Risk management remains biggest challenge for banks
In FINCAD's 2012 annual sell-side survey, accurate risk assessment was listed as the biggest challenge faced by banks with respect to derivatives. With the majority of banks looking to improve their risk management strategy, there is a growing realization that a clearer understanding of model risk is essential. Organizations are taking steps to gain more visibility into their portfolio by running scenario analysis and stress testing and are placing a heavy emphasis on risk analysis using Monte Carlo VaR.
While organizations continue to face challenges around independent valuation and regulatory compliance, the ability to offer a diverse range of products has become a priority for banks. As competition heats up, sell-side firms will continue to look to technology for greater flexibility, enabling them to meet evolving customer demands and gain advantage in the market.
FINCAD Annual Sell-side Survey 2012
FINCAD can help you to improve the accuracy of your risk assessment at the trade or portfolio level while providing you with accurate and independent valuations to better manage your derivatives activities.
FINCAD gives you the ability to:
- Value or price derivatives
- Generate trading ideas and support trading strategies
- Structure virtually any deal
- Determine your risk exposure
- Run scenario analysis and stress tests
- Benchmark against internal systems
- Validate models
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