Risk Management

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.

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.

  • Truly multi-asset class, full repricing-based system
  • Wide range of configurable measures, ranging from traditional Beta to Value at Risk (VaR)
  • Historically based or forward-looking stress testing
  • Flexible, customizable modelling using internal, third-party or Axioma risk models, independently or combined
  • All exchange-traded terms & conditions and observable market data integrated
  • Incorporates fundamental, statistical and time-series based models
  • Multiple data snapshots per day provide timely decision-making information
  • Interactive slicing and dicing capabilities on any tracked portfolio and benchmarks
  • Data and models available in a variety of formats to meet your import and integration needs
  • Backtest models and portfolios to better understand portfolio dynamics and risk-model performance

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.

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”.

Axioma Risk Model Machine: Customizable Risk Models Tailored to Your Investment Process

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 Case Study: Enhancing the Investment Process with a Custom Risk Model Risk Model

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.

Alpha Alignment Factor: A Solution to the Under-Estimation of Risk for Optimized Active Portfolios

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.

Aligning Alpha and Risk Factors: A Panacea to 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.

Using Multiple Risk Model for Superior Portfolio Management: A Practice Not Just for Quants

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.