Axioma Risk

Axioma Risk is an enterprise-wide risk-management system that enables clients to obtain timely, consistent and comparable views of risk across the entire organization and across all asset classes.
With its robust cloud-based technology and interactivity, clients can run scenarios, stress tests and analytics at will and in response to a changing investment landscape.
Clients can configure our multi-asset class risk management system and the reports it generates in ways that are consistent with their own assumptions and viewpoints, using their own inputs rather than those of a vendor or third party.

Along with its multiple modelling options—fundamental, factor, statistical and granular views—Axioma Risk provides incomparable insights into the constantly evolving state of risk.

  • Delivers extensive risk measures for portfolios with differing underlying strategies, asset classes, and investment horizons, enabling institutions to replace multiple systems with a single risk analytics platform for both risk-control and front-office functions
  • Provides analytics with integrated market data and terms & conditions data for over five million active and ten million inactive fixed income, derivative, and equity securities across all major currencies and liquid emerging markets
  • Decompose with fixed income, equity and commodity factor models
  • Evaluate with a granular risk model
  • Choose either linear approximation or simulation-based full revaluation models
  • Includes a flexible and sophisticated stress-testing framework, which enables you to stress any factor, choose from and customize a wide variety of preconfigured historical stress tests and conduct transitive stress tests, which forecast the impact of a shifted factor on other factors
  • Keep a time series of your risk analysis, enabling backtests of VaR models and monitoring of trends in risk measures
  • Hosted and on-site deployment options to meet client information security requirements
  • Combine Axioma methodologies with user-defined factor inputs and yield curve data

Axioma Portfolio Optimizer: The Most Flexible Portfolio-Construction Tool on the Market

With virtually limitless objectives and an equally unlimited range of constraints, Axioma Portfolio Optimizer delivers maximum flexibility to model even the most complex strategies for a wide range of investment management approaches, from quantitative to fundamental.

Axioma Risk: The Next-Generation Risk Management System

A “unified” multi-asset class risk management platform for middle-to-front office users, providing portfolio managers, risk officers, asset owners and consultants with risk reporting, risk analysis and decision support for multi-asset class portfolios.

Factor Correlations Revisited: How a recent shift in market focus affected major factor correlations and portfolio risk

In this paper, we examine how changes in the correlations of major risk factor types, in particular the relationship between exchange rates and stock markets, affected a global, USD-denominated multi-asset class model portfolio.

Case Study: SEB's Implementation of Axioma Risk

Skandinaviska Enskilda Banken AB (SEB), one of the largest financial institutions in northern Europe with more than €180 billion in assets under management, implements Axioma Risk to create “one of the most sophisticated rIsk systems in the world”.

To Hike or Not to Hike: Gauging the effects of potential Bank of England rate raises

In his research paper, Christoph V. Schon, Axioma's Executive Director of Applied Research, explores a number of historical scenarios of previous BoE rate hikes, analyzing the potential impact on a multi-asset class model portfolio.


Multi-Period Portfolio Optimization with Alpha Decay

The traditional Markowitz MVO approach is based on a single-period model. For long-term investors, Axioma’s multi-period optimization methodology offers the opportunity to make wait-and-see policy decisions by including forecasts and long-term policy decisions beyond the rebalancing time horizon. Axioma researchers compare this model with the traditional single-period MVO model on a simulated example and show that the multi-period model tends to generate portfolios that are likely to have better realized performance.

Consistent Portfolio Management: Alpha Construction

The Fundamental Law of Active Management tells us that good forecasts should directly translate to outperforming portfolios. Why, then, do we so often hear the frustrated lament that they do not? Can this discrepancy between the clear theoretical rigor and the negative practical experience be explained?  Axioma researchers analyze the roots of this problem for quantitative management and propose a comprehensive approach that leads to the efficient implementation of quality signals into outperforming portfolios.

Aligning Alpha and Risk Factors: A Panacea to a Factor Alignment Problems?

The practical issues that arise due to the interaction between three principal players in any quantitative strategy, namely, the alpha model, the risk model and the constraints are collectively referred to as Factor Alignment Problems (FAP).  Axioma researchers provide theoretical guidance to clarify the role of constraints in influencing FAP and illustrate how Axioma’s Alpha Alignment Factor (AAF) methodology can handle misalignment resulting from constraints.

Find out more about how Axioma Risk can help you. Contact us at or call us:
North America: +1-212-991-4500
Europe: +44-203-621-8241
Asia: +852-8203-2790 
We look forward to hearing from you.