Makis Ioannou, PresidentThe decade leading up to 2008 saw an explosion of investment managers and invested assets, but also brought a transformation in the profile of the investors. The new breed of investors tended to have different risk tolerances from traditional clients, they wanted more insight into investment policies as well as they required assurances that investment managers had adequate infrastructures to mitigate market, credit, investment and operational risks. An avalanche of regulations and compliance reporting were added into the complexity of operating and managing risk within buy-side organizations.
In the midst of this complexity, KlarityRisk, Headquartered in Gracechurch St., EC3 London, a provider of investment risk management & compliance software and services has been delivering to all types of buy-side sector organizations, advance software solutions to accurately and quickly measure the risk of their holdings in various conditions, produce client, internal or statutory reports as well as minimize risk taking in search of maximum portfolio returns. “We provide a wide range of risk calculations and measurements, based upon standard technologies and methodologies, rendering our approach fully transparent rather than adopting a black-box mentality,” says, Makis Ioannou, President, KlarityRisk.
The firm’s flagship product, Paragon provides risk managers with the tools they need to handle increasing complex risk requirements with confidence and control. Based upon industry-standard risk methodologies, as well as Microsoft advanced technologies and utilizing the SQL database, Paragon enables risk or portfolio managers to measure portfolio risk for any given portfolio aggregation and breakdown, including sector, rating, country, instrument type, maturity bucket, strategy and so on. “We ensure that investment professionals are able to execute internal, client or regulatory risk reporting consistently,on an ad-hoc or automated basis” explains Ioannou.
KlarityRisk assists asset management, private banking, pension management, hedge fund, family-offices and investor advisory services companies by catering to their risk management needs. For in-stance, at the Norwegian Public Services Pension Fund, Statens Pensjons kasse or SPK, Paragon offers seamless integration with their existing portfolio management system, APX, obtained from Advent Software. The Fund generates daily Monte Carlo VaR projections on their managed assets, as well as Stress Testing, Back Testing, What-If Scenarios which are utilized to be compliant with the latest regulatory requirements as well as internal risk and client reporting.
KlarityRisk solutions provide asset management, private banking, pension management, hedge fund, family-offices and investor advisory services companies, the software tools to accommodate their investment risk management needs
European Reliance Asset Management Company, in Greece, was able to incorporate in their daily processes, advanced Value-at-Risk (VaR) simulated and parametric calculation methodologies, and Stress and Back Testing as well as Regulatory Reporting. Paragon’s advanced pricing methodologies drilling down are also leveraged to comprehensive pre- and post-trade Risk Analysis.
Last, a Swiss Family Office client in Zurich, Switzerland, utilizes Paragon to generate daily Monte Carlo VaR projections on their managed assets, as well as Stress Testing individual or group of portfolios in order to increase their chances in their favor, when generating alpha and securing the maximum competitive advantage.
KlarityRisk’s distinct technology advantage in risk management systems integration accommodates a seamless integrated workflow that runs all the way from portfolio accounting data to risk analysis, scenario testing and vice versa, providing additional benefits to the clients. Furthermore, the embedded integration mechanism for importing, validating, mapping, exporting and monitoring the required data, ensures automated processes with any third party system or MSExcel, without any confidential data leaving the client’s premises.
KlarityRisk aims at long-term mutually beneficial business relationships with various types of buy-side professional organizations, by staying responsive to the changing demands of the risk management industry.