Razor Risk

Create a vendor selection project & run comparison reports
Click to express your interest in this report
Indication of coverage against your requirements
A subscription is required to activate this feature. Contact us for more info.
Celent have reviewed this profile and believe it to be accurate.

Overview

Razor™ is a high performance, integrated real-time risk measurement and management solution that provides global financial institutions with effective, real-time risk reporting and control for, compliance, effectiveness and improved profitability.

Unlike other risk management solutions, Razor™ was designed and developed by Razor Risk, from inception, to accurately measure and manage the total exposure of a financial institution, aggregating all of its global activities from one integrated technical framework. This unique approach, allows the financial institution to calculate the optimal risk and reward trade-off across the whole enterprise.

With our real-time capabilities, including Pre-deal calculations, Razor™ enables management to view their total exposure to individual entities as well as to the Market as a whole. Compliance with new Regulatory requirements relies on “best practices” and high performance, the flexibility built into the Razor™ framework, the experience and expertise of our consultants and the continuing use of the latest technologies means that Razor Risk remains in the vanguard of solution vendors.

In today’s challenging and competitive environment, solutions need to be quick to deploy, cheaper to deliver and own and provide on-going cost benefits, which is why our approach and the ongoing investment in our people, product and technical capabilities means that we can deliver powerful, robust and flexible solutions whatever the complexity of the risk requirements or the size of the firm’s portfolio.


Razor Risk helps financial institutions meet today’s risk measurement, management, reporting and control challenges – whilst also being future-proofed for those of tomorrow.

The changing face of risk management

The global financial crisis has demonstrated that while the nature of risk within the financial organisation has evolved rapidly – most risk management solutions have struggled to keep pace. Many organizations still have silo focused solutions, where market and credit exposures are calculated separately and different asset classes are managed disparately across portfolios and business lines. Moreover, dramatic changes in market conditions, rapid evolution of complex financial products and continual changing regulation also point to a quantum-leap approach for risk systems. Making do or maintaining the ‘Status Quo’ is no longer an option. Internal resources are often deployed on “Run the Bank” or “Business as Usual” activities, whilst “Change the Bank” investments are having to take second place to Regulatory pressures and related enforced operational changes. Risk Management and Capital Calculations are more important today than they have ever been. Now we have an economic and Regulatory environment that is driving Risk and Capital together so that new solutions need to be found to bring together Credit, Liquidity and Market Risk functions to work closely with Front Office trading, Treasury and Compliance departments. Risk solutions have to become more integrated, holistic and “all seeing; Razor™ is one such system.

Our response: Razor™

Razor Risk designed, developed and deploys a solution that is:-

  • High performing
  • Flexible
  • Comprehensive and enables compliance
  • Quickly deployed

High performing

Razor™ has been specifically designed to cope with the number and complexity of trade types, transaction volumes and risk measurement treatments typically seen in banks, brokers, dealers, investment firms, clearing houses and treasury management offices. From the moment a trade, position, market-data update or end-user request hits the system a response is returned at the speed needed to ensure operations are maintained across the impacted business processes in line with productivity and client service targets.

Razor Risk has and continues to, invest extensively in our modern distributed architecture to exploit standard low-cost Wintel or Linux hardware. The unique balanced distributed processing capability efficiently organizes and caches the multiplicity of risk valuations over the networked servers, delivering exceptional performance and scalability at a fraction of the cost of alternative technologies. Benchmarks demonstrate the outstanding performance and linear scalability of Razor™.

Flexible

From a technical perspective, Razor™ is highly scalable and can be deployed in a range of technical environments and IT infrastructures. It can be readily adapted to fit within your organization’s risk ecosystem. All interfaces are open and documented and we use recognisable industry standards to make things as easy as possible to get the installation up and running quickly.

More importantly, from a usability standpoint, our use of “ready to use” applications that provide a quick start to our client’s projects, are enhanced by the Razor™ Rules Files Manager. This powerful and flexible tool-kit enables each firm to “configure” their Razor™ environment to make it “fit for their purposes” so it can be adapted as and when necessary to support business growth and risk policy changes in the future. Additionally all reference data structures, screen layouts, pricing routines and risk definitions are easily edited to ensure the solution remains updated.

Comprehensive coverage

Razor™ supports a broad range of instruments within all asset classes: Interest Rates, Inflation products, FX, Equities, Credit Derivatives and Energy & Commodities. Another key feature of the Razor™ design allows new, third party or proprietary pricing modules and analytics to be quickly configured and added to the system. Where specific compliance or regulatory approvals have been established, Razor provides an ideal environment to protect and document relevant performance and operational uses.

RISK-BASED COMPLIANCE

Razor Risk enables financial institutions to satisfy their obligations under Regulatory environments around the globe including for example, the Basel (BCBS) Regulatory Framework, IOSCO Recommendations for Central Counterparties, the FSA liquidity risk rules for wide ranging stress and scenario testing and extensive new regulatory reporting requirements. In addition, the Rule Files Manager within Razor™ means that firms can easily incorporate new regulatory and internal governance requirements themselves.

Key Features

  • Full CCP risk management capabilities
  • Proven Implementation and delivery/support capabilities in CCP risk solutions from Default Fund set-up to full Default Management
  • TMX Technology Solutions uses the solutions for our internal operations as well as supporting client solutions
  • Low-cost hardware solution delivering market leading performance
  • Dedicated CCP skilled/experienced staff for implementation and support
  • Integration to existing infrastructures through documented API's
  • Fully integrated solution for all clearing, settlement, risk and markets surveillance if required
  • Covers all Exchange Traded and Over the Counter instrument classes and products
  • Supports all Margining methodologies for Initial and Variation requirements
  • Event driven can be as automatic as needed or manually over-ridden where necessary
  • Closely integrated with other market solutions e.g. Lombard Risk, COLLINE for Collateral Management

Key Benefits

Efficient hardware footprint, delivers Lower Cost of ownership

Covers all Margin methodologies and allows flexible, end-user configurations that reduce the reliance on external consultancy

Proven implementation capabilities de-risk CCP projects, keeping costs down and time-to-market timetables to schedule

All products (Exchange Traded and OTC) covered

Configuration rather then new code development allows new products, margin treatments and regulations to be implemented quickly and easily without the need for long-term external consulting

Full post-live support infrastructure to "keep the show on the road" alongside full Business Continuity and Disaster Recovery capabilities as part of the overall license and implementation project costs.

Product/Service details

Geographic Availability
Asia-Pacific, Europe, North America
Asset Class Coverage
Bonds, Commodities & Energy, Equities, Foreign Exchange (FX), Funds, Futures, Options and other Derivatives, Money Markets, Structured Products