Real-Time Risk Monitoring: Timely Monitoring and Management of Positions/Exposures
The credit crisis is demonstrating to clients and shareholders (and taxpayers!) that financial institutions had inadequate levels of controls for managing risk. Regulators have come under scrutiny for the effectiveness of their controls and are now engaged in exploring and defining new measures to combat the crisis and prevent a recurrence.
Governments faced with the toughest economic challenges since WWII are doing everything in their power to stabilize the global economy by supporting financial institutions with liquidity and applying pressure to ensure a restart of the credit flow.
Firms that engage in financial trading are exposed to counterparty risk (i.e., credit risk), market risk, and operational risk. While many firms have invested in tools to manage market risk, tools for managing credit risk tend to be less sophisticated. What’s more, the limitations of both types of tools have become apparent in the current market conditions: the information they provide is not timely enough and is too fragmented; it doesn’t provide a real-time consolidated view of the entire trading operation.
These three forces—the heightened sense of risk, the limitations of existing systems, and new regulatory pressures—are forcing firms to look for new approaches to managing risk.
Sybase is answering the call by leveraging state-of-the-art Complex Event Processing (CEP) technology to develop a real-time risk monitoring framework that addresses these challenges. Get this white paper now, compliments of Sybase, and learn how you can get timely monitoring and management of your positions and exposures—with less risk!