTY is the party who submitted the claim.) treating the injured person • the executor acting for the deceased person in a life insurance claim • the car repair shop that repaired the damaged vehicle • the individual or organization receiving the claim payout • the primary care provider involved in the medical treatment of the individual • a consultant involved in the medical treatment of the individual • the party who received the specific claim service • the doctor who performed the specific claim medical service The attribute Party Claim Role Cd in PARTY CLAIM and PARTY CLAIM SERVICE describes the how the party was involved with the claim or claim service. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-105 . clinic. the attribute Party Claim Role Cd is also used as a subtype discriminator for specific kinds of party claim associations. Claim.Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 Figure 12-35 Insurance .Claim and Party PARTY PARTY CLAIM Party Id was involved with Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind describes PARTY CLAIM ROLE TYPE Claim Id (FK) Party Id (FK) Party Claim Role Cd (FK) Party Claim Start Dttm Party Claim End Dttm Party Claim Role Cd was involved with Party Claim Role Desc PARTY CLAIM SERVICE Feature Id (FK) Party Id (FK) Claim Id (FK) Claim Service Start Dttm (FK) Party Claim Role Cd (FK) Party Claim Srv Start Dt Claim Service Sequence Num (FK) Party Claim Role Cd describes CLAIM Claim Id Party Claim Srv End Dt Hospice Employed Provider Ind has party involvement with CLAIM SERVICE FEATURE Claim Id (FK) Feature Id (FK) Claim Service Start Dttm Claim Service Sequence Num Claim Type Cd (FK) Legal Action Id (FK) Peril Type Cd (FK) Claim Service End Dttm Level of Service Cd (FK) Host Claim Suffix Num Claim Service Statute Dt has party involvement with has services Claim Type Cd (FK) Claim Media Type Cd (FK) Orignl Claim Currency Cd (FK) Claim Submittal Type Cd (FK) Accident Type Cd (FK) Claim Category Type Cd (FK) Additional Insur Plan Ind Employment Related Ind Attorney Involvement Ind Claim Num Claim Payment Mode Cd (FK) Claim Obligation Type Cd (FK) Subrogation Eligible Cd (FK) Subrogation Elig Reason Cd (FK) SUBSCRIBING PARTY Claim Id (FK) Party Id (FK) Party Claim Role Cd (FK) Party Claim Start Dttm (FK) THIRD PARTY Claim Id (FK) Party Id (FK) Party Claim Role Cd (FK) Party Claim Start Dttm (FK) SUBMITTING PARTY has dates of CLAIM DATE Claim Id (FK) Party Id (FK) Party Claim Role Cd (FK) Party Claim Start Dttm (FK) Claim Id (FK) Claim Date Type Cd (FK) Claim Dttm 12-106 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Chapter 12 – Insurance Extension Detailed Data Model Description Claim Subject Area Claim Cost Recovery Salvage and subrogation are two ways that insurance companies can recover the cost due to claims.CLAIM SERVICE COST RECOVERY Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-107 . Cost recoveries are at the following levels: • An amount associated with a claim such as lawyer fees and claims adjuster fees – CLAIM COST RECOVERY • An amount associated a claim coverage such as recovery for property damage on an automobile policy – CLAIM COVERAGE COST RECOVERY • An amount associated with a service performed for a claim . This view shows the cost recoveries associated with a claim. Teradata Financial Services Logical Data Model Reference Guide Release 09.00 Figure 12-36 Insurance .Cost Recovery CLAIM Claim Id Claim Type Cd (FK) Claim Media Type Cd (FK) Orignl Claim Currency Cd (FK) Claim Submittal Type Cd (FK) Accident Type Cd (FK) Claim Category Type Cd (FK) Additional Insur Plan Ind Employment Related Ind Attorney Involvement Ind Claim Num Claim Payment Mode Cd (FK) Claim Obligation Type Cd (FK) Subrogation Eligible Cd (FK) Subrogation Elig Reason Cd (FK) is for has amount of CLAIM COVERAGE Claim Id (FK) Coverage Feature Id (FK) Legal Action Id (FK) Claim Coverage Statute Dt has amount of has services CLAIM SERVICE FEATURE Claim Id (FK) Feature Id (FK) Claim Service Start Dttm Claim Service Sequence Num Claim Type Cd (FK) Legal Action Id (FK) Peril Type Cd (FK) Claim Service End Dttm Level of Service Cd (FK) Host Claim Suffix Num Claim Service Statute Dt has amount of CLAIM AMOUNT CLAIM COVERAGE AMOUNT Claim Id (FK) Claim Amount Type Cd (FK) Claim Amount Sequence Num Claim Id (FK) Coverage Feature Id (FK) Claim Amount Type Cd (FK) Claim Amount Val Unit Of Measure Cd (FK) Claim Coverage Amount Val Claim Coverage UOM Cd (FK) CLAIM SERVICE AMOUNT Claim Service Start Dttm (FK) Claim Id (FK) Claim Amount Type Cd (FK) Claim Service Sequence Num (FK) Feature Id (FK) Claim Service Amount Val Unit Of Measure Cd (FK) has recovery of has recovery of has recovery of CLAIM COVERAGE COST RECOVERY CLAIM COST RECOVERY Claim Id (FK) Claim Amount Type Cd (FK) Cost Recovery Type Cd (FK) Claim Amount Sequence Num (FK) Claim Cost Recover Calc Dttm Claim Est Recovery Amt Claim Actual Recovery Amt Claim Recovery Prob Rate 12-108 Claim Id (FK) Coverage Feature Id (FK) Claim Amount Type Cd (FK) Cost Recovery Type Cd (FK) Claim Coverage Recover Calc Dt Claim Cov Recover Prob Rate Claim Coverage Est Recover Amt Claim Coverage Act Recover Amt CLAIM SERVICE COST RECOVERY Claim Service Start Dttm (FK) Claim Id (FK) Claim Amount Type Cd (FK) Claim Service Sequence Num (FK) Feature Id (FK) Cost Recovery Type Cd (FK) Claim Serivce Recovery Calc Dt Claim Svc Recovery Prob Rate Claim Service Est Recover Amt Claim Service Act Recover Amt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00.Claim. Chapter 12 – Insurance Extension Detailed Data Model Description Claim Subject Area Claim Score Claims can have scores such as probability for subrogation.Claim. The probabilities can be at the following levels: • Claim level – CLAIM SCORE • Coverage level – CLAIM COVERAGE SCORE • Service level – CLAIM SERVICE SCORE Figure 12-37 Insurance .Score CLAIM Claim Id Claim Type Cd (FK) Claim Media Type Cd (FK) Orignl Claim Currency Cd (FK) Claim Submittal Type Cd (FK) Accident Type Cd (FK) Claim Category Type Cd (FK) Additional Insur Plan Ind Employment Related Ind Attorney Involvement Ind Claim Num Claim Payment Mode Cd (FK) Claim Obligation Type Cd (FK) Subrogation Eligible Cd (FK) Subrogation Elig Reason Cd (FK) has score of has services is for CLAIM COVERAGE Claim Id (FK) Coverage Feature Id (FK) Legal Action Id (FK) Claim Coverage Statute Dt has score of CLAIM SERVICE FEATURE Claim Id (FK) Feature Id (FK) Claim Service Start Dttm Claim Service Sequence Num Claim Type Cd (FK) Legal Action Id (FK) Peril Type Cd (FK) Claim Service End Dttm Level of Service Cd (FK) Host Claim Suffix Num Claim Service Statute Dt has scorer of CLAIM COVERAGE SCORE CLAIM SCORE Claim Id (FK) Model Id (FK) Model Run Id (FK) Claim Score Val Claim Id (FK) Coverage Feature Id (FK) Model Run Id (FK) Model Id (FK) Claim Coverage Score Val CLAIM SERVICE SCORE Claim Id (FK) Claim Service Start Dttm (FK) Claim Service Sequence Num (FK) Feature Id (FK) Model Run Id (FK) Model Id (FK) Claim Service Score Val Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-109 . in the below scenario the parties are: • Insurer (C) • Injured/Insured Party (X) • Responsible Party (D) 1. D drives a car negligently and damages X's car as a result. asks for payment) under his policy against C.e. C pays in full to have X's car repaired.. C receives the full amount of any amounts recovered in the action against D up to the amount to which C indemnified X. takes the legal rights the claimant has against a third party that caused the injury. The legal definition is a taking on of the legal rights of someone whose debts or expenses have been paid. X. X retains none of the proceeds of the action against D except to the extent that they exceed the amount that C paid to X.00 Claim Subrogation Subrogation gives the insurer the right to take legal action against a third party responsible for a loss to an insured for which a claim has been paid. 2. his insurer. manufacturer’s defect) are codes at the Claim level (CLAIM entity). the insured party. has comprehensive insurance.. The determination of a claim being eligible may be the result of a scoring model as predicted in entity CLAIM SCORE. subrogation occurs when an insurance company that has paid off its injured claimant. C then sues D for negligence to recoup some or all of the sums paid out to X. Estimated and actual recovery amounts are also at the coverage level (CLAIM COVERAGE COST RECOVERY) and the claim service level (CLAIM SERVICE COST RECOVERY) 12-110 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . 4.Teradata Financial Services Logical Data Model Reference Guide Release 09. and sues that third party. 3. and claims (i. Subrogation related business questions: • Which claims are eligible for subrogation? • Subrogation eligibility and eligibility reason (e. SUBROGATION is a type of LEGAL ACTION. 5. For example.g. Subrogation may also be due to manufacturer’s defect on an asset such as an automobile where legal action is taken against the manufacturer and this legal action can be for many claims.00. • What is the recovery potential for each claim ($ value x probability of recovery)? Entity CLAIM COST RECOVERY tracks the potential and actual values recovered due to subrogation. For example. • Which claims are approaching Statute dates Statute date is the last date in which legal action can be taken to recover the cost for this claim. CLAIM COVERAGE. The statue date is at the level of Claim Coverage and Claim Service (entities CLAIM. It varies by state. and CLAIM SERVICE FEATURE respectively). Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-111 .Chapter 12 – Insurance Extension Detailed Data Model Description Claim Subject Area • Which claims have subrogation potential due to manufacturer’s defects / product recalls? Entity CLAIM and attribute Subrogation Eligible Reason Cd can identify the reason this claim would be eligible for subrogation such as manufacturer’s defect. 00 This page intentionally left blank.00. 12-112 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09. Subrogation CLAIM COVERAGE COST RECOVERY Claim Id (FK) Coverage Feature Id (FK) Claim Amount Type Cd (FK) Cost Recovery Type Cd (FK) Claim Coverage Recover Calc Dt CLAIM COVERAGE TEXT Claim Id (FK) Coverage Feature Id (FK) Claim Text Type Cd (FK) Claim Coverage Text Dttm Claim Cov Recover Prob Rate Claim Coverage Est Recover Amt Claim Coverage Act Recover Amt has recovery of Claim Id (FK) Coverage Feature Id (FK) Model Run Id (FK) Model Id (FK) Claim Est Recovery Amt Claim Actual Recovery Amt Claim Recovery Prob Rate CLAIM COVERAGE AMOUNT Claim Coverage Score Val has amount of has score of Claim Id (FK) Coverage Feature Id (FK) Claim Amount Type Cd (FK) CLAIM SCORE Claim Coverage Amount Val Claim Coverage UOM Cd (FK) Claim Id (FK) Model Id (FK) Model Run Id (FK) has text of COVERAGE FEATURE Claim Score Val Coverage Feature Id (FK) CLAIM COVERAGE CLAIM Claim Id CLAIM SERVICE FEATURE is associated with is for Claim Id (FK) Feature Id (FK) Claim Service Start Dttm Claim Service Sequence Num Claim Type Cd (FK) Legal Action Id (FK) Peril Type Cd (FK) Claim Service End Dttm Level of Service Cd (FK) Host Claim Suffix Num Claim Service Statute Dt has services has text of SUBROGATION Legal Action Id (FK) has amount of CLAIM SERVICE AMOUNT Claim Service Start Dttm (FK) Claim Id (FK) Claim Amount Type Cd (FK) Claim Service Sequence Num (FK) Feature Id (FK) Claim Service Amount Val Unit Of Measure Cd (FK) Claim Type Cd (FK) Claim Media Type Cd (FK) Orignl Claim Currency Cd (FK) Claim Submittal Type Cd (FK) Accident Type Cd (FK) Claim Category Type Cd (FK) Additional Insur Plan Ind Employment Related Ind Attorney Involvement Ind Claim Num Claim Payment Mode Cd (FK) Claim Obligation Type Cd (FK) Subrogation Eligible Cd (FK) Subrogation Elig Reason Cd (FK) has recovery of CLAIM AMOUNT Claim Id (FK) Claim Amount Type Cd (FK) Claim Amount Sequence Num Insurance Coverage Type Cd (FK) Legal Action Id (FK) Claim Coverage Statute Dt LEGAL ACTION Action Desc Action Suit Num Action Start Dt Action End Dt Location Locator Id (FK) Action Type Cd (FK) associated with Claim Id (FK) Coverage Feature Id (FK) is associated with Legal Legal Legal Legal Court Legal Claim Id (FK) Claim Amount Type Cd (FK) Cost Recovery Type Cd (FK) Claim Amount Sequence Num (FK) Claim Cost Recover Calc Dttm Claim Coverage Txt Unstructured Text Id (FK) CLAIM COVERAGE SCORE Legal Action Id CLAIM COST RECOVERY Claim Amount Val Unit Of Measure Cd (FK) has score of CLAIM TEXT has text of Claim Id (FK) Claim Text Type Cd (FK) Claim Text Dttm Claim Txt Unstructured Text Id (FK) has amount of CLAIM SERVICE SCORE has scorer of CLAIM SERVICE TEXT Claim Id (FK) Claim Service Start Dttm (FK) Claim Service Sequence Num (FK) Feature Id (FK) Claim Text Type Cd (FK) Claim Service Text Dttm Claim Service Txt Unstructured Text Id (FK) has recovery of CLAIM SERVICE COST RECOVERY Claim Service Start Dttm (FK) Claim Id (FK) Claim Amount Type Cd (FK) Claim Service Sequence Num (FK) Feature Id (FK) Cost Recovery Type Cd (FK) Claim Serivce Recovery Calc Dt Claim Svc Recovery Prob Rate Claim Service Est Recover Amt Claim Service Act Recover Amt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Claim Id (FK) Claim Service Start Dttm (FK) Claim Service Sequence Num (FK) Feature Id (FK) Model Run Id (FK) Model Id (FK) Claim Service Score Val .Claim.Chapter 12 – Insurance Extension Detailed Data Model Description Claim Subject Area Figure 12-38 Insurance . . Claim. these can be underwriter notes.Chapter 12 – Insurance Extension Detailed Data Model Description Claim Subject Area Notes that appear on the claim can be captured and then used as input to a linguistic tool for decomposition and subsequent analysis.Text CLAIM Claim Id Claim Type Cd (FK) Claim Media Type Cd (FK) Orignl Claim Currency Cd (FK) Claim Submittal Type Cd (FK) Accident Type Cd (FK) Claim Category Type Cd (FK) Additional Insur Plan Ind Employment Related Ind Attorney Involvement Ind Claim Num Claim Payment Mode Cd (FK) Claim Obligation Type Cd (FK) Subrogation Eligible Cd (FK) Subrogation Elig Reason Cd (FK) has services is for CLAIM SERVICE FEATURE CLAIM COVERAGE Claim Id (FK) Coverage Feature Id (FK) Legal Action Id (FK) Claim Coverage Statute Dt has text of Claim Id (FK) Feature Id (FK) Claim Service Start Dttm Claim Service Sequence Num Claim Type Cd (FK) Legal Action Id (FK) Peril Type Cd (FK) Claim Service End Dttm Level of Service Cd (FK) Host Claim Suffix Num Claim Service Statute Dt has text of CLAIM TEXT Claim Id (FK) Claim Text Type Cd (FK) Claim Text Dttm Claim Txt Unstructured Text Id (FK) has text of CLAIM COVERAGE TEXT Claim Id (FK) Coverage Feature Id (FK) Claim Text Type Cd (FK) Claim Coverage Text Dttm Claim Coverage Txt Unstructured Text Id (FK) CLAIM SERVICE TEXT Claim Id (FK) Claim Service Start Dttm (FK) Claim Service Sequence Num (FK) Feature Id (FK) Claim Text Type Cd (FK) Claim Service Text Dttm Claim Service Txt Unstructured Text Id (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-115 . adjuster notes. For example. Text can appear at different levels related to the claim: Claim Text • Claim – CLAIM TEXT • Claim Coverage – CLAIM COVERAGE TEXT • Claim Service – CLAIM SERVICE TEXT Figure 12-39 Insurance . or claimant notes. 12-116 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank.Teradata Financial Services Logical Data Model Reference Guide Release 09.00. Chapter 12 – Insurance Extension Detailed Data Model Description Event Subject Area Event Subject Area This section describes the FS-LDM Major Subject Area Event. Event is described in the Foundation Reference section in this document. In this section. In general terms. aspects of Event that are dedicated to Insurance are covered. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-117 . Activity Type Every event is assigned a code describing the type of event (Event Activity Type Cd). complaints. such as traffic accidents.00 Event Overview Event EVENT is used to record financial transactions as well as nonfinancial transactions and interactions. coverage changes.00. An altogether different type of event is an INCIDENT. Each event can be associated with a reason code that identifies why the event occurred (Event Reason Cd). Examples of event types include insurance premium receipt. Types of Events An EVENT may be a FINANCIAL EVENT. such as a claim submittal of or a claim payout. Examples include a claim submittal event with a payout. or a financial and account related event. When this is the case. such as a commission payment. FINANCIAL ACCOUNT EVENT. such as hurricane Mitch. the attribute Catastrophe Name specifies the name of the catastrophe. An Event can also be a CLAIM EVENT. and a premium receipt with a commission payment. or health episodes such as a heart attack or a chronic illness. The Event Relationship Type Cd specifies the type of relationship between events. and queries. These interactions and transactions relate directly or indirectly to Customers/Prospects and/or their agreements such as insurance policies. commission payment. The type of incident is indicated with the attribute Incident Type Cd. INCIDENTs are events that cause (usually multiple) insurance claims. natural disasters such as hurricanes. claim payout. Event Relationship An event can be related to another event (EVENT RELATIONSHIP). One example of event is – policy cancellation – with a reason code of nonpayment. Every event is recorded in the model in the entity EVENT. A major incident might also be referred to as a catastrophe loss whereby the high loss severity does not lend itself to accurate prediction.Teradata Financial Services Logical Data Model Reference Guide Release 09. 12-118 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . such as a premium payment for a specified policy. Chapter 12 – Insurance Extension Detailed Data Model Description Event Subject Area Figure 12-40 Insurance .Event.Overview EVENT Event Id Event Activity Type Cd (FK) Event Reason Cd (FK) Transaction Id Event Start Dt Event Start Tm Event End Dt Event End Tm Event GMT Start Dt Event GMT Start Tm Account Ind Financial Ind Contact Ind Incident Ind Account Group Ind Consent Ind Financial Account Event Ind Internal Investment Event Ind External Investment Event Ind Customer Portfolio Ind Statement Event Ind Access Device Event Ind Swap Leg Event Ind Opportunity Ind Travel Event Ind Event Alert Ind Causal Event Ind Reward Event Ind EVENT RELATIONSHIP Event Id (FK) Related Event Id (FK) is related to Event Relationship Type Cd (FK) is related with EVENT TO LOCATOR Event Id (FK) Locator Id (FK) Event Locator Rel Cd (FK) occurred in describes EVENT REASON TYPE Event Reason Cd Event Reason Desc CLAIM EVENT involves Event Id (FK) Claim Id (FK) Claim Event Role Cd (FK) FINANCIAL EVENT Event Id (FK) Event Currency Cd (FK) Event Amt Event Local Amt Event Global Amt Financial Event Period Strt Dt Financial Event Period End Dt Financial Event Covered Val Financial Event COA Id (FK) Ledger Batch Id (FK) Funds Transfer Event Ind Financial Event Type Cd (FK) INCIDENT Incident Event Id (FK) Incident Type Cd (FK) Catastrophe Name Incident Reserve Amt Host Catastrophe Reference Num ACCOUNT EVENT describes Event Id (FK) Account Num (FK) Account Modifier Num (FK) Account Event Type Cd (FK) FINANCIAL ACCOUNT EVENT Event Id (FK) Event Posted Dttm Acct Crncy Posted Amt Event Value Dttm Back Office Event Ind Debit Credit Cd (FK) ACCOUNT EVENT TYPE Account Event Type Cd FUNDS TRANSFER EVENT Event Id (FK) Funds Transfer Host Num Funds Transfer Effective Dt Funds Transfer Reference Num Funds Transfer Method Type Cd (FK) Funds Transfer Type Cd (FK) Bank Transfer Event Type Cd (FK) Account Event Type Desc Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-119 . or health episodes such as a heart attack or a chronic illness. natural disasters such as hurricanes. Other events related to the claim include claim submittal and claim adjudication by the insurance company. This relationship is demonstrated in the CLAIM EVENT entity. such as traffic accidents. This event is used to capture the payments made to or disbursed from the insurance company such as a premium payment or a payout made for a claim settlement.00 Event and Claim CLAIMs can be related to a variety of EVENTs including INCIDENT events and FUNDS TRANFSER EVENTs which are payments. 12-120 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . INCIDENTs are events that cause (usually multiple) insurance claims.00. FUNDS TRANSFER EVENT is a specific type of FINANCIAL EVENT.Teradata Financial Services Logical Data Model Reference Guide Release 09. The attribute Claim Event Role Cd can be used to specify if the INCIDENT event is the EVENT that caused the claim. The type of incident is indicated with the attribute Incident Type Cd. Event.Chapter 12 – Insurance Extension Detailed Data Model Description Event Subject Area Figure 12-41 Insurance .Event and Claim EVENT Event Id EVENT PARTY PARTY Party Id Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind was involved with Event Id (FK) Party Id (FK) Party Role Cd (FK) Party Event Start Dt has involvement with Party Event End Dt Party Identification Type Cd (FK) Contact Comment Txt Unstructured Text Id (FK) CLAIM EVENT is involved in Event Id (FK) Claim Id (FK) involves Claim Event Role Cd (FK) CLAIM Claim Id FINANCIAL EVENT Claim Type Cd (FK) Claim Media Type Cd (FK) Orignl Claim Currency Cd (FK) Claim Submittal Type Cd (FK) Accident Type Cd (FK) Claim Category Type Cd (FK) Additional Insur Plan Ind Employment Related Ind Attorney Involvement Ind Claim Num Claim Payment Mode Cd (FK) Claim Obligation Type Cd (FK) Subrogation Eligible Cd (FK) Subrogation Elig Reason Cd (FK) Event Id (FK) Event Currency Cd (FK) Event Amt Event Local Amt Event Global Amt Financial Event Period Strt Dt Financial Event Period End Dt Financial Event Covered Val Financial Event COA Id (FK) Ledger Batch Id (FK) Funds Transfer Event Ind Financial Event Type Cd (FK) Claim Adjudication Id Claim Id (FK) Benefit Rule Cd (FK) Claim Pricing Rule Cd (FK) Adjudication Dt Adjudication Type Cd (FK) is related with is related to EVENT RELATIONSHIP Event Id (FK) Related Event Id (FK) Event Relationship Type Cd (FK) CLAIMANT INSUR INTEREST EVENT Event Id (FK) Claim Id (FK) Insurable Interest Id (FK) Party Id (FK) Party Claim Role Cd (FK) Party Claim Start Dttm (FK) Claimant Insur Int Event Cd (FK) ACCOUNT EVENT Event Id (FK) Account Num (FK) Account Modifier Num (FK) Account Event Type Cd (FK) INCIDENT Incident Event Id (FK) Incident Type Cd (FK) Catastrophe Name Incident Reserve Amt Host Catastrophe Reference Num FINANCIAL ACCOUNT EVENT is involved in CLAIM ADJUDICATION Event Activity Type Cd (FK) Event Reason Cd (FK) Transaction Id Event Start Dt Event Start Tm Event End Dt Event End Tm Event GMT Start Dt Event GMT Start Tm Account Ind Financial Ind Contact Ind Incident Ind Account Group Ind Consent Ind Financial Account Event Ind Internal Investment Event Ind External Investment Event Ind Customer Portfolio Ind Statement Event Ind Access Device Event Ind Swap Leg Event Ind Opportunity Ind Travel Event Ind Event Alert Ind Causal Event Ind Reward Event Ind Event Id (FK) FUNDS TRANSFER EVENT Event Id (FK) Event Posted Dttm Acct Crncy Posted Amt Event Value Dttm Back Office Event Ind Debit Credit Cd (FK) Funds Transfer Host Num Funds Transfer Effective Dt Funds Transfer Reference Num Funds Transfer Method Type Cd (FK) Funds Transfer Type Cd (FK) Bank Transfer Event Type Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret AGREEMENT COVERAGE EVENT Event Id (FK) Account Num (FK) Account Modifier Num (FK) Insurable Interest Id (FK) Agmt Insurable Int Role Cd (FK) Agmt Insurable Int Strt Dt (FK) Agmt Ins It Feat Start Dt (FK) Agmt Coverage Event Type Cd (FK) Agmt Coverage Event Categ Cd (FK) Agmt Coverage Event Base Cd (FK) Feature Id (FK) . . there may be multiple adjudicated amounts.Chapter 12 – Insurance Extension Detailed Data Model Description Event Subject Area Claim and Adjudication An Insurance Company's decision on the settlement of a claim is known as claim adjudication (CLAIM ADJUDICATION). In both cases. it is known as an INTERNAL CLAIM ADJUDICATION. claims brought by its insureds). The amounts specified at the Service and coverage levels are found in CLAIM FEAT ADJUDICATION AMT with the attribute Adjudication Claim Feat Val. The rules used by the insurance company for claim adjudication are specified in CLAIM ADJUDICATION with the attributes Benefit Rule Cd and Claim Pricing Rule Cd. When adjudication is made by the insurance company that owns the claim (i. this amount is further specified by the attribute Adjudication Amt Type Cd. settled on its behalf. Amounts specified at the claim level can be found in CLAIM ADJUDICATION AMT with the attribute Adjudication Claim Detail Val. Examples of adjudication types are: • Covered Amount • Noncovered Amount • Paid Amount • Co-Pay Amount • Deductible Amount • Withheld Amount • Adjustment Amount Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-123 .e. For each decision (CLAIM ADJUDICATION).. Adjudication decisions are made for coverage and services performed and submitted on a claim. 00. 12-124 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09.00 This page intentionally left blank. Chapter 12 – Insurance Extension Detailed Data Model Description Event Subject Area Figure 12-42 Insurance .Claim and Adjudication CLAIM has services Claim Id EVENT Event Id Event Activity Type Cd (FK) Event Reason Cd (FK) Transaction Id Event Start Dt Event Start Tm Event End Dt Event End Tm Event GMT Start Dt Event GMT Start Tm Account Ind Financial Ind Contact Ind Incident Ind Account Group Ind Consent Ind Financial Account Event Ind Internal Investment Event Ind External Investment Event Ind Customer Portfolio Ind Statement Event Ind Access Device Event Ind Swap Leg Event Ind Opportunity Ind Travel Event Ind Event Alert Ind Causal Event Ind Reward Event Ind is associated with Claim Type Cd (FK) Claim Media Type Cd (FK) Orignl Claim Currency Cd (FK) Claim Submittal Type Cd (FK) Accident Type Cd (FK) Claim Category Type Cd (FK) Additional Insur Plan Ind Employment Related Ind Attorney Involvement Ind Claim Num Claim Payment Mode Cd (FK) Claim Obligation Type Cd (FK) Subrogation Eligible Cd (FK) Subrogation Elig Reason Cd (FK) CLAIM ADJUDICATION AMT Claim Adjudication Id (FK) Adjudication Amount Type Cd (FK) ADJUDICATION AMOUNT TYPE Adjudication Amount Type Cd describes Adjudication Claim Detail Val Adjudication Currency Cd (FK) Adjudication Amount Type Desc describes CLAIM FEAT ADJUDICATION AMT Feature Id (FK) Claim Adjudication Id (FK) Adjudication Amount Type Cd (FK) Claim Id (FK) Claim Service Start Dttm (FK) Claim Service Sequence Num (FK) has is involved in Adjudication Claim Feat Val Adjudication Currency Cd (FK) CLAIM ADJUDICATION has Claim Adjudication Id Claim Id (FK) Benefit Rule Cd (FK) Claim Pricing Rule Cd (FK) Adjudication Dt Adjudication Type Cd (FK) CLAIM ADJUDICATION FEATURE is for Feature Id (FK) Claim Adjudication Id (FK) Claim Id (FK) Claim Service Start Dttm (FK) Claim Service Sequence Num (FK) Adjudication Type Cd INTERNAL CLAIM ADJUDICATION Claim Adjudication Id (FK) Adjudication Event Id (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret CLAIM SERVICE FEATURE is adjudicated Claim Id (FK) Feature Id (FK) Claim Service Start Dttm Claim Service Sequence Num Claim Type Cd (FK) Legal Action Id (FK) Peril Type Cd (FK) Claim Service End Dttm Level of Service Cd (FK) Host Claim Suffix Num Claim Service Statute Dt .Event. . This PARTY may be the policyholder or the company that administers a group policy. Another EVENT PARTY relationship is the PARTY submitting the payment to the insurance company. The Party Role Cd is used to specify the relationship the PARTY has with events. This PARTY may be the policyholder. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-127 .Chapter 12 – Insurance Extension Detailed Data Model Description Event Subject Area Insurance Payment Insurance Payments FUNDS TRANSFER EVENTs such as payments are a type of FINANCIAL EVENT. the car repair shop. or the party’s employer. An example of EVENT PARTY relationship is a PARTY receiving the payout of a claim. or an outgoing disbursement such as a payment made for a claim. These payments can be an incoming payment made to the insurance company such as a premium payment. including FUNDS TRANSFER EVENT. Party Sending/Receiving Payments The EVENT PARTY entity maintains the relationships between PARTYs and EVENTs. the hospital that treated the injured party. etc. 12-128 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 This page intentionally left blank. Chapter 12 – Insurance Extension Detailed Data Model Description Event Subject Area Figure 12-43 Insurance .Insurance Payment EVENT Event Id EVENT PARTY Event Id (FK) Party Id (FK) Party Role Cd (FK) Party Event Start Dt Party Event End Dt Party Identification Type Cd (FK) Contact Comment Txt Unstructured Text Id (FK) PARTY Party Id Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind has involvement with was involved with FINANCIAL EVENT Event Id (FK) Event Currency Cd (FK) Event Amt Event Local Amt Event Global Amt Financial Event Period Strt Dt Financial Event Period End Dt Financial Event Covered Val Financial Event COA Id (FK) Ledger Batch Id (FK) Funds Transfer Event Ind Financial Event Type Cd (FK) FINANCIAL ACCOUNT EVENT Event Id (FK) Event Posted Dttm Acct Crncy Posted Amt Event Value Dttm Back Office Event Ind Debit Credit Cd (FK) ACCOUNT EVENT Event Id (FK) Account Num (FK) Account Modifier Num (FK) Account Event Type Cd (FK) Event Activity Type Cd (FK) Event Reason Cd (FK) Transaction Id Event Start Dt Event Start Tm Event End Dt Event End Tm Event GMT Start Dt Event GMT Start Tm Account Ind Financial Ind Contact Ind Incident Ind Account Group Ind Consent Ind Financial Account Event Ind Internal Investment Event Ind External Investment Event Ind Customer Portfolio Ind Statement Event Ind Access Device Event Ind Swap Leg Event Ind Opportunity Ind Travel Event Ind Event Alert Ind Causal Event Ind Reward Event Ind FUNDS TRANSFER EVENT Event Id (FK) PAYMENT Funds Transfer Host Num Funds Transfer Effective Dt Funds Transfer Reference Num Funds Transfer Method Type Cd (FK) Funds Transfer Type Cd (FK) Bank Transfer Event Type Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret EVENT RELATIONSHIP is related to Event Id (FK) Related Event Id (FK) is related with involves Event Relationship Type Cd (FK) CLAIM EVENT Event Id (FK) Claim Id (FK) Claim Event Role Cd (FK) is involved in CLAIM Claim Id Claim Type Cd (FK) Claim Media Type Cd (FK) Orignl Claim Currency Cd (FK) Claim Submittal Type Cd (FK) Accident Type Cd (FK) Claim Category Type Cd (FK) Additional Insur Plan Ind Employment Related Ind Attorney Involvement Ind Claim Num Claim Payment Mode Cd (FK) Claim Obligation Type Cd (FK) Subrogation Eligible Cd (FK) Subrogation Elig Reason Cd (FK) .Event. . in which case the EVENT PARTY need not be used to indicate the recipient of the commission payment. Commission payments.Chapter 12 – Insurance Extension Detailed Data Model Description Event Subject Area Commission The agent or broker is a PARTY. The attributes Agent Commission Option Cd and Commission Share Pct in the entity AGENT APPLICATION DETAIL define the share of the commission and how the agent wants to receive the commission. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-131 . the commission payment is also an ACCOUNT EVENT. are FINANCIAL EVENTs. FUNDS TRANSFER EVENTs. The entity EVENT PARTY can specify to which PARTY the commission payment was made. The attribute Commission Type Cd in the entity AGENT BROKER ACCOUNT DETAIL specifies if the commission paid is for new business or for policy renewal. If the contractual relationships between the agent or broker and the insurance company are specified by means of an instance in AGREEMENT. 00 This page intentionally left blank. 12-132 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00.Teradata Financial Services Logical Data Model Reference Guide Release 09. Commission EVENT PARTY has involvement with Event Id EVENT PARTY Party Id Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind was involved with Event Id (FK) Party Id (FK) Party Role Cd (FK) Party Event Start Dt has involvement with Party Event End Dt Party Identification Type Cd (FK) Contact Comment Txt Unstructured Text Id (FK) is involved with APPLICATION PARTY APPLICATION ACCOUNT PARTY Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt Account Party End Dt Allocation Pct Account Party Amt Acct Crncy Acct Party Amt Party Id (FK) Application Id (FK) Contract Party Role Cd (FK) Application Party Start Dt Application Id involves Application Party End Dt Contract Party Role Cd AGENT APPLICATION DETAIL Party Id (FK) Application Id (FK) Contract Party Role Cd (FK) Application Party Start Dt (FK) Agent Commission Option Cd (FK) Agent Participation Type Cd (FK) Commission Share Pct Agent Report Ind Account Party Role Cd AGENT BROKER ACCOUNT DETAIL Account Num (FK) Account Modifier Num (FK) Account Party Start Dt (FK) Account Party Role Cd (FK) Party Id (FK) Commission Type Cd (FK) Commission Rate has involvement with Application Completed Dt Promo Id (FK) Planned Account Open Dt Application Received Dt Application Signed Dt Product Group Id (FK) Application Type Cd (FK) Document Id (FK) AGREEMENT Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) Event Activity Type Cd (FK) Event Reason Cd (FK) Transaction Id Event Start Dt Event Start Tm Event End Dt Event End Tm Event GMT Start Dt Event GMT Start Tm Account Ind Financial Ind Contact Ind Incident Ind Account Group Ind Consent Ind Financial Account Event Ind Internal Investment Event Ind External Investment Event Ind Customer Portfolio Ind Statement Event Ind Access Device Event Ind Swap Leg Event Ind Opportunity Ind Travel Event Ind Event Alert Ind Causal Event Ind Reward Event Ind ACCOUNT EVENT Event Id (FK) was used during Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Account Num (FK) Account Modifier Num (FK) Account Event Type Cd (FK) FINANCIAL EVENT Event Id (FK) Event Currency Cd (FK) Event Amt Event Local Amt Event Global Amt Financial Event Period Strt Dt Financial Event Period End Dt Financial Event Covered Val Financial Event COA Id (FK) Ledger Batch Id (FK) Funds Transfer Event Ind Financial Event Type Cd (FK) FUNDS TRANSFER EVENT Event Id (FK) Funds Transfer Host Num Funds Transfer Effective Dt Funds Transfer Reference Num Funds Transfer Method Type Cd (FK) Funds Transfer Type Cd (FK) Bank Transfer Event Type Cd (FK) .Event.Chapter 12 – Insurance Extension Detailed Data Model Description Event Subject Area Figure 12-44 Insurance . . Chapter 12 . Insurance-specific entities are highlighted. aspects of financial entities that are dedicated to Insurance are covered. the enterprise’s internal accounting is described in the Foundation Financial Management section of this document. In general terms. Financial Management entities that are specific to Insurance are: • PREMIUM BALANCE RECEIVABLE • UNDERWRITING EXPENSE ACCT • LOSS AND LOSS ADJ EXPENSE ACCT • LOSS AND LOSS ADJ RESERVE ACCT • POLICY HOLDER FUND ACCT • UNEARNED PREMIUM RESERVE ACCT • UNPAID CLAIM ACCOUNT • CHNG UNEARN PREM RESERVE ACCT • EARNED PREMIUM ACCOUNT • PREMIUM WRITTEN ACCOUNT Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-135 .Insurance Extension Detailed Data Model Description Finance Subject Area Finance Subject Area This section describes the FS-LDM Finance Subject Area. In this section. These range from cash and investments to real estate such as land.Teradata Financial Services Logical Data Model Reference Guide Release 09. For accounting purposes. or enforceable claims against others. Fixed Assets.00 Asset Account Assets are tangible or intangible property owned by a business. having monetary value (usually its cost or fair market value). Asset Accounts are usually classified under three groups: Current Assets. Asset Account refers to a type of General Ledger Balance Sheet Account used to track the value of these assets. etc.00. The typical Assets are illustrated in the Foundation Financial Management Asset Account section. other tangible property such as timber. PREMIUM BALANCE RECEIVABLE is an Insurance specific type of CURRENT ASSET ACCOUNT. 12-136 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . and Other Assets. Asset Account ASSET ACCOUNT GL Main Account Num (FK) Asset Account Type Cd (FK) Asset Account Type Cd FIXED ASSET ACCOUNT OTHER ASSET ACCOUNT GL Main Account Num (FK) GL Main Account Num (FK) Fixed Asset Account Type Cd (FK) Other Asset Account Type Cd (FK) Other Asset Account Party Id (FK) CURRENT ASSET ACCOUNT GL Main Account Num (FK) Fixed Asset Account Type Cd Current Asset Acct Type Cd (FK) Other Asset Account Type Cd NONDEPRECIABLE ASSET ACCOUNT GL Main Account Num (FK) DEPRECIABLE ASSET ACCOUNT GL Main Account Num (FK) Current Asset Acct Type Cd INTANGIBLE ASSET ACCOUNT GL Main Account Num (FK) AVAILABLE CASH ACCOUNT GL Main Account Num (FK) DEFERRED CHARGE ACCOUNT GL Main Account Num (FK) PREMIUM BALANCE RECEIVABLE Intangble Asset Amortizatn Amt Amortization Method Cd (FK) Intangible Asset Account Cd (FK) GL Main Account Num (FK) PREPAID EXPENSE ACCOUNT GL Main Account Num (FK) Prepaid Expense Party Id (FK) Intangible Asset Account Cd SECURITIES ACCOUNT GL Main Account Num (FK) Security Account Party Id (FK) INVESTMENT ASSET ACCOUNT GL Main Account Num (FK) ACCOUNTS RECEIVABLE GOODWILL ACCOUNT GL Main Account Num (FK) OTHER CURRENT ASSET ACCOUNT GL Main Account Num (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret GL Main Account Num (FK) PATENTS ACCOUNT GL Main Account Num (FK) .Chapter 12 – Insurance Extension Detailed Data Model Description Finance Subject Area Figure 12-45 Insurance .FM. . plus guaranty association assessments plus taxes (but not including federal income taxes. An EXPENSE ACCOUNT is a type of General Ledger Income Statement Account that keeps track of these expenses. etc.Chapter 12 – Insurance Extension Detailed Data Model Description Finance Subject Area Expense Account Expense is amounts spent by a company to run the business and producing goods or services. and real estate taxes). UNDERWRITING EXPENSE ACCT and LOSS AND LOSS ADJ EXPENSE ACCT are Insurance specific expenses. it may involve fewer or more categories. foreign income taxes. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-139 . LOSS AND LOSS ADJ EXPENSE ACCT records amounts an insurance company has a legal obligation to pay and the costs involved in an insurance company’s adjustment of those losses or damage incurred under an insured’s limits of coverage on the company’s issued policies. UNDERWRITING EXPENSE ACCT includes salaries plus commissions plus overhead expenses plus office rent plus fees charged for memberships in bureaus. Typical expenses are illustrated in the Foundation Financial Management Expense Account section. Depending on the type of company. 00 This page intentionally left blank.00. 12-140 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09. Expense Account INCOME STMT GL MAIN ACCOUNT GL Main Account Num (FK) Income Stmt GL Main Acct Cd (FK) Income Stmt GL Main Acct Cd EXPENSE ACCOUNT GL Main Account Num (FK) Expense Account Type Cd (FK) OTHER EXPENSE ACCOUNT Expense Account Type Cd GL Main Account Num (FK) Other Expense Acct Type Cd (FK) COST OF SALES ACCOUNT OPERATING EXPENSE ACCOUNT GL Main Account Num (FK) INCOME TAX ACCOUNT GL Main Account Num (FK) GL Main Account Num (FK) Operating Expns Acct Type Cd (FK) INTEREST EXPENSE ACCOUNT GL Main Account Num (FK) Other Expense Acct Type Cd Operating Expns Acct Type Cd FACILITY OP EXPENSE ACCOUNT GL Main Account Num (FK) OTHER OP EXPENSE ACCOUNT GL Main Account Num (FK) LOSS AND LOSS ADJ EXPENSE ACCT MARKETING EXPENSE ACCOUNT SELLING EXPENSE ACCOUNT GL Main Account Num (FK) GL Main Account Num (FK) GL Main Account Num (FK) R AND D EXPENSE ACCOUNT GENERAL AND ADMIN ACCOUNT GL Main Account Num (FK) GL Main Account Num (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret UNDERWRITING EXPENSE ACCT GL Main Account Num (FK) .Chapter 12 – Insurance Extension Detailed Data Model Description Finance Subject Area Figure 12-46 Insurance .FM. . The typical Liability Accounts are illustrated in the Foundation Financial Management Liability Account section. POLICY HOLDER FUND ACCT. LOSS AND LOSS ADJ RESERVE ACCT. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-143 . that calls for the transfer of assets at a determined future date. UNPAID CLAIM ACCOUNT and CHNG UNEARN PREM RESERVE ACCT are Insurance specific liability accounts.Chapter 12 – Insurance Extension Detailed Data Model Description Finance Subject Area Liability Account The liabilities of a company are amounts owed to other parties or organizations representing expenses. or any other form of a legally enforceable claim on the company's assets. UNEARNED PREMIUM RESERVE ACCT. excluding owner’s equity. Liability Account refers to a type of General Ledger Balance Sheet Account. 12-144 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank.00.Teradata Financial Services Logical Data Model Reference Guide Release 09. Chapter 12 – Insurance Extension Detailed Data Model Description Finance Subject Area Figure 12-47 Insurance .FM.Liability Account LIABILITY ACCOUNT GL Main Account Num (FK) Liability Account Type Cd (FK) Liability Account Type Cd OTHER LIABILITY ACCOUNT NONCURRENT LIABILITY ACCOUNT GL Main Account Num (FK) GL Main Account Num (FK) Other Liability Acct Type Cd (FK) Noncurrent Liab Acct Type Cd (FK) Noncurrent Liab Acct Type Cd Other Liability Acct Type Cd CURRENT LIABILITY ACCOUNT RESERVES ACCOUNT GL Main Account Num (FK) GL Main Account Num (FK) Current Liab Account Type Cd (FK) POLICY HOLDER FUND ACCT GL Main Account Num (FK) LOSS AND LOSS ADJ RESERVE ACCT Current Liab Account Type Cd ACCRUED LIABILITY ACCOUNT GL Main Account Num (FK) LONG TERM DEBT ACCOUNT GL Main Account Num (FK) GL Main Account Num (FK) UNEARNED PREMIUM RESERVE ACCT GL Main Account Num (FK) CHNG UNEARN PREM RESERVE ACCT DEFERRED INCOME TAX ACCOUNT DEFERRED REVENUE ACCOUNT GL Main Account Num (FK) GL Main Account Num (FK) GL Main Account Num (FK) ACCOUNTS PAYABLE GL Main Account Num (FK) INCOME TAX PAYABLE ACCOUNT CURRENT LONG TERM DEBT ACCOUNT GL Main Account Num (FK) GL Main Account Num (FK) may be a DEPRECIABLE ASSET ACCT PAYABLE UNPAID CLAIM ACCOUNT GL Main Account Num (FK) SHORT TERM DEBT ACCOUNT GL Main Account Num (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Deprec Asset GL Main Acct Num (FK) AP GL Main Acct Num (FK) . . The entities EARNED PREMIUM ACCOUNT and PREMIUM WRITTEN ACCOUNT are Insurance specific revenue entities.FM. PREMIUM WRITTEN ACCOUNT records total premiums generated from all policies written by an insurance company within a given period of time. It is a type of General Ledger Income Statement Account. and profit year to date. EARNED PREMIUM ACCOUNT represents the portion of premiums paid by an insured that has been allocated to the insurance company’s loss experience.Chapter 12 .Insurance Extension Detailed Data Model Description Finance Subject Area Revenue Account Revenue (sometimes referred to as income) refers to the amount of money earned by a company. Figure 12-48 Insurance .Revenue Account REVENUE ACCOUNT TYPE REVENUE ACCOUNT GL Main Account Num (FK) classifies Revenue Account Type Cd (FK) Revenue Account Type Cd EARNED PREMIUM ACCOUNT GL Main Account Num (FK) Revenue Account Type Desc SALES REVENUE ACCOUNT GL Main Account Num (FK) INTEREST INCOME ACCOUNT GL Main Account Num (FK) Revenue Account Type Cd OTHER REVENUE ACCOUNT GL Main Account Num (FK) PREMIUM WRITTEN ACCOUNT GL Main Account Num (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-147 . The typical Revenue Accounts are illustrated in the Foundation Financial Management Revenue Account section. expenses. 00 This page intentionally left blank. 12-148 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09.00. the birth date for each allowed driver (INDIVIDUAL). The business premise behind Behavior Based Pricing insurance policies is that insurance customers’ premiums are dependent on how and where they drive.g. the speed. The incentive for the customer is that their premiums may be lower if they drive during safe conditions. There will be conditions concerning certain days and certain times of those days when premiums are different (e. higher premiums for driving at nights during the weekend. Insurance Function View Behavior Based Pricing This function view describes the entities associated with Behavior Based Pricing. towns or built up areas rather than countryside during the rush hours). There may also be conditions about the total number of miles/kilometers driven per month. GPS device) is installed in the vehicle and reports measurements about where a person is driving. subtype. They cross subject areas for the purpose of supporting a business analytic purpose. longitude and altitude In the FS-LDM this monitoring device is entity VEHICLE MONITORING DEVICE which is a subtype to PARTY ASSET.g.. Driving a Car and having a Behavior Based Pricing Policy a) Each car has a sensor device which transmits the following details via satellite back to the insurance company at certain points in time whenever the car is moving (JOURNEY POINT): .g.Chapter 12 – Insurance Extension Detailed Data Model Description Insurance Function View Insurance Function View This section contains views of the model from a business function perspective. the allowed drivers (PARTY AGREEMENT).Date and Time . higher premiums for driving in certain areas at specified times (e. the customer (PARTY) is issued with a policy (AGREEMENT. For a normal car insurance policy.Location – latitude. the direction and the time of day. INSURANCE AGREEMENT) which has certain conditions – it names the car insured (AGREEMENT ASSET). such as during rush hour or during night time when visibility is poor. the type of use to which the vehicle will be put (PARTY TO PARTY ASSET). A monitoring device (e.Speed and Direction . the type of policy and coverages (COVERAGE FEATURE)) and so on. From this the insurance company can deduce such things as if a person is driving during a time of day when road conditions are more risky. For a Behavior Based Pricing policy there are certain other conditions which can determine the premium based on driving conditions... Entity PARTY ASSET RELATED can tell you over time the vehicle in which the device is installed. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 12-149 . whether any of the insured drivers have convictions for motoring offences (PARTY LEGAL ACTION). In the FS-LDM entity JOURNEY POINT records the speed. the insurance company will examine the details of when and where the car has been driven and use these details to determine how much the car has been used under each set of premium conditions (used late at night in town.). date/time and direction for each point reported during a trip. The beginning and ending points for a given ROADWAY SEGMENT are carried in this entity. road type (motorway. c) When the time comes to calculate the monthly premium. Entity ROADWAY SEGMENT is a type of GEOSPATIAL AREA. dirt track. accident black spot.Teradata Financial Services Logical Data Model Reference Guide Release 09. This is outside the FS-LDM. Premiums can move up or down based on this information.00 b) The Insurance Company will have a series of maps which divide the country into roads. ordinary road. during the day in countryside. Note: The concept of a Journey (collection of journey points) was considered but not put into the model due to privacy concerns by insurance companies and their customers. Normally points are collected by the monitoring device and then transmitted once a day to the insurance company. The insurance company will also have knowledge of where vehicles are normally parked overnight based on what was reported on an application. these will define certain attributes such as road name. speed limit. Analytics at the insurance company can then take this data about the trip and determine how risky the trip was based on what it knows about the geographic area being traveled at that point in time. etc. and for each point on each road. etc.00.) to calculate the monthly premium. 12-150 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . location. etc. Insurance Extension Detailed Data Model Description Insurance Function View Figure 12-49 Insurance Function View .Behavior Based Pricing PARTY AUTO DRIVING HIST PARTY TO PARTY ASSET AGREEMENT ASSET Account Num (FK) Account Modifier Num (FK) Asset Contract Role Cd (FK) Party Asset Id (FK) Agreement Asset Start Dt has asset of AGREEMENT Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) Agreement Asset End Dt PARTY ASSET RELATED Party Asset Id (FK) Related Party Asset Id (FK) Party Asset Related Type Cd (FK) Party Asset Related Start Dt PARTY ASSET Party Asset Id Gregorian Date Dt LOCATOR DEMOGRAPHIC Violation Forgiven Ind Last Accident Dt Accident Cnt Accident Points Diminish Dt Minor Conviction Cnt Penalty Points Cnt Accident Forgiven Dt Major Conviction Cnt Accident Forgiven Ind Locator Id (FK) Demog Cd (FK) Data Source Cd (FK) Locator Demog Start Dt Demog Value Cd (FK) Locator Demog End Dt Locator Demog Num Locator Demog Val describes Day Of Week Num is described by LOCATOR Asset Type Cd is location for is related with Locator Id is related to Locator Type Cd (FK) Day Of Week Name LOCATOR RELATED HIST Locator Id (FK) Related Locator Id (FK) Locator Relationship Type Cd (FK) Locator Related Start Dt contains Locator Related End Dt VESSEL Locator Type Cd JOURNEY POINT Party Asset Id (FK) Vessel Registration Num has history of Gregorian Date Julian Day Num Gregorian Date Day Of Mth Num Gregorian Date Day Of Year Num Gregorian Date Comment Txt Gregorian Day Of Week Num (FK) Gregorian Week Id (FK) Gregorian Month Id (FK) DAY OF WEEK has movement of Party Asset Id (FK) Motor Vehicle Hist End Dttm Drivable Ind Motor Vehicle Desc Color Desc Seat Belt Ind Air Bag Ind Alarm Type Cd (FK) License Plate Num Annual Distance Meas Daily Commute Distance Meas Commuting Days Num Lead Paint Ind has driving GREGORIAN DATE Party Asset Locator End Dt is related with MOTOR VEHICLE Party Asset Id (FK) Motor Vehicle Hist Start Dttm Party Id (FK) Party Asset Id (FK) Asset Role Cd (FK) Asset Role Dt MM Object Id (FK) Asset Insurance Hist Type Cd (FK) Asset Use Cd (FK) Asset Type Cd (FK) has address of Asset Relinquish Dt Asset Desc Asset Acct Num Asset Next Valuation Dt PARTY ASSET TO LOCATOR Asset Next Inspection Dt Valuation Time Period Cd (FK) Party Asset Id (FK) Asset Host Id Val Locator Id (FK) Party Asset Locator Role Cd (FK) is related to Party Asset Locator Start Dt has agreement of Party Asset Related End Dt MOTOR VEHICLE HIST has role with Party Asset Id (FK) Party Id (FK) Asset Role Dt (FK) Asset Role Cd (FK) Driving Hist Dt Motor Vehicle Type Cd (FK) Vehicle Manufacturer Cd (FK) Body Type Cd (FK) Transmission Type Cd (FK) Modification Cd (FK) Manufacture Year Num Series Name Model Name Door Cnt Engine Volume Meas Motor Vehicle Serial Num Engine Power Meas Length Meas Day Time Lamp Ind VEHICLE MONITORING DEVICE Party Asset Id (FK) Model Id (FK) Vehicle Device Serial Num DAYPART HOURS Party Asset Id (FK) Geospatial Locator Id (FK) Journey Point Dttm Journey Journey Journey Journey Point Speed Qty Point Speed UOM Cd (FK) Speed Time Period Cd (FK) Direction Degree Num Day Of Week Num (FK) Daypart Cd (FK) GEOGRAPHICAL AREA POINT LOCATOR Daypart Start Tm Daypart End Tm Point Locator Id (FK) Geographical Area Id (FK) Point Locator Type Cd (FK) Geographical Area Type Cd (FK) Geographical Area Short Name Geographical Area Name Geographical Area Desc Currency Cd (FK) is model for Geographical Area Type Cd Point Locator Type Cd MANUF MODEL Model Id Model Desc Manufacturer Business Party Id (FK) Manufacturer Model Num Manuf Model Release Year Num GEOSPATIAL LOCATOR GEOSPATIAL AREA STRUCTURE Geospatial Locator Id (FK) is location for Latitude Meas Longitude Meas Altitude Meas Altitude Unit Of Measure Cd (FK) is used to create is formed by Geospatial Area Id (FK) Geospatial Locator Id (FK) GEOSPATIAL AREA Geospatial Area Id (FK) Geospatial Area Type Cd (FK) Polygon Point Sequence Num Geospatial Area Type Cd is ending point is starting point for Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret ROADWAY SEGMENT ROADWAY Geospatial Area Id (FK) Geospatial Area Id (FK) Ending Geospatial Locator Id (FK) Starting Geospatial Locator Id (FK) Road Type Cd (FK) Direction Cd (FK) .Chapter 12 . . Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 13-1 .Chapter 13 Investment Extension About this Chapter This chapter describes the Investment Extension of the Teradata Financial Services LDM. The data model structures described in this chapter build on entities described in the Foundation section and are specific to the investment and capital markets functions in an organization. 13-2 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank.Teradata Financial Services Logical Data Model Reference Guide Release 09.00. This extension is also used as the model for the enterprise to obtain information about its own institutional investments in securities where the enterprise is the investor. allows it to achieve query performance and throughput levels unsurpassed by conventional RDBMS systems today. and insurance companies that provide investment products for life and pension policies. The data model is designed to answer business questions like: What happened? Why did it happen? What will happen? Although this logical data model does not encompass the general administrative area of the enterprise. this data model provides the capability to support large amounts of detailed data for long periods of time in a data warehouse. The detail data is intended to capture the complete record of brokerage/investment transactions for each account holder and internal investment. it can be extended to this area and others without compromising the basic structure of the model. AGREEMENT. and informational environment. Teradata offers proven decision support scalability from gigabytes to terabytes and beyond. Teradata’s ease of use. and EVENT subject areas. This extension to the FS-LDM Foundation provides the backbone for the decision-support. combined with the power of parallel processing. The physical manifestation of this logical model is best implemented on a Teradata Relational Database Management System (RDBMS). standalone brokerage houses. The Investment Extension expands upon the PRODUCT. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 13-3 . The logical data model becomes the start for the physical data base design. When combined with the FS-LDM Foundation. It simplifies the data warehouse management environment by distributing data and balancing workloads automatically.Chapter 13 – Investment Extension What is the Teradata Financial Services Logical Data Model Investment Extension? What is the Teradata Financial Services Logical Data Model Investment Extension? Introduction The Financial Services Logical Data Model Investment Extension is a generic logical data model intended to serve as a working template for banks offering brokerage services to their customers. analytical. 00 This page intentionally left blank.Teradata Financial Services Logical Data Model Reference Guide Release 09.00. 13-4 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . All FS-LDM Extensions build on the Foundation and contain entities that are specific to their businesses. Figure 13-1 FS-LDM Extensions Foundation Investment Extension Insurance Extension Banking Extension Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 13-5 . This document describes the Investment Extension and the parts of the Foundation that it builds upon.Chapter 13 – Investment Extension Fit with other Teradata FS-LDM Extensions Fit with other Teradata FS-LDM Extensions The FS-LDM Foundation contains entities that are common across all FSLDM Extensions. Figure 13-1 shows the relationship between FS-LDM model components. which builds on the Foundation. like customers and their addresses. This Reference Guide is for the Investment Extension. they work together and share common entities. 13-6 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 This page intentionally left blank. Chapter 14 Investment Extension – Business Value About this Chapter This chapter describes the Business Value of the Investment Extension of the Teradata Financial Services LDM. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 14-1 . 00. 14-2 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09.00 This page intentionally left blank. Also. Also. using the mail and telephone are rapidly being replaced by the internet. it is of utmost importance to know the following about their customers. they have to find the right balance between automated processing of their clients’ requests at very low cost. and offering expert advice for which a considerable price must be paid. (a) the composition of their portfolios. Therefore. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 14-3 .Chapter 14 – Investment Extension Business Value Business Context Business Context Traditional brokerage and investment services. whether offered stand-alone or in combination with banking or insurance products. Depending on the financial circumstances. (b) their investment patterns. monthly sell/buy activity may differ considerably during the year. Finally. and (c) their preferred method and times for communication. are facing increasing demand for fast access and response times toward their customers. customers change from aggressive investment to conservative investment and back again. Financial institutions are also under pressure to understand the risk of their own internal investments and to comply with regulatory and accounting standards. All of this is changing over time. 00 This page intentionally left blank.Teradata Financial Services Logical Data Model Reference Guide Release 09. 14-4 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00. For brokerage service providers this means the following: • • • Communication with customers can be achieved via the chosen medium. the customer can be notified. Able to combine into groups. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 14-5 . Keep track of behavior changes in individual customers over time. on the day and time of their choice. customers who behave similarly. the objective is to understand the exposure for each investment. due to value changes in individual portfolio components.Chapter 14 – Investment Extension Business Value Business Objective Business Objective Teradata’s business solutions are designed to help achieve the following business objectives: • • • Provide an up-to-date view of the customer and his activities. which provides information about long term trends. Lack of expected customer action can be noticed. which makes it possible to predict behavior patterns and act accordingly. For internal investments. and if so indicated. This enables the treatment of each individual customer in an optimal manner. The customer can be notified immediately of significant changes in the portfolio composition. New investment product announcements can be sent selectively to those customers who are most likely to respond. 14-6 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00.00 This page intentionally left blank.Teradata Financial Services Logical Data Model Reference Guide Release 09. including Common Stock. maintenance. This includes traded investment products (securities) as well as nontraded investment products (such as pension funds). Rights. and closing of customer portfolios. A portfolio may be linked with one or more bank accounts to: – pay for securities purchases – receive money for securities that were sold – receive dividends from stocks and interest from bonds – pay commission. and Warrants – Bonds – Funds – Options – Futures including Commodities – Swaps and other derivatives – Foreign exchange Records analyst recommendations and ratings for investment products. are. Preferred Stock. The following types of instruments are included: – Stocks. and will be offered to the public. fees.Chapter 14 – Investment Extension Business Value Business Scope of FS-LDM Investment Extension Business Scope of FS-LDM Investment Extension Apart from the general business scope that is included in the FS-LDM Foundation. including: – Bond amount denomination – bond interest payment intervals – bond maturity dates – bond interest percentages – bond minimum interest percentage – bond maximum interest percentage – preferred stock dividend percentage – applicable investment fund tax percentage – applicable dividend tax percentage – fund minimum investment amount – fee for purchase/sale of an investment product – automatic reinvestment for fund earnings – cash pay-out for fund earnings Establishment. the FS-LDM Investment Extension offers the following: • • • • • Keeps track of all investment products that were. and costs Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 14-7 . Records investment product specifications and investment services. Keeps track of value changes for investment products over time. and interest. any change in the number of units (or the value) is recorded. Changes may occur because of the following: – buying and/or selling – issued rights – dividend reinvestment – bond repayment – redistribution caused by splits. Record all events related to investment products: – dividend declarations (cash or stock) – rights issues – warrants issues – take-overs – spin-offs – stock splits – trading suspensions and restarts Record buying and selling specifications as issued by customers or institutional investors. including the date of the change. Record all fees. as well as on the level of individual investment products within a portfolio.00 • • • • Keep track of margin percentages on the portfolio level. buying and selling securities. taxes may be withheld. related to brokerage services such as administering customer portfolios. and (partial) execution(s) of the orders. cash. Record securities movements in and out of customer portfolios.Teradata Financial Services Logical Data Model Reference Guide Release 09. expiration dates. dividends. check. etc. including earnings destinations (bank account. etc. According to the law of each country. commissions. types of orders. take-overs. within or outside the financial institution Registering investment products are recorded as separate events. For each investment product in the customer or the financial institution portfolio. and/or mergers – investment product transfers from/to other portfolios. costs. and transferring repaid bonds.00. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . including details such as upper or lower limits. • • 14-8 Record all securities dividends and interest earnings in customer portfolios.. and passed on to the tax office. or reinvestment). and what is the total value of these purchases? Which customers are likely to invest in a new mutual fund product? Which of the aggressive growth customers are candidates for more conservative investments? Which customers appear to be continuing their previous investment patterns despite the economic downturn and what products are they likely to consider as new purchases? Which customers are likely to liquidate their stock portfolios in favor of money market funds? Institutional Investment Business Questions • • • Which investment securities do I have. Many other questions can be answered. and how many units were purchased? What is the market value of those securities today and yesterday? What is my exposure to each investment holding? Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 14-9 .Chapter 14 – Investment Extension Business Value Business Questions Business Questions The FS-LDM enables businesses that provide brokerage services to answer many questions critical to their success and to successful customer relations management of customer. but the lists are not exhaustive. when did I buy it. This section lists some major questions that can be answered. These questions are divided into the following two categories: • • General Business Questions Investment-related Questions General Business Questions • • • • • • • • Who are the most profitable customers? Who are the least profitable customers? How much business has been gained? Which customers produce the most revenue? Which sales channel is providing the highest number of new customers? What is the average length of time that a customer is retained? What is the profile for customers leaving much earlier? What is the profile for customers staying much longer? Investment related Questions • • • • • What investment security have the customers been buying most for their portfolios during the last four weeks. The lists are intended to indicate the range and depth of information that can be obtained from the warehouse. how much did I pay. 14-10 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 This page intentionally left blank. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 15-1 .Chapter 15 Investment Extension – High Level Data Models About this Chapter This chapter is a high level data model representation of the Investment Extension to the Teradata Financial Services Logical Data Model. 15-2 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank.00.Teradata Financial Services Logical Data Model Reference Guide Release 09. The two levels presented in this section are: • Subject Area Data Model • Conceptual Level Data Model The Subject Area data model shows things of major significance to the business. and the general business rules used in the model. The conceptual model also establishes semantics. The purpose of these high level views is to show the essence of the model and to simplify understanding. These high level views provide an understanding of the type of information that is contained in the model without overwhelming detail. The Conceptual Level Data Model takes the Subject Area Data Model one step further into detail but is still at a conceptual level. The following figure shows the relationship between the high level and low level data models. It sets the scope of the detailed data model. Chapter 16.Chapter 15 – Investment Extension High Level Data Models Model Levels Model Levels This section shows two high-level data model views of the FS-LDM Investment Extension. philosophy. There is a very high level of abstraction. To explain the Detailed Model we have divided it into logical views where each view explains a business concept. Entity names in the Conceptual Model may be different from entity names in the Detailed Model. The Detailed Level Model takes the Conceptual Level to the lowest level of detail – the attribute level. the Detailed Level Data Model describes the lowest level of detail. These concepts become the building blocks for all other detail in the data model. This is because abstraction is required when going from one level to another level. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 15-3 . 00 Figure 15-1 Data Model Levels 15-4 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00.Teradata Financial Services Logical Data Model Reference Guide Release 09. c ondit ions and f eat ures . Figure 15-2 Subject Area Model Not al l rel ati onshi ps are PARTY ASSET Tangible or int angible it ems AGREEMENT A c ont rac t or deal bet ween part ies t hat is of int eres t . EVENT PRODUCT A ny mark et able or t radable produc t or s erv ic e inc luding t erms . LOCATION A phy s ic al addres s . These concepts become the building blocks for all other details in the data model. The v ehic le by whic h a part y may int erac t wit h t he f inanc ial ins t it ut ion. There is a very high level of abstraction. elec t ronic addres s . CHANNEL INTERNAL ORGANIZATION A P art y t hat is a unit of bus ines s . FINANCE The int ernal ac c ount ing of t he bus ines s . S omet hing of int eres t t hat happened t hat may or may not inv olv e c ont ac t wit h t he c us t omer. These are the same major subject areas that are described in the Foundation section and all have applicability to the investment business. geographic or s pat ial area. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 15-5 . It sets the scope of the detailed data model. CAMPAIGN A c ommunic at ion plan t o deliv er a mes s age.Chapter 15 – Investment Extension High Level Data Models Subject Area Model Subject Area Model The Subject Area data model shows things of major significance to the business. PARTY A n indiv idual. bus ines s or group of indiv iduals of int eres t t o t he f inanc ial ins t it ut ion. Subject Area Model Diagram Description The subject area data model in Figure 15-2 shows ten major subject areas. 00 This page intentionally left blank. 15-6 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00.Teradata Financial Services Logical Data Model Reference Guide Release 09. It is also used as a model for the enterprise to obtain information about its own internal investments in securities where the enterprise is the ‘investor. for standalone brokerage houses.Chapter 15 – Investment Extension High Level Data Models Conceptual Level Data Model Conceptual Level Data Model This section describes the conceptual model for the Investment Extension of the FS-LDM.’ This Conceptual Model extends the following FS-LDM Major Subject Areas: • Party • Product • Agreement • Event The following FS-LDM Major Subject Areas are not affected by the Investment Extension: • Party Asset • Internal Organization • Location • Campaign • Channel • Finance The full Conceptual Model is shown on the next page. for insurance companies that provide investment products for life and pension policies. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 15-7 . This Extension is intended for banks offering brokerage services to their customers. 00.00 Figure 15-3 Investment Conceptual Data Model RISK METRIC LOCATION PRODUCT GROUP PARTY LIMIT PRODUCT RELATED PRODUCT RATING FINANCIAL INFORMATION MARKET RISK VALUE AT RISK FEATURE PROJECTED CASH FLOW PARTY GROUP PRODUCT PARTY INVESTMENT OBJECTIVE SETTLEMENT INSTRUCTION AGREEMENT AGREEMENT AGREEMENT RELATED PARTY ASSET CAMPAIGN ORGANIZATION MARGIN ACCOUNT HISTORY EVENT EVENT RELATED INDIVIDUAL CHANNEL CASH ACCOUNT HISTORY HOUSEHOLD EVENT STATUS INVESTMENT INSTRUMENT CREDIT DERIVATIVE INTERNAL ORGANIZATION FINANCIAL ACCOUNT EVENT INTEREST INDEX CURRENCY INVESTMENT AGREEMENT STOCK OPTION BOND FUTURE FUND FINANCIAL EVENT COMMODITY INVESTMENT INSTRUMENT MARKET DATA STOCK HISTORY INVESTMENT HOLDING SWAP POSITION SUMMARY INVESTMENT PRODUCT EVENT AGREEMENT EVENT INVESTMENT PORTFOLIO AGREEMENT INVESTMENT EVENT INVESTMENT POSITION SETTLEMENT INSTRUCTION TRADE PORTFOLIO PRODUCT VALUE HISTORY TRADE EXECUTION TRADE ORDER PORTFOLIO 15-8 PORTFOLIO PRODUCT Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret PORTFOLIO MARGIN DETAIL .Teradata Financial Services Logical Data Model Reference Guide Release 09. The customer may also have a low or high tolerance level for risk (e. When working with the customer to understand their investment objectives and spending pattern you may collect FINANCIAL INFORMATION. cautious vs.. aggressive) which can drive their investment style and allocation.Chapter 15 – Investment Extension High Level Data Models Conceptual Level Data Model Party A PARTY that is a customer may have INVESTMENT OBJECTIVEs such as capital appreciation or capital preservation.g. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 15-9 . Feature A PRODUCT may be described by zero. a percentage. a date. a quantity. 15-10 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . a description. It is the financial institution’s ‘product catalogue. a homogeneous set of issuances with consistent terms and conditions of Microsoft common stock would be one instance of PRODUCT. which has a negotiable document backing it) and it may be traded. It may be a nontraded Investment Fund or Pension Fund. a PRODUCT is also a homogeneous issuance of a security instrument such as stock. The combination may be a mandatory combination or an optional combination.’ In the context of investment or brokerage agreements. bond or derivative For example.Teradata Financial Services Logical Data Model Reference Guide Release 09. and it may be tradable currency. or more FEATUREs. A FEATURE that is an amount is in a specified currency.00. the date that the PRODUCT is first put on the market.00 Product Product A PRODUCT is what the financial institution offers to its customers. A FEATURE may specify an amount (including fees). An INVESTMENT INSTRUMENT may be listed at one or more PARTIES that are Stock Exchanges. Investment Product A PRODUCT may be an INVESTMENT INSTRUMENT. Each combination of a PRODUCT and a FEATURE has a start date and an end date. a time period. A PRODUCT has a name. Examples of FEATUREs are: • denomination amount of a bond • interest payment interval of a bond • time to maturity of a bond • interest percentage of a bond • minimum interest percentage of a bond • maximum interest percentage of a bond • dividend percentage of a preferred stock • tax percentage applicable to an investment fund • tax percentage applicable to dividend • minimum investment amount for a fund • fee amount for a purchase/sale of an investment product • automatic reinvestment of earnings of a fund • cash payout of earnings of a fund Each value is one instance of FEATURE. The name and description of the INVESTMENT INSTRUMENT are found in PRODUCT. and the date when the PRODUCT is no longer marketed. one. An INVESTMENT INSTRUMENT may be a Security (such as a financial instrument. The issue date is the start date in PRODUCT stating when the PRODUCT is first offered on the market. or maybe a description. A FEATURE that is a percentage may be linked to an index. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 15-11 . due to splits and other issues. one. one. and Fixed Income. An INVESTEMENT INSTRUMENT that is a STOCK includes all types of INVESTMENT INSTRUMENTs related to ownership. such as Warrants and Common Stock. OPTION. at a specific time. via PRODUCT RELATED. which includes the date of each change. If different STOCKs are related. or SWAP. FUND. CURRENCY. A PRODUCT may belong to zero. The source of this information may be a PARTY that is not a Stock Exchange. a percentage. a quantity. Types of Investment Products An INVESTMENT INSTRUMENT may be a STOCK. such as Reuters. and Warrants. this relationship is recorded in PRODUCT RELATED. or more PRODUCT GROUPs. at a PARTY that is a Stock Exchange. History of Values of Nonlisted Investment Products The values of nonlisted INVESTMENT INSTRUMENT s may be calculated using various parameters such as the type of INVESTMENT INSTRUMENT. or a time period. A PRODUCT GROUP may contain zero. or more PRODUCTs. BOND.Chapter 15 – Investment Extension High Level Data Models Conceptual Level Data Model The last two examples show FEATURES that are descriptive and with no associated metric such as an amount. Such information is found in STOCK HISTORY. the interest rate of the INVESTMENT INSTRUMENT. History of Values of Listed Investment Products INVESTMENT INSTRUMENT MARKET DATA contains the value of a INVESTMENT INSTRUMENT. in the currency that used by that Stock Exchange. A PRODUCT may have a PRODUCT RATING over time such as analyst recommendations and ratings. Rights. and ratings related to the INVESTMENT INSTRUMENT as maintained in PRODUCT RATING. Information such as the number of issued shares may vary over time. the interest rate of the related currency. Examples of PRODUCT GROUPs in relation to investment are nontraded Investment Funds. COMMODITY. The types include Common Stock. Preferred Stock. Equities (Stocks). CREDIT DERIVATIVE or a derivative such as FUTURE. Product Product Relationship An INVESTMENT INSTRUMENT that is an Option is linked to another INVESTMENT INSTRUMENT that is a Stock or a Bond. 00. A PORTFOLIO. • If your institution is the broker dealer. 15-12 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . which involves your institution in some manner. a Customer Portfolio may be established where investments move in an out of a portfolio. or more PORTFOLIOs. from an investment provider/broker perspective. For example. Portfolio and Investment Products A PORTFOLIO is associated with zero. which is a contract between the customer (the investor) and the financial institution where the financial institution is acting as a broker or investment provider. one. A PORTFOLIO relates to zero. is a collection of INVESTMENT INSTRUMENTs that the customer has invested in that may have similar treatment characteristics. either as a broker/dealer or as the investor. one.00 Agreement Agreement An AGREEMENT may be an INVESTMENT AGREEMENT. which specifies the quantity (or amount) and start. one. or more AGREEMENTs. from a taxation perspective. PORTFOLIO MARGIN DETAILs keeps track of the margin percentage per INVESTMENT INSTRUMENT in the PORTFOLIO. This information derives from INVESTMENT EVENTs that contain the trade executions.Teradata Financial Services Logical Data Model Reference Guide Release 09. The quantity and value of the holding within the PORTFOLIO can change over time in PORTFOLIO PRODUCT VALUE HISTORY. or more INVESTMENT INSTRUMENTs via PORTFOLIO PRODUCT. • Cash and margin accounts may be set up as mechanisms to collect and disburse monies related to the investments either inside or outside a portfolio. Customer Portfolio An INVESTMENT AGREEMENT may be an INVESTMENT PORTFOLIO AGREEMENT. one portfolio of products may be tax-deferred and another portfolio of products may be taxable in the year the earnings are received. The following describes these concepts further. the investment is an Investment Holding. Portfolio Margin Details The percentage that the account holder paid for specific INVESTMENT INSTRUMENTs may vary by INVESTMENT INSTRUMENT and by individual order.and end dates for each INVESTMENT INSTRUMENT in the PORTFOLIO. • If the investment is outside of a customer portfolio. An INVESTMENT PORTFOLIO AGREEMENT may relate to zero. and instruments move in and out of the customer’s portfolio. One AGREEMENT would represent one holding such as Microsoft Common Stock. If the AGREEMENT is a cash account. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 15-13 . A cash account may be set up as a mechanism to collect and disburse money related to the investments. The investor may be your financial institution or it may be a counterparty or a combination of both. The other part will be borrowed. Risk An investment in an instrument may be subject to MARKET RISK where market forces can cause the fluctuation in price.Chapter 15 – Investment Extension High Level Data Models Conceptual Level Data Model Investment Holding An INVESTMENT AGREEMENT may also be an INVESTMENT HOLDING AGREEMENT. using the purchased INVESTMENT INSTRUMENTs as collateral. MARGIN ACCOUNT HISTORY keeps track of the (margin) percentage that the accountholder must pay of the market value of purchased securities. Various RISK METRICs are used to determine risk including VALUE AT RISK which is a measure of how the market value of an asset or of a portfolio of assets is likely to decrease over a certain time period (usually over 1 day or 10 days) under usual conditions. which is where securities are held outside of a customer brokerage portfolio. an AGREEMENT is a cash account or a margin account. This cash account may be used to: • pay for purchases of INVESTMENT INSTRUMENTs • receive all dividend and interest earnings from INVESTMENT INSTRUMENTs • receive all earnings of INVESTMENT INSTRUMENTs that are a specified currency If the AGREEMENT is a margin account. An INVESTMENT AGREEMENT that is a cash account may have a balance (CASH ACCOUNT HISTORY) that may be positive (the investment provider owes money to the customer) or negative (the customer owes money to the investment provider). Cash Account and Margin Account In brokerage terminology. The quantity and value of the holding can change over time in INVESTMENT POSITION. the customer can partially pay for purchases. all purchases of INVESTMENT INSTRUMENTs require payment within a specified number of days. Investment Product Event An EVENT may be an INVESTMENT PRODUCT EVENT. Every event or transaction is recorded in the model as one EVENT. Examples are: • dividend declaration • stock split • trading suspension/restart A dividend declaration includes all necessary information. such as dividend amount or percentage and all related dates (declared date.Teradata Financial Services Logical Data Model Reference Guide Release 09. It also affects the financial institution’s holdings in INVESTMENT POSITION. etc. A stock split causes a change to PORTFOLIO PRODUCT for every PORTFOLIO containing the split INVESTMENT INSTRUMENT reflecting the situation after the stock split.00. or posting dividend or interest. These balances are reflected in CASH ACCOUNT HISTORY or MARGIN ACCOUNT HISTORY.00 Event Event Event (EVENT) is used to record financial transactions as well as nonfinancial transactions and interactions. Portfolio Event An EVENT may be an INVESTMENT EVENT that involves the financial institution’s customer’s PORTFOLIO and the financial institution is the investment provider/broker. An EVENT may be an AGREEMENT EVENT. EVENTs also include transactions as a result of internal investments made by the financial institution for its own holding. These interactions and transactions relate directly or indirectly to the Customers/Prospects or counterparties and/or their accounts such as brokerage accounts.). An AGREEMENT EVENT is linked to one AGREEMENT. Financial Account Event A FINANCIAL ACCOUNT EVENT affects the balance of the AGREEMENT. These EVENTs affect the instrument itself as a result of some action initiated by someone other than the investor. such as commission or fees. record date. Examples are: • PORTFOLIO Maintenance Fee • Costs/Fees/Commission/Taxes related to an INVESTMENT INSTRUMENT in the PORTFOLIO • Dividend from an INVESTMENT INSTRUMENT in the PORTFOLIO • Interest from an INVESTMENT INSTRUMENT in the PORTFOLIO • Balance update of an Account of the trade amount of the sale or purchase of an INVESTMENT INSTRUMENT out of or into the PORTFOLIO 15-14 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . An INVESTMENT EVENT that involves a PORTFOLIO is directly related to one PORTFOLIO. That EVENT may also be a FINANCIAL ACCOUNT EVENT meaning that money was involved in the event for a specific account. exdate. the cost to execute the customer order. inside or outside the financial institution) Register a purchased INVESTMENT INSTRUMENT into the PORTFOLIO Stock Dividend for a Stock in the PORTFOLIO Issued Rights from a Stock in the PORTFOLIO Investment Holding Event Transactions that affect an investment holding outside of a customer portfolio are instances of INVESTMENT EVENT and include TRADE EXECUTION or TRADE ORDER. • The order (TRADE ORDER) and its execution (TRADE EXECUTION). Examples are: • Two orders. the first is an INVESTMENT PRODUCT EVENT and the second is a FINANCIAL ACCOUNT EVENT. both are INVESTMENT EVENTs. • Execute an order with related commission and/or fees.Chapter 15 – Investment Extension High Level Data Models Conceptual Level Data Model • • • • • • An INVESTMENT INSTRUMENT order related to the PORTFOLIO Execute an order for an INVESTMENT INSTRUMENT related to the PORTFOLIO Transfer an INVESTMENT INSTRUMENT into or out of a PORTFOLIO (from or into a different PORTFOLIO. are both INVESTMENT EVENTs. • Declaring dividend and posting it dividend into the balance of an account. Related Events EVENTs may be linked to each other in EVENT RELATED. both ‘OCO’ (One Cancels Other) type. next day). Settlement instructions may be given at the trade level (SETTLEMENT INSTRUCTION TRADE) or may be standing instructions at the account level (SETTLEMENT INSTRUCTION AGREEMENT). payment timing (same day. the first is a TRADE EXECUTION and the second is a FINANCIAL ACCOUNT EVENT. Examples of settlement instructions include how the security instrument is delivered (book or certificate). the first is a TRADE EXECUTION and the second is a FINANCIAL ACCOUNT EVENT. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 15-15 . • Execute a customer order and the financial settlement. 00.00 This page intentionally left blank.Teradata Financial Services Logical Data Model Reference Guide Release 09. 15-16 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . This chapter contains detailed data model descriptions of the Major Subject Areas Party.Chapter 16 Investment Extension – Detailed Data Model Description About this Chapter This chapter describes the FS-LDM Investment Extension in detail. For noninvestment specific details. and refer to the Banking extension for details about that business line. refer to Chapter 4. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-1 . and Event. Agreement. Detailed Data Model in the Foundation. 16-2 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank.Teradata Financial Services Logical Data Model Reference Guide Release 09.00. Chapter 16 – Investment Extension Detailed Data Model Party Subject Area Party Subject Area This section describes the FS-LDM Major Subject Area Party. In this section.. bonds. stock. income and capital appreciation) in PARTY INVESTMENT OBJECTIVE. which could be an investment account at a brokerage or a life insurance policy or pension account.. aggressive. For the investor. Investment Objective This logical view shows investment objectives for a given PARTY and for a given AGREEMENT. aspects of Party that are important to Investment are covered.g. and investment risk tolerance (e. For the investor's account. cash) in PORTFOLIO INVEST ALLOCATION and INVESTMENT AGMT ALLOCATION.g. conservative) in PARTY INVEST RISK TOLERANCE. In general terms. it shows the desired allocation percent for a given asset class (e.. Party is described in the Foundation Reference Manual. moderate.g. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-3 . this view shows investment objectives (e. Investment Objective PARTY INVESTMENT OBJECTIVE PARTY Party Id has objective of Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind Party Id (FK) Invest Objective Priority Num Investment Objective Start Dt Investment Objective End Dt Investment Objective Cd (FK) PARTY INVEST RISK TOLERANCE tolerates risk as Party Id (FK) Investment Tolerance Level Num Investment Tolerance Start Dt Investment Tolerance End Dt Invest Risk Tolerate Type Cd (FK) has involvement with ACCOUNT PARTY Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt Account Party End Dt Allocation Pct Account Party Amt Acct Crncy Acct Party Amt Account Num (FK) Account Modifier Num (FK) Product Group Id (FK) Party Invest Allocate Start Dt has involvement with Party Invest Allocate End Dt Investment Allocation Pct AGREEMENT Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) 16-4 PRODUCT GROUP INVESTMENT AGMT ALLOCATION has investment allocation of Product Group Id is asset class for Parent Prod Group Id (FK) Product Group Desc Product Group Start Dt Product Group End Dt Product Group Level Num Product Group Reason Type Cd (FK) is asset class for PORTFOLIO INVEST ALLOCATION PORTFOLIO has allocation strategy of Portfolio Id Portfolio Open Dt Portfolio Close Dt Host Portfolio Id Portfolio Name Portfolio Id (FK) Product Group Id (FK) Portfolio Invest Strat Strt Dt Portfolio Invest Strat End Dt Portfolio Invest Strategy Pct Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret parent of .00 Figure 16-1 Investment .00.Teradata Financial Services Logical Data Model Reference Guide Release 09.Party. g. • Party – discusses the roles that Parties have with Investment Products and shows Party demographics. It also shows how Investment Products are valued over time and how margin information is tracked. or commission amount/rate. callable or noncallable. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-5 . Product is described in the Foundation Reference Manual. Microsoft stock symbol MSFT had a high of 'x'. Party financials. and PRODUCT. issuers. For example. In general terms. and NSIN. CUSIP. and other account management or maintenance fees. yield. These investment instruments may or may not be traded on public exchanges.g. and Investment Product ratings. futures. dividend amount per share. warrants. • Risk – tracks any risk metric or risk factor for any financial instrument All instances of investments can be represented in the entity PRODUCT. and closed at 'x'. aspects of Product that are important to Investment are covered. a pension fund that your institution creates. • Instrument Identification – shows the various ways financial instruments can be identified such as ISIN. corporate or municipal bonds. Microsoft common stock. interest or coupon rate..S. bonds. and stocks and bonds that make up the fund are all instances of PRODUCT. Treasury bills. In this section. Included are instances of stocks. exchanges. derivatives (e. options. other financial institutions. as of 8:00pm GMT. data providers. commodities. The logical views in this section are: • Product Overview – shows how Investment Products are related to other major entities of the enterprise such as PARTY. commercial paper. • Investment Product – describes types of negotiable and nonnegotiable Investment Products such as stocks. • Market Feeds – contains the market values for an instrument as reported by a data provider. GEOGRAPHICAL AREA. a low of 'x'. expiration date. These Investment Products may or may not be traded on an exchange. funds. unit investment trusts and real estate investment trusts. credit derivatives and funds. dealers. • Features – shows how terms and conditions of an Investment Product are stored such as denomination. registered limited partnerships. notes. futures and options). etc. call price. sales charge. transaction fee amount/rate.. For example. and notes (e. Parties can be individual or commercial investors. and banker’s acceptances. spread.Chapter 16 – Investment Extension Detailed Data Model Product Subject Area Product Subject Area This section describes the FS-LDM Major Subject Area Product. brokers. mutual fund fee. U. and bonds). rights. bonds. acting in a fiduciary capacity. These investment instruments may or may not be traded on public securities or commodity exchanges. An example of a ‘service’ type of product is providing investment accounts and. From the perspective of the financial institution(s) acting as a registered sales representative (broker-dealer). equity or fixed income funds. investment trust or pension fund). derivatives (e.. forward contracts. notes.. futures. and swaps). credit derivatives and mutual funds (e. bonds. then offering demand. in the over-the-counter marketplace. effective date of issue for a registered security. bonds.Teradata Financial Services Logical Data Model Reference Guide Release 09. money market certificates.g. and options. Examples of such financial instrument types of products are stocks. Product A PRODUCT has a name. If the Investment Provider is an insurance company. a creditor relationship with a corporation or governmental agency/body (bond).. Investment Product A PRODUCT may be an INVESTMENT PRODUCT. commodities. 16-6 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . a description. all ‘products and services’ offered to the investing public are instances of the entity PRODUCT.S. Microsoft common stock. savings. but does not represent a specific stock or indebtedness certificate issued as evidence of ownership or debt interest. These may include instances of stocks. A security is usually defined as representing an ownership interest in a corporation (stock). An INVESTMENT PRODUCT may be a financial instrument which may or may not be traded (e. commodities.00 Product Overview All instances of Financial Instruments may be represented in the entity PRODUCT. U. annuities. Investment Banker or Syndicate (Investment Provider). or rights to such ownership indicated by an option. municipal bond funds. bonds. A defined pension fund created and administered by a financial institution would also be an instance of PRODUCT. and other financial investments that may comprise the fund’s portfolio are also instances of PRODUCT. which is traded on a public securities exchange. If the Investment Provider is a bank.00.e. rights. and a date when the PRODUCT is no longer marketed or offered for sale. The INVESTMENT PRODUCT represents an instance of a security classification (e.g. or warrant. The stocks. convertible bond funds. investment trusts.g. For example. and hedge funds).g.. Microsoft common stock). a date when the PRODUCT was offered for sale in the securities market (i. subscription right. offering investment counseling and advice for customers. Treasury bills. Financial instruments that are currencies or interest rate indexes are also included in the scope of financial instruments because they are traded like any other instrument. or at an auction. Restricted Class B Preferred stock issued in start-up XYZ Company (issued as compensation in exchange for ‘seed money’) may not be publicly traded but is also an instance of PRODUCT. then issuing and holding insurance policies are also considered services (as described in the Insurance Extension). and loan accounts are also considered services (as described in the Banking Extension). warrants. or ‘when issued’ or ‘effective listing date’). options. would be an instance of PRODUCT.. but are not limited to: • Derivatives Securities • Pension Funds • Retirement Funds (e. one. and a role code (such as ‘is listed and traded on’). If the role of the product to the party is ‘is exchanged on’ then this entity contains the symbol and name of that financial instrument for that exchange (EXCHANGE PRODUCT NAME). the Securities and Exchange Commission in the U.’ PRODUCT PARTY includes a start date (listing and/or offer date) and an end date (delist and/or expiration date). Examples of PRODUCT GROUPs related to investments can include. PRODUCT TO LOCATOR associates financial instruments with geographical areas.g.g. Product Groups A PRODUCT GROUP allows you to group various PRODUCTs for different internal purposes such as to analyze trends for types of financial instruments.Chapter 16 – Investment Extension Detailed Data Model Product Subject Area An INVESTMENT PRODUCT may be registered with a governmental agency that regulates federal markets (e. you can see that a financial instrument may appear in more than one PRODUCT GROUP. The associative entity PROD GROUP ASSOCIATION takes care of combining valid pairs of PRODUCT and PRODUCT GROUPs. Products and Geographical Areas A PRODUCT such as an INVESTMENT PRODUCT may be issued by a corporation or governmental body located in a GEOGRAPHICAL AREA. The symbol and name of the INVESTMENT PRODUCT depends on which exchange the product is listed.S.. NYSE is the Exchange Party Id. For example. MSFT:NYSE – Microsoft Common Stock. one. IRA or Keogh Plans) • Securities • Fixed Income Products • Listed Products • Option Classes (a group of options with the same underlying security) From these examples. MSFT is the Exchange Product Symbol Name and Microsoft common stock is the Exchange Product Name. or more PRODUCT GROUPs. and may be listed for trade with zero. A PRODUCT may belong to zero.S. This association has a start date and an end date to specify the time period during which this association is valid.. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-7 . The association between PRODUCT and PARTY is made via the PRODUCT PARTY entity and establishes the role that the product has with the party such as ‘is listed at’ or ‘is traded on. such as the U.) as a new issue or a secondary offering. Large blocks of listed securities may be executed outside the exchange with the permission of the appropriate exchange. or Japan. A PRODUCT GROUP may contain zero. or over-the-counter marketplaces. one. or more PARTYs that are organized securities or commodity exchanges. or more PRODUCTs. the margin rate and loan value must always equal 100%. the FTSE 500..S. Both initial margin and maintenance requirements are regulated. If the percentage attribute is used. The brokerage firm then extends a margin loan of $2000 (the remaining 40%) to the client to cover the remaining purchase price.6).’ which is the percent of the market value of eligible securities. Another publisher is Standard & Poor’s 500 Index (S&P 500). 16-8 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . ABC Company’s brokerage client wants to purchase 100 shares of COMPANY A on margin and that client has established a margin account. The amount that the brokerage can loan to a margin customer is the ‘margin rate. which publishes the Dow Jones Industrial Average for 30 industrial company stocks. The index is usually published by a Party (Publishing Party Id). brokerage firms allow customers to purchase securities or cover securities on short sales with monies borrowed from the broker. The client satisfies the minimum margin requirement and deposits $3000 in his margin account (100 shares x $50/share x 0. Product Group Margin History The PRODUCT GRP MARGIN HIST entity provides for the history of margin rates for a group of products. such as Reuters. through its Market Data System. The margin rate set for the eligible product (e. If the time is set at 24:00. For example.. security trades and other financial information content to its affiliates and clients as recorded in Reporting Party Id. Margin accounts are governed by local regulations and also by the brokerage firm’s in-house rules. common stock) is 60% and its market value at that point is $50. market price or bid (sell) and asked (offering) price) is determined and recorded. may report. or can be expressed by the attribute Invest Product Pct. the value is expressed as a percentage of the original value. The date and time specify when the particular value (e. the absolute value is given. nontraded INVESTMENT PRODUCT). Using a margin account.Teradata Financial Services Logical Data Model Reference Guide Release 09.00. The value can be expressed by the attribute Invest Prod Value Amt in combination with the attribute Currency Cd.00 Investment Product Value History An INVESTMENT PRODUCT may have a history of values as recorded in INVEST PROD VALUE HIST. and the Tokyo Nikkei 300. The attribute Quoting Party Id represents either a securities or commodity exchange or a broker-dealer in OTC markets (for TRADED INVESTMENT PRODs or a security with unlisted trading privileges) or the FINANCIAL INSTITUTION that issued the INVESTMENT PRODUCT (for unlisted. A PARTY. if the customer is buying ‘on margin.g. such as the Wall Street Journal.g. If the amount attribute is used. Market Index This entity tracks the value of a collection of stocks or other securities over time such as the U.’ Expressed as a percentage. Dow Jones 30 Industrial. the value represents the current market price of a security as indicated by the latest trade recorded in that security for that trading session. The percent represents the minimum percentage that the customer must deposit with the broker for an eligible Product that belongs to this group of Products. that are similar to a mutual fund such as the S&P 500 fund. The algorithm for the computation of the index value differs from one index to another. There are indexes that you can buy into however. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-9 . The index is not included in the domain of PRODUCT because it is not the same as a traded instrument. The value of the index may be an average expressed relative to a predetermined market value. in which case the fund would be an instance of PRODUCT.Chapter 16 – Investment Extension Detailed Data Model Product Subject Area Usually the index is for a geographical area but there are indexes that can be more global and include multiple countries. Entity MARKET INDEX VALUE HIST tracks the closing price for this index as of a point in time. 00 Figure 16-2 Investment .Overview PRODUCT PRODUCT TO LOCATOR Product Id has location of Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind is involved with Product Locator End Dt is part of Product Type Cd INVESTMENT PRODUCT Investment Product Id (FK) Invest Prod Trade Type Cd (FK) Investment Product Type Cd (FK) Denomination Currency Cd (FK) Party Product Role Cd has value history in PARTY Product Id (FK) Party Product Role Cd (FK) Exchange Party Id (FK) Product Party Start Dt (FK) Exchange Product Symbol Name Exchange Product Name Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind Geographical Area Id (FK) Geographical Area Type Cd (FK) Geographical Area Short Name Geographical Area Name Geographical Area Desc Currency Cd (FK) 16-10 Product Group Id Parent Prod Group Id (FK) Product Group Desc Product Group Start Dt Product Group End Dt Product Group Level Num Product Group Reason Type Cd (FK) INVEST PROD VALUE HIST lists/trades at reports value Investment Product Id (FK) Quoting Party Id (FK) Invest Prod Value Dt Invest Prod Value Tm Currency Cd (FK) Reporting Party Id (FK) Invest Prod Value Amt Invest Product Pct MARKET INDEX GEOGRAPHICAL AREA PRODUCT GROUP Party Id publishes has market index of Prod Assoc End Dt groups is involved with Product Party End Dt EXCHANGE PRODUCT NAME PROD GROUP ASSOCIATION Product Id (FK) Product Group Id (FK) Prod Assoc Start Dt PRODUCT PARTY Party Product Role Cd (FK) Party Id (FK) Product Id (FK) Product Party Start Dt Product Id (FK) Prod Feat Locator Rel Cd (FK) Locator Id (FK) Product Locator Start Dt has margin history in PRODUCT GRP MARGIN HIST Stock Index Id Stock Index Name Publishing Party Id (FK) Geographical Area Id (FK) parent of Product Group Id (FK) Prod Grp Margin Pct Start Dt has closing price of MARKET INDEX VALUE HIST Stock Index Id (FK) Stock Index Value Dttm Close Amt Net Change Pct Close Amt Currency Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Prod Grp Margin Pct End Dt Prod Grp Margin Pct .Product.00.Teradata Financial Services Logical Data Model Reference Guide Release 09. The ISIN code is a 12-character alpha-numerical code that does not contain information characterizing financial instruments but serves for uniform identification of a security at trading and settlement. It is the identification of the Security as used locally at the national level.Product. A similar system is used to identify foreign securities (CUSIP International Numbering System). A financial instrument can have many identifiers. The number consists of nine characters (including letters and numbers) that uniquely identify a company or issuer and the type of security. The attribute National Security Id may be used in parallel to the ISIN. Committee on Uniform Securities Identification Procedures (CUSIP) is a nine digit number that identifies all stocks and registered bonds that trade in the US. equities and warrants. Its structure is defined in ISO 6166. Securities for which ISINs are issued include bonds. commercial paper. and NSIN.Instrument Identification PRODUCT Product Id Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind ORGANIZATION Org Party Id (FK) Org Type Cd (FK) Organization Established Dt Organization Close Dt issued is identified by PRODUCT IDENTIFICATION Product Identification Id PRODUCT TO PRODUCT IDENTIFIER Product Id (FK) Product Identification Id (FK) Prod to Prod Id Start Dttm identifies Prod to Prod Id End Dttm Product Id Start Dt Product Id End Dt Product Id Type Cd (FK) Product Id Categ Cd (FK) Issuing Org Party Id (FK) Product Id Categ Cd ISIN PRODUCT IDENTIFIER Product Identification Id (FK) ISIN Country Val ISIN National Security Id Val ISIN Check Digit Num CUSIP PRODUCT IDENTIFIER NSIN PRODUCT IDENTIFIER Product Identification Id (FK) Product Identification Id (FK) CUSIP Val NSIN Val Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret OTHER PRODUCT IDENTIFIER Product Identification Id (FK) Other Product Id Val 16-11 . An International Securities Identifying Number (ISIN) uniquely identifies a security. CUSIP.Chapter 16 – Investment Extension Detailed Data Model Product Subject Area Instrument Identification This logical view contains identifiers for financial instruments such as ISIN. Figure 16-3 Investment . The combination may be a mandatory combination or an optional combination. specifying the time during which the combination of the PRODUCT and FEATURE is valid.00 Features Product Features A PRODUCT may be described by zero. Example of DATE FEATURE is the call date for a bond. A FEATURE that is an amount or a fee is denominated in a specified currency. a time period (TERM FEATURE). Conversion rates for an Index are recorded in INDEX RATE HIST. Each combination of a PRODUCT and a FEATURE is recorded in PRODUCT FEATURE.Teradata Financial Services Logical Data Model Reference Guide Release 09. or more FEATUREs. This entity has a start date (issue or list date) and an end date (delist date). one. a date (DATE FEATURE) or a description (DESCRIPTIVE FEATURE). a quantity (QUANTITY FEATURE). Examples of AMOUNT FEATURE are: • the denomination face or nominal amount of a bond • the original total amount of debt for a bond (its par or stated value) • the par value of a preferred stock • the contractual dividend amount for a preferred stock • the strike price for an option (its exercise price) • the minimum initial investment amount for a mutual fund • the accumulated dividend payable amount for a cumulative preferred stock • the commission amount charged to execute a trade (buy or sell) for an Investment Product • the management charge or maintenance fee to maintain certain types of investment accounts Examples of TERM FEATURE are: • Bond interest payment interval (scheduled interest payment dates) • Time to bond maturity (when the principal amount becomes due and payable) Examples of RATE FEATURE are: • the par value percentage or contractual dividend rate of a preferred stock issue • the coupon or annual percentage of a bond’s par value • the original issue discount or premium percentage for a bond • the bond interest yield (the coupon rate as a percentage of the current market price) • the dividend yield of common or preferred stock (the annual percentage return earned by a stockholder on common or preferred stock) 16-12 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00. A FEATURE that is a percentage may be linked to an Index (INTEREST INDEX) that is measured in a specified currency. Feature Subtypes A FEATURE may specify an amount (AMOUNT FEATURE). a percentage (RATE FEATURE). expressed by the attribute Prod Feat Rel Type Cd. This rate includes noninterest rates. Interest-based rates can be fixed (FIXED INTEREST RATE FEATURE) or variable (VARIABLE INTEREST RATE FEATURE). a time period. and other rates. but are descriptive: • automatic reinvestment privilege to reinvest dividends paid in order to purchase more shares in the company or mutual fund • payout of a percentage of the earnings of a corporation or mutual fund in the form of dividends • the maintenance margin requirements for an investment service product • the initial margin requirement (in cash or eligible securities) for an investment service product The RATE FEATURE entity includes interest rates. a percentage. Another type of RATE FEATURE is expressed in OTHER RATE FEATURE. With variable rates. If the interest rate is fixed.Chapter 16 – Investment Extension Detailed Data Model Product Subject Area • • the tax-equivalent yield for a taxable corporate or government bond (versus a municipal tax-free bond or tax-exempt money market fund) the tax-equivalent yield applicable to dividends earned by corporations owning shares in another dividend paying company (dividend received deduction) Examples of DESCRIPTIVE FEATUREs that are not an amount. index rates. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-13 . and fee or commission rates. then the effective or actual rate the customer pays is the sum of a constant spread (profit) plus the portion of the contractual rate that is tied to an index. or a quantity. If it is a variable interest rate. the bank receives a fixed profit and the actual rate the customer pays may change over time. The customer’s effective rate is calculated as Interest Index Rate (INDEX RATE HIST entity) plus Spread Rate (VARIABLE INTEREST RATE FEATURE entity). The rate tied to the index changes over time depending on general market conditions. The profit (spread) on fixed rate investments depends on fluctuations in the general market and may change over time. then the effective rate of return (Fixed Interest Rate) remains the same as the customer was quoted or offered at settlement date and it does not fluctuate or change over time. 00.Teradata Financial Services Logical Data Model Reference Guide Release 09.Features FEATURE Feature Id PRODUCT FEATURE PRODUCT Product Id Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind has terms and conditions of Product Id (FK) Feature Id (FK) Prod Feat Rel Type Cd (FK) Product Feature Start Dt Product Feature End Dt TERM FEATURE Invest Prod Trade Type Cd (FK) Investment Product Type Cd (FK) Denomination Currency Cd (FK) DESCRIPTIVE FEATURE Quantity Time Period Cd (FK) Quantity Unit Of Measure Cd (FK) Feature Qty Feature Time Period Num Feature Id (FK) DATE FEATURE Rate Time Period Cd (FK) Rate Feature Type Cd (FK) Rate Time Period Num OTHER RATE FEATURE Rate Effective Dt Interest Index Cd (FK) Feature Id (FK) Feature Id (FK) Feature Dt Rate Feature Type Cd AMOUNT FEATURE Feature Id (FK) Amount Currency Cd (FK) From Feature Amt To Feature Amt Amount Time Period Cd (FK) Amount Time Period Num Other Feature Rate Interest Index Rate has rate history of VARIABLE INTEREST RATE FEATURE INTEREST INDEX Interest Index Cd 16-14 Feature Id (FK) RATE FEATURE Feature Id (FK) INDEX RATE HIST Interest Index Time Period Cd (FK) Interest Index Desc Interest Index Currency Cd (FK) Yield Curve Maturity Seg Id (FK) QUANTITY FEATURE From Time Period Cd (FK) To Time Period Cd (FK) Until Age Cd (FK) From Time Period Num To Time Period Num Until Age Num INVESTMENT PRODUCT Feature Type Cd (FK) Feature Classification Cd (FK) Feature Desc Feature Name Common Feature Name Feature Category Type Cd (FK) Feature Level Cnt Feature Type Cd Feature Id (FK) Product Type Cd Investment Product Id (FK) describes is index for FIXED INTEREST RATE FEATURE Feature Id (FK) Feature Id (FK) Spread Rate Interest Index Cd (FK) Upper Limit Rate Lower Limit Rate Fixed Interest Rate Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Product.00 Figure 16-4 Investment . or in the secondary (over-the-counter) markets. An INVESTMENT PRODUCT is either publicly traded on an organized securities or commodity exchange. OTC and Instinet). and swaps).S.g. nor listed for trade (NON TRADED INVEST PROD). baskets of instruments. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-15 . hedge funds. Investment Products A PRODUCT may be an INVESTMENT PRODUCT. private placement sales. percentages. credit derivatives. such as ‘hold control’ securities (those acquired from an affiliate of the issuer) or restricted securities (e.) or are exempt from registration requirements. securities acquired in unregistered. • Investment Products that are registered and listed to trade are specified in PRODUCT PARTY. bonds. and traded via secondary markets and/or securities or commodity exchanges (TRADED INVESTMENT PROD). Nontraded Investment Products (NON TRADED INVEST PROD) NON TRADED INVEST PRODs include all Investment Products that are not publicly traded on an organized securities or commodity exchange. options. An INVESTMENT PRODUCT can be classified as either traded or not traded on an organized exchange. These instruments include INVESTMENT PRODUCTs. or on the secondary markets (e. funds. but the certificates of control securities are not stamped.. listed. internal pension funds). derivatives (futures. An investment instrument (INVESTMENT PRODUCT) is any financial instrument that is capable of being traded or exchanged.g.g. periods of time. employee stock benefit plans. and commodities. currencies. security indexes. It includes instruments that may or may not be traded on exchanges. The following items recap the description of INVESTMENT PRODUCTs (also refer to previous logical views descriptions): • Product name. The identifier used by the operational systems for the nonexchanged traded Investment Products can be specified by means of the attribute Host Prod Id in the entity PRODUCT. or is not traded on any organized market (NON TRADED INVEST PROD). (TRADED INVESTMENT PROD). the Securities and Exchange Commission (SEC) in the U. Restricted securities may not be resold in the markets unless they are registered with a regulatory agency (e. dates and fees applicable to INVESTMENT PRODUCTs are described via FEATUREs..Chapter 16 – Investment Extension Detailed Data Model Product Subject Area Investment Product This logical view shows how investment instruments are modeled in the FS-LDM. including PRODUCTs that are registered. investment instrument description and the issue date of an INVESTMENT PRODUCT are represented in PRODUCT. It includes stocks. and PRODUCTs that are not registered. The stock certificate of a restricted security is stamped with a ‘restricted’ legend. • Various rating classifications made and published by third party rating services of Investment Products are in INVESTMENT SECURITY RISK GRADE.. • Amounts. interest indexes. 00 Traded Investment Products (TRADED INVESTMENT PROD) TRADED INVESTMENT PROD includes all Investment Products that are publicly traded in the over-the-counter markets and/or securities or commodities exchanges. additional issue. Subscription rights and warrants are also separate instances of STOCK. OPTION PRODUCT. Investors lend money to these organizations. or governmental debt with a face value. or FUTURE PRODUCT. preferred stock. SWAP PRODUCT. Each instance of INVESTMENT PRODUCT is one issuance of an instrument and it is in this instrument issuance that people invest. such as common stock. Bonds A bond is a promissory note of corporate. and merger.Teradata Financial Services Logical Data Model Reference Guide Release 09. CREDIT DERIVATIVE PRODUCT. 16-16 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Types of Investment Products The attribute Investment Product Type Cd in INVESTMENT PRODUCT determines the type of instrument the product represents such as STOCK. ASSET BACKED SECURITY PRODUCT. The attribute Num Change Reason Type Cd indicates why the number of issued units has changed. BOND. MONEY MARKET PRODUCT. and a date when the debt will be repaid. or warrants. interest terms. SECURITIES INDEX PRODUCT. municipal. stock split.00. In addition. subscription rights. especially in swap types of agreements. Right and warrant instances can be related to the security instance of INVESTMENT PRODUCTs via PROD PROD RELATIONSHIP HIST. Stock A stock is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.’ STOCK is publicly traded in over-the-counter (OTC) markets and/or at securities exchanges. They are issued in ‘shares. The attribute Stock Type Cd determines the type of stock. COMMODITY. For example Microsoft common stock is one instance. STOCK HISTORY contains the number of issued units of the stock on the original issue date and at subsequent issue dates. a currency type (CURRENCY PRODUCT) or interest rate index instrument (INTEREST INDEX PRODUCT) can be classified as a product because they are traded like any other instrument. FUND (including hedge funds). The following describes each of these investment instrument types. Examples of issue reasons are: first issue. A California 10-year state water bond issue that comes due in 2010 is another instance. The fund is also an instance of PRODUCT. The terms and conditions of the FUND are instances of PRODUCT FEATURE.Chapter 16 – Investment Extension Detailed Data Model Product Subject Area BONDs are traded in OTC markets and/or at securities exchanges. Shares are issued and can be redeemed as needed. Funds A mutual fund is a security that gives access to a well-diversified portfolio of equities. A BOND (certificate) contains the actual interest payment month and year. If the bond is callable before the termination date. The OPTION PRODUCTs equity. Notes.. FUND can also include Hedge Fund which is an aggressively managed fund that uses advanced investment strategies such as leverage. index. but the actual payment day can be any day of the month. long. PRODUCT. The securities comprising an open-end or closed-end Fund’s portfolio are instances of PRODUCT. short. and other securities. Security Option An Option is an instrument that entitles the owner to buy or sell an underlying security at a certain price (e. Philadelphia Stock Exchange (PHLX) and Chicago Board Option Exchange (CBOE) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-17 . A TERM FEATURE defines the payment interval. Registered and listed (closed-end) fund shares (FUND) are publicly traded in OTC markets. and derivative positions in domestic and international markets with the goal of generating high returns. Each shareholder participates in the gain or loss in the fund.g. The relationship between the securities that are a part of the Fund’s portfolio and the Fund itself is represented in the PROD PROD RELATIONSHIP HIST. only the first date within the year is specified. Treasury Bills. while registered open-end fund shares are continuously offered to the investing public via mutual funds.g. foreign currency. that date is specified in DATE FEATURE. and (purchased) redeemed from fund owners who want to liquidate their shares. and Bonds are traded in the OTC markets (OTC Options) and at Options Exchanges (e.Product End Dt is the date when this bond will be paid off. TERM FEATURE is described in the Product and Features View in this section of the Reference Guide. strike price) before a certain date (expiration date). bonds. If there are multiple payments of interest scheduled throughout the year. the entity FUND has no attributes.. Apart from the Primary Key. It is always the same day of the month through the life of the instrument. and is shown in the logical data model for documentation purposes only. . strike prices for listed Options (exchange traded) are set by the exchange. A FUTURE PRODUCT contract is a Derivative of an underlying instrument which is also an INVESTMENT PRODUCT.. A futures contract obligates the buyer to purchase and the seller to sell the underlying commodity (e. or currency at a particular price on a stipulated future date. commodity.g. Some examples of types of option products that have emerged are: y Down-and-in option y Exotic option y Look back option y Down-and-out option y Knock in option y American option y Double no-touch option y One-touch option y Bermuda option y Shout option y Caput y Barrier option If you look at each option and decompose it you see that option variations are because of the differences in their terms and conditions and hence their FEATUREs. A TRADED INVESTMENT PROD that is a stock option (i. The association between the OPTION PRODUCT and the underlying INVESTMENT PRODUCTs may be made at the PRODUCT level via the PROD PROD RELATIONSHIP HIST.00 trade listed options).Teradata Financial Services Logical Data Model Reference Guide Release 09.e. Whereas prices are negotiated between buyer and seller for OTC Options.00. index and interest rate instrument) at the agreed upon.. it is derived from the underlying TRADED INVESTMENT PROD. put or call) is considered a derivative instrument because its value changes in relation to the performance of its underlying stock. Financial institutions are becoming very creative by creating new option types of products with varying terms and conditions. locked-in price on the stipulated settlement date. grain or precious metals) or financial instrument (e. Futures A FUTURE is a contract (agreement) to buy or sell a specific amount of a financial instrument. The association between the FUTURE PRODUCT and the other INVESTMENT PRODUCT may be made at the PRODUCT level via 16-18 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . unless the contract is sold to another investor before that date. Because the FS-LDM has a flexible way of modeling terms and conditions as instances of FEATUREs that are then related to products (PRODUCT FEATURE).g. therefore. the FS-LDM can handle these options. foreign exchange swap. The underlying instruments being swapped (e. oil. For example. The denominated currency is an attribute of INVESTMENT PRODUCT. 2 Northern Spring) can be used to satisfy the contract. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-19 . silver. 3% fixed interest rate) are also separate instances of INVESTMENT PRODUCT. Interest Index This is a type of product that is an interest index such as the London Interbank Offered Rate (LIBOR).Agreement . No. It can also be the underlying instrument of an interest rate swap. soybeans. Because each swap deal can be any combination of the many types of investment products that are capable of being swapped.. There is one instance for each type of swap. commodity swap. see Investment . Yen or U. bond swap.g. Euro.. the price of which can be traded on exchanges. etc. Currency Currencies such as Yen.Chapter 16 – Investment Extension Detailed Data Model Product Subject Area the PROD PROD RELATIONSHIP HIST. like wheat. the products for a swap deal are instances of ACCOUNT PRODUCT HISTORY which allows more than one product associated with an agreement. Swap A SWAP PRODUCT refers to the type of swap that is the subject of a swap contract such as a fixed for floating interest rate swap. In FS-LDM there is one instance for each type of currency (CURRENCY PRODUCT). Commodity A COMMODITY is an economic good. In FS-LDM each commodity of a type or grade is one instance of INVESTMENT PRODUCT and COMMODITY.S. Many times currency contracts are done to hedge against exposure in another currency.Derivatives and Swaps in this guide. dollars.000 bushels and also states what grades of wheat (e. Interest indexes can be the subject of an investment and traded betting on how the index will fluctuate over time (INTEREST INDEX PRODUCT). eggs.g. The sale and purchase of commodities is usually carried out through futures contracts on exchanges that standardize the quantity and minimum quality of the commodity being traded. a derivative contract such as a future or option. fixed for fixed interest rate swap. and USD can be traded like any other instrument. FUTURE PRODUCT contracts are traded at major securities and commodities exchanges. A currency type may be the subject of a spot foreign exchange deal. the Chicago Board of Trade stipulates that one wheat contract is for 5. and pork bellies. For more information about Swaps and Derivatives. and can also be the underlying instrument in a foreign exchange swap. collateralized mortgage obligations (CMOs) and collateralized debt obligations (CDOs). Asset Backed Securities Asset Backed Securities (ASSET BACKED SECURITY PRODUCT) are bonds whose interest and principal payments are backed by underlying cash flows from other assets. An unfunded credit derivative is a bilateral contract between two counterparties. Linking individual products to the index is in PROD PROD RELATIONSHIP HIST.00. Examples of asset-backed securities are mortgage-backed securities (MBS's).Teradata Financial Services Logical Data Model Reference Guide Release 09. This is different from a PRODUCT GROUP because a PRODUCT GROUP is not the subject of a deal but is for internal analysis. Price fluctuation of the index itself can be traded and reported and is represented as a type of Investment Product. There are many types of credit derivatives. the Dow Jones Industrial average comprises a certain number of stocks and that value is reported daily. where each party is responsible for making its payments. Types of Credit Derivatives 16-20 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . It is not the same as a fund. which is isolated and traded. Credit Derivatives A credit derivative (CREDIT DERIVATIVE PRODUCT) is a financial instrument or derivative (finance) whose price and value derives from the creditworthiness of the obligations of a third party. Credit derivatives are fundamentally divided into two categories of product: funded credit derivatives and unfunded credit derivatives. Examples are the Dow Jones Industrial Average or the S&P 500 Index. For example. Also known as synthetic securitization. Financial Instrument Baskets Many times investment instruments are grouped into a ‘basket’ and the basket is the subject of the deal and treated like a financial instrument (FINANCIAL INSTRUMENT GROUP).00 Securities Index This entity represents a collection of investment products that can be used as an indicator of market performance. Credit default products are the most commonly traded credit derivative products and include unfunded products such as credit default swaps and funded products such as synthetic Collateralized Debt Obligations.similar to buying insurance against a counterparty default. this is a type of agreement where the bank buys protection for default (or downgrade) by a counterparty from a protection seller . If your loan defaults then the other bank takes on the loss. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-21 . They are highly liquid and include Treasury Bills. if your bank has a high risk loan then you can have a deal with another institution that will take on this risk if you pay them a fee or premium. You pay a fee for that relief. Money Market Product Debt instruments issued by private organizations. For example. governmental agencies and which generally mature in less than a year. short term tax exempt municipal securities and negotiable bank certificate of deposits (CDs). Money market instruments are actively traded on exchanges (MONEY MARKET PRODUCT). or Credit Linked Notes (CLN). banker’s acceptance. A credit default event triggers the redemption of this agreement.Chapter 16 – Investment Extension Detailed Data Model Product Subject Area include Credit Default Swap (CDS). These offerings are used by a bank to mitigate risk on an underlying exposure. commercial paper. similar to the claim on an insurance policy. governments. total Return Swap (TRS). The loans that are securitized (protected) can be one loan or a group of loans ("baskets"). In the FS-LDM this basket of loans is an Account Group and the Credit Derivative Agreement will be related to the Account Group (pool) via Account Account Group. Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 Figure 16-5 Investment .Investment Product PRODUCT Product Id PROD PROD RELATIONSHIP HIST Product Id (FK) Related Product Id (FK) Product Relationship Type Cd (FK) Prod Rel Start Dt is related to is related with Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind Product Type Cd INVESTMENT PRODUCT Prod Rel End Dt Investment Product Id (FK) INVESTMENT SECURITY RISK GRADE Investment Product Id (FK) Risk Grade Id (FK) Invest Risk Grade Start Dttm has ratings of Invest Prod Trade Type Cd Invest Prod Trade Type Cd (FK) Investment Product Type Cd (FK) Denomination Currency Cd (FK) NON TRADED INVEST PROD Invest Risk Grade End Dttm Invest Risk Grade Rate Dttm Investment Product Id (FK) Investment Product Type Cd STOCK TRADED INVESTMENT PROD CURRENCY PRODUCT Investment Product Id (FK) Currency Investment Product Id (FK) Investment Product Id (FK) Stock Type Cd (FK) Stock Share Class Cd (FK) ASSET BACKED SECURITY PRODUCT has history of OPTION PRODUCT Investment Product Id (FK) Investment Product Id (FK) Asset Backed Security Type Cd (FK) Option Style Type Cd (FK) STOCK HISTORY SECURITIES INDEX PRODUCT SWAP PRODUCT Investment Product Id (FK) Stock History Dt Num Change Reason Type Cd (FK) Stock Unit Issued Qty Investment Product Id (FK) Swap Obligation Type Cd (FK) FUTURE PRODUCT FINANCIAL INSTRUMENT GROUP Investment Product Id (FK) Investment Product Id (FK) Future Type Cd (FK) COMMODITY BOND Investment Product Id (FK) Investment Product Id (FK) Interest Payment Month Num Interest Payment Day Num Bond Unit Issued Qty Bond Type Cd (FK) Unit Of Measure Cd (FK) Commodity Type Cd (FK) INTEREST INDEX PRODUCT Investment Product Id (FK) Interest Index Cd (FK) CREDIT DERIVATIVE PRODUCT Investment Product Id (FK) Credit Derivative Type Cd (FK) FUND Investment Product Id (FK) Fund Type Cd (FK) MONEY MARKET PRODUCT Investment Product Id (FK) Money Market Product Type Cd (FK) 16-22 Investment Product Id (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Product. Chapter 16 – Investment Extension Detailed Data Model Product Subject Area Market Feeds This logical view shows the value of financial instruments over time based on external market information from data suppliers. and interest index rates. bonds. Model Description Security instrument market information from data providers for data such as the closing value of a stock on a given exchange for a given day is represented in INVEST PROD VALUE HIST. These instruments include securities (e. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-23 . such as daily high/low.g... and their derivatives). funds. Rates from source to target and target to source are given. monthly high/low/rolling 52-week high/low. commodities. Interest rates based on an index such as LIBOR are tracked in INTEREST INDEX and INDEX RATE HIST which has the interest rate for a given index as of a given date. stocks.g. Reuters or Bloomberg). which allows the metric to vary by time period. This entity allows for any kind of metric such as • last bid price • last ask price • earnings per share • average earnings per share • average earnings per share 4 weeks ago • beta (correlation with benchmark index for volatility) • market capitalization • average analyst rating Entity INVEST PROD TM PD METRIC HIST reports market information for a time period such as a 52-week high. It is a time reporting of the value of a given security instrument. The time period is the primary key for this entity. currency exchange rates. Entity INVESTMENT PRODUCT METRIC HIST is a summary entity that contains derived metrics for that INVESTMENT PRODUCT as reported by the Quoting Party for a given exchange at that time. The Quoting Party could be an exchange and the reporting party is the business that collects and distributes the information (e. Currency exchange rates are tracked in CURRENCY TRANSLATION RATE HIST which shows the exchange rate from one currency to another as of a given reporting date and time. 00.00 Figure 16-6 Investment .Market Feeds INVESTMENT PRODUCT METRIC HIST INVEST PROD VALUE HIST Investment Product Id (FK) Quoting Party Id (FK) Invest Prod Value Dt Invest Prod Value Tm PRODUCT Product Id Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind Currency Cd (FK) Reporting Party Id (FK) Invest Prod Value Amt Invest Product Pct has metric of Investment Product Metric Amt Investment Product Metric Rate Currency Cd (FK) has time period metric of Product Type Cd has value history in INDEX RATE HIST Rate Effective Dt Interest Index Cd (FK) Interest Index Rate CURRENCY Currency Cd (FK) is denomination for Investment Product Id (FK) Quoting Party Id (FK) Invest Prod Value Dt (FK) Invest Prod Value Tm (FK) Invest Prod Metric Type Cd (FK) Time Period Cd (FK) Invest Prod Tm Pd Num Invest Prod Tm Pd Metric Amt Invest Prod Tm Pd Metric Rate Currency Cd (FK) Investment Product Id (FK) Invest Prod Trade Type Cd (FK) Investment Product Type Cd (FK) Denomination Currency Cd (FK) Currency Name ISO Currency Cd (FK) is currency for CURRENCY TRANSLATION RATE HIST is target currency is source currency INTEREST INDEX Interest Index Cd has rate history of 16-24 is currency for INVEST PROD TM PD METRIC HIST describes is currency for INVESTMENT PRODUCT Investment Product Id (FK) Quoting Party Id (FK) Invest Prod Value Dt (FK) Invest Prod Value Tm (FK) Invest Prod Metric Type Cd (FK) Interest Index Time Period Cd (FK) Interest Index Desc Interest Index Currency Cd (FK) Yield Curve Maturity Seg Id (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Source Currency Cd (FK) Target Currency Cd (FK) Currency Trans Rate Type Cd (FK) Currency Trans Start Dttm Currency Trans End Dttm Target To Source Currency Rate Source To Target Currency Rate .Product.Teradata Financial Services Logical Data Model Reference Guide Release 09. Translating the rating classification code into its corresponding description is represented in RISK GRADE VALUE. which includes as attributes. such as Reuters Group PLC or Thomson Financial. These roles are defined in PRODUCT PARTY. Moody’s Investment Service. and an end date. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-25 . such as corporate and municipal bonds. For example. AAA to AA-. or governmental entity may set up a defined benefit pension fund to pay pension benefits to its retirees • a financial institution acting as an underwriter may also sell INVESTMENT PRODUCTs to customers through its registered (licensed) representatives • a securities exchange may be authorized to list and trade INVESTMENT PRODUCTs such as registered security issues • an information distribution company. in PARTY FINANCIAL DOCUMENT and PARTY FINANCIAL DOC ITEM. a role code. a start date. Unrated) is represented in PRODUCT RISK GRADE. or in the case of common stocks – growth and stability – by third parties such as Standard and Poor’s Corporation. common stocks. then a rating classification assignment (e. Below B-. BB+ to B-.g.Chapter 16 – Investment Extension Detailed Data Model Product Subject Area Party Product and Party A PARTY may have many roles toward many PRODUCTs. if the rating agency is Standard & Poor’s. are usually rated for risk. and Fitch Ratings.. BBB+ to BBB-. labor union. Investment Product Rating INVESTMENT PRODUCTs. Examples of roles that a PARTY may have toward a PRODUCT: • a commercial company or a government body/agency may issue INVESTMENT PRODUCTs to be traded either in the OTC markets or on organized and registered securities or commodity exchanges • a corporation. A+ to A-. may publish financial trade prices of securities Party and Financial Information PARTYs such as commercial companies that issue INVESTMENT PRODUCTs may have financial information. preferred stocks and commercial paper. such as revenue and profit forecast. Teradata Financial Services Logical Data Model Reference Guide Release 09.00.Product.Party PARTY RISK GRADE has risk rating of Party Id (FK) Risk Grade Id (FK) Party Risk Grade Start Dttm PRODUCT Party Risk Grade End Dttm Party Risk Grade Next Rev Dttm Party Risk Grade Rate Dttm PARTY Product Id Party Id Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind is involved with PRODUCT PARTY Party Product Role Cd (FK) Party Id (FK) Product Id (FK) Product Party Start Dt is involved with Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind INVESTMENT PRODUCT Product Party End Dt has rating of may have Product Id (FK) Risk Grade Id (FK) Product Risk Grade Start Dttm Party Id (FK) Financial Document Type Cd (FK) Data Source Cd (FK) Financial Doc Start Dttm Financial Doc End Dttm Audit Party Id (FK) Audited Cd (FK) Financial Doc Time Period Cd (FK) Financial Document Id (FK) has item of Invest Prod Trade Type Cd (FK) Investment Product Type Cd (FK) Denomination Currency Cd (FK) has ratings of Product Risk Grade End Dttm Product Risk Grade Rate Dttm INVESTMENT SECURITY RISK GRADE PARTY FINANCIAL DOC ITEM Party Id (FK) Financial Document Type Cd (FK) Financial Doc Start Dttm (FK) Financial Doc Item Type Cd (FK) Data Source Cd (FK) Financial Document Item Dt Financial Financial Financial Financial 16-26 Investment Product Id (FK) PRODUCT RISK GRADE PARTY FINANCIAL DOCUMENT audited Product Type Cd Item Status Cd (FK) Item Sts Reason Cd (FK) Document Item Val Item UOM Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Investment Product Id (FK) Risk Grade Id (FK) Invest Risk Grade Start Dttm Invest Risk Grade End Dttm Invest Risk Grade Rate Dttm .00 Figure 16-7 Investment . the change in value of an option in response to a change in interest rate.For a security instrument or portfolio of security instruments "beta" is a factor that measures volatility in comparison to the market as a whole. • Theta or time decay risk . Risk metrics include holding period.the time decay of an option . • Beta . Market Risk Market risk factors can be categorized as follows: • interest rate • foreign exchange • equity • commodity • credit spread • swap spread • vega (volatility) For an option it also includes the "Greek" measures of price sensitivity.Chapter 16 – Investment Extension Detailed Data Model Product Subject Area Risk Each financial instrument may have various risk metrics and factors associated with it when calculating market. operational and credit risk. Risk factors associated with an instrument can also influence a bank's capital position. These factors are across credit. • Delta . Operational Risk Operational risk factors: • systems • processes • people Credit Risk Credit Risk factors: • type of business • loan history • credit score • years of employment or business • income For each category of risk factor there may be many specific risk factors: Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-27 .how much the value of the option changes as it moves closer to its expiration date • Rho or discount rate risk .the sensitivity of the option to changes in the volatility of the underlying instrument. haircut amount and re-margining frequency.the degree to which an option's value is affected by a small change in the price of the underlying instrument • Gamma or convexity risk .the degree to which the option's delta changes as the reference price of the instrument underlying the option changes. operational and market risk. • Vega or volatility . Financial instruments are also graded by third parties such as Standard & Poor’s and can be recorded in INVESTMENT SECURITY RISK GRADE.Risk PRODUCT Product Id Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind INVESTMENT PRODUCT RISK METRIC Product Type Cd INVESTMENT SECURITY RISK GRADE Investment Product Id (FK) Risk Grade Id (FK) Invest Risk Grade Start Dttm Invest Risk Grade End Dttm Invest Risk Grade Rate Dttm INVESTMENT PRODUCT has ratings of Investment Product Id (FK) Investment Product Id (FK) Risk Scenario Id (FK) has risk metric of Prod Zero Haircut Ind Prod Internal Haircut Amt Prod Remargin Freq Day Num Prod Hold Period Day Num Invest Prod Trade Type Cd (FK) Investment Product Type Cd (FK) Denomination Currency Cd (FK) INVESTMENT PRODUCT RISK FACTOR has risk factor of Invest Prod Trade Type Cd NON TRADED INVEST PROD Investment Product Id (FK) 16-28 Inv Inv Inv Inv TRADED INVESTMENT PROD Investment Product Id (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Investment Product Id (FK) Bank Risk Factor Type Cd (FK) Invest Prod Risk Factor Dttm Invest Prod Risk Factor Rate . for instruments that are based on interest rates there is typically one risk factor for each maturity segment in a yield curve. BBB+ to BBB-. Figure 16-8 Investment . BB+ to B-. Unrated.Teradata Financial Services Logical Data Model Reference Guide Release 09. A+ to A-.Product.00.: For example. For material exposures to interest rate fluctuations banks use a minimum of six risk factors but the number is driven by the nature of the bank's trading activities. if the agency (method) is Standard & Poor's then the Risk Grade Id would represent the assessment value such as AAA to AA-. Below B-.00 For example. securities financing and repos. • Party and Portfolio – describes the roles that Parties may have with Agreements and Portfolios • Portfolio Details – describes the history and summaries of investment holdings for customers and for internal investments. In general terms.Settlement instructions specify how to process various account events. In this section. the aspects of Agreement that are important to Investment are covered. Information includes holding value over time. For example. • Portfolio and Application – describes the relationship between Applications and Portfolios for customers when an investment company acts as a broker or broker-dealer.Chapter 16 – Investment Extension Detailed Data Model Agreement Subject Area Agreement Subject Area This section describes the FS-LDM Major Subject Area Agreement. and swaps. • Securities Financing – shows the data structure for securities financing that includes Repurchase Agreements (repos). Agreement is described in the Foundation Section of the Reference Manual. Logical views described in this section are: • Agreement Overview – describes the concept of AGREEMENT from an investment and brokerage perspective and shows the major relationships between AGREEMENT and other major entities in the data model. security holdings. • Investment Holding – shows information for investment holdings where the investor can be your institution or your customer. and cash at other banks. • Derivatives and Swaps – describes structures for derivative agreements including futures. • Investment Agreement Type – describes types of possible investment agreements including derivatives. Margin and balance information are also described. • Settlement Instructions . Reverse Repurchase Agreements and Securities Lending Agreements. when the client sells securities do they want the cash proceeds always mailed to them or deposited in a money market account? Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-29 . options. The concept of Portfolio is also introduced. foreign exchange. forwards. It is a contract to sell and subsequently buy (or buy and sell) securities at a specified date and price. . trade execution expenses. • An AGREEMENT can be any deal that involves a security or financial instrument outside of a customer portfolio. It can include deals where your institution is the broker or the investor. An enterprise in the role as a broker-dealer and/or securities custodian: • the AGREEMENT that is the contract wherein the enterprise provides investment brokerage and trading services to its customer(s) • the AGREEMENT that is the custodian contract affecting customer accounts wherein sale proceeds. An enterprise in the role as an institutional investor: • An AGREEMENT is executed between an enterprise and a third party (dealer-broker) to provide brokerage and trading services to the enterprise.g.g. AGREEMENT as it relates to investment instruments is between two or more parties where an investment instrument is involved or important to the AGREEMENT. and custodial agreements). This could represent a settlement AGREEMENT or account from which payments are deducted and into which you receive revenue from your investments. transfer agent. individual or joint cash account.00. and/or investment banker. the categories mentioned above will be combined in one or a few AGREEMENTs (e.. The security issuer also may execute a separate AGREEMENT with a brokerage firm or a clearing corporation for automated trading services and/or clearing services. trust. Microsoft Corporation) for fiduciary investment management and/or short term trading and transfer agent services. A large block of stock purchased by an 16-30 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . This is the customer account that would maintain securities balances and would receive postings from financial transactions. trustee. option. • An AGREEMENT may also be executed between an investment company and a corporate or governmental agency/body acting as the security issuer (e. Agreement The domain of AGREEMENT may include transactions where an enterprise acts as a broker-dealer and/or a securities custodian as well as those transactions where an enterprise acts as an institutional investor. management fees. lending. This AGREEMENT may have been executed with the help of an outside broker-dealer. and taxes are automatically charged (debited) against the same account(s) to reimburse the enterprise for expenses incurred on behalf of its customer(s) • In many cases. dividends and interest received on securities held for customer(s) are credited to their account(s) while purchases. custodian. Examples of AGREEMENTs are: • An AGREEMENT may be executed between a financial institution and its customer wherein the institution agrees to provide brokerage services to the customer. advisor. commissions.Teradata Financial Services Logical Data Model Reference Guide Release 09. • An AGREEMENT is executed between an enterprise and a security issuer whereby the enterprise can acquire equity securities or debt obligations directly from the original issuer. margin.00 Agreement Overview This logical view shows the relationship of investment AGREEMENTs with other entities in the data model. underwriter. Microsoft common stock) is represented as an instance of INVESTMENT AGREEMENT. The agent. Microsoft preferred stock represents another instance of PRODUCT. This AGREEMENT may also involve a registered agent. Agreements Related to Other Agreements In the case of an enterprise acting as an institutional investor.g. if the enterprise sells a large block of Microsoft stock from one of its holding Agreements. broker.Chapter 16 – Investment Extension Detailed Data Model Agreement Subject Area enterprise directly from its security issuer (e. which is an AGREEMENT subtype.. The valuation of this Agreement can change over time depending on the market value. when an enterprise purchases an initial 1. For example. The entity INVESTMENT PRODUCT (subtype of PRODUCT) represents instances of products that are considered investment instruments. Internal funds (not exchange traded) are also instances of PRODUCT. this acquisition can be represented as one AGREEMENT with two purchase EVENTs. The holding Agreement decrements the number of shares held for that stock issue.000 shares of Microsoft common and later buys another 500 shares. Each homogeneous type of security would represent one instance of AGREEMENT. there may be different ‘holding’ Agreements where there is one Agreement executed for each type of issue that has been acquired. represents one such instance of an AGREEMENT. There may be settlement AGREEMENTs that keep track of cash flow in support of holding AGREEMENTs. Microsoft common stock is considered one instance of PRODUCT. as are individual investment instruments that comprise the fund. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-31 .. For example. Agreement and Product Each type of homogenous investment instrument is one instance of PRODUCT.. For example. the proceeds from the sale and the commission are posted to the settlement Agreement. the AGREEMENT is for one PRODUCT that represents the instrument being invested. or underwriter acting as an intermediary between the parties to facilitate the transaction. There is a relationship between the holding Agreement and the settlement Agreement in the entity ACCT ACCT RELATIONSHIP where the settlement Agreement is the settlement account for the holding Agreement. or underwriter would be considered another PARTY to the AGREEMENT. This type of AGREEMENT is often referred to as a holding AGREEMENT. Microsoft Corporation). The domain of PRODUCT contains investment instruments being offered as well as offered brokerage services. For risk management and exposure analysis purposes (e. it may be necessary to track each internal investment in a financial instrument as a separate AGREEMENT. Purchases of preferred stock may be represented by a separate AGREEMENT because the terms and conditions associated with common stock purchases and sales are different from those involving preferred stock. A fund is also considered an instance of PRODUCT.g.g. From the perspective of an enterprise acting as an institutional investor in a security instrument. An internal investment in a homogeneous investment instrument (e. There may be one or more settlement Agreements for each brokerage account setup with the broker-dealer. broker. Basel II). Agreement Features The type of Agreement from a product perspective (e.Teradata Financial Services Logical Data Model Reference Guide Release 09. Margin Accounts). For example. a lending agreement can be executed that allows loanable securities in a customer’s account to be delivered by the brokerdealer against another customer’s short sale. In the case of options and government bonds. a customer could have one PORTFOLIO for conservative investing and another for more aggressive and riskier investing and holdings within that PORTFOLIO that may change over time. Another PORTFOLIO instance could represent buy and hold tax free bond securities where the allocation rules add up to 100% within that PORTFOLIO. The type AGREEMENT may also specify that the AGREEMENT is a savings account.’ or ‘is currency for mutual funds redemption.00. using the loan value of eligible securities purchased INVESTMENT PRODUCTs as collateral. it may also specify an AGREEMENT (Cash Account) for which securities purchases (or sale proceeds) of INVESTMENT PRODUCTs must be fully paid (credited) within a specified number of settlement days. it may specify an AGREEMENT for how much equity must be maintained in the account and the interest rate charged on the margin loan (e.’ Accounts and (Customer) Portfolios An enterprise acting as a broker-dealer: The concept of a Customer PORTFOLIO has a very specific operational meaning when an enterprise acts as a broker-dealer. option). Security purchases and sales move in and out of the PORTFOLIO and the PORTFOLIO is related directly to the AGREEMENT.g. borrow money from its bank and secure the borrowings with securities held in margin accounts). For a Margin Account. A margin agreement also may allow the broker-dealer to hypothecate securities (i. bond investment. and not for each individual instrument the customer has traded. The PORTFOLIO represents a group of investment holdings by its customer and the group could represent an investment strategy for that customer. one PORTFOLIO could represent all ‘buy and hold’ equity types of securities where the allocation rules in that PORTFOLIO add up to 100%.. such as ‘is currency for investment settlements. 16-32 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Or. Hence.00 From the perspective of an enterprise acting as a broker-dealer. can be determined by the Product Id in ACCOUNT PRODUCT HISTORY. the remaining balance due (debit) on the securities purchased can be borrowed from the broker-dealer. settlement usually takes place the next business day. equity investment.. an AGREEMENT is executed for brokerage services (an instance of PRODUCT). The terms of the deal or agreement record in ACCOUNT FEATURE.. When a contractual relationship (AGREEMENT) is executed between a broker-dealer and its customer for investment services. ACCOUNT FEATURE may also specify an optional Investment Feature. For example.e. The attribute Currency Use Cd in ACCOUNT CURRENCY specifies the use of the Currency for an Account.g. Account Currencies An AGREEMENT may be linked to one or many Currencies (ACCOUNT CURRENCY). Examples of these relationships are: • the Account from which are paid expenses. and opening and closing dates. Representations from the perspective of an enterprise acting as a brokerdealer: ACCOUNT PORTFOLIO associates AGREEMENTs with PORTFOLIOs. These financial instruments move in and out of the portfolio for a given investment account (PORTFOLIO PRODUCT HOLDING).Chapter 16 – Investment Extension Detailed Data Model Agreement Subject Area A separate AGREEMENT or account can also be set up to contain security holdings where the income on those securities is taxed by the same tax rule. one. which may be identical to an AGREEMENT identification number to which the PORTFOLIO is related. or more AGREEMENTs. The PORTFOLIO may have a Host Portfolio Identifier. These would be separate AGREEMENTs (accounts) with different PORTFOLIOs. fees. An enterprise acting as an institutional investor: Within a financial institution (enterprise). For this reason. one. and taxes for trading Investment Products in and out of the Portfolio • the Account from which security purchase payments are charged for Investment Products bought for the Portfolio • the Account that receives sales proceeds from Investment Products sold from the Portfolio • the Account that receives interest and dividends from Investment Products owned in the Portfolio • the Account that receives interest and dividends from Investment Products owned in the Portfolio in specified currencies Investment Products and (Customer) Portfolio A Customer PORTFOLIO for a given investment account contains zero. we use other existing structures in the FS-LDM to represent the concept of these internal groupings – ACCOUNT GROUP or PRODUCT GROUP depending on one’s perspective. It could mean a grouping of internal investment holdings (ACCOUNT GROUP) or a grouping of product offerings (PRODUCT GROUP). or many financial instruments (INVESTMENT PRODUCTs). So there may be one AGREEMENT where the income on those securities is deferred to retirement and another AGREEMENT where any income from the securities is taxable during the current year. commissions. The type of relation between the AGREEMENT and the PORTFOLIO is specified by means of the attribute Account Portfolio Rel Cd in ACCOUNT PORTFOLIO. An Agreement may be associated with one or more PORTFOLIOs and a PORTFOLIO may be associated with zero. the concept of PORTFOLIO may have a ‘looser’ definition and could mean different things depending on one’s perspective and where one is positioned in the organization. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-33 . A PORTFOLIO has an identification number. 00.Overview ACCOUNT FEATURE AGREEMENT Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) ACCT ACCT RELATIONSHIP Account Num (FK) Account Modifier Num (FK) Related Account Num (FK) Related Account Modifier Num (FK) Acct Relationship Type Cd (FK) Acct Acct Relationship St Dt Acct Acct Relationship End Dt is related to is related with ACCOUNT CURRENCY Currency Use Cd (FK) Account Currency Cd (FK) Account Num (FK) Account Modifier Num (FK) Account Currency Start Dt Account Num (FK) Account Modifier Num (FK) Feature Id (FK) Account Feature Role Cd (FK) Account Feature Start Dt is characterized by Account Feature End Dt Overridden Feature Id (FK) Account Feature Amt Account Feature Rate Account Feature Qty Account Feature Num Account Feature UOM Cd (FK) Interest Index Cd (FK) ACCOUNT PRODUCT HISTORY may be for product Account Num (FK) Account Modifier Num (FK) Product Id (FK) Agreement Product Role Cd (FK) Acct Product Assoc Start Dt Acct Product Assoc End Dt has portfolio of describes has currency history of Agreement Categ Cd Account Currency End Dt PORTFOLIO consists of Portfolio Id Portfolio Open Dt Portfolio Close Dt Host Portfolio Id Portfolio Name FINANCIAL AGREEMENT Account Num (FK) Account Modifier Num (FK) Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) ACCOUNT PORTFOLIO Portfolio Id (FK) Account Num (FK) Account Modifier Num (FK) Account Portfolio Rel Cd (FK) Account Portfolio Start Dttm PRODUCT Product Id Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind Product Type Cd Account Portfolio End Dttm Financial Agreement Categ Cd has holding of INVESTMENT AGREEMENT Account Num (FK) Account Modifier Num (FK) Investment Type Cd (FK) Expected Value Dttm Actual Value Dttm Expected Settlement Dttm Actual Settlement Dttm Payment Timing Type Cd (FK) Investment Purpose Type Cd (FK) Purchase Intent Cd (FK) 16-34 PORTFOLIO PRODUCT HOLDING Investment Product Id (FK) Account Num (FK) Account Modifier Num (FK) Portfolio Id (FK) Account Portfolio Rel Cd (FK) Account Portfolio Start Dttm (FK) Portfolio Product Start Dttm Portfolio Product End Dttm Investment Pct Portfolio Product Currency Cd (FK) Position Type Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret INVESTMENT PRODUCT Investment Product Id (FK) is product for Invest Prod Trade Type Cd (FK) Investment Product Type Cd (FK) Denomination Currency Cd (FK) .Teradata Financial Services Logical Data Model Reference Guide Release 09.Agreement.00 Figure 16-9 Investment . It also includes Forward Rate Agreements (FRA). stock index. The seller of a swaption. Option Agreement An Option is a contract giving the investor the right (not the obligation) to buy or sell a specified number of shares of an asset at a set price over a given time period. or ‘basket’ of these instruments. You can also sell the right to sell (Writing a Put) and sell the right to buy (Writing a Call). Option prices are determined by the interaction of the maturity. or interest rate or a combination. and swap contracts are examples of derivative contracts. futures. Forward Contracts are similar to Futures Contracts except that Forward contracts are not uniform in terms and conditions and are not traded on Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-35 . Over-the-counter derivatives. Forward Future Agreement This entity contains the details about Future and Forward types of contracts. such as currency swaps and interest rate swaps are usually privately negotiated outside organized exchanges. The strike date is the Contract Expiration Date in the AGREEMENT entity. in exchange for payment of a swap premium. group. A Futures Contract is a contract to purchase or sell a given amount of an item for a given price by a certain date. Swaption is an Option on a Swap which gives the holder the right to contract a swap at a particular future date at specified terms or to lengthen or terminate an existing swap. currency. assumes the risk of interest rate changes. and stock index futures. Options can be Call Options (right to buy) or Put Options (right to sell). It is a deal made now to take place in the future.Chapter 16 – Investment Extension Detailed Data Model Agreement Subject Area Derivatives and Swaps This view shows how derivative and swap types of AGREEMENTs are represented in the FS-LDM. Swaptions are included in this entity. financial futures. forwards. bond. Derivative Agreement Derivatives are contracts bearing a contractual relationship to some underlying instrument. who agrees to purchase the item. commodities. Futures are traded on exchanges. The initial cash paid is called the premium and is determined at the beginning of the option contract. The futures contract seller agrees to deliver the item to the buyer of the contract. The underlying instrument(s) may be a commodity. volatility. stock. usually a commercial bank or investment bank. Options are most common in the stock market but they can be used as a hedging device to manage foreign exchange positions. Options. and the price of the underlying instrument. If the institution is a broker to a swap then the brokerage agreement is a separate instance of AGREEMENT. The financial institution may be one of the parties involved in the swap or may be a broker to a swap for a fee. the interest rate for a three-month period commencing in six months. interest rate swaps.00 exchanges. and (3) cross currency interest rate swaps involving the exchange of fixed rate instruments in one currency for the floating rate in another currency. The settlement date is the Forward Dt attribute. Forward contracts may be on commodities or financial instruments. often to adjust the characteristics of a loan portfolio or as a risk mitigation technique.g. A Forward Rate Agreement (FRA) is a contract where the parties agree on the interest rate to be paid at a future settlement date. Fitch. currency. There are three types of interest rate swaps: (1) coupon swaps or exchange of fixed rate for floating rate instruments in the same currency. or combined cross-currency/interest rate swaps. Swaps involve a simultaneous exchange of one asset for another. goods are actually delivered at a future date or settlement may be in cash. Money swaps often occur as cross-currency swaps. Exposure is the difference between the agreed and actual interest rate at settlement. Swaps can involve these instruments: interest rate. 1 Thomas P. The SWAP AGREEMENT entity represents your financial institution as one of the parties to the swap. not as a broker. and commodity. For example. The principal amount (notional) is agreed but never exchanged.Teradata Financial Services Logical Data Model Reference Guide Release 09. Barron’s Business Guides Dictionary of Banking Terms (Fourth Edition) 16-36 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . loans).00. price. and date of purchase or sale. Swap Agreement A swap is an agreement between two parties to exchange future streams of cash flows generated from other agreements (e. Swap Agreements are not disclosed on the balance sheet of the issuing bank but banks must still reserve a portion of their equity capital to cover outstanding swap agreements under Basel II guidelines. With Forward contracts. The contract fixes the quantity. bond. Debt-equity swaps are usually executed to convert debt into shares or similar equity paper. (2) basis swaps or the exchange of floating rate for floating rate instruments in the same currency.. Swaps may involve exchanging the terms of one asset (loan) for another to improve the quality of a loan portfolio for risk management or asset/liability management purposes. • Interest rate swap 1 Contract in which two counter-parties agree to exchange interest payments of differing character based on an underlying notional principal amount that is never exchanged. The terms would be instances of TERM FEATURE related to the AGREEMENT. • Bond swap Selling a bond prior to its maturity and buying another. would have two legs – one fixed and one floating. the underlying agreements are referred to as ‘notional’ agreements. For example.. It is a promise to transfer cash with given conditions. It is an agreement to exchange over time the cash flow calculated on the basis of the price of the first commodity (e. zero coupon. oil or gold) for a cash flow calculated on the basis of the price of the second commodity (USD) with an exchange of principal at the maturity of the swap done at a fixed and predetermined exchange rate. In a currency swap. A Leg represents a collection of payments in one direction. amortizing. and (4) tax swap creates a tax loss offsetting capital gains earned by a substitute bond while preserving the original investment.g. It is similar to an interest rate swap. A Leg can have many cash flow events. with a reexchange of principal at the maturity date of the Swap Agreement. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-37 . Currency Swap is calculated at a fixed and predetermined exchange rate equal to the spot FX rate at contract date. purchasing deep discount bonds when rates are falling. Swap Legs A swap can have many ‘legs’ where one leg represents a unidirectional exchange of money with associated terms and conditions. a plain vanilla Interest Rate swap. • Commodity swap A commodity swap is an exchange of payments where the value of the exchange is linked to commodity prices. like long-term bonds. In a swap agreement.Chapter 16 – Investment Extension Detailed Data Model Agreement Subject Area • Currency swap An agreement to exchange principal and interest amounts for different currencies over time. (3) a yield swap aims to maximize return on invested capital by. but no physical delivery of commodities. the holder of an unwanted currency exchanges that currency for an equivalent amount of another currency to improve market liquidity for an owned currency or to obtain bank financing at a lower rate. (2) a quality swap upgrades safety by purchasing high-grade bonds. There are several types of bond swaps: (1) maturity swap – exchanges bonds of different maturities. The interest flow denominated in currency A is exchanged for an interest flow denominated in currency B at an agreed upon rate. for example. and capped/floored. for bonds with shorter maturities. Examples of types of legs can be flat. They agree to swap notional and interest cash flows. During the term of the deal the interest rate is exchanged at agreed upon intervals. These are Legs 3 and 4. At the end of the term the notional is reexchanged.000. Leg 2 is 125 CAD from Party B to Party A. 16-38 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 The following example and Table 16-1 illustrates cash flow and swap legs in a foreign exchange swap: Party A has 100 USD and agrees to swap with Party B who has 125 Canadian dollars (CAD). Legs 5 and 6 represent this reexchange of the principal.Teradata Financial Services Logical Data Model Reference Guide Release 09. Balance is $100. Each Leg is one cash flow and there are two Legs – A pays B and B pays A. Bank 2 has a 5 year to maturity 5% fixed rate loan with Customer B and receives one payment at the end of its term. Each Leg represents a homogenous set of terms and conditions (Features). This is Loan 1. This is Loan 2.00. Balance is $100. Leg 1 is 100 USD from Party A to Party B.Foreign Exchange Swap Leg Example Cash Flow Nbr Leg Nbr Direction Amount Amount Type CF1 LEG1 A to B 100 USD notional CF2 LEG2 B to A 125 CAD notional CF3 LEG3 A to B 5 USD interest CF4 LEG4 B to A 7 CAD interest CF5 LEG3 A to B 5 USD interest CF6 LEG4 B to A 7 CAD interest CF7 LEG5 A to B 125 CAD notional CF8 LEG6 B to A 100 USD notional Example of Interest Rate Swap: Bank 1 has a 10 year to maturity 4% fixed rate loan with Customer A and receives one payment at the end of the term.000. This would be one Leg with multiple cash flows from Party A to Party B. and another Leg for cash flows from Party B to Party A. Table 16-1 Investment .Agreement. At the beginning of the term the parties exchange the notional or principal (100 USD for 125 CAD). The agreement states that at the end of 5 years when Loan 2 is due. • Company A pays interest and payments at the variable LIBOR rate plus 2 percent each month. Example of a cross asset swap: This kind of swap is based on a combination of different instrument types: a cross-asset swap (swap across asset class) such as 10 USD based on LIBOR for Yen in which case the underlying instruments will be the USD LIBOR rate and Yen currency. • If the company’s fixed rate swap agreement is lower than the current LIBOR rate plus 2 percent. At the end of 10 years when Loan 1 is due. Bank 1 needs more short term loans in its portfolio and Bank 2 needs more long term loans in its portfolio for asset and liability management purposes.000. • If the company’s fixed rate swap agreement is higher than the current LIBOR rate plus 2 percent then the company pays the bank additional interest to get the fixed rate.Chapter 16 – Investment Extension Detailed Data Model Agreement Subject Area The difference between the two loans is the time to maturity and the fixed interest rate.000. each bank is motivated to acquire the other bank’s loan. You do not want to change the data model every time a new investment product is created with a new twist to its terms and conditions. Bank 2 will pay Bank 1. The flexible bill of material structures utilizing Features for terms and conditions and high level super types and their existing relationships already sets the framework for these kinds of agreements.5%. An example of a plain vanilla fixed interest rate swap agreement is as follows: • Company A has a mortgage agreement at the LIBOR rate plus 2 percent and a swap agreement which fixes the interest rate at 8.. Another institution may be engaged to broker the agreement for a fee. With this agreement Bank 2 ‘buys’ Loan 1 and Bank 1 ‘buys’ Loan 2. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-39 . $104. the opposite is true and the bank pays the company to get the fixed rate. Based on calculations (i. Model Description A DERIVATIVE AGREEMENT is a type of INVESTMENT AGREEMENT which is a type of FINANCIAL AGREEMENT which is a type of AGREEMENT. Bank 1 will pay Bank 2. Therefore they enter into a Swap Agreement. Customers A and B may not be aware of this swap agreement and therefore they make payments to their original lending bank.e. $105. hence. You can see that it is very important to have a flexible data model to handle the ever-changing composition of investment agreements. projected cash flow brought to present value) the banks agree on how much money to exchange at what time. Both customers have equal risk. for example an Interest Rate Swap. Caps. then the underlying agreement is also an instance of AGREEMENT. The terms and conditions of a DERIVATIVE AGREEMENT and the terms and conditions of the underlying agreements are in ACCOUNT FEATURE where each condition of each agreement is one instance of an ACCOUNT FEATURE. Refer to Banking Agreement . For that reason events related to swap legs are in SWAP LEG ACCOUNT EVENT. A swap of currencies is a SWAP CURRENCY AGREEMENT. The role of that product to the agreement includes ‘product being swapped out’ and ‘product being swapped in’. Since a swap can involve more than one instrument of many possible combinations this entity provides for relating many products to the AGREEMENT. currency swap. Products involved in the agreement are each instances of ACCOUNT PRODUCT HISTORY. Terms and conditions for that leg are SWAP LEG CASH FLOW FEATURE.g. and interest rate index. since all these can be the subject of an agreement. 16-40 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Collateral in this guide for more information about these types of contracts. In FS-LDM the underlying notional agreements and the swap agreement are represented as separate instances of different agreements. is also an instance of ACCOUNT PRODUCT HISTORY. and TOTAL RATE OF RETURN SWAP. Terms of derivatives (e.Teradata Financial Services Logical Data Model Reference Guide Release 09. collars. stocks.00. The buyer and seller to the agreement are found in ACCOUNT PARTY. CREDIT DEFAULT SWAP. Each swap leg is an instance of SWAP AGREEMENT LEG. The overall agreement. If the underlying agreement (notional agreement) is one that is known to the bank. commodity swap. The product domain includes financial instruments such as bonds.00 A DERIVATIVE AGREEMENT can be classified as an OPTION AGREEMENT. The amount of the cash flow is in FINANCIAL EVENT. The relationship of the SWAP AGREEMENT to the underlying agreements is established in ACCT ACCT RELATIONSHIP. 6-month swap) are TERM FEATUREs. Events such as payments may affect one leg of a swap. a FORWARD FUTURES AGREEMENT. Note that the entity CREDIT DERIVATIVE AGREEMENT (not shown here) contains the following: CREDIT LINKED NOTES. or a SWAP AGREEMENT. A SWAP AGREEMENT can be classified by the type of obligation it represents such as interest rate swap. and floors are instances of FEATUREs to this agreement. and bond swap (Swap Obligation Type Cd).. currency type. .Chapter 16 – Investment Extension Detailed Data Model Agreement Subject Area Following is an example of the Interest Rate Swap described previously but related to the FS-LDM. and LOAN TERM ACCOUNT. DERIVATIVE AGREEMENT. In the Interest Rate Swap example described above the information in FS-LDM is represented as: Bank 1 perspective: • Loan 1 with Customer A is an instance of an AGREEMENT. • Payment of principal and interest by Customer A to Bank 1 are two instances of EVENT. LOAN ACCOUNT. CREDIT AGREEMENT. FINANCIAL AGREEMENT. and SWAP AGREEMENT. • The products are (1) 4% fixed rate cash instrument for 10 years (2) 5% fixed rate cash instrument for 5 years (3) interest rate swap The Bank 2 perspective touches the same entities as the Bank 1 perspective. • Payment from Bank 1 to Bank 2 at the end of 10 years for the agreed amount is an EVENT.) • Each term and condition value of Loan 1 (e. INVESTMENT AGREEMENT. and OTHER FINANCIAL SERVICE. FINANCIAL AGREEMENT. term and interest rate) is a separate instance of ACCOUNT FEATURE.Agreement Subtype Detail for the subtyping of Agreement. (Refer to Banking Agreement . Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-41 . • Each term and condition of the SWAP AGREEMENT is an instance of ACCOUNT FEATURE. • Payment to the broker is one EVENT. • The swap agreement is another instance of an AGREEMENT. • The agreement to pay a broker a fixed fee amount for brokering the swap deal is a separate instance of AGREEMENT. FINANCIAL AGREEMENT.g. Teradata Financial Services Logical Data Model Reference Guide Release 09.00 This page intentionally left blank.00. 16-42 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Chapter 16 – Investment Extension Detailed Data Model Agreement Subject Area Figure 16-10 Investment .Agreement.Derivatives and Swaps PRODUCT EVENT Product Id AGREEMENT Account Num (FK) Account Modifier Num (FK) Product Id (FK) Agreement Product Role Cd (FK) Acct Product Assoc Start Dt may be for product Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) describes has terms and conditions of AGREEMENT PRODUCT FEATURE Acct Product Assoc End Dt Agreement Categ Cd FINANCIAL AGREEMENT Account Num (FK) Account Modifier Num (FK) Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) Investment Type Cd Financial Agreement Categ Cd Agreement Product Role Cd (FK) Account Num (FK) Account Modifier Num (FK) Acct Product Assoc Start Dt (FK) Feature Id (FK) Account Feature Role Cd (FK) Product Id (FK) Agmt Product Feature Start Dt Account Num (FK) Account Modifier Num (FK) Investment Type Cd (FK) Expected Value Dttm Actual Value Dttm Expected Settlement Dttm Actual Settlement Dttm Payment Timing Type Cd (FK) Investment Purpose Type Cd (FK) Purchase Intent Cd (FK) OPTION AGREEMENT Account Num (FK) Account Modifier Num (FK) Option Strike Price Amt Option Strike Rate Option Premium Amt Option Type Cd (FK) Premium Currency Cd (FK) Derivative Notional UOM Cd (FK) Derivative Type Cd (FK) Notional Amt Notional Qty Notional Rate Invest Prod Trade Type Cd (FK) Investment Product Type Cd (FK) Denomination Currency Cd (FK) Investment Product Type Cd Investment Product Id (FK) Future Type Cd (FK) CREDIT DERIVATIVE PRODUCT Unit Of Measure Desc Currency Ind Investment Product Id (FK) SWAP AGREEMENT Swap Leg Num Account Num (FK) Account Modifier Num (FK) Swap Leg Type Cd (FK) Swap Direction Type Cd (FK) Account Num (FK) Account Modifier Num (FK) was overridden by Swap Obligation Type Cd (FK) Reference Obl Qual Ind Swap Notional Payment Dt has cash flow rule of Swap Obligation Type Cd SWAP CURRENCY AGREEMENT Account Num (FK) Account Modifier Num (FK) Swap In Currency Cd (FK) Swap In Currency Qty Credit Derivative Type Cd (FK) Feature Id SWAP AGREEMENT LEG is composed of Option Style Type Cd (FK) Swap Obligation Type Cd (FK) is terms and conditions for FEATURE Account Num (FK) Account Modifier Num (FK) Investment Product Id (FK) Investment Product Id (FK) Unit Of Measure Cd is notional unit of measure for OPTION PRODUCT SWAP PRODUCT UNIT OF MEASURE FORWARD FUTURES AGREEMENT Forward Dt Forward Type Cd (FK) Outright Ind Investment Product Id (FK) FUTURE PRODUCT Account Num (FK) Account Modifier Num (FK) Derivative Type Cd INVESTMENT PRODUCT specifies unit of measure for DERIVATIVE AGREEMENT Event Activity Type Cd (FK) Event Reason Cd (FK) Transaction Id Event Start Dt Event Start Tm Event End Dt Event End Tm Event GMT Start Dt Event GMT Start Tm Account Ind Financial Ind Contact Ind Incident Ind Account Group Ind Consent Ind Financial Account Event Ind Internal Investment Event Ind External Investment Event Ind Customer Portfolio Ind Statement Event Ind Access Device Event Ind Swap Leg Event Ind Opportunity Ind Travel Event Ind Event Alert Ind Causal Event Ind Reward Event Ind Product Type Cd Overridden Feature Id (FK) Agmt Product Feature End Dt Agmt Feature Product Amt Agmt Product Feature Rate Agmt Product Feature Qty Agmt Product Feature Num Agmt Product Feature UOM Cd (FK) INVESTMENT AGREEMENT Event Id Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind ACCOUNT PRODUCT HISTORY Feature Type Cd (FK) Feature Classification Cd (FK) Feature Desc Feature Name Common Feature Name Feature Category Type Cd (FK) Feature Level Cnt has cash flow events of SWAP LEG CASH FLOW FEATURE Swap Leg Num (FK) Account Num (FK) Account Modifier Num (FK) Feature Id (FK) Swap Payment Type Cd (FK) Swap Leg Feature Start Dt Swap Leg Feature End Dt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret FINANCIAL EVENT SWAP LEG ACCOUNT EVENT is rule for Event Id (FK) Account Num (FK) Account Modifier Num (FK) Swap Leg Num (FK) Event Id (FK) Event Currency Cd (FK) Event Amt Event Local Amt Event Global Amt Financial Event Period Strt Dt Financial Event Period End Dt Financial Event Covered Val Financial Event COA Id (FK) Ledger Batch Id (FK) Funds Transfer Event Ind ACTUAL AMOUNT OF CASH FLOW . . (Refer to Investment . An INVESTMENT AGREEMENT tracks investments (holdings) in investment instruments that your enterprise is interested in tracking. Your enterprise may be the buyer. In this case you will have multiple agreement instances for a given security issue. Customization Note: Each institution will vary as to the numbers and kinds of subtypes and their attribution. terms.Agreement . stock indexes. and broker). This entity does not include brokerage portfolio investments where securities trade in and out of a portfolio – these investments are in the PORTFOLIO area of the model.. There is one instance of INVESTMENT AGREEMENT for each investment holding in each homogeneous instrument.g. bonds. Entity ACCOUNT PARTY can describe the role your institution and other parties play in the investment (e. CASH AT OTHER BANKS: This entity represents cash holdings (e. When you buy shares in that stock then an INVESTMENT AGREEMENT is created. Model Description An INVESTMENT AGREEMENT is a type of FINANCIAL AGREEMENT that is a type of AGREEMENT. and conditions of the agreement are represented as instances of ACCOUNT FEATURE. This is one suggested way of subtyping investments.) The INVESTMENT AGREEMENT entity includes investments made by your institution and investments made by your customers or partners. For example. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-45 . It includes any instrument that can be traded in the open market. buyer. An INVESTMENT AGREEMENT may be one of the following.Chapter 16 – Investment Extension Detailed Data Model Agreement Subject Area Investment Agreement Type This view describes subtyping INVESTMENT AGREEMENT.. such as issues of stocks and bonds. Teradata common stock would be one instance of PRODUCT with a unique Product Id. currencies and interest indexes. funds. seller. If you buy more shares the next day in the same stock then the value of that holding increases but a new instance of INVESTMENT AGREEMENT is not created. As with other kinds of AGREEMENTs. money market/demand deposits. are also instances of the entity PRODUCT. deposits in foreign currency) by your financial institutions in other institutions. Investment instruments.Portfolio Details. hedge funds. Customization Tip: You may create one instance of INVESTMENT AGREEMENT for each trade but you will need to change the definition accordingly. derivatives. or broker to the agreement.g. seller. This entity includes investments in traded and not traded securities and also includes trades based on any financial instrument including stocks. time deposits. futures. such as currency swaps and interest rate swaps. stock.Teradata Financial Services Logical Data Model Reference Guide Release 09. Accounts that other banks have with you for foreign exchange are referred to as ‘vostra’ accounts and they are represented in the DEPOSIT ACCOUNT entity. If your institution is the broker these are deals outside a customer portfolio.00 This includes Nostra accounts where your bank may have an account at a foreign bank to hold foreign currency for the purpose of foreign exchange. and swap contracts are examples of derivative contracts. funds. 16-46 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . or to provide financing for other purposes.00. buyer versus seller versus broker). are usually privately negotiated outside organized exchanges. and hedge funds that are not part of a brokerage portfolio. It does not include derivative or swap agreements or foreign exchange holdings that are described in DERIVATIVE AGREEMENT. stock index. Reverse Repurchase Agreements. SECURITY HOLDING: This entity represents holdings in securities like stocks. checking. savings. forwards. The roles that your institution and other parties play in this deal. SECURITIES FINANCING: This entity includes agreements for services that provide financing related to trading and dealing in securities. ‘Nostra’ accounts are instances of CASH AT OTHER BANKS..g. Over-the-counter derivatives. DERIVATIVE AGREEMENT: Derivatives are contracts bearing a contractual relationship to some underlying instrument. The underlying instrument(s) may be a commodity. These agreements could be used by your institution to hedge against foreign exchange risks that exist in a separate agreement. and Securities Lending Agreements. This entity includes holdings by your financial institution or holdings by other parties outside of a portfolio. Repos are contracts to sell and subsequently buy (or buy and sell) securities at a specific date and price. or a combined group or ‘basket’ of these instruments. futures. These services generally involve the use of securities as collateral. bond. money market).. Cash holdings by your customers are separate Agreements/Accounts (e. FOREIGN EXCHANGE AGREEMENT: This entity contains agreements for spot foreign exchange deals between two parties. These are spot foreign exchange deals – immediate sale at current market prices. Options. Your bank may or may not be the buyer or seller but may broker the deal. is found in ACCOUNT PARTY (e. currency. Forwards. bonds.g. either to fund trading in the securities themselves. and swaps of foreign exchange are found in DERIVATIVE AGREEMENTs. or interest rate. This includes Repurchase Agreements (repos). You can also sell the right to sell (Writing a Put) and sell the right to buy (Writing a Call). assumes the risk of interest rate changes. usually a commercial bank or investment bank. • Swaption is an Option on a Swap that gives the holder the right to contract a swap at a specific future date at specified terms or to lengthen or terminate an existing swap. and floors are instances of FEATUREs to this agreement. and price of the underlying instrument. • Options are most common in the stock market but they can be used as a hedging device to manage foreign exchange positions. financial futures. and stock index futures. a FORWARD FUTURES AGREEMENT. With Forward Contracts. The seller of a futures contract agrees to deliver the item to the buyer of the contract.Chapter 16 – Investment Extension Detailed Data Model Agreement Subject Area An example of a derivative based on a combination of different instrument types is a cross-asset swap (swap across asset class) such as 10 USD based on LIBOR for Yen where the underlying instruments will be the USD LIBOR rate and Yen currency. goods are Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-47 . • The strike date is the Contract Expiration Date in the AGREEMENT entity.g. Forward Contracts are similar to Futures Contracts except that Forward Contracts are not uniform in the terms and conditions and are not traded on exchanges. who agrees to purchase the item. 6-month swap) are a TERM FEATURE. Caps. • A Futures Contract is a contract to purchase or sell an amount of an item for a given price by a certain date. or a SWAP AGREEMENT: OPTION AGREEMENT: An Option is a contract giving the investor the right (not the obligation) to buy or sell a specified number of shares of an asset at a set price over a given time period. collars. It also includes Forward Rate Agreements (FRA). It is a deal made now to take place in the future. FORWARD FUTURE AGREEMENT: This entity contains details about Future and Forward types of contracts. • The initial cash paid is called the premium and is determined at the beginning of the option contract. The buyer and seller to the agreement are found in ACCOUNT PARTY. Swaptions are included in this entity. Options can be Call Options (right to buy) or Put Options (right to sell). Terms of derivatives (e. • A swaption seller. in exchange for payment of a swap premium.. Option prices are determined by the interaction of the maturity. commodities. Futures are traded on Exchanges. volatility. A DERIVATIVE AGREEMENT can be classified as an OPTION AGREEMENT. or settlement may be in cash. and date of purchase or sale. If the institution brokers a swap then the brokerage agreement is an instance of AGREEMENT.00 actually delivered at a future date.00. The contract fixes the quantity. SWAP AGREEMENT: A swap is an agreement between two parties to exchange future streams of cash flows generated from other agreements (e.. loans). For example. You do not want to change the data model every time a new investment product is created with a new twist in its terms and conditions.Teradata Financial Services Logical Data Model Reference Guide Release 09. Forward contracts may be on commodities or financial instruments. price. The underlying notional agreements that are being swapped are also separate instances of AGREEMENT. A Forward Rate Agreement (FRA) is a contract where the parties agree on the interest rate to be paid at a future settlement date. The flexible bill of material structures utilizing Features for terms and conditions and high level super types and their existing relationships already sets the framework for these kinds of agreements. Swaps involve exchanging the terms of one asset (loan) for another to improve the quality of a loan portfolio for risk management or asset/liability management purposes. The terms are instances of TERM FEATURE related to the AGREEMENT. This entity represents your financial institution as one of the parties to the swap not as a broker. The principal amount (notional) is agreed but never exchanged. the interest rate for a three-month period commencing in six months.g. 16-48 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Exposure is the difference between agreed and actual interest rates at settlement. Settlement date is the Forward Dt attribute.Derivatives and Swaps. A financial institution may be one of the parties involved in the swap or may broker a swap for a fee. Swaps and Derivatives are further discussed in section Investment Agreement . You can see where it is very important to have a flexible data model to handle the ever changing composition of investment types of agreements. The swap agreement is a separate instance of AGREEMENT. Investment Agreement Type AGREEMENT Account Num Account Modifier Num Agreement Categ Cd FINANCIAL AGREEMENT Account Num (FK) Account Modifier Num (FK) Financial Agreement Categ Cd INVESTMENT AGREEMENT Account Num (FK) Account Modifier Num (FK) Investment Type Cd (FK) Expected Value Dttm Actual Value Dttm Expected Settlement Dttm Actual Settlement Dttm Payment Timing Type Cd (FK) Investment Purpose Type Cd (FK) Purchase Intent Cd (FK) Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) Investment Type Cd Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) SECURITIES FINANCING CASH AT OTHER BANKS SECURITY HOLDING Account Num (FK) Account Modifier Num (FK) Account Num (FK) Account Modifier Num (FK) Repurchase Agreement Type Cd (FK) Repurchase Dttm Other Bank Account Num FOREIGN EXCHANGE AGREEMENT Account Num (FK) Account Modifier Num (FK) DERIVATIVE AGREEMENT Account Num (FK) Account Modifier Num (FK) Account Num (FK) Account Modifier Num (FK) FX Agreement Type Cd (FK) Source Currency Cd (FK) Destination Currency Cd (FK) FX Destination Currency Qty FX Source Currency Qty Nostra Account Num Derivative Notional UOM Cd (FK) Derivative Type Cd (FK) Notional Amt Notional Qty Notional Rate Derivative Type Cd SWAP AGREEMENT OPTION AGREEMENT Account Num (FK) Account Modifier Num (FK) Option Strike Price Amt Option Strike Rate Option Premium Amt Option Type Cd (FK) Premium Currency Cd (FK) FORWARD FUTURES AGREEMENT Account Num (FK) Account Modifier Num (FK) Forward Dt Forward Type Cd (FK) Outright Ind Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Account Num (FK) Account Modifier Num (FK) Swap Obligation Type Cd (FK) Reference Obl Qual Ind Swap Notional Payment Dt 16-49 .Agreement.Chapter 16 – Investment Extension Detailed Data Model Agreement Subject Area Figure 16-11 Investment . Agreement Agreement Subtype Detail and look at entities CASH AT OTHER BANKS and ACCOUNT SUMMARY DD. (For information about cash account holdings that your bank has that are held at other banks go to section Banking . The change in the number of units is tracked in INVESTMENT HOLDING HIST. In most cases there is one product for each agreement. and derivatives.00. it is possible to have multiple products to an agreement. Cash accounts that your customers have are DEPOSIT ACCOUNTs. options. the product is Microsoft stock. The market value of an instrument product is tracked in INVEST PROD VALUE HIST. an INVESTMENT AGREEMENT is created. The PRODUCT of the AGREEMENT is an instance in ACCOUNT PRODUCT HISTORY. One instance of INVESTMENT AGREEMENT exists for each holding of a financial instrument.Portfolio Details and entity PORTFOLIO PROD HOLDING VALUE. The value of that holding can change over time as you buy more units and as the market value changes. if your institution buys Microsoft stock.) For holdings that are part of your customer’s brokerage portfolio see section Investment . A Holding is the value and quantity of a financial instrument that one owns or has purchased shares or units of. This can include stocks. For our purposes we do not include cash accounts in domestic or foreign currencies in the definition of Holding. Model Description When either your institution or your customer (with you as broker/agent) buys units of an investment instrument that are not part of a brokerage portfolio. An INVESTMENT AGREEMENT is a type of FINANCIAL AGREEMENT that is a type of AGREEMENT. For example. When deals get complex.00 Investment Holding This logical view shows how investment holdings outside of a brokerage portfolio are modeled in the FS-LDM. mutual funds. These are market feeds from external data providers.Teradata Financial Services Logical Data Model Reference Guide Release 09. hedge funds. bonds. as in the case of swaps where multiple instruments are involved including cash and foreign exchange instruments. Different kinds of values are possible including fair market value and book value.Agreement . 16-50 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . commodities. The value of those units is tracked in INVESTMENT HOLDING VALUE. Chapter 16 – Investment Extension Detailed Data Model Agreement Subject Area Figure 16-12 Investment - Agreement.Holding AGREEMENT Account Num Account Modifier Num PRODUCT ACCOUNT PRODUCT HISTORY Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) may be for product Product Id Account Num (FK) Account Modifier Num (FK) Product Id (FK) Agreement Product Role Cd (FK) Acct Product Assoc Start Dt describes Acct Product Assoc End Dt Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind Product Type Cd INVESTMENT PRODUCT Agreement Categ Cd Investment Product Id (FK) Invest Prod Trade Type Cd (FK) Investment Product Type Cd (FK) Denomination Currency Cd (FK) has value history in FINANCIAL AGREEMENT Account Num (FK) Account Modifier Num (FK) Financial Agreement Categ Cd INVESTMENT AGREEMENT Account Num (FK) Account Modifier Num (FK) Investment Type Cd (FK) Expected Value Dttm Actual Value Dttm Expected Settlement Dttm Actual Settlement Dttm Payment Timing Type Cd (FK) Investment Purpose Type Cd (FK) Purchase Intent Cd (FK) Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) INVEST PROD VALUE HIST Investment Product Id (FK) Quoting Party Id (FK) Invest Prod Value Dt Invest Prod Value Tm Currency Cd (FK) Reporting Party Id (FK) Invest Prod Value Amt Invest Product Pct INVESTMENT HOLDING HIST has investment holdings of Account Num (FK) Account Modifier Num (FK) Investment Measure Start Dttm has value of MARKET FEED INVESTMENT HOLDING VALUE Account Num (FK) Account Modifier Num (FK) Investment Measure Start Dttm (FK) Investment Amt Type Cd (FK) Invest Holding Value St Dttm Invest Holding Value End Dttm Invest Holding Currency Cd (FK) Invest Holding Amt Investment Measure End Dttm Investment Holding Cnt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-51 Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 Party and Portfolio This logical view shows the roles that Parties may have with Agreements that involve Securities and Customer Portfolios. Parties and Agreements A Party (PARTY) may be associated with zero, one, or many AGREEMENTs via the associative entity ACCOUNT PARTY. The attribute Account Party Role Cd specifies the role of the Party toward the Account, such as holding the Account, or having sold the Account, or servicing the Account. If there are multiple account holders, the attribute Allocation Pct contains the percentage of ownership for each account holder. In the case of an enterprise acting as an institutional investor, the issuer of the particular security (e.g., Microsoft Corporation) can be derived from the relationship between PRODUCT and PARTY (entity PRODUCT PARTY) with a role of ‘is issuer of’ and does not need to be replicated at the AGREEMENT level. This would represent the other Party to the Agreement. Each ownership percentage or share of a unit of Stock implies the partial ownership of the third party (e.g., Microsoft Corporation) that issued the particular unit of Stock. Each ownership percentage or share of a unit for a Bond implies a loan obligation by the third party that issued the Bond unit. The relationship between the specific Investment Product and the issuing third party is stored in the entity PRODUCT PARTY. Therefore, there is no need to specify directly, the relationship (partial ownership or lender) between the owner of the Investment Product (e.g., Stock, Bond) and the Party that issued the Investment Product. Parties and (Customer) Portfolios A Party (PARTY) may be associated with zero, one, or many Portfolios (PORTFOLIO), via the associative entity PARTY PORTFOLIO. The attribute Party Portfolio Role Cd specifies the role of the Party toward the Portfolio, such as managing securities held in the Portfolio, or acting as investment advisor for the Portfolio. The entity PARTY PORTFOLIO is usually used when the Party managing the Portfolio is not the same as the Party who is the account holder, and who is specified as such in ACCOUNT PARTY. 16-52 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Chapter 16 – Investment Extension Detailed Data Model Agreement Subject Area Figure 16-13 Investment - Agreement.Party and Portfolio AGREEMENT PARTY Party Id Account Num Account Modifier Num ACCOUNT PARTY Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind has involvement with has portfolio of Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt has involvement with Account Party End Dt Allocation Pct Account Party Amt Acct Crncy Acct Party Amt PARTY PORTFOLIO Party Id (FK) Portfolio Id (FK) Party Portfolio Role Cd (FK) Party Portfolio Start Dt Party Portfolio End Dt has parties of ACCOUNT PORTFOLIO PORTFOLIO Portfolio Id Portfolio Open Dt Portfolio Close Dt Host Portfolio Id Portfolio Name consists of Portfolio Id (FK) Account Num (FK) Account Modifier Num (FK) Account Portfolio Rel Cd (FK) Account Portfolio Start Dttm Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) has portfolio of Account Portfolio End Dttm Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-53 Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 Portfolio Details This logical view shows the history and summary for investment holdings by your customers and by the enterprise. Margins The entity ACCOUNT MARGIN HISTORY contains the current margin percentage (and perhaps any prior rates) that is valid for this AGREEMENT. In a margin purchase, the attribute Account Margin Pct contains the margin rate, which is the percentage of the security’s market value that must be paid by the settlement date for security purchases of INVESTMENT PRODUCTs. Start Date and End Date specify the time period when the margin rate is valid. Balances An AGREEMENT may have either a credit balance (the broker-dealer owes money to the margin account holder), a debit balance (the account holder owes money to the broker-dealer), or a zero balance. The account balance related to investment is found in INVEST ACCT SUMMARY DD. Portfolio and Products Each account can link to more than one customer portfolio (ACCOUNT PORTFOLIO). A customer portfolio (PORTFOLIO) has INVESTMENT PRODUCTs that move in and out of the PORTFOLIO over time (PORTFOLIO PRODUCT HOLDING) for a given agreement. The number of units of that investment product may also change over time. For example, a retirement portfolio may consist of Microsoft stock and Intel stock. The value of an investment product holding within a portfolio can change over time due to market fluctuations or other forces (PORTFOLIO PROD HOLDING VALUE). An investment product held in a portfolio links to a general ledger account (PORTFOLIO PRODUCT TO COA). 16-54 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Chapter 16 – Investment Extension Detailed Data Model Agreement Subject Area Figure 16-14 Investment - Agreement.Portfolio Details INVEST ACCT SUMMARY DD Account Num (FK) Account Modifier Num (FK) Investment Amt Type Cd (FK) Invest Acct Summary Dttm AGREEMENT Account Num Account Modifier Num has details in Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) Invest Account Balance Amt ACCOUNT MARGIN HISTORY has margin details in Account Num (FK) Account Modifier Num (FK) Account Margin Start Dttm has portfolio of PORTFOLIO COLLATERAL ITEM Collateral Item Id (FK) Account Margin End Dttm Account Margin Pct Investment Product Id (FK) Portfolio Product Start Dttm (FK) Portfolio Id (FK) Account Num (FK) Account Modifier Num (FK) Account Portfolio Rel Cd (FK) Account Portfolio Start Dttm (FK) ACCOUNT PORTFOLIO Portfolio Id (FK) Account Num (FK) Account Modifier Num (FK) Account Portfolio Rel Cd (FK) Account Portfolio Start Dttm Z Account Portfolio End Dttm INVESTMENT PRODUCT Investment Product Id (FK) PORTFOLIO PRODUCT HOLDING has holding of consists of PORTFOLIO Portfolio Id Portfolio Open Dt Portfolio Close Dt Host Portfolio Id Portfolio Name Investment Product Id (FK) Account Num (FK) Account Modifier Num (FK) Portfolio Id (FK) Account Portfolio Rel Cd (FK) Account Portfolio Start Dttm (FK) Portfolio Product Start Dttm Portfolio Product End Dttm Investment Pct Portfolio Product Currency Cd (FK) Position Type Cd (FK) may be a Invest Prod Trade Type Cd (FK) Investment Product Type Cd (FK) Denomination Currency Cd (FK) is product for PORTFOLIO PROD HOLDING QTY has quantity of has value of Investment Product Id (FK) Portfolio Product Start Dttm (FK) Portfolio Prod Qty Start Dttm Account Num (FK) Account Modifier Num (FK) Portfolio Id (FK) Account Portfolio Rel Cd (FK) Account Portfolio Start Dttm (FK) Portfolio Product Unit Cnt has allocation strategy of PORTFOLIO INVEST ALLOCATION Portfolio Id (FK) Product Group Id (FK) Portfolio Invest Strat Strt Dt Portfolio Invest Strat End Dt Portfolio Invest Strategy Pct has margin details in PORTFOLIO MARGIN DETAIL Investment Product Id (FK) Portfolio Product Start Dttm (FK) Product Margin Pct Start Dttm Account Num (FK) Account Modifier Num (FK) Account Portfolio Rel Cd (FK) Portfolio Id (FK) Account Portfolio Start Dttm (FK) Product Margin Pct End Dttm Product Margin Pct is accounted for in PORTFOLIO PRODUCT TO COA Investment Product Id (FK) Portfolio Product Start Dttm (FK) Chart Of Account Id (FK) Account Num (FK) Account Modifier Num (FK) Account Portfolio Rel Cd (FK) Account Portfolio Start Dttm (FK) Portfolio Id (FK) Portfolio Product COA St Dttm Portfolio Product COA End Dttm Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret PORTFOLIO PROD HOLDING VALUE Investment Product Id (FK) Portfolio Product Start Dttm (FK) Portfolio Metric Type Cd (FK) Portfolio Prod Value Strt Dttm Account Num (FK) Account Modifier Num (FK) Account Portfolio Rel Cd (FK) Portfolio Id (FK) Account Portfolio Start Dttm (FK) Portfolio Holding Amt Portfolio Holding Currency Cd (FK) 16-55 Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 Portfolio and Application This logical view introduces the concept of applications, portfolio composition, and portfolio allocation rules. Application Investment Detail An Application occurs when a Party (usually a customer or prospect) wishes to qualify for a product or service (such as establishing a brokerage or trading account) offered by the financial institution and begins the qualification process by submitting an Application. An APPLICATION can be for one or more PRODUCTs, and in the case of a brokerage firm, this could represent the brokerage service offered by the financial institution acting as a broker-dealer. An Application may lead to many AGREEMENTs such as an investment account or a retirement account where each has different tax consequences. Usually, in the case of brokerage services, one application leads to one agreement/account, and one agreement/account is for one service. If the service applied for also includes investment advisory services, it may be possible to specify the desired investment product composition at the time of the application. This specification is made in APPLICATION INVESTMENT DETAIL where the Appl Detail Investment Pct specifies how the monies should be allocated across investment products. 16-56 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Chapter 16 – Investment Extension Detailed Data Model Agreement Subject Area Figure 16-15 Investment - Agreement.Portfolio and Application PRODUCT GROUP PROD GROUP ASSOCIATION Product Group Id APPLICATION applyed by Application Id Application Completed Dt Promo Id (FK) Planned Account Open Dt Application Received Dt Application Signed Dt Product Group Id (FK) Application Type Cd (FK) Document Id (FK) Parent Prod Group Id (FK) Product Group Desc Product Group Start Dt Product Group End Dt Product Group Level Num Product Group Reason Type Cd (FK) Prod Assoc End Dt is part of PRODUCT Product Id apply for Product Type Cd Account Num Account Modifier Num APPLICATION INVESTMENT DETAIL led to Product Script Id (FK) Product Type Cd (FK) Product Desc Product Name Host Prod Id Product Start Dt Product End Dt Product Package Type Cd (FK) Financial Product Ind Product Id (FK) Application Id (FK) Appl Detail Start Dt Appl Detail End Dt Appl Detail Investment Pct INVESTMENT PRODUCT was started from AGREEMENT TO APPLICATION Investment Product Id (FK) is represented in Application Id (FK) Account Num (FK) Account Modifier Num (FK) Agreement Appl Role Cd (FK) Agmt To Application Start Dt Invest Prod Trade Type Cd (FK) Investment Product Type Cd (FK) Denomination Currency Cd (FK) Agmt To Application End Dt PORTFOLIO PRODUCT HOLDING Portfolio Id Investment Product Id (FK) Account Num (FK) Account Modifier Num (FK) Portfolio Id (FK) Account Portfolio Rel Cd (FK) Account Portfolio Start Dttm (FK) Portfolio Product Start Dttm Portfolio Open Dt Portfolio Close Dt Host Portfolio Id Portfolio Name Portfolio Product End Dttm Investment Pct Portfolio Product Currency Cd (FK) Position Type Cd (FK) has portfolio of PORTFOLIO ACCOUNT PORTFOLIO Portfolio Id (FK) Account Num (FK) Account Modifier Num (FK) Account Portfolio Rel Cd (FK) Account Portfolio Start Dttm Product Id (FK) Product Group Id (FK) Prod Assoc Start Dt parent of AGREEMENT Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) groups consists of is product for Account Portfolio End Dttm has holding of Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-57 Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 Securities Financing Securities Financing is a service that provides financing related to trading and dealing in securities. These services generally involve the use of securities as collateral, either to fund trading in the securities themselves, or to provide financing for other purposes. This includes Repurchase Agreements (repos), Reverse Repurchase Agreements, and Securities Lending Agreements. A Repurchase Agreement is a contract to sell and subsequently repurchase securities at a specified date and price. Buying government securities from a central bank (e.g., the Federal Reserve’s Open Market Desk in the U.S.), or another bank can improve a bank’s balance sheet for regulatory purposes. These repo agreements are usually short lived (many times, overnight with the securities repurchased the next day). The bank may be a buyer or seller of such securities. Repurchase Agreements and the FS-LDM An agreement to buy or sell securities for investment or asset/liability management purposes by the bank (while not acting as a broker for a customer) is a SECURITIES FINANCING, which is a type of INVESTMENT AGREEMENT, which is a type of FINANCIAL AGREEMENT, which is also a type of AGREEMENT. The parties to the agreement (banks, central bank, or businesses) are each instances of ACCOUNT PARTY (not shown). The security which is the subject of the agreement (e.g., Treasury bond) is the Product Id attribute in ACCOUNT PRODUCT HISTORY. The terms and conditions of the agreement (e.g., term, sale amount, discount amount, and fees) are each instances of ACCOUNT FEATURE (not shown). 16-58 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Chapter 16 – Investment Extension Detailed Data Model Agreement Subject Area Figure 16-16 Investment - Agreement.Securities Financing AGREEMENT Account Num Account Modifier Num Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) Agreement Categ Cd FINANCIAL AGREEMENT Account Num (FK) Account Modifier Num (FK) Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) Financial Agreement Categ Cd INVESTMENT AGREEMENT Account Num (FK) Account Modifier Num (FK) Investment Type Cd Investment Type Cd (FK) Expected Value Dttm Actual Value Dttm Expected Settlement Dttm Actual Settlement Dttm Payment Timing Type Cd (FK) Investment Purpose Type Cd (FK) Purchase Intent Cd (FK) SECURITIES FINANCING Account Num (FK) Account Modifier Num (FK) Repurchase Agreement Type Cd (FK) Repurchase Dttm Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-59 Teradata Financial Services Logical Data Model Reference Guide Release 09.00.00 Settlement Instructions Settlement instructions specify how to process various account events. For example, when the client sells securities do they want the cash proceeds mailed to them or deposited in a money market account? Are these instructions for every trade for an account or only for certain trades or transactions? What Is Being Settled? Trade settlement involves the transfer of cash and the offsetting transfer of a financial security from the buyer in a transaction to the seller. For example, Party A agrees to buy 100 shares of Company X from Party B for 1 dollar per share. Settlement involves a transfer of $100 dollars from Party A account to Party B and a transfer of 100 shares of Company X from Party B account to Party A. Party A account is debited $100 and credited 100 shares of Company X. Parties to the Settlement The number and types of parties involved in settlement depends on many factors including the type of instrument being settled, whether it's an institutional or retail transaction, OTC or exchange traded, agency or principal. In the simplest case where a retail agency exchange-based domestic equity trade occurs, the parties involved are the buyer and seller, the buyer and seller's agent brokers, and the Depository Trust Corporation (DTC). There are 5 parties in all. Accounts to be Settled In the simple case above, the buyer and seller's brokerage accounts are settled and the broker's accounts at the DTC are settled. Delivery Types "Book" settlement type refers to securities that are registered in street name where the brokerage is designated the security nominee by the client. This allows securities to settle electronically as book entries in the broker's account at the DTC. "Physical" settlement type refers to securities with actual paper documents that must be physically transferred and are typically in the client’s name. "Foreign Local" settlement refers to securities traded on a foreign exchange and settled in the local currency and by a local settlement agent. Representation in the FS-LDM This view shows trade settlement instructions at the account level which means that all trades will follow these instructions. We also show instructions that vary by type of investment instrument (e.g., stocks vs. bonds) for a given account. Instructions at the account level are in entity TRADE SETTLEMENT INSTRUCTION. The instructions exist as a series of codes with one code for each instruction. These are instructions regardless of the type of instrument being traded. Examples are delivery type (Book or Physical), Domestic or Foreign, and whether the settlement of securities is handled separate from cash. Settlement instructions can also specify an address such as a delivery address, a contact phone number, or an alternate phone number (TRADE SETTLMT INSTRUCT LOCATOR). 16-60 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Chapter 16 – Investment Extension Detailed Data Model Agreement Subject Area These same instructions and others can be specified for a type of security (e.g., stock or bond) for a given account (TRADE SETTLEMENT PRODUCT GROUP). Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-61 Settlement Instruction AGREEMENT TRADE SETTLMT INSTRUCT LOCATOR Account Num Account Modifier Num Locator Id (FK) Account Num (FK) Account Modifier Num (FK) Trade Settlement Start Dttm (FK) Settlement Locator Role Cd (FK) has locator of TRADE SETTLEMENT INSTRUCTION Account Num (FK) Account Modifier Num (FK) Trade Settlement Start Dttm Trade Settlement End Dttm Originator Party Id (FK) Payment Timing Type Cd (FK) Settlement Delivery Type Cd (FK) Settlement Direction Type Cd (FK) Domestic Foreign Type Cd (FK) Split Settlement Type Cd (FK) Channel Risk Grade Id (FK) has settlement instruction of Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) Agreement Categ Cd is channel risk for RISK GRADE VALUE Risk Grade Id Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk FINANCIAL AGREEMENT Account Num (FK) Account Modifier Num (FK) Grade Scheme Id (FK) Grade Desc Grade From Val Grade To Val Grade Val Grade Rate Grade Level Num Grade Num Grade Id Start Dttm Grade Id End Dttm Financial Agreement Categ Cd (FK) Market Risk Type Cd (FK) Original Maturity Dt Risk Expsr Mitigant Type Cd (FK) Bank Trade Book Cd (FK) Pricing Method Cd (FK) Financial Agreement Type Cd (FK) is channel risk for Financial Agreement Categ Cd TRADE SETTLEMENT PRODUCT GROUP Account Num (FK) Account Modifier Num (FK) Product Group Id (FK) Product Settlement Start Dttm has settlement instruction of Product Settlement End Dttm Originator Party Id (FK) Payment Timing Type Cd (FK) Settlement Delivery Type Cd (FK) Settlement Direction Type Cd (FK) Domestic Foreign Type Cd (FK) Split Settlement Type Cd (FK) Channel Risk Grade Id (FK) Product Settlement Reason Cd (FK) INVESTMENT AGREEMENT Account Num (FK) Account Modifier Num (FK) Investment Type Cd (FK) Expected Value Dttm Actual Value Dttm Expected Settlement Dttm Actual Settlement Dttm Payment Timing Type Cd (FK) Investment Purpose Type Cd (FK) Purchase Intent Cd (FK) has settlement instruction of PRODUCT GROUP Product Group Id Parent Prod Group Id (FK) Product Group Desc Product Group Start Dt Product Group End Dt Product Group Level Num Product Group Reason Type Cd (FK) parent of 16-62 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Agreement.00 Figure 16-17 Investment .Teradata Financial Services Logical Data Model Reference Guide Release 09.00. g. For example. Event is described in the Foundation Reference Manual. redemption fees. commission payments or fees (e. portfolio maintenance fees. Examples of settlement/cash flow events include receipt of dividends and/or interest.g.Chapter 16 – Investment Extension Detailed Data Model Event Subject Area Event Subject Area This section describes FS-LDM Major Subject Area Event. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-63 . The logical views described in this section are: • Event Subtyping – shows how Events are subtyped to support investment and brokerage related events (transactions and activities). security purchase payments or sales proceeds. • Financial Event – shows how recording financial settlements and cash flow is handled from the perspective of the enterprise acting as the broker-dealer or as an institutional investor. and portfolio holding composition changes. special handling or account service fees. and combination orders).. trading suspensions. spread order. • Event-Event Relationships – shows how one investment event can be related to another investment event (e. portfolio maintenance fee payments. In this section. dividend declarations. interest and/or dividend receipts. This includes events that affect a customer’s investments where the enterprise acts as the broker-dealer. and late settlement fees). advisory.. This logical view presents ‘external events’ such as stock splits. those aspects of Event that are important to Investment are covered. and ‘internal events’ such as trade orders and executions. custody fees. when the client sells securities do they want the cash proceeds always mailed to them or deposited in a money market account? These instructions are unique for each trade activity.’ straddle order. • Settlement Instructions – specify how to process various activities. ‘one cancels the other. transaction. In general terms. and events that affect the enterprise’s own internal holdings where the enterprise acts as an institutional investor. • Party and Geography relationships – shows how other areas of the data model relate to investment Events. The scope of activities in the data model includes trades and other kinds of transactions that affect a customer’s investments or that affect your institution’s investments. that occur externally to your institution that affect investment products. Investment Product External Event INVESTMENT PROD EXTERNAL EVENTs include activities that originate outside the domain of an enterprise over which it normally would have no control. fund.Teradata Financial Services Logical Data Model Reference Guide Release 09. • INVESTMENT PRODUCT EVENT – activities such as trades that involve a financial instrument such as stock. issues own stock. notes. • ACCOUNT EVENT – an event that involves an account or agreement. or mutual funds).g. like a temporary trade suspension. The attribute Invest Prod Ext Event Cd specifies the kind of event. These events are still included in this entity. The first level under EVENT contains subtypes that are inclusive. An EVENT can be one or more of the following: • INVESTMENT PROD EXTERNAL EVENT – activities. bond. a dividend declaration. 16-64 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Exceptions are activities related to investment instruments that originate from an enterprise where it may not ask the issuer for its own securities (e. • FINANCIAL ACCOUNT EVENT – and event that involves both an account and money. In a trading halt or restart. These types of events are further described in the sections that follow. Examples of Investment Product External Events are: • stock splits • dividend declarations • suspension of trading INVESTMENT PROD EXTERNAL EVENT is linked to the Investment Product by means of the attribute Investment Product Id. bonds. Model Description Refer to Figure 16-18 in this section. the date/time in EVENT specifies the moment of suspension or restart. or derivative. • FINANCIAL EVENT – an event that involves money.00. or an event that specifies the distribution of units for an INVESTMENT PRODUCT. such as stock splits or dividend declarations. • SWAP LEG ACCOUNT EVENT – activities for swap agreements that apply to a swap leg within that agreement.00 Investment Event Subtyping This logical view shows how EVENTs are subtyped to support investment related transactions and activities. meaning a given event can have information in one or more of these subtypes. EVENT PARTY provides a link to the PARTY that suspended or restarted trading. • CUSTOMER PORTFOLIO EVENT – activities that affect one of your customer’s portfolios such as opening or closing a portfolio.. a restart. From this perspective. Base Unit Num contains the number of units required for the new number of units. In the holdings there is no change in the number of units for the spun-off Investment Product. a portfolio is a collection of Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-65 . The attributes Base Unit Num and New Unit Num specify. New Product Id contains Right Investment Product identification. New Product Id contains spun-off new Investment Product identification. Other examples (which involve a second Investment Product specified by the attribute New Product Id) are: Issue of Subscription Rights New Unit Num contains the quantity of units of Rights that are obtained for the number within Base Unit Num. respectively. which causes the existing quantity of units to be changed into a new number of units. contains relevant date information related to the declaration of the next dividend. Customer Portfolio Event The concept of ‘portfolio’ has a very specific and operational meaning from a brokerage perspective. EVENT PARTY provides a link to the PARTY that announced the upcoming dividend. New Product Id contains Investment Product identification for the company making the acquisition or hostile bid. An example of this event is a Stock Split. how many existing units in the holding will result in how many new units in the holding for the Investment Product referred to in INVESTMENT PROD EXTERNAL EVENT. If it is a stock dividend. Take Over New Product Num contains the quantity of units for the Investment Product of the company executing the take-over. The attribute Effective Dt specifies the commencement date when the unit (re)distribution is effective. the per-share amount is found in CASH DIVIDEND EVENT.Chapter 16 – Investment Extension Detailed Data Model Event Subject Area DIVIDEND DECLAR EVENT. subtype to INVESTMENT PROD EXTERNAL EVENT. by means of the attributes Dividend Record Dt and Dividend Payable Dt. If the dividend is in cash. the dividend percentage is found in STOCK DIVIDEND EVENT. In the holdings the number of Investment Product units being acquired is reduced to zero. Spin Off New Unit Num contains the quantity of units for the new Investment Product that are obtained for the number within Base Unit Num. New Product Id contains Warrant Investment Product identification. Issue of Subscription Warrants New Unit Num contains the quantity of Warrants units that are obtained for the number within Base Unit Num. UNIT DISTRIBUTION EVENT contains all Investment Product Events that cause new numbers of units for Investment Products. .g. the term ‘portfolio’ in FS-LDM refers to an enterprise’s customer’s portfolio where the enterprise acts as the brokerdealer. For details about activities for products within the portfolio. A CUSTOMER PORTFOLIO EVENT affects details about the portfolio held for its customer. fee. an ACCOUNT EVENT. etc.. cost. there may be different definitions of ‘portfolio. These event types are: • Financial Settlement of trade. tax. a retirement portfolio where earnings are tax deferred versus another portfolio where earnings are taxable). refer to INVESTMENT PRODUCT EVENT. and a FINANCIAL EVENT that together specify the account identification number and the type and amount of the fee charged. maintenance fee for the portfolio). expense. the following information is from the perspective of an enterprise acting as the brokerdealer for its customer’s portfolios. An INVESTMENT PRODUCT EVENT can be classified based on the type of activity with Investment Event Type Cd as the category discriminator.’ Therefore.00. then this event is also a FINANCIAL ACCOUNT EVENT. all ‘buy and hold’ instruments). Examples of Events related to the Customer Portfolio but not related to an Investment Product within the Customer Portfolio are: • opening a Portfolio • closing a Portfolio • maintenance fee charged for a Portfolio If the Customer Portfolio Event affects the balance of the AGREEMENT associated with the Portfolio (e.g. A portfolio could also represent an investment strategy (i. commission.00 security holdings that share common term(s) or condition(s) (e. The affected Investment Product is specified in attribute Investment Product Id.. An enterprise may have collections or groupings of its own financial holdings and those are represented by other existing structures in FS-LDM such as Product Groups or Account Groups.e.Teradata Financial Services Logical Data Model Reference Guide Release 09. then those activities are recorded in INVESTMENT PRODUCT EVENT. Investment Product Event If the Event affects your institution’s investment or your customer’s investment in a specific Investment Product. • Trade Order • Trade Execution • Transfer to/from another Portfolio • Stock Dividend • Issued Rights • Stock Split 16-66 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . Depending on where one is positioned in the enterprise’s organization. For this reason. and one of many event types (Trade Order Type Cd). indicating a decrease. If there is a stock split. this attribute contains the net share increase. If the event is transacted in terms of an amount (such as Stock Dividend or bond amount).Chapter 16 – Investment Extension Detailed Data Model Event Subject Area • • • Spin Off Take Over Registration The attribute Investment Product Id refers to the specific Investment Product related to this Financial Settlement. if you buy 100 shares of Microsoft stock the value is +100. Examples of order types are: • Market Order • Stop Order • Stop Limit • Fill-or-Kill (FOK) • Immediate or Cancel (IOC) • All-or-None (AON) • Spread Order • Straddle Order • Combination Order • One Cancels Other (OCO) The last four order examples are in pairs. sell short) (Order Category Type Cd). Investment Event Amt specifies the increase or decrease amount for the holding or the account. Trade Orders TRADE ORDERs include one of three categories (buy. which indicates an increase. The quantity of units or the amount can be positive. sell long. For example. A TRADE ORDER also includes the time period when the order must be executed and the limits that apply. or negative. The link between the two is made via EVENT RELATIONSHIP. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-67 . If the event is transacted in terms of units (such as Stock Split in Investment Event Type) then Invest Event Unit Cnt specifies the number of units that affect the holding. Other attributes give details about the unit quantities or the amounts that were the cause of this Financial Settlement. but not both. additional information is recorded in the subtypes. The event is either in terms of units or amount. For TRADE ORDERs and TRADE EXECUTIONs. it affects your enterprise’s AVAILABLE CASH ACCOUNT which is a GL account (Refer to Foundation FM. Investment Product Event as it Relates to Account The type of AGREEMENT in FS-LDM that may be related to the INVESTMENT PRODUCT EVENT will depend on these characteristics: • Whether the event involves cash flow • Whether your enterprise or your customer is the investor • Whether the event involves a holding outside a brokerage portfolio • Whether your enterprise or your customer is the investor • Whether it involves a holding inside your customer’s brokerage portfolio Involves Cash Flow If the INVESTMENT PRODUCT EVENT involves cash flow (e. it affects 16-68 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . There may be multiple execution instances for one trade order. These could be spot purchases or forward/future trades as specified in the associated agreement. the event affects an INVESTMENT AGREEMENT.00.g.Teradata Financial Services Logical Data Model Reference Guide Release 09. For example. DEPOSIT ACCOUNT) and is recorded as an ACCOUNT EVENT and FINANCIAL ACCOUNT EVENT.00 Trade Executions TRADE EXECUTION contains the unit price (or percentage) for the execution of the trade order. EVENT RELATIONSHIP contains a link to the original trade order and the execution.g. the source currency is in INVESTMENT PRODUCT EVENT and the destination currency is in FOREIGN EXCHANGE EVENT. If your enterprise is the investor. The attribute Transaction Id in the EVENT entity may be used to identify this trade within the operational systems of the broker-dealer or investment management firm. Examples of types of events that involve foreign exchange can be currency trades either for your institution or on behalf of your customer. if you or your customer buys 100 shares of Microsoft stock and it is outside a portfolio. Involves a Holding outside a Customer Portfolio If the INVESTMENT PRODUCT EVENT involves you or your customer’s holdings outside a customer portfolio.Journal Entry and Financial Event). Foreign Exchange If the event is a foreign exchange of one currency for another. The number of units (or the value amount) is in INVESTMENT PRODUCT EVENT. the cash flow goes into one of your customer’s transaction accounts (e... earned dividend) and if the Event involves your customer’s investment (versus your institution’s investment). The date/time of the execution of the trade order is in the EVENT entity. which is a type of INVESTMENT AGREEMENT.Chapter 16 – Investment Extension Detailed Data Model Event Subject Area SECURITY HOLDING. Involves a Holding inside a Customer Portfolio If the INVESTMENT PRODUCT EVENT involves one of your customer’s holdings in a brokerage portfolio. The portfolio is specified in CUSTOMER PORTFOLIO EVENT and the security is specified as an investment product in INVESTMENT PRODUCT EVENT. the account is the one that is related to that portfolio (ACCOUNT PORTFOLIO). Swap Leg Account Event Events such as payments that are applied to a swap leg which is part of a swap agreement are represented in SWAP LEG ACCOUNT EVENT. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-69 . 00. 16-70 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank.Teradata Financial Services Logical Data Model Reference Guide Release 09. Chapter 16 – Investment Extension Detailed Data Model Event Subject Area Figure 16-18 Investment .Event.Subtyping EVENT Event Id FINANCIAL EVENT Event Id (FK) Event Currency Cd (FK) Event Amt Event Local Amt Event Global Amt Financial Event Period Strt Dt Financial Event Period End Dt Financial Event Covered Val Financial Event COA Id (FK) Ledger Batch Id (FK) Funds Transfer Event Ind Financial Event Type Cd (FK) Event Activity Type Cd (FK) Event Reason Cd (FK) Transaction Id Event Start Dt Event Start Tm Event End Dt Event End Tm Event GMT Start Dt Event GMT Start Tm Account Ind Financial Ind Contact Ind Incident Ind Account Group Ind Consent Ind Financial Account Event Ind Internal Investment Event Ind External Investment Event Ind Customer Portfolio Ind Statement Event Ind Access Device Event Ind Swap Leg Event Ind Opportunity Ind Travel Event Ind Event Alert Ind Causal Event Ind Reward Event Ind is related with EVENT RELATIONSHIP is related to Event Id (FK) Related Event Id (FK) Event Relationship Type Cd (FK) INVESTMENT PROD EXTERNAL EVENT Event Id (FK) Investment Product Id (FK) Invest Prod Ext Event Cd (FK) INVESTMENT PRODUCT EVENT Event Id (FK) Invest Prod Ext Event Cd UNIT DISTRIBUTION EVENT Event Id (FK) Investment Event Type Cd (FK) Investment Event Unit Cnt Investment Event Amt Investment Event Currency Cd (FK) Foreign Exchange Ind Investment Product Id (FK) DIVIDEND DECLARE EVENT Event Id (FK) New Product Id (FK) Unit Distribution Type Cd (FK) Unit Distribution Effective Dt Base Unit Num New Unit Num Dividend Type Cd (FK) Dividend Record Dt Dividend Payable Dt SWAP LEG ACCOUNT EVENT Event Id (FK) FINANCIAL ACCOUNT EVENT Event Id (FK) Event Posted Dttm Acct Crncy Posted Amt Event Value Dttm Back Office Event Ind Debit Credit Cd (FK) ACCOUNT EVENT Dividend Type Cd Account Num (FK) Account Modifier Num (FK) Swap Leg Num (FK) FOREIGN EXCHANGE EVENT Investment Event Type Cd Account Num (FK) Account Modifier Num (FK) Account Event Type Cd (FK) CASH DIVIDEND EVENT Event Id (FK) Event Id (FK) Event Id (FK) TRADE ORDER CUSTOMER PORTFOLIO EVENT Portfolio Id (FK) BACK OFFICE EVENT Destination Currency Cd (FK) Event Id (FK) Event Id (FK) Back Office Event Ind Event Id (FK) Order Category Type Cd (FK) Trade Order Type Cd (FK) Currency Cd (FK) Order Period Start Dt Order Period End Dt Limit Unit Amt Limit Pct Limit Rate Back Office Event Eff Dttm has amount of BACK OFFICE EVENT AMOUNT Event Id (FK) Currency Cd (FK) Event Amount Type Cd (FK) Back Office Event Amt Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret TRADE EXECUTION Event Id (FK) Currency Cd (FK) Traded Unit Amt Traded Pct Traded Rate Dividend Currency Cd (FK) Per Share Amt STOCK DIVIDEND EVENT Event Id (FK) Stock Dividend Pct . . • Order execution (TRADE EXECUTION) and financial settlement (FINANCIAL ACCOUNT EVENT). • Combination Orders is similar to a Straddle Order but uses a different series designation. • The execution of the order (TRADE EXECUTION) and transaction of the related commission and/or fee (FINANCIAL ACCOUNT EVENT). • Straddle Orders are used in listed options is the simultaneous purchase or sale of a put and a call on the same underlying stock in the same series. this is the financial settlement AGREEMENT that relates to its holding AGREEMENTs. 1993. • Dividend declaration (INVESTMENT PRODUCT EVENT) for an INVESTMENT PRODUCT and posting dividend receipts (FINANCIAL ACCOUNT EVENT) into the balance of an AGREEMENT that relates to the PORTFOLIO that contains the INVESTMENT PRODUCT. this is the AGREEMENT that relates to the PORTFOLIO that contains the INVESTMENT PRODUCT. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-73 .Chapter 16 – Investment Extension Detailed Data Model Event Subject Area Event-Event Relationships The purpose of this logical view is to show how one Investment Event can be related to other Investment Events. After the Trade is Made. Execution may consist of several EVENTs (also TRADE EXECUTION) that may have occurred on different dates. both of type OCO (One Cancels Other) • Two trade orders (TRADE ORDER) that result from Spread or Straddle Orders. Event Relationships See Note 2 EVENT RELATIONSHIP shows relationships between Events (EVENT). New York Institute of Finance. 1993. Event Relationship Type Cd specifies types of relationships. • Dividend declaration (INVESTMENT PROD EXTERNAL EVENT) for an INVESTMENT PRODUCT and posting the dividend receipt (FINANCIAL ACCOUNT EVENT) into the balance of an AGREEMENT. See Note 2 for definitions. 2 David M Weiss. 2nd Ed. • One Cancels Other (OCO) – the first order executed automatically cancels the other. or from a Combination Order • A trade order (TRADE ORDER) and the execution of that order (TRADE EXECUTION). These include at least two separate instances of EVENT. For customer investments. Examples are: • Two trade orders (TRADE ORDER). but with different terms. • Spread Orders are used in listed options and futures trading and contains instructions to buy one product or issue and simultaneously sell the same product/issue. For an enterprise’s own institutional investments. 00 Figure 16-19 Investment .00.Event.Event-Event Relationships EVENT Event Id EVENT RELATIONSHIP Event Id (FK) Related Event Id (FK) is related to Event Relationship Type Cd (FK) is related with INVESTMENT PROD EXTERNAL EVENT Event Id (FK) Investment Product Id (FK) Invest Prod Ext Event Cd (FK) Event Activity Type Cd (FK) Event Reason Cd (FK) Transaction Id Event Start Dt Event Start Tm Event End Dt Event End Tm Event GMT Start Dt Event GMT Start Tm Account Ind Financial Ind Contact Ind Incident Ind Account Group Ind Consent Ind Financial Account Event Ind Internal Investment Event Ind External Investment Event Ind Customer Portfolio Ind Statement Event Ind Access Device Event Ind Swap Leg Event Ind Opportunity Ind Travel Event Ind Event Alert Ind Causal Event Ind Reward Event Ind INVESTMENT PRODUCT EVENT Event Id (FK) has activity of is product for INVESTMENT PRODUCT Investment Product Id (FK) Invest Prod Trade Type Cd (FK) Investment Product Type Cd (FK) Denomination Currency Cd (FK) Investment Event Type Cd (FK) Investment Event Unit Cnt Investment Event Amt Investment Event Currency Cd (FK) Foreign Exchange Ind Investment Product Id (FK) EVENT PRODUCT Event Id (FK) Product Id (FK) involves Event Product Role Cd (FK) FINANCIAL ACCOUNT EVENT CUSTOMER PORTFOLIO EVENT Event Id (FK) Portfolio Id (FK) Event Id (FK) Event Posted Dttm Acct Crncy Posted Amt Event Value Dttm Back Office Event Ind Debit Credit Cd (FK) ACCOUNT EVENT Event Id (FK) Investment Event Type Cd Account Num (FK) Account Modifier Num (FK) Account Event Type Cd (FK) TRADE ORDER Event Id (FK) Order Category Type Cd (FK) Trade Order Type Cd (FK) Currency Cd (FK) Order Period Start Dt Order Period End Dt Limit Unit Amt Limit Pct Limit Rate 16-74 TRADE EXECUTION Event Id (FK) Currency Cd (FK) Traded Unit Amt Traded Pct Traded Rate FOREIGN EXCHANGE EVENT EVENT STATUS TYPE Event Id (FK) Event Status Cd Destination Currency Cd (FK) Event Status Desc Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09. g. In this example. Internal Enterprise Events For institutional investments held by an enterprise. there is one instance of Event for each portfolio that will receive a dividend due. Examples of financial events that affect an Account balance include: • Receipt of dividends or interest from security investments • Money transfer from one account to another account. there is one Agreement for each holding (referred herein as the holding Agreement). and ACCOUNT EVENT. or money disbursement from the account directly to the account holder (e. All of these event entities are for the same Event. Example 1: An annual portfolio management fee affects the following event entities: EVENT. All of these event entities are for the same Event. Example 2: Dividend received on a stock investment. FINANCIAL ACCOUNT EVENT. The following entities are affected: EVENT. annual fee. Entities affected by a financial event depend on whether an Investment Product is involved. Portfolios hold Investment Products that comprise them. CUSTOMER PORTFOLIO EVENT. for tax purposes).Chapter 16 – Investment Extension Detailed Data Model Event Subject Area Financial Events The purpose of this logical view is to show how recording financial settlements is handled for investment activities. and ACCOUNT EVENT. FINANCIAL EVENT. INVESTMENT PRODUCT EVENT. The holding Agreements and settlement Agreements are separate instances of Agreement. There may be several Agreements in the enterprise that serve an accounting function and contain earnings and payments (and ongoing financial balances) for those holdings (herein referred to as settlement Agreements). an Agreement (Account) is an accounting of the balance and it can relate to many Portfolios. If the same stock is held in multiple portfolios. or the passage of time (e. CUSTOMER PORTFOLIO EVENT.g. dividend payout instead of automatic reinvestment) • Receipt of proceeds due from a security sale • Payment of money dues for a security purchase • Payment of customer portfolio maintenance or service fees • Payment of commission for trades executed • Receipt of interest on account balance • Taxes paid from the account Customer Events For customer investments.. The same Investment Product can span Portfolios because Portfolios can have different investment goals and objectives (e. Portfolio service fees can be paid by one Account and dividends can be received by another Account.. FINANCIAL ACCOUNT EVENT.. FINANCIAL EVENT.g. biannual bond interest). The settlement Agreement is related to a holding Agreement with a role of ‘is Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-75 . These financial events affect an Account/Agreement’s balance and may have been triggered by another event such as a trade execution. a specific Investment Product is affected so we need the INVESTMENT PRODUCT EVENT entity. but a Portfolio is always involved. Events for a given Investment Product can be tied together by the Investment Product Id in the INVESTMENT PRODUCT EVENT entity. If an Event (EVENT) is related to an increase or decrease of the balance amount of an AGREEMENT. then this EVENT is also: • ACCOUNT EVENT • FINANCIAL EVENT • FINANCIAL ACCOUNT EVENT FINANCIAL EVENT contains the amount denominated in the original currency.00 financial settlement accounting for. That currency is specified by the attribute Event Currency Cd. security purchase payments. The entities affected by a financial settlement event are the following Event entities which are all for the same instance of Event: EVENT. Also. The attribute Investment Product Id in INVESTMENT PRODUCT EVENT represents the holding Account that the cash flow affects (e.Teradata Financial Services Logical Data Model Reference Guide Release 09. FINANCIAL EVENT. dividend. as previously described in the Agreement Overview logical view. FINANCIAL ACCOUNT EVENT.g.00. ACCOUNT EVENT. 16-76 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret . and security sale proceeds). The AGREEMENT currency and EVENT currency may be different from the Internal Accounting Currency (IAC) in the investment management firm or dealer-broker. interest. and INVESTMENT PRODUCT EVENT. the FINANCIAL ACCOUNT EVENT and FINANCIAL EVENT entities are not included and the Account (AGREEMENT entity) represents the holding agreement.. two attributes specify when the amount was posted to the balance (Event Posted Dttm) and when the amount will be included for interest calculations (Event Value Dttm). If there is no cash flow or money settlement. FINANCIAL ACCOUNT EVENT contains the amount by which the balance is updated in the AGREEMENT currency.’ This relationship between holding Agreements and the settlement Agreement is in ACCT ACCT RELATIONSHIP. Financial Account Events The following describes the structure of Financial Events that are the same for either a customer acting as an individual investor or an enterprise acting as an institutional investor. Chapter 16 – Investment Extension Detailed Data Model Event Subject Area Figure 16-20 Investment .Financial Events EVENT Event Id Event Activity Type Cd (FK) Event Reason Cd (FK) Transaction Id Event Start Dt Event Start Tm Event End Dt Event End Tm Event GMT Start Dt Event GMT Start Tm Account Ind Financial Ind Contact Ind Incident Ind Account Group Ind Consent Ind Financial Account Event Ind Internal Investment Event Ind External Investment Event Ind Customer Portfolio Ind Statement Event Ind Access Device Event Ind Swap Leg Event Ind Opportunity Ind Travel Event Ind Event Alert Ind Causal Event Ind Reward Event Ind INVESTMENT PRODUCT EVENT Event Id (FK) Investment Event Type Cd (FK) Investment Event Unit Cnt Investment Event Amt Investment Event Currency Cd (FK) Foreign Exchange Ind Investment Product Id (FK) CUSTOMER PORTFOLIO EVENT Event Id (FK) Portfolio Id (FK) ACCOUNT EVENT FINANCIAL EVENT Event Id (FK) Event Id (FK) Event Currency Cd (FK) Event Amt Event Local Amt Event Global Amt Financial Event Period Strt Dt Financial Event Period End Dt Financial Event Covered Val Financial Event COA Id (FK) Ledger Batch Id (FK) Funds Transfer Event Ind Financial Event Type Cd (FK) Account Num (FK) Account Modifier Num (FK) Account Event Type Cd (FK) FINANCIAL ACCOUNT EVENT Event Id (FK) Event Posted Dttm Acct Crncy Posted Amt Event Value Dttm Back Office Event Ind Debit Credit Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-77 .Event. These other areas include PARTY. 16-78 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09. PRODUCT.00 Party and Geographical Area The purpose of this logical view is to show how other areas of the data model are used during investment events. which is an Investment Product Event and a Customer Portfolio Event. The link between the EVENT and where the trading halt occurred is as follows: Entity Role Code Example EVENT trading suspension INVESTMENT PROD EXTERNAL EVENT trading suspension EVENT PARTY decided on PARTY NYSE PARTY TO LOCATOR is located within LOCATOR New York. USA Also. Microsoft common stock). Event Links for a Suspension of Trading Example The suspension of trading is an EVENT. The execution of a purchase order is an Event. there might be a link between the Event and another Party: Entity Role Code Example EVENT trading suspension INVESTMENT PROD EXTERNAL EVENT trading suspension EVENT PARTY reported PARTY Reuters Event Links Example for an Order by an Investment Products Customer An enterprise acts as a broker or broker-dealer and its customer has asked it to place a trade order for a specific stock (e. EVENTs may be linked directly or indirectly to PARTYs and GEOGRAPHICAL AREAs through LOCATOR. the link goes from Event to Portfolio to Agreement (Account) to Party.. which is an INVESTMENT PROD EXTERNAL EVENT.00. We use several scenarios to show these relationships. GEOGRAPHICAL AREA and AGREEMENT. To determine the Account that relates to the Event and the Account holder.g. USA Event Links Example for an Order by an Investment Products Enterprise This is an example where an enterprise has placed an order to buy Microsoft shares for its own internal investment purposes. This scenario shows the relationships between the Event. the Agreement. The execution of a purchase (trade) order is an Event. and the Parties to the Agreement.Chapter 16 – Investment Extension Detailed Data Model Event Subject Area The link between the Event and the Party who owns the Portfolio containing the Investment Product is as follows: Entity Role Code Example INVESTMENT PRODUCT Microsoft common stock EVENT purchase INVESTMENT PRODUCT EVENT purchase CUSTOMER PORTFOLIO EVENT purchase PORTFOLIO ACCOUNT PORTFOLIO Taxable holdings is primary account for AGREEMENT ACCOUNT PARTY Settlement Account is account holder of PARTY John Smith The link between the Event and the Geographical Area where the Event took place is as follows: Entity Role Code Example EVENT purchase INVESTMENT PRODUCT EVENT purchase CUSTOMER PORTFOLIO EVENT purchase EVENT PARTY is Securities Exchange for PARTY PARTY TO LOCATOR NYSE is located within LOCATOR New York. the Parties to the Event. Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-79 . an Investment Event and an Investment Product Event. the link goes from Event to Agreement (Account) to Party.Teradata Financial Services Logical Data Model Reference Guide Release 09. Entity Example INVESTMENT PRODUCT Microsoft common stock EVENT purchase INVESTMENT PRODUCT EVENT purchase AGREEMENT Microsoft common stock holding ACCOUNT PARTY 16-80 Role Code is investor in An enterprise as investor PARTY Microsoft Corp.00. PARTY Bank XYZ (an enterprise) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 To determine the (holding) Agreement that is related to the Event and the Account holder. Chapter 16 – Investment Extension Detailed Data Model Event Subject Area Figure 16-21 Investment .Event.Party and Geographical Area EVENT PRODUCT IDENTIFICATION Event Id (FK) Product Identification Id (FK) PARTY TO LOCATOR EVENT TO LOCATOR has identifier of LOCATOR Event Id (FK) Locator Id (FK) Event Locator Rel Cd (FK) Locator Id is address for Locator Type Cd (FK) is location for Party Party Party Party Id (FK) Locator Id (FK) Locator Usage Cd (FK) Locator Start Dt Party Locator End Dt EVENT PARTY EVENT Event Id Event Activity Type Cd (FK) Event Reason Cd (FK) Transaction Id Event Start Dt Event Start Tm Event End Dt Event End Tm Event GMT Start Dt Event GMT Start Tm Account Ind Financial Ind Contact Ind Incident Ind Account Group Ind Consent Ind Financial Account Event Ind Internal Investment Event Ind External Investment Event Ind Customer Portfolio Ind Statement Event Ind Access Device Event Ind Swap Leg Event Ind Opportunity Ind Travel Event Ind Event Alert Ind Causal Event Ind Reward Event Ind has address of Event Id (FK) Party Id (FK) Party Role Cd (FK) Party Event Start Dt occurred in has involvement with PARTY Party Id Party Event End Dt Party Identification Type Cd (FK) Contact Comment Txt Unstructured Text Id (FK) was involved with Party Type Cd (FK) Party Info Source Type Cd (FK) Party Start Dt Party End Dt Lifecycle Cd (FK) Provider Ind ACCOUNT EVENT Event Id (FK) has involvement with Account Num (FK) Account Modifier Num (FK) Account Event Type Cd (FK) ACCOUNT PARTY Party Id (FK) Account Num (FK) Account Modifier Num (FK) Account Party Role Cd (FK) Account Party Start Dt CUSTOMER PORTFOLIO EVENT Event Id (FK) Portfolio Id (FK) is portfolio for Account Party End Dt Allocation Pct Account Party Amt Acct Crncy Acct Party Amt INVESTMENT PROD EXTERNAL EVENT Event Id (FK) Investment Product Id (FK) Invest Prod Ext Event Cd (FK) has involvement with AGREEMENT Account Num Account Modifier Num INVESTMENT PRODUCT EVENT Event Id (FK) PORTFOLIO Investment Event Type Cd (FK) Investment Event Unit Cnt Investment Event Amt Investment Event Currency Cd (FK) Foreign Exchange Ind Investment Product Id (FK) Portfolio Open Dt Portfolio Close Dt Host Portfolio Id Portfolio Name is product for Invest Prod Trade Type Cd (FK) Investment Product Type Cd (FK) Denomination Currency Cd (FK) has portfolio of ACCOUNT PORTFOLIO Portfolio Id (FK) Account Num (FK) Account Modifier Num (FK) Account Portfolio Rel Cd (FK) Account Portfolio Start Dttm INVESTMENT PRODUCT Investment Product Id (FK) was used during Portfolio Id has activity of consists of Account Portfolio End Dttm Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret Account Type Cd (FK) Account Source Cd (FK) Acct Current Status Type Cd (FK) Acct Status Reason Cd (FK) Account Open Dt Account Close Dt Acct Obtained Cd (FK) Agreement Categ Cd (FK) Fund Source Type Cd (FK) Account Processing Dt Account Signed Dt Contract Name Contract Expiration Dt Asset Liability Cd (FK) Balance Sheet Cd (FK) Statement Cycle Cd (FK) Statement Mail Type Cd (FK) Proposal Id (FK) External Agreement Ind Agreement Objective Type Cd (FK) 16-81 . Agreement. If it is a physical delivery the address and location information is specified in TRADE EVENT SETTLE LOCATOR. 16-82 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .Teradata Financial Services Logical Data Model Reference Guide Release 09. Only the physical delivery option has specific attributes. • Destination Clearinghouse Agent Number – participant number of the destination financial institution at the clearing organization for book settlements • Physical Delivery Financial Institution Identifier – financial institution to which physical delivery if to be made for this settlement instruction.00. one instruction is whether the settlement of the security is Book. Instructions for a given trade execution are specified as a series of codes in TRADE EVENT SETTLE INSTRUCTION. The others are shown for completeness. • Destination Agent or Department – the agent or department within the destination financial institution that is responsible for the receiving account specified in the settlement instruction • Destination Financial Institution – the financial institution that is the recipient of this settlement.00 Settlement Instruction This section discusses settlement instructions that are specific to a given trade or activity.Settlement Instruction section we discussed settlement instructions that are for any trades for an account or a type of instrument for an account. For example. TRADE SETTLE PHYSICAL DELIVERY and TRADE SETTLE FOREIGN DELIVERY. The parties to the settlement are specified in TRADE EVENT SETTLE PARTY: • Clearinghouse – the clearinghouse used for book deliveries. In the Investment . Physical Delivery or Foreign Delivery. In this instruction there are subtypes to handle each option – TRADE SETTLE BOOK DELIVERY. Please refer to that section for a discussion of what settlement instructions are. • Instruction Originator – the person who originated or last updated this instruction information. Chapter 16 – Investment Extension Detailed Data Model Event Subject Area Figure 16-22 Investment .Event.Settlement Instruction EVENT Event Id Event Activity Type Cd (FK) Event Reason Cd (FK) Transaction Id Event Start Dt Event Start Tm Event End Dt Event End Tm Event GMT Start Dt Event GMT Start Tm Account Ind Financial Ind Contact Ind Incident Ind Account Group Ind Consent Ind Financial Account Event Ind Internal Investment Event Ind External Investment Event Ind Customer Portfolio Ind Statement Event Ind Access Device Event Ind Swap Leg Event Ind Opportunity Ind Travel Event Ind Event Alert Ind Causal Event Ind Reward Event Ind INVESTMENT PRODUCT EVENT TRADE EVENT SETTLE PARTY Event Id (FK) Party Id (FK) Event Id (FK) Event Trade Settle Start Dttm (FK) Trade Settlement Party Role Cd (FK) Trade Settlement Party Strt Dt Investment Event Type Cd (FK) Investment Event Unit Cnt Investment Event Amt Investment Event Currency Cd (FK) Foreign Exchange Ind Investment Product Id (FK) Trade Settlement Party End Dt has involvement with Investment Event Type Cd TRADE EVENT SETTLE INSTRUCTION Event Id (FK) Event Trade Settle Start Dttm TRADE ORDER Event Id (FK) Order Category Type Cd (FK) Trade Order Type Cd (FK) Currency Cd (FK) Order Period Start Dt Order Period End Dt Limit Unit Amt Limit Pct Limit Rate TRADE EXECUTION Event Id (FK) Currency Cd (FK) Traded Unit Amt Traded Pct Traded Rate has settlement instruction Event Trade Settle End Dttm Destination Account Num Destination Customer Name Destination Country Id (FK) Destination FSI Id Type Cd (FK) Channel Risk Grade Id (FK) Payment Timing Type Cd (FK) Settlement Delivery Type Cd (FK) Settlement Direction Type Cd (FK) Domestic Foreign Type Cd (FK) Split Settlement Type Cd (FK) TRADE EVENT SETTLE LOCATOR Event Id (FK) Event Trade Settle Start Dttm (FK) Locator Id (FK) is settled at Settlement Delivery Type Cd TRADE SETTLE FOREIGN DELIVERY Event Id (FK) Event Trade Settle Start Dttm (FK) TRADE SETTLE BOOK DELIVERY Event Id (FK) Event Trade Settle Start Dttm (FK) TRADE SETTLE PHYSICAL DELIVERY Event Id (FK) Event Trade Settle Start Dttm (FK) Physical Delivery Account Num Financial Inst Id Type Cd (FK) Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret 16-83 . 00. 16-84 Copyright © 1995-2007 by Teradata Corporation All Rights Reserved Teradata Confidential and Trade Secret .00 This page intentionally left blank.Teradata Financial Services Logical Data Model Reference Guide Release 09.