Who Benefits from a Firm-Wide Investment Risk  Assessment Solution? 

To remain competitive, asset managers, hedge funds, private banks, wealth  managers and family offices have been trying to modernize certain aspects of  their investment operations. Although the industry gets more sophisticated by the day, there are remaining gaps and challenges in identifying the various  investment risks which are often hidden from the untrained eye. 

A disproportionate amount of human resources, time and working capital  tends to be allocated into middle and back-office problem-solving, rather  than into front-office decision-support processes. Such a trend may emanate from the ever increasing ‘real-time’ client reporting demands that institutions  of all types face in a fast-evolving world.  

The primary focus of an investment operation should be to equip its front  office decision-makers with the most configurable and smart software  platforms which can assist them in systematically producing consistent risk adjusted returns over longer time periods. Such an effort can be  complemented by the production of targeted performance and risk exposure  reports, across asset classes, currencies, geographical exposures, instrument  types and customer segments.

Viewing Risk from Different Angles 

A multi-asset class, multi-currency risk management platform should  complement a solid portfolio accounting system in providing a rich selection  of metrics and calculation stress-testing methodologies which can identify  and attribute how much risk one must assume to realise a certain portfolio  performance level.  

Such a solution should be designed for the benefit of:

✔ The Portfolio Manager who wishes to be constantly informed of how  extreme market movements and volatility spikes can impact the  valuation of selected investment strategies, and consequently analyse  the impact of any allocation changes onto the portfolio risk  components

✔ The Relationship Manager who needs to offer clients a holistic view of  their aggregate portfolio return and risk trajectory, aiming to provide risk-adjusted performance and valuation figures over emerging market  cycles 

✔ The Risk Officer who often faces the challenge of calculating various  risk measures, involving complex formulas and heavy data processing,  and wants to assess the market risk that the firm is exposed to,  through predictive ex-ante risk metrics and advanced stress-testing  simulation analytics 

✔ The Compliance Officer who wishes to monitor the firm-wide  investment risks, to ensure that they do not deviate from the pre determined regulatory guidelines, company investment policies or  client profiling mandates 

✔ The Executive Manager who wants to gain an easy and timely access to information concerning the market risks of a firm’s managed assets,  investment strategies and portfolio managers.  

This way, a single software risk assessment platform can be utilised in  different ways depending on the business objectives of its users. By looking at  a common set of statistics and simulation scenarios from various perspectives, all participants in the investment process of a firm can  collaborate to strengthen their collective sharpness and investment reflexes. 


Objecutive Inc. is a software product and services company providing enterprise  solutions to the financial services industry. Its flagship product, FundStudio, is a real time portfolio management system for investment managers, which excels in a  multi-asset class environment with a wide instrument coverage, including equities,  options, futures, FX, fixed income, asset-backed securities and credit derivatives. 

Its award-winning FundStudio KlarityRisk is a risk management platform which  encompasses a diverse palette of investment risk analytics and methodologies,  stress-testing simulation scenario analysis, compliance-targeted portfolio risk limits  management, and fixed income performance attribution analysis and reporting. 

Disclaimer: Nothing contained in the aforementioned references constitutes an investment  solicitation or a recommendation of any type.

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