Overview

Risk management information requirements vary throughout an organisation. For senior management, the task is to understand the global position of the bank and to be able to explore, analyse and manage the risks associated with that position. For mid-level risk managers, the focus is narrower and the need for detail correspondingly greater. For traders, high speed analytics and the ability to perform 'what if' calculations, coupled with an understanding of limits, are vital in allowing them to trade effectively. Adaptiv Risk meets the goal of providing users at all levels with the information they need for the decisions over which they are responsible, organised to suit their individual perspectives and without the unnecessary distraction of extraneous data.

Adaptiv Risk is a comprehensive, real-time credit and market risk solution. Using Adaptiv Risk, banks, asset managers, hedge funds and insurance companies can meet their risk management objectives and regulatory obligations. Adaptiv Risk's unified technical framework supports a global exposure aggregation and limits management environment. Comprehensive risk analytics and collateral management tools combined with Web-based delivery provide a consistent view of market and credit risk across an organisation. Adaptiv Risk's advanced portfolio analytics, including its advanced MC2 analytic technique, are used at both the desk and enterprise level, enabling rapid credit updates and trading decisions.

Single framework for credit and market risk

With the recent regulatory pressures on finance institutions, Adaptiv Risk's ability to provide global credit risk management and analysis along with market risk is a significant advantage. Market and credit risk are provided in one solution, allowing you to share common trade data representations and storage, common analytics where applicable and a single point of entry for data.

Using Adaptiv Risk's flexible risk framework, extensive market and credit risk reporting is provided, including: variance risk, Monte Carlo VaR, historical simulation VaR, RiskMetrics® VaR, Credit VaR, potential credit exposure, expected exposure, expected loss, issuer risk, scenario analysis, stress testing, cashflow analysis, portfolio analysis, as well as asset class specific analyses.

Enterprise-wide risk management

Adaptiv Risk can be fully integrated within an institution to capture cross-asset trading activity across the firm, aggregate it and deliver sophisticated market and credit risk management tools to centralised and remote end-users. Institutions of all sizes benefit from the ability to gain a consolidated view of risk across the whole organisation.

Desk level risk supporting trader activity

Enterprise-wide risk management is complemented by the ability to provide advanced tools to monitor desk level risk. Real-time tools at the desk level allow traders and risk managers to assess the risk associated with a particular portfolio, and on a pre-deal basis, the incremental risk posed by a new deal. There is transparency and consistency of risk management calculations and policies from the enterprise level down to the desk level.

Event driven and timely

Adaptiv Risk's event driven nature allows your organisation to retrieve real-time updates based on current trading events, giving you the ability to accurately reflect current positions. The solution also allows you to select the relevant level of performance and accuracy of your risk analysis, providing fast real-time approximations through to overnight batch runs. This ensures that you have information at your fingertips when and how you want it, rather than when your risk infrastructure can make it available. Through these abilities, Adaptiv Risk ensures that risk management goes beyond being a monitoring tool, and instead becomes a tool to support decision making at a trading level.

Configure information to meet your needs

All risk results can be broken down along business structure and attributed to sources within the portfolio. Data can be 'sliced and diced' down to trade level detail and all results can be graphed, printed as table reports, or extracted for further analysis and distribution.

Employ global limits

The application of a global limits framework simplifies the administration of credit policy and frees up trading lines by removing artificial legacy restrictions. Adaptiv Risk contains flexible mechanisms for creating and maintaining global limits, and provides consolidated global exposure numbers to give the complete picture of risk with each counterparty, sector and geography.

Collateral as a risk mitigant

Adaptiv Risk's collateral management functionality enables an organisation to mitigate its credit risk by managing the process of calling and pledging collateral to cover credit exposure. It maximises trading opportunities through accurate and timely updating of exposure. It enables trading to continue between the bank and its counterparties, where it may otherwise have broken down, whilst equalising disparities in creditworthiness.

Trading and risk – one solution meeting all requirements

Adaptiv provides the ability to implement trading functionality alongside the risk management capabilities. This ensures that your organisation can go beyond risk management to provide access to the full range of trade investment functions including trade capture, portfolio analytics, operation and control, back office settlement and accounting.

Handle high volumes with accuracy and speed

Adaptiv Risk delivers results with accuracy and speed, even when running very high volumes of calculations. Its scaleable architecture meets the demands for risk calculation and processing of the largest of portfolios. The solution is scaleable to multiple inter-connected centres worldwide, providing local as well as enterprise-wide risk consolidation.

Extended reporting capabilities

The reporting capabilities of Adaptiv Risk allow in-depth information to be administered centrally and distributed across the organisation, thus providing fast and effective communication of information.  The recipient of a report can review the underlying data further, and drill-down and apply further analysis before republishing it to an audience of choice. This enables a dynamic organisational approach to changing business scenarios. Users can also define and create their own custom reports.

Adaptiv Risk utilises the latest report design and deployment tools in order to deliver:

 *Flexible scheduling of reports
 *High quality graphical reports
 *Web-based delivery
 *Various report export options e.g. Microsoft Excel™, Adobe Acrobat™ (PDF)
 *End user publication of new/modified reports.

Users can also define and create their own custom reports through the incorporated Crystal Enterprise™ report production system.

Meeting regulatory requirements

Adaptiv Risk assists institutions in meeting their current regulatory requirements for risk management and reporting, as well as meeting the Basel II Capital Accord proposals. Its enterprise wide infrastructure for risk, workflow applications that connect and provide processes, together with the ability to integrate with internal and third party applications combine to create a powerful, global and fully integrated risk management solution.

Vendor Site:- Sungard