Risk Management Systems
Risk management systems facilitate both the calculation and the assessment of the investment risk of security holdings. Not only in accordance with statutory obligations for capital investment companies, these systems' employment form rather the mainstay for managing the various assets separately. The risk profiles of the individual objects as well as of the combined assets have to be taken into account.
The employees of NOVOSEC have profound knowledge of designing, implementing and supporting the following components:
Calculation of Market Price Risks
The individual fund assets have to be aggregated to a composite risk at the fund level, whilst observing the relevant correlations.
Limit Load
The assessed fund risks have to be confronted with the specified comparison assets and a limit load must be determined. Daily supervision is necessary to react immediately to a possible infraction of statutory or contractual limits. A system-based monitoring paired with powerful notification functionality is a prime control instrument for fund managers.
Backtesting
In accordance with derivative regulation, a daily back-
testing result has to be calculated on the fund level, comparing the actual fund developments to the predicted risk indices.
Data Supply and Processing
Whether it be multiple external systems or providers, large amounts of data are supplied daily, from which corresponding reports have to be generated and presented to the fund managers.
NOVOSEC has many years of experience in building and integrating risk management systems. Ensuring the stability and reliability of highly critical applications is a core competence of our company.
