RiskSystem can monitor UCITS investment restrictions and global exposure – commitment, VaR (absolute/relative) and sum of notionals leverage.
RiskSystem can also calculate and monitor the SRRI for consistency with the KIIDs.
In addition RiskSystem has a built-in pre-trade order entry and pre and post-trade compliance checking functionality.
As with all RiskSystem processes the UCITS module is delivered through a website customised to meet each client’s needs. All proprietorial and regulatory restrictions (e.g. 5/10/40 rule etc.) are coded into the system and can be monitored and managed on a daily basis.
RiskSystem takes care of all data issues. Firstly it connects to the administrator / trader reporting system for accurate position data. Secondly all time series and indicative data are provided by RiskSystem using an independent data source. Thirdly all data is checked, cleaned and enhanced by a RiskSystem data analyst to ensure that all data used is both precise and reliable.
As part of the on-boarding process we work with the manager and risk director to design a Risk Profile which encompasses investment objectives and strategies, geographic, sector and stock limits, and other risk appetites and risk tolerances. Also we can, if required, work with the investment manager to update and if necessary make changes to the Risk Management Process.