Hedge funds are investing in risk management, stepping up internal scrutiny and preparing for worst-case scenarios. The industry has embraced specialist vendors and commercial off-the-shelf (COTS) products to help implement state-of-the art system architectures that can meet existing and potential requirements, address burgeoning regulations, and enable expansion into new asset classes and strategies.
Risk Focus distinguishes itself from other staff augmentation and body shop firms by providing niche IT solutions for the capital markets. That is an important distinction I try to articulate when talking to our clients.
In initial discussions, clients frequently ask us, “Do you have Java developers?,” and “Can I get some BAs?” At Risk Focus, we take great pride in working with our clients to resolve tactical or strategic architectural issues. As such, we know that it is our job to understand the problem before throwing resources at it.
Banks and asset managers need to quickly assess levels of exposure aggregated across a variety of dimensions to survive economic crises. Risk by portfolio, instrument type, counterparty, currency, country and securities markets are just a few areas where exposures and losses can increase rapidly.
Achieving the timeliness and completeness requirements for risk aggregation under the Basel Committee’s BCBS 239 is particularly challenging in an intraday risk environment. A successful risk aggregation project requires a change in mindset and adoption of new technologies.
Acccording to the Basel Committee’s BCBS 239, risk aggregation is defined as the process of defining, gathering and processing risk data.
The OpenGamma Platform provides real-time market risk management technology that brings unmatched transparency to capital markets operations at a significantly lower total cost of ownership than in-house systems. The platform provides a unified approach to risk management that improves the quality, accuracy and timeliness of data.
Risk Focus technology partner OpenGamma has released an insight paper addressing some of the key benefits of standardized Initial Margin (IM) calculations for financial institutions interacting with central counterparties (CCPs).
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.