Designed for Commodity Businesses
Given the pace at which business processes change in Commodity businesses, Un-Configurable systems are rendered useless very early on. RiskEdge is built by Commodity Experts and so is designed for unique Commodity business processes that can also Scale-up with the business. It stays updated and relevant far longer than any other risk system in this industry.
Software Configurability is Essential for Commodity businesses to respond to changes fast.
What can you Configure in RiskEdge?
Books & Hierarchies
You can configure the system in exactly the same way that your organization is structured. All kinds of Books – Commodity, Business Unit, Traders, Markets, Legal Entity, etc. around which your data revolves, can be structured into the system. It allows different divisions to see exposure and risks in the way they understand the business best.
Valuations and Risk Settings
Your Portfolio Risk can be calculated in the way that suits your organization best. You can easily configure the VaR method, Confidence Level, Holding Period, etc. apart from being able to configure the Valuation Methods for each and every derivative instrument.
You can very easily map each type of position to a particular Market for M2M & Risk calculations. It allows Finance / Audit team greater control on how portfolio is valued and relieves traders from doing Mark-to-market of their own positions.
Limits and Controls
All limits can be configured very flexibly in RiskEdge – including limits on Traders, Business Units, Commodities for excess Exposure, P&L, Risk. Once limits are set-up, the system checks portfolio for any breaches daily and alerts the users via e-mail if anything is nearing danger zone. It makes monitoring a lot easier and gives time to users to take preventive measures.
How is Configuration in RiskEdge Different?
Traditional Risk Systems
– Configurations are either too Geeky or hardly available.
– Limits are generally hard-coded, making them redundant once business changes scale / structure.
– Commodity conversions from raw material to finished goods are not permitted.
– Restricted configurations mean more change requests for software vendor.
– Configurations can be easily understood and handled.
– Limits can be re-configured easily as per business needs, so the system stays relevant even as business changes.
– Commodity conversions can be done as per requirements which provides better clarity into the real exposure.
– Higher degree of configurations implies change requests are rare, saving client time, effort and money.