Pervasive risk management
Good risk management does more than ‘tick a box’. As well as mitigating losses, it generates revenue.
Your risk data is a valuable source of trading intelligence. Knowing your risk before you trade means:- dealers make risk-informed decisions
- managers include risk as a measure of performance
- investors and clients benefit from insightful trading
We understand the importance of timely, accurate risk data. We design and install risk management systems that:
- cover all your products and businesses
- put in place rigorous operational controls
- integrate with your trading and order management
- incorporate front-office pricing models
- provide interactive, two-way user interfaces (GUIs) for ‘what-if’ scenario analysis
Risk can drive the development of innovative financial products, with risk measures an embedded part of structured and securitised products and liability driven investment.
With market and credit risk factors increasingly entwined, we prefer to manage these exposures together in a single framework.
Our risk management experience
From desktop solutions to grid-enabled farms, we advise on all aspects of risk management strategies, software selection and integration.
- We enhanced a credit and risk reporting infrastructure for CPPI-priced products. We improved data management and integrated the latest pricing libraries. The new system handles millions of risk factors, and the time taken to mark-to-market and calculate exposure was reduced from days to hours.
- We integrated new exotic products into an existing market risk system, which included FX options, OTC derivatives and credit products. To improve accuracy and consistency, we validated models for pricing and risk management. Then we reviewed all data sources and risk factors to improve credit exposure calculations and provide comprehensive VaR.
- We applied Basel II regulations to a global credit risk infrastructure. We integrated a credit limit monitoring system and developed the necessary models to correctly calculate and validate risk-weighted assets.
- We implemented a global risk management system to monitor and report market risk across all fixed income products. Operating around the clock, the system integrated data from more than 1,500 portfolios during consecutive trading in AsiaPac, EMEA and the US.
Our technology services
- requirements definition and gap analysis
- software selection and implementation
- design of bespoke systems
- risk reporting
- system integration into trading tools
- extension of coverage to include new financial products
- integration and validation of pricing models
- regulatory compliance
- data quality controls
We often work with specialist software vendors, integrating their products into your business. We enrich their products by adding further functionality and customising it precisely to your operation.
More information
Risk management systems that satisfy your shareholders, not just the regulators - View PDF
Risk management
