Financial Risk Management has never been so easy !

 

New Features

The Risksvr™ kernel has been reengineered to offer more flexibility, granularity and power to advanced users who want to drill down and across multiple sources of risk.

Salient features of this new release include: Multiple layers of Default, Sequenced Analysis, 3D Dynamic Reports and Dynamic Collateral revaluation.

 

Online and Standalone packages

Financial -Risk-Management can be a very complex field both in terms of financial engineering and technical requirements.

This is why we offer both online and standalone packages.

The online version gives you immediate access to many of the features available in the standalone package but without the setup constraints that can prove an obstacle to newcomers.


Run as Guest Online Run as guest Standalone

The standalone version is dedicated to professional users who must have complete control over their real-time environment.

The downloadable versions are obviously much more powerful as users and administrators can take control over how each component interacts with the other, control user group and data access, modify engine behavior through data injection, exploit the database schema directly, through shared library APIs or stored procedures or impose their own valuation routines.

 
 

version 3.4 changes:

1] Sequenced Analysis and reports.
The Analysis  is now a full sequence in both interface and low-level kernel.

This feature eases the pain out of advanced report generation and is completely transparent to the average user.
Previously you could only perform this kind of analysis by storing results in the database's reports tables and then subsequently run a stored procedures to process data between reports.
.
Currently, licensed users select the reports they want to run in the sequence, give it a name if they ever want to use it again, click on Compute and the engine does the work for them! (*)!

Examples of application:  measure the difference between methodologies or the effective sensitivity of one risk factor sensitivity against an unrelated factor.
 Continuation Analysis and Survival Analysis as we measures the continuation following a (non-absorbing) state of default/bankruptcy. We can also measure the true cost of Migration, a downgrade or by all means upgrade, by performing a "Differential Analysis" between Counterparty Rating Migration and Counterparty Rating Migration with full Yield Curve migration and cost of carry accumulation etc.

2]  Revalued Dynamic Collateral
You can still define collateral as a 'static' cash amount, but you can also define a cash-account with interest and haircut fees, or as a risk-weighted portfolio (one or more trades that are revalued at each run of each trajectory). This change is also available for Senior collateral posted by Counterparties/Underwriters//Home offices that post collateral to act as lenders of last resort for other Counterparties.

3] Multiple layers of Default.
The Credit and Default engine has been revanmped to handle multiple layers of default.
that can now be consolidated according to your own rules or policies.
This change clearly separates Issuer Related Credit Risk stemming from Credit Sensitive Asset valuation and Counterparty Risks due to bankruptcy of the Party.
You can now control, segregate, aggregate or weight so called Issuer / Obligor / Asset Default Risk through credit sensitive asset control. Counterparty/Account Risk. This kernel change allows to weight failure to pay, notional exchange or delays for each payment that makes up the instrument.

4] Continuous Vs Discrete Default Assumptions
Default simulation has been split into two completely separate set of routines based on continuous or discrete assumptions. Results are identical for short dated simulation horizons, but tend to differ for simulation horizons above two year.

5] Generic Atomic Flows and Assets of Weighted Assets.
The Master Asset class has been redesigned to handle assets as Weights of Other Assets.  This means you can define baskets of assets as new underlying assets For example you can create a New currency from a weight of other currencies or a mixture of assets.

 6] Intelligent Tags.
Portfolio Management has been extended to include multiple measure of relative Risk through tags aggregation. Advanced user can now attach formulas to Tagged value accumulation.

7] Assets and Liabilities for FundVar integration
Assets and Liabilities can be tracked separately, even when positions are netted.
his feature was specifically designed to integrate FundVar as a pluggable module for any portfolio or group of portfolios..

8] 3D Risk Visualization.
New 3D Reports are available for Internet Explorer users. 

Note: the Risksvr 3D engine requires a 3D visualization Active-X that displays data in 3 dimensions. For your security, this Active-X comes with a Verisign authentication certificate that ensures this executable is completely secure.

 

Financial-Risk-Manager Changes:

The Position  Manager module interface has been redesigned to offer more ease of use, power and interactivity through multiple Ajax modules.

Interface Changes: Ajax, Calendars, Dimension Tag Trees and Dynamic Grids

1] Calendar Date Picker and Shortcuts:
Date Lists have been replaced with calendar date pickers, manual input and shortcuts for absolute and relative dates. (i.e. 3M, 10y, 360D, 1w, etc). See date entry.

2] Real-time prices display in trade entry screen via AJAX:
Market Prices are now displayed dynamically in the trade entry screen with Ajax. This replaces the previous approach that populated missing prices from the database.

3] Asset Terms and conditions:
Yield curves, Reference Indices are now synchronized automatically according the asset's currency default base curve.  

4] Derived Prices and Values:
When no real-time values are available, coupons, forward and future prices are computed from real-time curves and derived prices obtained through Ajax.

5] On-The-Fly Implied Volatility, Average and or Compounded Coupon and last reset rates.
Implied Volatility, Average To date (for path dependant options), Averaging and or Compounding can be computed via Ajax requests. Ajax now offers a series of advanced tools directly integrated into the trade entry screen!
This means you can compute historical or implied volatility, averaging prices from data history or perform other resource intensive calculations on the fly.

6] Risk Tags and Dimensions:
Risk Dimensions and Tags are now displayed as a tree-like structure.
Tags are now associated with your trade by simple drag and drop.
i.e. you associate a tag by dragging from the Dimension Tag tree into the positon's tree. You remove the tag from the position's tree by dragging the tag outside the tag tree container.

Other Client Side Enhancements:
Reports can now be defined by dragging and dropping Risk Dimensions.

An Ajax grid has been integrated into the Credit module to allow copy paste and drag & drop  between spreadsheets and Financial-Risk-Manager.
This change greatly simplifies testing, integration and simulation as credit curves, countries definitions, transition matrices or obligor correlations can be copied directly from your favorite spreadssheet.

 

How do I use Financial-Risk-Manager & Risksvr™ ?

Setting up a Financial Risk Management departement from scratch can be a daunting task as it requires very sharp skills in financial economics, financial engineering, regulatory requirements and computer science, especially numerical and network programming!

Fortunately, RiskServers has dedicated a lot of resources to make sure products are intuitive, easy to install and maintain, are numerically precise and yet are configurable and extendible at will.


To ensure your first encouter with these sophisticated products is a success, we strongly recommend you stick to the following steps:

First Step download Risksvr(tm)   First run the engines online here

First Step download Risksvr(tm)  Download Standalone Version(s)
If your are running on the Windows platform, you can download and run the same calculation engine, front, middle and back office application running on our servers.

The downloadable versions are often called "Stand-Alone" versions as they can run on their own or can be synced to the selected server(s).
There are actually many reasons why you might want to use the stand-alone version: Analytical Power, Confidentiality, Security, modularity, integration with other products, etc

 

First Step download Risksvr(tm) - First Step download Risksvr(tm) First download Risksvr™ .

Once you feel comfortable running Risksvr™ on your computer,  you can proceed to the next step and gain partial or complete independence from our servers.
If confidentiality or security is a priority. It is important to understand the advantages of downloading Financial-Risk-Manager as well as [Unitized] Time-Series-Manager.
Financial-Risk-Manager handles all (private) terms and conditions often considered proprietary and therefore "sensitive": Your portfolios, trades, counterparties, credit curves etc. i.e. all the private data that will influence Your analysis On the other hand, [unitized] Time-Series-Manager handles all market data terms and conditions, this data is often termed "shared data" as it is obtained from publicly available market closing prices.
By downloading [unitized] Time-Series-Manager, you take complete control over the market data fed to the server. This offers many advantages to high powered users who have access to data-feeds.
However, if you do not have access to scrubbed feeds or historical data, there is no need to download and run [unitized] Time-Series-Manager, as you will obviously  want to keep on using public data available online or perhaps using Excel as a spreadsheet server to generate Realms & DataSources.


 

Second Step download Financial-Risk-Manager - First Step download Risksvr(tm)Download Financial-Risk-Manager

Once installation has completed successfully, you can proceed to check everything is running smoothly. Enter a Trade, create counterparties, define your first analysis and compute your risks.
Now that you have installed the database on your computer, you can easily import data into the database, either directly or through the _import tables and stored procedures that have been delivered with Financial-Risk-Manager. All three components use the same public open sql Schema.

If you have access to market prices you can take control over market data by downloading Unitized Time-Series-Manager.


First Step download Risksvr(tm)download Unitized Time-Series-Manager

This last step will give you complete independence over market data vendors in order to produce high quality risk factor data either in real-time or on a timely basis (end-of day data)..

  • Financial Engineering Precision and Efficiency:
  • At RiskServers, we don't take shortcuts or make approximations at the revaluation process in order to gain speed, and yet the engine is the fasted calculation server available on the internet today !
    Instead the pricing engine takes advantage of the most advanced financial-engineering concepts.
    This means you can control the valuation of any cash-flow, certain or uncertain, that makes up an asset, and this up to the last decimal place. Every risk factor and multivariate stochastic movement followed can be controlled to accommodate multiple methodologies and assumptions.

  • Do More in Less Time:
  • Depending on your skillset(s) and knowledge, you can get the whole solution to run in a matter of minutes, hours or days depending on the number of third party systems and your internal requirements.

  • Ease Migration:
  • Migration is no longer a challenge thanks to our common framework and open API design. The database Schema is public and input/output entities and attributes can be configured to accept multiple formats (i.e. xml, CSV, Name Value Pairs) and values (i.e. each token value). You can therefore adapt the framework so that it maps to multiple integraiton paths, if need be !

  • Increase Interoperability:
  • Each component and sub-component share the same open and flexible Schema, which facilitates interoperability between each module, third party systems and your own internal development.

  • Accelerate Development:
  • Most of the common Framework, the shared memory and critical simulation nodes are accessible through surprizingly simple APIs, access points or pluggings. Since each components works independently from the other and yet share the same framework and Schema, your can accelerate your own internal development by extending the functionality that is mission critical instead of spending time re-inventing the wheel. .

  • Get much more for Less:
  • RiskServers main objective is to offer the most advanced Investment & Financial Risk Management analytics built from leading edge technology at groundbreaking prices.

By choosing between running any package from a Unix server or downloading a stand-alone version on your Windows platform, you can  switch between a remotely managed turn-key solution (either Unix or Windows based) available from any computer connected to the internet and a stand-alone solution that is only available from one or a group of  (currently windows) computers. This also means you can pick and choose between components and configurations that satisfy your internal security and confidentiality policies, third party integration needs and ease of use.


This provides a time-saving and cost-saving solution as you can setup rapidly the best solution that fits you particular needs.

It also offers multiple possibilities in terms of configuration in a modular package that is easy to install, is open and can adapt to multiple requirements.
RiskServers' Innovative technology and distributed open component architecture gives you more freedom, flexibility and power to compute the wide variety of risks that can affect your portfolio(s)..

This is important as you will never be limited by one methodology or model. Advanced users can even test or tweak existing models or even better yet, research beyond existing boundaries and develop completely new methodologies!


Models ? Which Models

We are often asked which models are handled by Risksvr™?

Simply put: Risksvr™ doesn't do models!

Actually, Risksvr™ was designed from the ground up as a Generic Multivariate Stochastic Simulation Engine. This architecture is natisequenceve to RiskServers products and is relatively new to industry. Actually a lot of these concepts have been around for quite a few years but were never exploited industrually in software. There are indeed no competing products that offer something remotely similar!

This means the engine can handle any type of model up to the N-th degree. Well you can always fall back to your favorite two or three factor model if you want, but at least you have the choice!

Financial Engineers at RiskServers understood many years ago that models would always be flawed and therefore problematic, because every proposed model is a simplification of reality and therefore will always fall short of real-life complexity.

So, instead of trying to follow the latest fashion in financial modeling a lot of research was carried out in order to draw an accurate generic financial representation with the following constraints:

- Design a highly accurate and yet fine-tunable market and credit valuation sequence to precisely exact what really takes place in reality.

Provide an atomic generic forward projectable multivariate n-dimensional simulation architecture.

Design a user programmable atomic financial flow aggregator to accumulate values within and accross asset classes and risk factors.

Ensure that any financial model could be represented by users without any further programming.

Ensure that any user defined asset valuation algorithm could be taken into account for existing and new financial products.

The main drawback with this architecture lies in the complexity of data and settings as the engine covers assumptions and methodologies many advanced financial engineers are not familiar with, except for those who have prevously worked in the field of operational research and multivariate stochastics. The other drawback can be found in the need for complex data. Fortunately, a very nice features of the engine is that it folds back. If you don't have the data, the engine falls back to a lower dimension. This means you can always ensure you will fall back on your feet!

Fortunately, the engine is delivered with many default settings, which can be modified by advanced users. The engine is therefore easy to use, but also offers unrivalled power and precision for those who are seeking to obtain the finest information from their Risk Management systems.

Example...

Contrary to others we do not hide behind proprietary arguments to make false claims

See for yourself ! First Try Risksvr™ Online here.


Once you've seen how it works, you can

download Risksvr™ here and compute risks on your computer now!




Product Specifications
Package Name   Operating System Minimum Memory

Risksvr(tm) Engine

 

Win32- XP / Vista / Win 7

64  / 100 MB

Stand-alone Market, Credit, Liquidity Risk Calculator. works Offline AND Online. 

        

Financial-Risk-Manager[FRM]

 

Win32- XP / Vista / Win 7

64  / 100 MB

Manage Trades, Analysis, Output Reports, Credit Data and other personal Terms and Conditions to Run Risksvr(tm)

        
 

Unitized Time-Series-Manager

 

Win32- XP / Vista / Win 7

64  / 100 MB

 

Manage Time Series and Real-Time Prices and compute Necessary Risk Factors to run Risksvr(tm):

 

 

 

 

 

 

 

 

* These are minimum requirements. Increasing memory beyond this minimum will result in significant performance increases.

**  Win64 - can be packaged upon special demand.

*** Unix / Linux Stand-alone and as Web Servers are available upon request.

Or ......

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