Unified Risk Analytics

Centralized and Shared Analytics Computations

A modern risk analytics platform should have a single architecture capable of delivering computations from a common infrastructure into the hands of all users, no matter what their use case or preferred analysis tools.

Such an architecture would permit firms to respond to regulatory demands for new risk reports, meet board- and investor-level scrutiny of model risk, and be nimble enough to allow changes to address unique problems that arise on the trading floor intraday. This is what we do.

Whether you are trying to combine risk data from different asset classes, portfolios or desks, OpenGamma can simplify the task, enabling you to create consistent data using transparent calculations across the entire trading operation. A unified architecture solves the problems that are inherent in the traditional silo-based set-up:

  • Lack of transparency: Critical calculations scattered throughout the firm make it virtually impossible to explain to senior management, auditors, and regulators how risk is calculated;
  • Duplication of effort: Many overlapping requirements result in duplicate engineering efforts to handle market data management and distribution, storage of positions, security reference data and calculations of values in the quantitative analytics library;
  • Reconciliation problems: Inconsistent numbers produced from different data and computational paths can make it nearly impossible to explain differences in values;
  • Inflexible engineering set-up: Different technology silos built up over time make it difficult to move IT resources between systems and to efficiently prioritize projects across the firm.
Intraday, Batch and Live Risk Analytics

A good risk technology solution should support both live and batch risk processing in a single architecture. A firm can collapse - or certainly reach unacceptable risk exposures - during a trading day; so measuring your risk as of the previous day's close isn't sufficient to guide risk managers in current market conditions. OpenGamma creates live, streaming analytics, which must be at the core of your architecture in order to handle intraday risk.

Using unified computations for live and risk data, you can create batch reports that are consistent with your intraday risk figures. Traders can reconcile their own risk metrics with the "official" risk reports overnight, and risk managers can monitor near-real-time risk as well as produce end-of-day reports.