Razor Product Overview
Razor is a high performance, fully integrated enterprise risk management product that is designed to meet the risk management needs of Investment Banks, Exchanges, Central Counterparties and Asset Managers. It provides near real-time and pre-deal calculations that enable management to view their total exposure to individual entities on one consolidated platform. Clients use Razor’s advanced analytics and scenario calculations to achieve best practice in managing risk exposures for credit, market, clearing and liquidity risk within a single application.
Razor supports a broad coverage of instruments within all asset classes: Interest Rate Products, Inflation Products, FX Products, Equities, Credit Derivatives and Energy & Commodities. Razor’s design allows new or third party or proprietary pricing modules or analytics to be quickly configured.
Razor comprises a set of modules to provide a multiple-risk and cross-asset solution that can easily be adapted to suit financial institutions’ individual risk needs and appetites, and accommodate innovations in best practice risk management. Razor also assists financial institutions to satisfy risk-based compliance requirements, for example under the Basel Regulatory Framework and the IOSCO Recommendations for Central Counterparties.
Razor’s modules can be used as a standalone solution, or on a fully integrated basis. Clients purchase the Base Architecture module which provides the core services, architecture and infrastructure required to operate all the additional modules. Then, according to their needs, clients chose from the following major modules: Market Risk, Credit Risk, Limit Management and Economic Capital. Additional modules are available e.g. Reporting.
Each module shares the following capabilities to facilitate proactive risk management:
- Real-time performance – risk is automatically recalculated whenever trades or rates change so the latest risk information is available in real time.
- What-if capability – users can dynamically model any changes to their portfolio or market data using Razor’s what-if capability. This enables risk managers to proactively model the risk impact of any combination of trade or rate changes.
- Full trade and rate drill down – risk managers can drill down to the individual trade or scenario level providing full transparency to the underlying risks in the portfolio
- Stress testing and scenario analysis – users can define their own scenarios and stress tests
- User defined analytics – risk managers can provide their own proprietary analytics which can be used in combination or instead of Razor’s analytics. This enables clients to fully integrate all of their transactions into the system providing a fully integrated view across the enterprise
- Multi-level Reporting – reporting at a concise summary level is supported through the flexible Razor user interface, where custom layouts are configured to show appropriate levels of detail. Comprehensive drill-down capability is supported from this view
- Security and data auditability
- Comprehensive limit management and excess management functionality.
For more information, please contact us.