Guest blog from Dr. Andrew Aziz, Director of Research,
Financial Engineering & Cloud Solutions, Risk Analytics
For over twenty years, we at IBM Risk Analytics have been developing risk management solutions guided by the simple premise that, the better stakeholders can gain insights into risk, the better equipped they are to take actions that will increase the likelihood of positive business outcomes.
Delivering effective risk analytics to organizations means providing the appropriate solution for the appropriate need; whether the customer is a large bank with global trading operations or a small fund manager with very specific investment strategies; whether the customer is measuring risk for regulatory compliance or whether it is incorporating risk directly into its investment and asset allocation processes. Providing access to the appropriate ‘bundle’ of capabilities and aligning it to an organization’s specific requirements is just as important as the breadth of available risk measures.
Recognizing the heterogeneity of market needs, IBM Risk Analytics has long provided a range of targeted risk management offerings including on-premise and on-cloud deployment as well as hybrid risk solutions. In addition to providing these solutions directly to its clients, IBM also has a long history of enabling solution partners in supporting the risk component of a broader business offering tailored to specific market segments that IBM, by itself, may be unable to address as effectively.
It is with these principles in mind that I am pleased to share the news today that Gravitas, a co-sourcing services platform that provides cloud technology and collaborative outsourcing, including risk analytics and research support, to the alternative investment industry, has chosen IBM Risk Analytics as its risk engine to provide Risk-as-a-Service for emerging and mid-sized hedge funds.
This is exciting news not only for IBM and Gravitas but for the hedge funds that Gravitas serves and the financial services arena in general. As part of its Risk Reporting Plus and Risk Co-Sourcing services, Gravitas risk analysts will use IBM’s risk technology to offer advanced analytics, modeling and custom reporting to help hedge funds meet regulatory requirements, support better investment decisions, and assist with the mitigation of unintended sector-industry concentration and secondary risks at both the fund and enterprise level.
Hedge funds can take advantage of IBM’s ability to model market, credit and liquidity risk with multi-asset class coverage and create custom scenarios to assess the potential impact of market shocks on their P&L as well as perform pre-trade what-if analysis of any intended changes to their portfolios, all with the support of experienced Gravitas risk analysts.
This collaboration between IBM Risk Analytics and Gravitas is also exciting because it allows us to showcase the customization capabilities of IBM Risk Analytics solutions – particularly our IBM Algo Risk Service on Cloud offering – for some of today’s most demanding consumers of financial risk services. It’s also a validation of how IBM's Smarter Analytics approach can deliver the kinds of crucial, actionable insights – at the right time – that can enable business to outperform the competition.
Learn more about IBM Algo Risk Service on Cloud and follow us on Twitter at @IBMRisk to stay up-to-date on the latest insights from IBM Risk Analytics.
Or, join us on June 25 for our webinar, “Time to get active with risk reports,” highlighting another on Cloud offering from IBM, IBM Algo Risk Reports on Cloud, which features a web-based client portal and flexible report options, including Active Reports that provide secure access to risk analytics – regardless of time, location or connectivity – on iPad or computer.
For related insights on dependencies, vulnerabilities and opportunities in risk management across buy-side organizations, read the IBM white paper, The buy-side ecosystem: The interconnectivity of risk.