Per Waters Technology.
Open source risk management and analytics software provider OpenGamma has partnered with consultancy Risk Focus for distribution of its real-time enterprise risk management services through the delivery systems of the consultancy, which focuses on risk management, derivatives trading and connectivity.
The open source nature of OpenGamma’s platform appealed to Risk Focus, according to Brian Lynch, CEO of Risk Focus, who has been in his role for three years. On joining Risk Focus, Lynch initially wanted to build an open source risk engine, but found OpenGamma had already developed a lot of what the consultancy had in mind.
OpenGamma allows other solutions to be built upon its foundation, explains Lynch. “It’s a platform and development ecosystem,” he says. “If you’re looking at a specific strategy like margin replication, this platform has a core set of tools on which you can build it.”
The provider’s architecture for risk management in the OpenGamma platform matched Risk Focus’ methods, as seen in custom implementations of products, according to Lynch. OpenGamma designed its platform not to be monolithic, according to Hugh Stewart, chief revenue officer at OpenGamma.
“Those who want to choose various components of the whole enterprise risk management, whether it’s the calculation engine, a reference data server or market data servicer, or model, we design that, and any part could be used or not,” says Stewart. “This requires an architect to define what the client wants, what part of their legacy they want to retain, what they want to replace, build or buy, or do both simultaneously. That’s the role we play with our most successful customers and that’s where Risk Focus does the architectural bit—working out with a client what they retain, build or buy. It’s finely nuanced with every business case.”
The custom solutions Risk Focus and OpenGamma plan to build together will in turn support a more targeted platform, adds Lynch. “In real-time market risk infrastructure, we can tell clients we’ve done this successfully and brought value, so we can show them how to take legacy systems off their infrastructure and reach that same level,” he says. “Each individual success should drive the next solution and implementation.”