Everyone with positions in foreign currencies, bonds, stocks and derivatives is uncertain what the positions will be in the future. In the field of measuring Market Risk, insight is given in the risk of these positions. This insight is given by calculating several quantitative measures, which can be used to manage and control those risks. Positions and market expectations change constantly, so the calculation of these measures is a 24 hour process. Financial institutions do not only calculate to better manage their assets, but also because external regulators demand these figures for their control tasks.

Spirit is a system that supports this 24 hours calculation of market risk measures. This means that new position feeds are used instantly to recalculate the market risk reports. To guarantee quick report delivery Spirit uses a state-of-the-art algorithm to minimize the calculation time needed.

The process of generating market risk reports is more than only calculating the figures. The process consists of the maintenance of static data, managing the quality and delivery of market and position data. Spirit supports this in an excellent manner to optimize the quality and timelines for the delivered reports. These Spirit reports allow the user to (slice and dice and) drill down through the different hierarchies to easily find the needed figures.

Market risk figures are complex and therefore users find it usually hard to know how a figure is calculated. The systems that calculate the figures are often a black-box to them. Spirit opens this black-box by allowing the user to (re)trace the calculation steps down to the data sources. This transparency is a giant boost to the quality and confidence in the reports.

You will find more highlights of Spirit - Market Risk in the articles below.