Reports Sourcebook 2015 - CTRM Software Suppliers | Page 78

SourceBook of CTRM Vendors and Products

©Commodity Technology Advisory LLC

Company Description
Risk Edge Solutions provides Advanced Market and Credit Risk Management Solutions to medium and large Energy and Commodity
Companies. Its flagship product, RiskEdge, powers thousands of transactions through sophisticated algorithms at a high speed using
its parallel processing capabilities.
There are 3 primary areas which RiskEdge delivers to its clients:
1. Market Risk: RiskEdge goes beyond vanilla VaR (Value-at-Risk) methods and calculates Greeks and Expected Shortfall (or
Conditional VaR) for positions and portfolios which allow its users deeper insights into business. Proprietary measures like
ERR (Excess Risk Ratio) help companies assess their risks with a longer term backdrop. It covers all Deal Types (Physicals, Basis,
Futures, Forwards, Options, Swaps) and uses full-revaluation method to calculate risks on vanilla and structured derivatives.
2. Credit Risk: Potential Future Exposure (PFE) and CVA (Credit Value Adjusted) based models allow RiskEdge clients to assess
the losses in case of counterparty default. The Credit Risk model uses Multi-variate Geometric Brownian Motion (MV GBM)
to simulate millions of scenarios for thousands of counterparties and summarizes the results at the portfolio level.
3. Derivative Pricing Algorithms: With one of the World’s largest Derivative Pricing Library using over 100 different algorithms,
RiskEdge allows clients to price any kind of structured / exotic derivative product using multiple valuation methods. The Pricing
Library is designed to include ever increasing structured products and newer methods in future, making RiskEdge a long-term
solution for clients.
RiskEdge is a Web-based Solution that can be deployed on premise or on cloud. Its Risk Engine is built around multi-dimensional needs
of clients and its Flexi Reporting Framework allows clients to create ad-hoc reports on the fly and even adjust the format from the
web-page. Sundry position and risk limits can be set in the system, which alerts the users on limit breac