

Anticipating, measuring and managing risk is essential to successful portfolio management. Axioma’s enterprise-wide risk solutions empower portfolio and risk managers, allowing them to assess risk through a common lens, with a consistent and comparable view common to both the front and middle offices. Our multiple risk modelling and estimation methodologies quickly and accurately deliver insights into potential sources of portfolio risk across a broad range of scenarios.
INTEGRATED RISK SOLUTIONS
Axioma provides a full array of risk-management tools that measure sensitivities, assess risk characteristics, stress test and build hedges at the portfolio, factor, classification, asset level or any custom dimension. Designed for both highly interactive analyses and batch reporting, our tools enable tracking of any risk statistic through time, for increased transparency, enhanced regulatory compliance, and better informed decisions.
And our solutions are designed from the ground up for a reduced cost of ownership, quicker implementation, and guaranteed confidentiality.
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.
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”.
Axioma risk models built with Axioma Risk Model Machine (RMM) enable clients to achieve enhanced results because the models are tailored to the client’s own investment process. RMM is a flexible, powerful and easy-to-use tool that provides users with a competitive edge in risk forecasting, portfolio construction, performance attribution and alpha research.
Axioma and Credit Suisse HOLT examine the benefits of using custom risk models generated by Axioma's Risk Model Machine, in combination with HOLT's highly regarded proprietary return models.
In this paper, Axioma researchers construct a theory explaining why risk models underestimate the risk of optimized portfolios. The problem is not necessarily with a risk model, but is rather the interaction of expected returns, constraints, and a risk model in an optimizer. This paper discusses Axioma’s optimization technique that incorporates a dynamic Alpha Alignment Factor (AAF) into the factor risk model during the optimization process to correct the bias of risk estimates of optimized portfolios.
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.
Axioma researchers discuss how the use of daily multiple risk models – both short and longer horizon, and both fundamental and statistical – can help managers to predict portfolio risk more accurately. Multiple risk estimates provide a more comprehensive view of portfolio risks, and the daily data that underlies these models can help managers to react faster and with more confidence.
Find out more about how Axioma can help you with sophisticated risk-management tools. Contact us at sales@axioma.com 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.