Introduction

Risk is part of any trading and investment activities. Correctly assessing actual and potential risks and managing them carefully can result in a substantial competitive advantage. The past events have proven how essential it is to properly control the risks taken. Risk management shouldn't be seen as something remote from the business; instead it should be integrated in the day-to-day activities and seen as a tool that enhances the chances of taking the right decisions.

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Experience has show that the Market Risk manager needs several essential tools:

• Dynamic reporting on the positions, with and without netting, with adequate exploration dimensions on the business units, financial instruments, markets, risk factors
• Sensitivity reporting, that highlights the sensitivity to global risks for small and big shifts, taking optionality into account
• Stress-Testing, measures the impact of scenarios on all possible risk factors, with shifts defined at the most granular level, taking optionality into account
• Value-At-Risk, statistical measure of the worst possible short-term loss in a given confidence interval

Business & Decision has proven expertise in the implementation of those tools, as well as the architecture and interfaces needed to gather the necessary trade and market data in a timely fashion.