Measure Risks

 Accurate Risk, Delivered Quick.

RiskEdge Screenshots

If you use multiple systems to measure risks on physicals and derivative positions, or take a long time to compute risks on all your positions, RiskEdge can help. RiskEdge gives almost instantaneous results due to its hyper-threading capabilities even with Monte-Carlo Simulation method, and can be used to calculate risks on all your positions.

 

What Risks does RiskEdge Cover?

Market / Price Risks

Based on Value At Risk (VaR) Framework, RiskEdge gives clear visibility into Price Risks of each position and each portfolio, allowing users to take preventive action.

Counterparty / Credit Risks

RiskEdge uses PFE (Potential Future Exposure) to show Risks on open positions by each Counterparty, and on net and non-net basis. The model uses a unique MV-GBM based approach.

Operational Risks

By passing all data through inteliigent business rules and securely storing it, RiskEdge eliminates a lot of operational risks, from bad data entry, to fraud-checks.

How RiskEdge measures Risk Differently?

Exposure-Adjusted Risk

In RiskEdge, you may choose to convert some of your Inventory into final product. It allows you to get more accurate Risks that your Portfolio WILL be exposed. You can even adjust exposures with business rules to merge or split, ignore or aggregate, a set of positions to enable you to get better visibility into business.

Integrated Risk Analytics

RiskEdge covers end-to-end requirements of Risk Management, from Data Management, Risk Measurement, to Automated Monitoring & Control. Its unique integrated approach allows managers to spend more time to understand the implications and make better decisions consistently.

Multiple, Unique Perspectives

RiskEdge provides Risk for not just Commodity / product portfolio, but also for many other perspectives such as Business Unit, Instrument, Market, Counterparty, Delivery month, etc. Each perspective is useful for a certain team and allows them to see the risk in a way they understand the business.

Reliability with Performance

For providing multiple perspectives, RiskEdge performs extremely computationally instensive calculations, almost 200 times of that of an average Risk System in 1/10th of the time. Its Risk Engine is designed to deliver reliable Risk numbers, consistently.

What Instruments are Covered?

Exotic Options & Structured Products

Exotic Options & Structured Products – For Better Commodity Risk Management

 

Physicals & Forwards

RiskEdge Covers all physical transactions, priced and unpriced contracts along with Contracts with Average / other Pricing methods.

Futures, Options & Swaps

RiskEdge does Valuations for Futures, Plain Vanilla Options and Swaps and also calculates Greeks and VaRs for them. Valuations can be turned off in case of exchange traded options / swaps.

OTC Derivatives

RiskEdge covers a whole lot of OTC Derivatives valuations as well, along with calculating Risks on them. These derivatives include, Cap / Collar Options, Asian Options, Asian Swaps, Barrier, etc.

See the Entire List of Instruments

Perspectives that provide Deeper Insights.

 

Commodity Perspective is most commonly used.

RiskEdge allows you to view all your positions and portfolios by commodity at one place, with all its associated data, like P&L, VaR, Net Exposure, Expected Shortfall, etc. Product Heads can take risk mitigation decisions based on this information.

Commodity Perspective

 

 

Profit Center / Business Unit Perspectives are more useful for individual Business Heads.

This perspective allows Business Unit Heads to view the risks across all commodities within their Unit. The CEO / CRO will see the risks across all Business Units, and can accordingly ask Business Heads to liquidate / hedge positions.

RiskEdge similarly provides many other useful perspectives like Market, Counterparty, Delivery Month, etc. which give useful perspectives to people in different departments.

Proft Center Perspective