Regulatory Risk Calculations Out of the Box. Fast, Robust and Continuously Evolving
The new capital requirements could severely damage the profitability of your trading business, if not both front-office and risk-reporting are aligned according to the new rules.
Looks simple enough. Implementing it in practice is not. We have worked very closely together with major Scandi banks to understand what it takes to get it right. You need a solid technical platform, good analytics and fast calculation performance. Then you need to understand how a bank should be run in the 2020’s. These and many more challenges are everyday for us! Which are yours?
The insurance industry has been great at doing the math, the actuarial math that is. When the assets must match the liabilities, greater care is needed when modeling the asset dynamics. It requires trading level risk management in the Capital Management department. Regardless if designing an internal model or staying with the SCR standard model we have the tools for it.
Being compliant with regulatory risk calculations comes with a few challenges also on the buy-side. Some assets are hard to price, derivatives that come with no price, the need for sensitivity measures demand a model. On paper, the UCITS is only about grouping and summation, anyone who has read through the papers know it takes a bit more than that. With this we can help.
Most funds that fall under the AIFMD directive do so because they employ more advanced portfolio management techniques. This often implies using derivatives and leverage. Scoping the additional risks that come with such investing require the same sophistication as sell-side institutions in order to calculate and report the risks. Our risk platform is the perfect match for such challenges.
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Contact us. We would like to show you ARMS and discuss how it could be used to solve your needs.