Risk Management

• Facilitates the capture of imported data for processing in a real time and accurate manner to produce the risk framework. The relevant data is sourced from:
• Demand and Price Forecasts and actual records
• Trading and Risk strategy
• VAR and Risk profiles
• Counterparty credit limits, credit exposure, details and contract details
• Creates multiple risk scenarios based on historical and forecast data to determine the preferred risk strategy.
• Provides a facility to create, manage and set credit and risk limits in line with companies risk policies.
• Creates, maintains and manages VAR limits.
• Creates, maintains and manages trader limits based on volume, duration and on a per trade basis.
• Creates and maintains limits to open positions defined by trade book and percentage of portfolio.
• Maintains user trading authority.
• Sets and maintains credit limits based on user selected methodology including mark-to-market, face value and contract duration.
• Creates and maintains risk matrices by collating all risk parameters into formats readily useable for risk management purposes.
• Creates and maintains commodity and financial products based on information provided within risk matrices and from trading requirements.
• Perform risk evaluation, including:
• Risk analysis – consolidating all elements of a portfolio to produce a forecast and sample of the net position, generating margin forecasts.
• Evaluates risk against current open contract position and risk limits as set within risk policies.
• Facilitates performance monitoring.
• Generates best price and demand distribution and probability distribution against current position.
• Creates and maintains a key of scenarios for evaluation.
• Produces accurate and timely reports for management reporting purposes.