Bringing Real-time Risk into the Decision-making Process

The integration of risk and capital analytics into trading decisions is now more critical than ever. Driven by regulatory and profitability demands, the increasing need for more information and wider-reaching risk analytics is creating the necessity for more compute power—which is paving the way for greater operational efficiency. From liquidity management to the growing scope of stress testing requirements and overlapping responsibilities across the enterprise, market practitioners are increasingly asking themselves: What now? What’s next?

In this research paper, Satyam Kancharla, Chief Strategy Officer at Numerix, discusses how and why using integrated analysis tools with drill down and real-time capabilities is essential for effective decision-making. He explores how integrating risk, collateral and capital costs into the front-office opens the gateway for real efficiencies to be created within a derivatives operation.

Highlights of the paper include:

• Evolution of the XVA Valuation Framework
• Economic Value Added (EVA) and Trade Profitability
• Navigating Margin Valuation Adjustment (MVA) & Capital Valuation Adjustment (KVA)
• Integrated Analytics and Real-time Risk
• Looking ahead: Evolving Regulations and Risk Analytics

Complete the form to the right to download this complimentary whitepaper, “Bringing Real-time Risk into the Decision-making Process.”