The best risk management software for 2018

By Alex Hammond | 30 January 2018

The bobsguide risk management survey in September uncovered the expectations and concerns of chief risk officers and their teams as they look towards evaluating their risk management solutions in 2018. With 62% of respondents stating they wish to purchase or modify their technology, we ran a risk management software comparison to determine the market’s best solutions.

Market risk

AxiomSL and Broadridge offer leading fully integrated solutions in market risk management.

Covering all asset classes, AxiomSL’s RiskMonitor offers advanced market, credit and liquidity risk calculations. Its new decisioning support module will allow portfolio managers to optimise their desired risk characteristics as well as measure their performance expectations against benchmark returns. Advanced analysis provides a full exposure breakdown to enable comprehensive financial risk management.

Broadridge’s Risk Master software combines advanced risk management tools with asset class data to analyse your exposure across markets, portfolios and individual trades. It supports a broad range of asset classes including equity, fixed income, credit, foreign exchange and commodities. Historical data feeds into your portfolio modelling tools to allowing you to further identify and mitigate risk exposure.

Integrated with Numerix CrossAsset, Risk Master takes advantage of Numerix’s comprehensive collection of models and methods to enable risk teams to price and model any financial instrument. The solution provides a consistent framework for pricing and hedging complex portfolios.

Credit risk

Credit risk management and transparency is currently a key focus of the regulators’ spotlight. The introduction of Basel III regulations, currently due in early 2019, will further increase the burden to ensure adequate risk management frameworks are in place.

Finastra have designed CreditQuest, a suite of flexible credit risk management software products. Their CreditQuest Rating Manager enables banks to utilise a broad range of risk models by incorporating factors such as borrower demographics, analysis of financial statements, industry segment risk and quality of collateral. It aggregates borrower’s risk-related information in real-time to ensure a full risk analysis can be accurately performed.

CreditQuest Credit Manager both processes credit applications and manages the full customer relationship. It incorporates tailored workflows to streamline your data entry. It also provides financial statement reports, document management and automated credit write-ups. Its debt recovery functionality manages delinquent loans and customers through the entire collections lifecycle.

Fitch Solutions’ range of products enables efficient credit risk management through access to comprehensive credit intelligence and financial data. Fitch Credit Ratings provides objective assessments of your credit risk models by comparing outcomes to Fitch Solutions’ coverage of 9,000 entities worldwide and ratings on more than 3,500 banks around the world.

Fitch Insurance Fundamentals provides financial data on insurance firms across 150 countries to ensure accurate credit risk analysis. Each financial statement will provide you with up to 500 data points including raw data and off-balance sheet items.

Operational risk

AutoRek and Fenergo both offer operational risk management software designed to monitor and analyse issues arising from internal operations and systems.

AutoRek is an automated financial control framework designed to enhance control and reduce operational risk. It manages accounting, regulatory reporting and budget preparation. By consolidating data from all systems, it provides precise analysis and MI including trending forecasts, budgets and cost-income ratios to ensure potential errors can be identified and responded to early.

Fenergo’s product suite includes solutions for regulatory onboarding and MiFD II compliance. Its integrated platform ensures compliance with global anti-money laundering (AML) and know-your-customer (KYC) regulations rules, as well as market reform regulations such as MiFD II.

Its end-to-end workflow tool manages the customer through all your required stages of approval for onboarding, greatly improving processing speeds and customer experience. 

Fraud risk

Bottomline Technologies’ Cyber Fraud and Risk Management solution is a cross-platform surveillance system allowing financial institutions to proactively monitor fraudulent activity with real-time alerts to rectify both internal and external threats. The financial impact of fraud can be easily calculated based on existing data on financial exposure, anticipated loss and the cost of recoveries.

Bottomline’s advanced visualisation technology enables the exposure of suspicious activity by visually analysing complex connections among unusual users and activities across systems. This is complimented by the integrated management of a list of more than 100 global sanctions to ensure the highest level of protection.

Following recent cyber-attacks against SWIFT customers, Bottomline Technologies developed long term solutions to meet SWIFT’s new sets of security controls. Tight integration with SWIFT software will block fraudulent payments while machine learning, advanced analytics and dynamic user profiling will ensure you are alerted to threats in real-time.

Trapets AB offer InstantWatch, a family of automatic surveillance and compliance systems. Analysing transactions in real-time, it offers an alert system based on a configurable rule system. It is made up of different modules for AML, KYC and securities trading.

InstantWatch AML automatically identifies suspicious activity and transaction patterns using an automatic risk-based approach. InstantWatch KYC provides an encrypted communication system while incorporating KYC policies, identifying and monitoring politically exposed persons and sanction lists. InstantWatch Market analyses transactional flows to help eliminate market abuse and fraud.

Enterprise risk management

Designed for capital markets, Murex’s MX.3 platform can work alongside existing systems to optimise risk management in banks. It can be used either as an integrated trading and risk solution or as a standalone ERM tool to your existing systems. It will connect your business processes and power trading and analytics operations, post-trade and risk management. 

MX.3 allows for real-time decision-making and compliance with evolving internal policies and regulations. It enables efficient management of market, credit and liquidity risk across all asset classes.

The platform’s structure allows for the service to be extended by embedding additional processes and calculations to connect to external applications. Such extensions may include new types of financial products, market data or custom analytics.

Findur, developed by OpenLink, is a financial markets solution offering straight-through-exception-processing (STeP) to support the entire transaction lifecycle for derivatives and cash instruments. With a broad asset class coverage, powerful analytics and flexible reporting, it will ensure you are able to meet ongoing changes to regulatory requirements. Findur provides both the data and the tools to attain a view of trading, risk, and operational needs throughout a trade’s lifecycle.

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