Risk Compliance

Efficient monitoring of funds’ compliance with regulations and obligations

UCITS Reporting

Comprehensive UCITS reporting ensures nothing is missed – breaches/fails etc.

All your funds in a single dashboard view

Any UCITS investment or prospectus restriction breaches are flagged immediately.

Rapid investigation of breaches

Drilling in reveals the issue and shows the history of the rule over time.

Fast drill down to individual position

Typically with just 1 or 2 clicks of a mouse you are right down to the position level.

Audit trail

Note taking facility ensures full audit trail evidencing action undertaken. These notes can be downloaded at a later date.

AIFMD Reporting

The RiskSystem AIFMD solution ensures full compliance with all aspects of your risk obligations per the Regulations.

AIFMD Monitoring

Monitor, measure and manage all AIFs from a single dashboard. Spot alerts quickly and identify and remediate issues easily.

All AIF exposures displayed on a single screen

Monitor gross exposure, sum of notionals and commitment leverage in one place.

AIFMD limit monitoring

Easily monitor all prospectus or supplement limits  – all fully customisable

Counterparty limit monitoring

RiskSystem incorporates a full Monte Carlo Credit Value Adjustment (CVA) model that allows a fund to continually monitor counterparty credit exposure at all times. All collateral is fully accounted for in the determination of counterparty market and credit exposure.

Credit risk monitoring

RiskSystem utilises both a Credit Matrix Approach and the Counterparty Value Adjustment (CVA) approach. The CVA methodology is carried out by means of a user specified monte carlo simulation for all the positions held with the counterparty.

AIFMD liquidity monitoring

RiskSystem can monitor market liquidity in normal and exceptional liquidity conditions using hourly price feeds where both market bid-ask and market volume are used to assess the cost of liquidation of portfolios. RiskSystem also monitors funding liquidity (the risk to a fund due to redemptions by investors).

Private Equity/Real Estate

Risk Management functionality that has been specifically developed for PE and RE funds by RiskSystem

Leverage Oversight

Monitor all funds’ exposure in a single dashboard

RiskSystem functionality recognises the different methodologies that guidance requires for UCITS and AIFs to determine Commitment.

Exposure – one click drill-down

View exposures by position to see what is contributing most to commitment etc.

Currency exposure

At-a-glance FX exposure

Instant exposure graphs

Chart any fund risk metric in the database

Easily change dates to view preferred data period

Value-at-Risk (VaR)

RiskSystem operates a proprietary multi-model VaR engine that implements a variety of VaR methodologies e.g. Parametric, Monte-Carlo, Historical, Windows, Distribution etc. 

VaR bucketing

There is no limit to the ability to bucket trades – e.g. by strategy/trader/geographically etc.

 

Stress Testing

At RiskSystem we carefully manage our stress testing methods to provide complete oversight over worst case scenarios. This includes our historical stress testing algorithms, which rigorously analyses the effect of past scenarios against the current portfolio with robust correlation tests and blanket downturns in measured historical quantifiers, as well as our bespoke hypothetical testing, modelling drops in asset markets, currencies, and Flight to Safety, all while tracking these effects on the P/L, Volatility, etc.

There are three main types of scenario analysis that may be carried out using RiskSystem. These are Risk Sector Stress Tests, Historical Stress Tests and Correlation Stress Tests.

 

VaR Backtesting

To accompany RiskSystem’s VaR models with correct validation, we provide a variety of tools such as historical back-testing, parametrical back-testing, simulations and stress testing. All VaR backtests can be conveniently exported for further reconciliation or regulatory filings, all in compliance with the UCITS VaR exceedance regulations. 

RiskSystem has full in-sample and out-sample capabilities.

 

Market Risk

Our Market Risk functionality is at the heart of what we do. We offer a complete landscape of Market Risk measurements, including VaR, Component Var, Commitment, Gross Exposure, Liquidity Forecasting, Historical and Scenario Stress Testing, Option Risk Parameters, Sector Component Risk, and more, all within our intuitive and transparent Graphical User Interface – RAPTOR

Counterparty Risk

Credit Risk

At RiskSystem we extract and analyse every measurement used for credit risk management on debt instruments comprehensively, providing full coverage for every debt instrument and for every sector.

 

SRRI

As an integral part of the Key Investor Information Document (KIID) for UCITS funds RiskSystem monitors the SRRI according to the regulations (CESR/10-673) for all share classes, while providing exact calculation breakdowns for reconciliation and handling all edge cases such as dividends, proxies and benchmarks.

Share Class Hedging

Embedded in the RiskSystem engine is our Share Class Hedge Monitor, which provides complete oversight over the effect share class hedges have on the exposure and P/L of each specific share class with respect to currency movements, and complete compliance to UCITS regulations, which allow ease in keeping share class currency risk in check and in facilitating any entering or exiting of hedges for EPM purposes.

Pre-trade

RiskSystem offers a pro-active rather than a re-active process to portfolio alterations. Using our Pre-trade functionality, our clients can pre-enter positions into their portfolio and assess the resulting effects on their fund’s risk exposures and compliance before entering them in the market.

Tracking Error

RiskSystem’s Tracking Error engine calculates the divergence between the price behavior of the portfolio and the price behavior of a benchmark. RiskSystem can be configured to monitor the Tracking Error for any timeframe, any benchmark and other fund specific configurations.

Key Features

RiskSystem offers many advantages over competing risk solutions

Integrated

The risks of any number of sub-funds are integrated into one portal.

Customisable

All functionality and reporting can be tailored to clients requirements.

Comprehensive

All instruments and fund types covered.

Scalable

Our internally developed functionality – automated risk profiling – ensures rapid onboarding of new funds removing any constraints on growth of funds under management.

Full Managed Service

Sourcing, cleansing, enriching and processing all data from any preferred source in any format is our responsibility.

Secure

All data and risk analytics are stored in a highly secure private cloud.

Get in touch

Please contact us if you would like to learn more about our solutions