Leading Risk Management Technology Vendors

WS&T's listing of the top risk management technology vendors, with information on their flagship products.

ALGORITHMICS

System:
RiskWatch

System Focus:
Enterprise wide risk management

In the works:

• Integrating market, credit and liquidity risk
  
• Extending product to address ALM
  
• Improving credit risk modules through RICOS, credit VaR
  
• FAS 133 enhancements
  
• Creating new mark to future technology

Clients:
Mostly sell side with some buy side, including Citibank Asset Management, Winterthur, Rothschilds, AIG

Internet Product: No plans for an Internet product.

ASKARI -A business unit of State Street Corp.

System:
RiskBook

System Focus:
Enterprise wide risk management

In the works:

• Introducing RiskBook X-an XML-based tool using a GUI that allows users to link to any analytics library available in the market. Askari is developing the application programming interface to make this possible.
• Global View-Risk management application service targeted at Institutional Investors for risk assessments across ports, asset classes, style sectors, currencies, etc. For institutional investors or planned sponsors that don't want to upkeep an in house system, but rather offset IT costs by outsourcing. As a unit of State Street, Askari has access to transaction data for many potential buy side clients.

Clients:
Hallmark Cards, Wellington Management, CALPERS

Internet Product:
RiskToday-a tool that allows for direct Internet publishing of the results of RiskBook-particularly intended as a Securities Lending Performance analyzer. Built with Java applets.

AXIOM

System:
Risk Monitor

System Focus:
Enterprise wide risk management

In the works:

• FAS 133 enhancements
• Enhancing credit risk
• Building portfolio optimization module

Clients:
Fuji Bank, Transcanada Pipelines, U.S. broker/dealers and insurance companies. (mutual funds in the pipeline)

Internet Product:
Product is Internet enabled-all applications are java-based. Looking into an Internet strategy to provide risk services via the Internet.

BARRA

System:
BARRA TotalRisk for Asset Management, Off-site Risk Management, BARRA TotalRisk

System Focus:
Risk management tailored to buy side-onsite or off, and system for sell side.

In the works:

• Enhanced credit measures

Clients:
Buy and sell side

Internet Product:
Existing products use underlying Internet technology. Use java applets.

CHARLES RIVER DEVELOPMENT

System:
ComplianceMaster

System Focus:
Compliance monitoring system for institutional investment portfolios and mutual funds, handles all security types

In the works:

• Working on access holdings and compliance reports via Internet

Clients:
Buy side only.

Internet Product:
Offers HTML storage for reporting via Internet, rolling out browser-based capability soon

SUNGARD TRADING AND RISK SYSTEMS

System:
Panorama

System focus:
Cross-asset straight-through trading, risk management and processing solution

In the works:
Panorama's flexibility and extensibility enables it to support new instruments and markets:

• asset management firms
• hedge funds
• energy markets
• telecommunications markets
• full support for mortgage-backed securities

System:
Infinity

System focus:
Complete trading and risk management with integrated credit derivatives

In the works:

• full range of credit derivatives.

System:
BancWare

System Focus:
Asset/Liability management, planning, and profitability measurement solutions for financial services.

In the Works

• Enhancements to modeling and reporting risk adjusted returns for customers, products and business units.
• Enhancing processes to reconcile transaction level account data to General Ledger systems.

System:
Credient

System focus:
A comprehensive, global credit risk management and control solution delivered via an application service provider (ASP) framework.

In the works:

• Support for proposed Basel requirements.
• Ongoing integration efforts with other SunGard products.

System:
SunGard Collateral

System focus:
Collateral management

In the works:

• Full web enablement
• Complete cross-asset instrument support.

Internet product:
Credient, eFinity for derivatives processing.

Clients of all Infinity products:
Buy and sell side financial institutions, energy companies, corporate treasuries, telecommunications carriers.

KAMAKURA

System:
Kamakura Risk Manager

System Focus:
Enterprise wide risk management

In the Works:

• Internet access to Kamakura Risk Manager

Clients:
Securities firms, commercial banks, property, casualty and life insurance companies

Internet Product:
Working on Internet access.

MKI

System:
CARMA and C*ATS's Global Manager and Risk Vision-exposure and limit management system.

Systems Focus:

• Carma-Enterprise wide risk management system and, GMRV-Exposure and limit management system.

In the works:

• Adding instruments
• Enhancing credit risk
• Build up and add to lending modules
• Team up with partners to offer risk technology to retail investors through Internet
• Integrating systems

Internet Product:
Working on an Internet strategy

Clients:
Bank of Montreal, Royal Bank of Canada, Dominion Securities, U.S. broker/dealers, and insurance companies.

NETRISK.COM

System:
RiskOps 2.0

System Focus:
Operational risk

In the works:

• Created and is enhancing a loss distribution database using external losses that are available publicly. Web-based, updates and functionality delivered through the Internet. Considering developing an internal database of losses.

Clients:
Buy and sell side

Internet Product:
NetRisk.com is an Internet-based product

NEOVISION HYPERSYSTEMS

System:
Riskmaps and Heatmaps

System Focus:

• Riskmaps-management application on top of existing risk systems and data warehouses for risk analysis calculations
• Heatmaps-visual display for real-time data and analytics

In the Works:

• Streaming Web maps for Heatmap product

Clients:
Traders, analysts, portfolio managers, senior level management

Internet Product:
Web-based Heatmap available

ROLFE & NOLAN

System:
Real time Information System for Commodities (RISC) and e-Route

System Focus:
For exchange traded futures and options. Provides end user with real time risk management.

In the works:

• Might be going forward to mine other areas in the database

Clients:
Future Commission Merchants, large introducing brokers, Corporates and energy firms.

Internet Product:
e-Route-To provide the end user with real time positions-expedites delivery of information through the Internet.

THOMSON FINANCIAL SOFTWARE SOLUTIONS

System:
PERAscope

System Focus:
Stand alone performance attribution, measurement and risk analysis software

In the Works:

• Introducing new product, details and name not set but called NextGen PERAscope as of now. Product is a Java based, Web browser, XML product with security level performance and performance reporting, multi-currency performance and attribution

Clients: Buy-side firms such as money managers, bank trust groups, general trust, pension consultants

Internet Product:
Dubbed NextGen PERAscope, is expected to be launched by June.