Risk Manager

Risk managers use Numerix analytics to accurately assess, monitor and control the many risks associated with today’s complex derivative portfolios.

Numerix enables users to represent any type of OTC deal — including custom, event-driven payoff schedules — for performing valuations, risk analysis and stress testing. By using consistent analytics across derivatives desks, risk managers can maintain pricing policies, gain full transparency over valuations and reduce operational risk.

Key Benefits for Risk Managers

• Enables consistent and transparent pricing policies across all derivatives desks
   
• The industry's most comprehensive library of market-tested models and optimized numerical methods across all major asset classes
   
• Hybrid-instrument modeling for advanced hedging strategies
   
• Scenario analysis, model validation and portfolio attribution
   
• Comprehensive drill-down risk reports with all Greeks and VaR, including accurate simulations of credit, market and liquidity risk
   
• Manage counterparty exposure with PFE and CVA using Numerix's renowned Monte Carlo
   
• Reduced operational risks and improved workflow with XML deal portability
   

Enabling Firmwide Pricing Policies
With Numerix, institutions are adapting to today’s increased demand for accountability and transparency by deploying consistent pricing policies throughout the enterprise. Instead of using different analytics for each desk, firms can implement a single pricing architecture based on Numerix cross-asset analytics. This ensures that both investments and hedging instruments are captured and priced the same way throughout the lifecycle using systematic and repeatable methods — improving workflow efficiency and mitigating operational and model risk.

Proactive Management of Counterparty Risk
Risk managers seeking to proactively manage counterparty exposure and meet Basel II requirements in today’s market need a system that measures not just current exposure (CE), but also potential future exposure (PFE) — particularly when dealing with complex OTC instruments.

To meet this need, Numerix Counterparty Risk leverages Numerix’s award-winning cross-asset analytics and CompatibL’s data-management expertise, giving users the ability to actively limit exposure across business units and instrument types with detailed PFE calculations and accurate credit valuation adjustments (CVA) using an accelerated Monte Carlo.

The Numerix approach also ensures that CVA calculations are based on the same models used to price the assets, providing consistent valuations for both the hedge and the underlying investment.

Numerix Risk Management Solutions
Whether you need a solution for a single asset class or an enterprise system, Numerix offers a host of options to meet your specific needs.

Numerix analytics are accessible via Excel, dedicated Windows applications, or through integrated solutions for proprietary and partner systems, including many of the world's most popular trading and risk platforms. We also offer a variety of consulting and valuation services to support your operations.