Risk Management Tools
“How we can help small firms to get close to excellence"
In-House solutions. Our experience as derivatives specialists shows that when it comes to portfolio management, risk analysis and operations, the main players in the market tend to build their own in house solutions which are regarded as their most important industrial assets. We aim at giving our clients a competitive edge among their peers by bringing business knowledge and systems know-how directly derived from our investment banking experience.
Tailor-made solutions. Our aim is to provide our clients with specific solutions that go beyond any off-the-shelf risk management product. Today’s scalability of IT technology and the increased standardization of derivatives mathematics allow to deliver most of the solutions implemented by the big investment houses to smaller institutions. Financial engineering, applied mathematics and derivatives dynamic hedging are all examples where systems implementation plays the most relevant role. We believe that the key point in developing and delivering on-site solutions is their adaptability to the client specific environment and business needs. Finally, we believe that knowledge just as technology can be delivered to our clients through a rigorous and collaborative working stile.
SmallVsBig. We aim at providing our clients with all the relevant tools to match the quality standards of the top firms without bearing the cost of building up unnecessary infrastructure. Small organizations, equipped with the right technology and business ideas, can achieve efficiency and profitability levels comparable to those of the top banks.
Risk Management Tools. The systems we develop are aimed at making our clients able to “read the risk” of their books, i.e. understanding what are the main factors that drive the P&L. In this context, it is often the case that standard measures such as VaR might not be sufficient to capture the real risk exposure and further measures, such as Expected Shortfall or ad-hoc scenario analysis, are required. Exotic instruments, given the heavy non-linearity of their payoff and their sensitivity to higher order greeks, are examples of instrument that need a “special treatment” in terms of risk management measures. Our platform has been developed to reprice vanilla and exotic portfolios in many market conditions and to be flexible in the production of the most appropriate risk indicators.