Risk reporting in the cloud – new from StatPro
Category: Asia, Global
It is not uncommon to see software providers advertising their latest upgrades and preaching what the benefits might be. However how often does a product tackle a challenge with ease and affordability?
With the introduction of the attribution by strategy in StatPro Revolution, users can segment securities by the strategy (e.g. active, passive, stock-pairing) to which they belong. Strategies, like any other type of classification, can be viewed and analysed as part of multi-level asset class hierarchy. This is because strategies can be linked to sector/country/region for the purpose of calculating performance and attribution analyses. This is a very exciting piece of functionality that will help multi-strategies fund managers isolate their best and worse contributing sources of return and risk and adjust accordingly.
In addition, the major launch of the Risk Limits Monitoring module, as part of StatPro Revolution, means users can now monitor alternative investment funds, oversee risk in global markets, and for those with UCITS funds, tackle compliance with the UCITS IV regulation.
Available in the StatPro Revolution App Store, and priced on a per portfolio subscription, the Risk Limits Monitoring module features a traffic light approach, which is used to identify early warnings and breaches.
Using Value at Risk (VaR) methodology, this daily tool enables the risk and compliance community to:
Establish, implement and maintain a documented system of internal limits allowing measures to be managed and relevant risks controlled.
Conduct a rigorous, comprehensive and risk-adequate stress testing program.
Monitor the accuracy and performance of their VaR model, by conducting a back testing program.
Comment on and export daily risk reports, breaches and warnings.
Compute the leverage.
Monitor the liquidity risk of the assets included in the portfolio.
Users can set their own parameters so that warnings appear in amber and breaches appear in red when limits are reached or exceeded. The module keeps a validation history of the risk manager’s actions and comments on warnings or breaches that have been flagged. From the dashboard users can drill down into individual portfolios and produce risk reports.
Mr. Laclaverie states: “It’s a breakthrough for fund managers that need to be compliant or need to improve their risk reporting, management and auditing. Previously risk monitoring was very complicated and expensive. Now it is a plug and play solution at a great price. Our clients love it.”
Visit statpro.com to see our latest video explaining how this new tool can enable you to improve your risk awareness