Risk Management Solution


The solution offers risk management tools to monitor and prevent counterparty risk, market risk and to some extent, operational risk.

Additionally to the limit checking performed at pre-deal level, excess warnings are sent in real-time to risk managers, whenever a new transaction is breaching a limit or whenever global figures of a portfolio are reaching predefined limits. It is possible to track overdrafts at:

  • Transaction level (e.g. maximum nominal per trader, spread between deal and market rates)
  • Portfolio level (volume, net position per currency, stop/loss limit, internal composition of portfolio or fund, etc.)
  • Counterparty level (credit lines per counterparty, head office, country; settlement risk limits)

The Benchmarking function can be used to compare performance and risk to an index and calculate ratios and returns (Money and Time weighted returns, such as Dietz method, Risk adjusted returns, such as Sharpe ratio, etc.).

Dedicated modules allow a smooth monitoring of limit utilisation. Other modules are focused on market risk, e.g. GAP, VaR, Sensitivity analyses. Controls based on the Bank’s rules and constraints are set in the system to mitigate the risk of fraud or error.