Challenge

Most people are initially shocked by the expense of implementing and maintaining a commercial market risk system. It is not uncommon for this expense to exceed the license of the risk vendor by a factor or two to three, if not more. This is mainly due to the need to build, automate and maintain both the input process that feeds the risk engine with position data and the output process that consumes the risk measures produced. It takes a team of risk managers, analysts and developers to design, develop and automate these processes just to begin getting value out of an expensive risk analytics engine. This is often a very iterative process with ongoing maintenance expenses that tax resources rather than a one-time cost during implementation.

Solution

Red Swan provides proven commercial solutions that address the most common application requirements for implementing and maintaining a risk process. This allows our clients to avoid the uncertainty and expense of developing the same tools internally as well as the ongoing expense of maintaining a bespoke solution. By automating the most common tasks, clients avoid costly errors and mistakes that can rapidly proliferate and render risk reports useless.

Result

Clients who deploy Red Swan’s proven tools significantly lower both implementation and ongoing maintenance expenses. They also significantly reduce the risk of any development project by using proven commercial solutions that virtually guarantee a faster and more successful implementation. Red Swan’s tools eliminate the source of the most common risk report mistakes by automating error prone tasks such as RML creation and risk report extraction. As a result, the total cost of ownership is reduced dramatically, often as much as the cost of the risk analytics license.