The 2 + 2 + 2 Model
2% lesser costs
Reduce your Costs by at least 2%. Depending upon the industry and extent of integrated operations, this saving could translate into anything between 20 – 100% increase in profits.
High Configurability enables Quick Implementation of our risk software. In most cases, we start the core of the system in under 2 weeks, and roll-out the entire system in 2 months.
Automation of Risk Processes saves the entire Risk Analysis team at least half their time every day, enabling them to do more and better analysis.
2% Lesser Costs
How Does it Work?
Figure: Total Cost of Risk (TCoR)
The Total Cost of Risk (TCoR) is a good way to measure and reduce procurement and sales costs or even trading costs. It is also a good way of measuring the effectiveness of Risk Management Function of the company.
TCoR is defined as the sum of:
1. Losses on trade positions (cost of retaining risks)
2. Risk Transfer / Hedging Costs
3. Internal Costs of managing Risks (People, in-house systems, time)
4. External Costs of managing Risks (Consultants, 3rd party Systems)
TCoR is Significant because:
1. Every trading organization has some TCoR, only some of aware of it !
2. In an organization with sound Risk practices and tools, TCoR is not zero, but optimal !
3. Most organizations invest in Risk Function to reduce TCoR over a longer period
Here’s something you should ask:
1. Has TCoR been measured for your organization?
2. Has it reduced / increased over the last 1-2 years?
3. How has the TCoR / Sales ratio changed over the last 1-2 years?
RiskEdge helps you reduce your Costs by up to 2% through better Risk Management. With RiskEdge, you get reliable and consistent data all across the system. Simple Configurations and data management tools allow transparency throughout the calculations. RiskEdge enables you to take better decisions, faster.
You may want to download our Whitepaper on Measuring RoI on Risk Management to understand better about how Risk Management can be used to reduce costs. Or you may simply Contact Us to know more !
How we do it?
RiskEdge is designed to be configured easily even for unique and complex business needs so it can be deployed fast. We’ve rolled-out most of our systems with above average complexity of requirements in 2 months. What’s better is that we roll-out the core of the system in under 2 weeks, enabling the teams to start generating and using Risk Reports almost right from the start of the project.
How do we achieve it?
Managing Data Better
Most teams spend at least 50% of their time struggling with data collation, validating data for correctness, reconciling with other systems, converting data into standard units, etc. With RiskEdge, all this is taken care of by the system automatically, saving the whole team a lot of errors and headaches.
Automated Reporting & Monitoring
Another major time-killer for most teams is daily reporting as well as monitoring which part of the portfolio is approaching / already in red zone. By Automating these processes, RiskEdge takes the entire Risk Management Function a few notches up, and leaves the team to focus on better tasks !