Risk Control & Management

Monitor & Control
PM1 risk management solutions provide all necessary facilities to monitor and control the risk involved in investments. A flexible engine allows the definition and management of rules defining both legal (regulatory) and individual (investment) restrictions which can be defined on different levels (hard - medium - soft). Possible violations can be checked any time, both pre- and post-trade.

Sensitivities & Risk Figures
Based on historic and current market data, PM1 calculates all relevant sensitivities for the different financial instruments, including duration and modified duration for bonds, delta and gamma for options, and many more. Value at risk and expected shortfall is calculated using different mathematical approaches.

Stress Tests & Simulations
Market scenarios are used to illustrate the impact on investments in sophisticated stress tests, which can be used as a basis for discretionary investment decisions or in financial planning discussions in the private banking business to create the appropriate investment proposal.

Short overview: 

Restriction engine and risk controlling help to monitor the risk to ensure compliance with the current regulations.