Exposure Management

The Exposure Management capability allows business users to define multiple exposure calculation models to fit their unique business objectives and then automate calculations while taking into account actual contract terms, including netting and setoff.

• Ability to compute counter-party level credit risk, allowing users to optimize trading and margining activities
• Unmatched contractually accurate exposure calculations based on real contracts, credit support annexes, and credit policies
• Support for Master Netting Agreements
• Enables enterprises to gain a coherent, comprehensive, and complete view of the full spectrum of risks across their portfolio
• Provides multiple, concurrent, highly flexible exposure calculation models based on a realistic, contract-based methodology 
• Enables unprecedented accuracy and workability of results
• Employs a contract-based methodology that ensures the calculation models are based on actual contract terms, including netting and setoff 
• Provides a flexible reporting scheme that make it simple to share the results with decision-makers across the enterprise
• Walk-forward reporting to view exposure profile over time
• Multiple concurrent calculations of credit exposure to fit specific user needs
• Ability to perform what-if scenarios on prospective business transactions

Collateral Management

Collateral Management capability is an integral requirement for effectively managing collateral, active margining, guarantees, and other forms of performance assurance. Optimus credit uses contract-by-contract calculations and maintains both an inbound and outbound perspective. With rich collateral management functionality, the Optimus solution establishes new levels of support for increasing working capital efficiency and profitability for the overall business.

• Providing accurate collateral positions with counter-parties (including cash, letters of credit, and other collateral forms)
• Tracking inbound and outbound collateral positions
• Reporting expirations
• Coordinating all aspects of an active margining process throughout the enterprise.
• Viewing corporate and individual contracts
• Consolidating contractual collateral requirements including margining terms and Material Adverse Change (MAC) and Adequate Assurance clauses
• Providing a full complement of contractually accurate collateral calculations, including ratings triggers, automated process workflows, and event notifications
• Identifying the key consumers of financial liquidity in the business, performing scenario planning, and making recommendations on how collateral (liquidity) can be re-deployed to the right business units and teams

Credit Limits and Ratings

Optimus Credit enables ultimate flexibility in setting multi-tiered limits at the counter-party hierarchy, commodity, business line, product, geography, and term levels. The Optimus solution automatically compares exposures to limits and informs users when current and future limits have been exceeded. Credit Ratings then provide actionable management of all external and internal counter party ratings, including short-term and long-term ratings, outlooks and watches, with customizable alerts and workflows to provide real-time notification and action in accordance with company policy.

• Rating triggers based on credit upgrades and downgrades from agencies such as S&P, Moody's, and Fitch
• Contractual rating based exposure limit
• Group limit policy and its limit matrix
• Credit limit management and resulting available credit
• Transactional limit in term structure

Capital Management

Turn Risks Into Opportunities.

• Knowing your risks, TechOptimus solution employs sophisticated calculations to provide a real-time, composite view of current and future exposure
• Credit costing, reserve calculations, and other risk measurement and planning activities
• Real-time accuracy in assessing all potential risks combined with a full understanding of the impact past activities may have on future transactions allows users to make intelligent risk-adjusted decisions.
• Users are able to discover untapped opportunities that result in increased credit limits, create new opportunities by responding quickly to market changes, improve external credit ratings, and optimize capital allocation among business units and commodities
• Capital adequacy calculations to assist responses to S&P liquidity survey
• Capital risk mitigation enables risk managers to proactively protect their firms from loss while consuming less collateral. Strategies -- from netting and setoff to changing collateral types -- are presented to users to drive risk reduction
• Liquidity resource planning allows capital managers to understand the key consumers of financial liquidity in the business, perform scenario planning, and make recommendations on how liquidity can be re-deployed to the right business units and teams
• Strategic capital optimization is achieved through the use of analytical and reporting functionality that allows executive managers to strategically balance capital efficiency with risk mitigation to best achieve the company goals

Risk Analytics

Optimus credit is an enabling technology for credit exposure management. Its basis is the Risk Calculation Engine, used to calculate all exposure and collateral obligations based on consolidated contractual data housed within its enterprise risk warehouse. Optimus credit can accurately calculate and report risk exposures, allowing you to quickly and accurately calculate critical risk measurements like the probability of default, exposure at default, credit migration, regulatory capital, risk-weighted assets, credit value at risk (CVaR) and economic capital. In addition, this superior engine provides unmatched contractually accurate calculations and can be scaled, configured, and integrated to meet your specifications. The Risk Calculation Engine also encompasses a history engine that allows users to store exposure calculations for future comparative analysis.

• Credit risk analytics uses various methods of computing the fair value through the use of on-line mark-to-market and mark-to-model techniques
• The risk analytics engine performs Monte Carlo simulations for potential future exposure (PFE)
• The engine can also join simulation with market and default
• Parameters for the confidence level and holding period can be set by the user
• The software offers a comprehensive view across market, credit, and operational risk by allowing users to evaluate all interactions and to assess the magnitude of their risks

Credit Data Management

Optimus credit facilitates safe storage and quick retrieval of legal documentation, which is an integral part of any credit department. Optmius credit keeps electronic data extract of all legal agreements and uses them for necessary credit valuation

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Advance Risk Methodology

TechOptimus provides unrivaled statistical modeling capabilities for robust econometric and time series analysis so you can apply your modeling insights to data for more accurate risk measurement.

• Comprehensive models that incorporate all underlying risk factors
• State of the art methodology for simulating correlated markets
• Scalable architecture can adapt to fit every environment and price scenario
• Stable models are able to display VaR results while curve simulations can be used to display portfolio VaR measurements, Taylor series, stress tests, full valuation, and VaR optimization
• Simulation engine can be exponentially weighted
• Simulation scenarios can be scaled to desired volatilities
• VaR engine tracks multiple distributions
• VaR portfolio can be calculated in real time and allows drill down
• Simulated curves can be plotted and calibrated
• Simulation-based risk measurements can span a wide area of analysis including numerical sensitivities, user-defined stress tests, historical replays, and probabilistic risk measurements
• Comprehensive models incorporate all underline risk factors
• VaR minimization model allows user to derive optimum strategy to minimize VaR and reduce fat tail
• Provide comprehensive back test and simulation envelop analysis
• Provide performance evaluation and capital allocation support

Enterprise-Wide Architecture

Distributed computing platforms are synchronized with multithreaded market simulations, valuations, and aggregation servers. As a result, our customers and partners derive more power from available resources to accelerate a computing-intensive risk analysis task at dramatically reduced time and costs.

• Combined market  and credit exposure data for enterprise-wide risk management
• The solution supports real-time position management and what-if analysis
• Support batch and intra-day market and credit risk management activities
• Our system architecture consists of comprehensive distributed computing platforms, synchronized with multithreaded market simulations
• Allows discrete operations but with flexible risk aggregation

Aggregation/Drill-Down Capability

Effectively communicate risk measurements with our advanced business intelligence reporting environment. The platform transforms the vast amounts of data generated by your organization into actionable information so decision makers can react quickly to changing market conditions, rapidly identify new strategic directions, and uncover sources of potential problems before they materialize.

• Grouping a portfolio?s positions along various dimensions, such as asset class, credit rating, duration bucket, issuer or currency
• Dynamic grouping also provides a layered representation of a portfolio across multiple dimensions
• The ability to freely navigate through these layers to view relevant performance measurements at the desired level of precision
• The flexibility to specify portfolio hierarchies, for both funds and benchmarks, and the ability to group those hierarchies by any attribute that is of interest to the manager
• Limit monitoring and reporting
• Multiple data view including pivoting ability

Curve Marketing and Auditing

We provide additional tools for risk management to gain additional insight of risk factors, reduce uncertainty of mark to market book, and meet regulatory requirements

• Curve auditing, takes a published external curve, generates an internal curve, and compares them
• Curve exception analysis to identify whether the curve falls inside or outside the externally marked bid/offer spread
• IVD function calculates what the implied valuation differences on our existing portfolios are
• Volatility surface is function that allows volatility surface auditing and comparison

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