RiskRadar™ Service
Service definition
- daily monitoring of portfolio risk profiles
- timely detection and notification of deviations from the pre-determined risk profile
- expert commentary on analytical output
- processes and output that are compliant with regulation
"What are the reasons to recommend the IRML service? First it has helped us gain credibility
with auditors and second they have helped us keep costs to a minimum."
Malou Gehlen, Head of Product, Operations - Banque de Luxembourg
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Easy integration.
Minimal integration effort is required on the client's part. We take care of the collection and
maintenance of portfolio and market data. Reports are provided over a secure internet link.
- Exceptions-based reporting.
The daily exceptions-based reporting highlights portfolios where risk levels have deviated from a
client-selected range. This provides alerts of potential issues, analysis of causes and actionable
information on portfolios that may need attention.
- Derivatives.
Risk profiles are provided both on a delta-mapped and Monte Carlo basis. The service evolves as
clients employ new derivative types.
- Cost efficiency.
Our service eliminates the need to: hire and train a team of risk specialists; purchase a risk
engine; implement an internal system; maintain a securities database; or buy market data. And clients
only pay for what is used.
"They tailor the solution to the client's need and willingly go the extra mile."
EFG
Risk and instrument types:
- Risks monitored include: Portfolio risk; tracking error; concentration measure; risk aggregated across various categories such as equity sector, region, credit rating; 'top ten' lists of risk by security; summary of major price changes and weight changes; sensitivity analysis; liquidity analysis (equities only); VaR with and without derivatives; stress test; backtest; counterparty; issuer.
- Asset class coverage includes: Cash, Equities, Bonds, Commodities, Forwards, Futures, Vanilla Options, Rights issues, Discount Certificates, Swaps, Convertibles, ABS/MBS, Swaptions, CDO, hedge funds and hedge Fund of Funds. Optionally models for more complex derivatives (non-vanilla options such as structured notes) and derivative types new to the market can be implemented.
To learn more about the RiskRadar™ service call us on +44 (0)20 7324 1400 or