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RiskEdge Software is a VaR (Value at Risk) based Commodity Risk Management System that provides Deeper Insights and Control on your business. An easy-to-use web-based Solution, RiskEdge enables physical commodity trading companies reduce costs, improve profitability & get better at Risk compliance. It is an Integrated Risk Analytics Platform so companies can manage Commodity Price Volatility and Credit Risks on their Portfolios easily.

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 breaches. It can be configured by users to suit their business processes and calculation preferences.

With clients and consultants in 6 countries and an established team of Commodity and Quantitative Finance Experts, Risk Edge is fast establishing its presence globally. 

Key Features

RiskEdge Software – Features

Integrated Risk Analytics Platform For Deeper Business Insights

Auto Position Import: Control your Position and Price data

  • Data Management is one of the biggest needs for any Risk Solution – RiskEdge Software addresses this need comprehensively !
  • RiskEdge automatically imports your position and price data from your excels / other systems and maintains a historical database, giving you a Single Source of Truth.

RiskEdge White-Box: Understand how VaR really works

  • RiskEdge gives complete visibility into how your transactions are being validated, rolled-up and merged / split at every stage before it enters the RiskEdge VaR Engine.
  • It enables a good understanding of Risk for people handling the Risk Management function, and makes reconciliation between systems really easy.

Real-Time Calculations: Mark-to-Market and Instrument Pricing

  • RiskEdge covers a whole gamut of Instruments, from Physicals, Basis, Price-to-be-Fixed contracts to Swaps, Plain Vanilla Options, Asian Options and Swaps, Option Greeks (Delta, Gamma, Vega, Theta, Rho) and many other Exotic Derivatives.
  • With RiskEdge, you’ll have real-time M2M (mark-to-market) and Pricing of all your positions and portfolios. The pricing is done using Full-revaluation method through thousands of simulations with Monte-Carlo.

RiskEdge VaR Engine: Sophisticated Algorithms, accurate results, delivered fast

  • VaR Engine uses latest advancements in technology to deliver more accurate results through intense processing, faster.
  • User-Defined VaR methodologies – Parametric, Monte-Carlo, Historical and Volatility Methods – Unconditional (Standard), Conditional (EWMA).
  • User-defined Settings for Holding period, data range, Confidence Interval and many more.

RiskEdge Simulate: Simulate your way through the shocks, be better prepared

  • Simulate allows users to import any kind of portfolio, apply an event / scenario to it and see how the results would be.
  • Any of the basic position / risk parameters or curves can be changed and the resulting impact can be viewed, compared and reported.
  • Stress scenarios / what-if scenarios can also be applied on portfolios to test their behaviour under such circumstances.

Auto-Alerts: Automated Monitoring from your mobiles

  • Set Limits on your portfolios, traders or business units for quantities, risk, P&L or market prices.
  • Receive Alerts on Limit breaches in your email, automatically. Limit Utilization helps you track both over and under-utilization of your limits.

Flexible: Suited to your unique needs

  • Most features are user-defined, from VaR Settings, position mappings and pricing algorithms, to accessibility to portfolios / modules, triggering of alerts, and reporting formats.
  • All historical risk and exposure numbers are saved in the system, enabling you to plot trend reports.

Flexi-Reporting: Your Reports, delivered your way

  • In RiskEdge, you can create your own reports by adding what you’d like to see and hiding what you don’t. You can sort, filter, re-size the report on the screen to suit any specific requirements.
  • In-built Business Intelligence (BI) capabilities allow you to group portfolios by one or more parameters, and even drill-down to position level details.
  • All reports and charts can be exported to Excel to allow you flexibility of your own analysis.

Multi-Dimensional Approach: The hallmark of a sophisticated system

  • View your risk and exposure for multiple dimensions such as Commodity / Product, Profit Center, Legal Entity, Market, Instrument Type, etc.
  • RiskEdge calculates Risk and Exposures for hundreds of portfolios based on your dimensions and configurations.
  • Any of the basic position / risk parameters or curves can be changed and the resulting impact can be viewed, compared and reported.

Key Benefits

Here’s Why it is Better than any other Software you’ve come across !

World’s Largest Pricing Library

Price any Exotic or Strcutured Derivative Instrument, including Multiple Excercise, Asian, Barrier, Binary and Spread Options

Algorithms custom-built for Commodities Industry

World’s Largest Library in a Commodity Risk System, designed to easily accommodate many  algorithms !

Measure Risks Accurately, Faster

Measure and Track Price / Market, Counter-party Credit, Operational risks seamlessly

Unique Risk Perspectives for different Teams for better Visibility into Business

Our hyper-threading feature enables powerful computing with  accurate results, faster.

Automate Risk Processes

Automation of several inter-related Risk Processes saves significant time and effort

Teams spend  time analysing Reports rather than creating them

Flexibility to Suit your Business

High Configurability allows you to scale the system with Business needs

Easy tweaking of settings enables best – suited configuration for your unique Business needs

Manage Data Better

Replace all Risk related Excels / legacy systems with a Single, web-based Solution

Get rid of reconciliation issues, data & formulae errors between systems

A Risk System you’ll Actually Use !

Most Organizations have a Risk System, but do not use it as it is cumbersome !

Enabled for touch-based devices as well, teams can easily make RiskEdge a part of their daily activity

Product/Service details

Geographic Availability
Asia-Pacific, Europe