You are here
EnvisionRisk has the tools to calculate market- and counterparty risk, support risk management and to get risk integrated into the decision making of the business.
OUR VALUE PROPOSITION
Our primary service is the calculation of risk metrics, but we differentiate ourselves from other calculations services through our relentless focus on treating risk as a scarce resource that has a cost associated with it. Every time you make a decision that adds financial risk to your business, EnvisionRisk’s framework makes sure, the decision has an economic impact – no matter if the risk materializes or not. This cost-of-risk focus will affect risk taking behavior and help develop a balanced approach towards risk and reward.
• PRESERVES CAPITAL
• CREATES A SHARED LANGUAGE FOR RISK AND REWARDS
• ENSURES A CENTRAL ROLE FOR THE RISK MANAGEMENT FUNCTION
• DELIVERS ‘PEACE OF MIND’ AND SAVES COSTS
Our services are centered around our Economic Scenario Generator which simulates future states of the markets.
Our Economic Scenario Generator:
• Built upon advanced statistical techniques using extreme value distributions and copulas to better captures the special characteristics of financial instruments.
• Based on a Monte Carlo simulation approach with 10,000 scenarios for each risk factor.
• Takes volatility clustering, skewed return distributions and fat-tails into account.
• The joint movement of risk factors is addressed by combining the movements of the individual risk factors by means of a copula function that takes correlations into account and allows for tail-dependence.
These methods are superior at adapting to the stylized characteristics of financial returns. This means that our risk calculations are precise and reliable.