Issues with Existing Commodity Risk Management systems:
- If you are like most organizations out there – and we have talked to a lot of people – risk management is more a matter of luck than systems and processes.
- You / your team wrestle with excel spreadsheets, formulae and obtuse calculations; most of which nobody understands. You may not even be sure that your calculations are returning the right values needed for accurate decision making.
- You use systems that are best described as “legacy”. They were put in place a while ago and you realize the need for a replacement. The problem is, none of the systems in the market meet your requirements.
- Your existing excel based software does not scale enough to meet your current or near-future needs. This means you end up duplicating your efforts to aid your decision making.
- Your existing system might require you to manually enter many inputs and settings – thus introducing inadvertent errors into your calculations.
- Your existing system cannot talk to your current commodity trading system; thereby introducing further inefficiencies in your already slow process.
Change the way Commodity Risks are managed:
We bring sweeping changes to Commodity Risk Management Function of our clients by focusing on things that are almost completely ignored by most others. And here’s how we do it !
Make it Easier for teams to use the Risk System
- Move on from Geeky-looking, complex screens, to Simpler, more beautiful screens that invite actions
- Have a web-based system that can be accessed from anywhere, any time, and any device
Build relevant, usable risk reports for Business Heads
- Get top management team involved in Risk Management by providing daily reports they can act upon
- Quickly build and give top-level summary to top team
Provide deeper insights through reports, analytics and drill-downs
- Allow Risk Management team to focus on Risk Analysis rather than risk report generation
- Better decision-making enabled through deeper insights
Deliver relevant risk reports to Finance, Trading, Operations
- Provide risk numbers with division perspective, something they understand best
- Enable risk intelligent decision making throughout the organization
Have a system which can scale with Business
- Change in businesses is constant, so why not use scalable systems?
- Your Risk Function is crucial, so keep it relevant – always
Automate checking and monitoring
- Allow automation of Risk Policy, system can do all the checks and monitor in real-time
- Connect reports and alerts with emails, for real-time updates on portfolio
Introducing RiskEdge Software:
Our flagship web-based software, RiskEdge, is a sophisticated Value-at-Risk (VaR) framework based Market Risk Management solution built with latest Microsoft technology and designed to cater to specific business requirements of medium to large sized global energy and commodity players. RiskEdge is arguably the only Commodity Risk Solutions in the world with capability to generate hundreds of portfolios dynamically based on users specific focus areas. Its high performance enabled with multi-threaded code along with frameworks for reporting and alerting allow users to get more accurate results, faster.
With RiskEdge, you’ll find it easier than ever before to enhance Risk Culture in your organization, improve profitability and build competitive edge.
Benefits of RiskEdge Software:
Replace Spreadsheets / Legacy systems:
- Nearly 94% of all spreadsheets contain errors – putting any Risk Management process at Risk ! Besides, Legacy / excel-library based software are rarely able to scale up with the needs of the business.
- RiskEdge will allow your team to replace the entire web of spreadsheets with just one solution, giving the entire organization the Single Source of Truth.
Connect seamlessly with Commodity Trading / ERP systems:
- RiskEdge is designed to take data seamlessly and automatically from any transaction system with minimal customization.
- Reconciliation with the transaction systems can also be done with ease – thereby removing any data Integrity issues.
Complete Visibility into Positions and Portfolios:
- Get complete insights into behaviour and trends of your positions and portfolios – from exposure and risk perspectives.
- See Position and Portfolio Attribution to see how Risk is being contributed to the overall portfolio – helps identify and hedge the most risky positions.
Configurability and Speed:
- Ability to configure Rules, Limits, Valuation & VaR Settings, Reports, Books & Hierarchies – thereby enhancing scalability.
- Built to deliver more accurate results, faster.
Stress Testing and What-if Scenarios:
- Create custom stress scenarios and apply to your portfolio, with easy to model position and price curves.
- Compare stress results with current portfolio to see the impact and take preventive actions.
Flexi-Reporting, Automated Control:
- Customize reports to your favorite formats – hundreds of unique reports delivered through a flexible framework.
- Automated Alerts and Daily Reports in emails allow you to keep track of positions at all times and control your Portfolio better.
The End Result:
These and many more such features – many of them industry – firsts, allow you to integrate Risk Management Function with Marketing, Operations, Finance and Trading functions, enabling better strategies and decisions for improving profitability and sustainability.
Get in touch with us, and we can discuss how we can help you upgrade your Risk Management systems and process to bring them on par with industry leaders and improve your profitability.
Risk Edge Solutions is a global provider of Commodity Risk Management Solutions. With prior experience in designing and implementing Risk Management Systems and Solutions for many Fortune 2000 companies and expertise in the Commodity Risk Management domain, we are the preferred Risk solutions providers for our clients.