Razor Risk

Razor Risk

Established in 1999, Razor Risk has successfully delivered solutions to proactively measure and manage risk in the Americas, Europe and Asia.

With the new regulatory initiatives of Dodd-Frank and EMIR, financial institutions are rushing to reduce bilateral counterparty credit risk and move to trading in safer, more transparent liquidity pools. This dramatic change in risk appetite has significantly increased the importance of best practise Risk Management for central counterparties, banks and brokers. Razor addresses this need.

Razor is a high performance, enterprise-wide, integrated real-time risk management solution that equips global financial institutions with effective risk management and control. Its capabilities include:

  • Accurate and transparent initial and variation margin calculations with “What-if” capability for pre-deal margin assessment – Razor’s proven analytics and drilldown capability offer full transparency to the transaction level of all trading activity and the associated margin requirements for cleared/non-cleared OTC, Cash and ETD to harmonize and align Initial Margin calculations. Razor enables reduction of margin/collateral overhead. Razor’s cross-product capability captures cross-correlation affects across different asset classes.
  • Sophisticated and configurable Risk Methodologies - Razor provides a choice of methodologies for margin computation; including SPAN, Historical VaR, Stressed VaR, Monte-Carlo VaR, Expected Shortfall, Arrays and Grids. Configurable options include Exponentially Weighted Moving Average, Antithetic Scenarios, Stress Tests & Wrong Way Risk.
  • Real time margin calculation – Risks are measured as they occur and intra day risk decisions and margin calls can be made quickly in stressed and volatile markets. Intra-day analysis improves liquidity and collateral funding requirements.
  • Razor provides full transparency of methods and models to minimize post-trade disputes and reconciliation effort – For OTC derivatives Razor also calculates: Liquidity Risk Premium, Repo Transaction Margin, Repo Rate Payment & Settlement Risk Margin. Razor helps to avoid CCP disputes and post trade reconciliation costs.
  • Provide Razor’s risk analytics directly to participants as a value added service – Razor’s technology can be used to provide value-added client-services. Clients can directly access their portfolios, validate margin calculations and perform what-if analysis to evaluate the effect of new trading strategies on their margin requirements.

For more information contact:
Peter Walsh, Global Head of Sales

T: + 44 203 192 5652
M: +44 7771 633168

 

Peter Walsh, from Razor Risk, is a banker by trade (ACIB) and a qualified practitioner in managing IT intensive programmes allied to a lifetime of City-based roles and experiences. His experience and knowledge of the risk management and management disciplines helps provide clarity - and, with his background in banking, regulatory compliance and risk systems he is uniquely placed to discuss and describe how technology enablers can be deployed to deliver effective and efficient solutions in the most demanding situations, including the bewildering array of regulations and changes that will be affecting collateral, margining and associated risk management.

For more information contact:
Peter Walsh, Global Head of Sales

T: +44 20 31942564
M: +44 7771 633168