Risk management is the singular most important focus for financial institutions following the financial crisis in 2008. Ever more complex risk management requirements have been driven by Basel III and the Dodd Frank Wall Street Reform and Consumer Protection Act. In response to this increasingly regulatory environment, financial institutions must manage market risk across instruments, portfolios, business lines and geographies. 

Misys has leveraged its deep expertise developing portfolio management, trading and enterprise risk systems to develop Misys Risk, an enterprise market risk management system. Misys Risk allows institutions to measure and manage their risk consistently across multiple asset classes, instruments, portfolios and systems. Integrated with the trading systems it relies upon for portfolio valuation, Misys Risk shares the same positions, models, valuations and pricing data with the front-office. Misys Risk enables firms to improve operational efficiency, reduce costs, improve time-to-market for new business, enhance decision making and provide greater transparency for shareholders and regulators. 

The Misys enterprise risk system is built on a framework that easily integrates with existing trading systems and as a result, implementation is fast and easy. The Misys Risk framework relies on front-office valuations thereby reducing the costs of reconciliations and simplifying pricing model management, reducing the cost and time of adding new instruments into the risk framework. Because it is built on a common scenario management framework shared by all systems and risk types, it is powerful and cost-effective. This framework can be leveraged particularly well by advanced trading departments who rely on grid computing for managing the flows of data associated with the large numbers of trades and scenarios, therefore guaranteeing the scalability and reliability of the Misys Risk framework. 

Drawing on real-time data, users get an accurate snapshot of their exposure throughout the day, together with comprehensive pre-deal analysis allowing for the optimal management of risk and reward. Capturing and reporting on all data happens quickly, easily and in a consistent fashion drastically decreasing the cost of reconciling disparate information.

Why Chose Misys Risk?

Reduces Cost, Improves Operational Efficiency

By providing a single enterprise risk system, a single point of entry and a single representation of financial data for the front and back-office, Misys Risk significantly reduces the number of systems and touch points required. The enterprise risk management process becomes automated, streamlined and exception-based, dramatically reducing the workload, time and cost. Risk managers are freed up to concentrate on their areas of expertise, without the need to spend time on aggregation, reconciliation, system checks and manual processes.

Reduces Operational Risk and Pricing Errors

Leveraging one integrated platform, all positions, models, valuation and pricing data are aggregated to achieve consistent risk analysis across all business lines and instruments. As a fully automated solution, Misys Risk helps customers to drastically reduce errors by eliminating the need for manual intervention. The use of one consistent pricing model ensures there are no discrepancies in pricing between the front-office and the risk management function, further reducing the time, effort and risk associated with manual reconciliation. 

Improves Time-to-Market for New Businesses 

Because the solution does not require pricing, models or scenarios to be replicated, new products can be implemented quickly without amending the risk framework. Adding new assets or business lines is straightforward, easy and fast. This ensures firms have the agility and scalability they need in order to maintain their competitive advantage and quickly respond to new business opportunities as they arise.

Enhances Decision Making

Using a single, consolidated view of market risk indicators, risk managers can pursue fully informed, proactive business decisions thereby preventing loss and maximising reward. An integrated system captures, consolidates and aggregates all global positions, providing a solid foundation for risk and reward analysis. Using a consistent scenario-based picture of risk across the enterprise, firms can make better business decisions, mitigate risk and maximise reward.

Provides Greater Transparency for Shareholders and Regulators

One global front-to-back solution capturing a consistent view of all positions, models, valuations and pricing means that all stakeholders can have one consolidated view of exposure across the enterprise. A single point of entry and single representation of data allows for rapid reconciliation and auditing of a firm’s risk profile. Key stakeholders can have peace of mind that rigorous risk mitigation processes are in place, and that the interests of the business are being carefully managed.

For more information on the Misys Risk enterprise risk management system, click here for the brochure

For further information about Misys’ complete suite of solutions for risk and compliance, click here.