Continued: Risk Manager
The Risk management function usually stands last in line once companies allocate resources. There remains a exaggerated perception of the opportunity cost of the Risk management function. "Resources spent on risk management could have been spent on more profitable activities." In our view, ideal risk management minimizes spending while maximizing the reduction of the negative effects of risks.
- Instead of doing financial projections on a “best estimate” basis, this tool allows a company to do stress testing, where they ascertain, how a financial instrument performs during extreme market movements. They may test the instrument under, for example, the following stresses:
- What happens if the market crashes by more than x% this year?
- What happens if interest rates go up by at least y%?
This type of analysis has become increasingly widespread internationally, and has been taken up by various governmental bodies as a regulatory requirement on certain financial institutions to ensure adequate capital allocation levels to cover potential losses incurred during extreme, but plausible, events. This emphasis on adequate, risk adjusted determination of capital has been further enhanced by modifications to JSE and banking regulations. Stress testing models typically allow not only the testing of individual stressors, but also combinations of different events.
Features: DIRO Risk Manager
Various management and risk reports.
Create portfolios.
ADD What If scenarios.
Split XML Reports for unique imports.
Delta Traders dream.
Compliance Officers dream.
Monitor Future and Option groups separately or combined.
Display profitability of positions.
Instant Option Price, Delta, Gamma, Theta, Vega and Profile calculations and graph displays.
No more manual inputs — we are able to import directly from SAFEX
Generate summary reports
Profit and loss reports
Stress Testing
Create management reports
All reports can be exported into a CSV or Bitmap to be distributed by E-Mail or server access
Click image to enlarge