• Product Overview
  • Base Architecture Module
  • Credit Risk Module
  • Market Risk Module
  • Limit Management Module
  • Economic Capital Module
  • Reporting Module
  • Razor Technology
• Solutions
  • Credit, Market & Liquidity Risk
  • Credit & Market Risk
  • CCP Risk Management
  • Limit Management
  • Stress and Scenario Testing
  • Capital Management
  • Margin Management
  • Risk Aggregation
  • Portfolio Replication Solution
  • Incremental Risk Charge
  • Basel II
  • CPSS-IOSCO
  • CVA Solution
  • Solvency II
• Why Choose Razor

The main idea of a replicating portfolio is to find a portfolio of assets whose value is equal to the value of a liability portfolio under today's market conditions and future market conditions. Because simulating a replicating portfolio consisting of a few hundred assets is more computationally efficient than simulating the entire liability portfolio, the replicating portfolio is used in place of the liability portfolio when performing any number of risk analyses. Replicating portfolios are often used to calculate risk measures such as value-at-risk or cash-flow-at-risk, as well as for economic capital and regulatory capital calculations. In addition, replicating portfolios can be used in the construction of dynamic hedge programs or as performance targets for asset managers.

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