Most asset managers measure risk somewhere. The problem is that it is measured in many places: a spreadsheet for one fund, a report from another system for the bond portfolio, a separate calculation for cash flows. Nobody sees the whole picture until someone assembles it by hand.
Five areas in one system
ERM, the OTS risk management system, brings risk together in five core modules:
- Data storage: one store for the data risk measurement depends on.
- Inflows and outflows: the movement of money in and out of funds and portfolios.
- Market risk: exposure to movements in market prices.
- Debt market: positions in debt instruments.
- Yield curves: the curves that debt valuation and analysis rely on.
From measurement to decision
Risk figures are only useful if they reach the people who decide. Combined with EDSS, the OTS decision support system, risk can sit alongside other key figures on executive dashboards, rankings and trend analysis.
Risk spread across spreadsheets is risk nobody fully sees.