The Razor Risk Platform
Razor Risk’s award-winning ‘Razor’ framework provides near real-time and pre-deal calculations that enable management to view their total exposure to individual entities on one consolidated platform. Clients use Razor’s advanced analytics and scenario calculations to achieve best practice in managing risk exposures for credit, market, clearing and liquidity risk within a single application.
Razor accounts for all events and scenarios between the present and some future time horizon. As Razor explicitly incorporates the passage of time, it allows for portfolios that change over time and under differing scenarios. Thus, a more realistic assessment of risk is possible.
Since Razor is a framework and not a risk measure, practitioners can easily incorporate new sources of risk and accommodate innovations in best practice risk management. Razor also assists financial institutions to satisfy their requirements under the Basel Regulatory Framework and the IOSCO Recommendations for Central Counterparties.
Razor has helped improve the way Central Clearing Counterparties, Stock Exchanges, Banks, Hedge Funds and Brokers across the globe measure their risk and manage their capital. Razor is the leading risk management framework around the Central Counterparty 12 (CCP12) members, the industry association of the world’s principal clearing organisations.
Razor has been specifically designed to provide each client with the following benefits:
- Adaptable – meets the individual risk policy and analytical requirements of every client.
- Accurate – risk calculations are accurate, catering for netting, collateral and economic off-setting.
- Timely – provides sub-second response times for the calculation of exposures.
- Easy to implement – engineered as an open product with documented APIs combined with experienced consultants to ease implementation.
Supportable – readily supportable within a client’s environment and extendible to meet future business needs.
- Return on investment – Razor has delivered a strong return on investment for our clients
With our real-time capabilities, including Pre-deal calculations, Razor™ enables management to view their total exposure to individual entities as well as to the Market as a whole. Compliance with new Regulatory requirements relies on “best practices” and high performance, the flexibility built into the Razor™ framework, the experience and expertise of our consultants and the continuing use of the latest technologies means that Razor Risk remains in the vanguard of solution vendors.
In today’s challenging and competitive environment, solutions need to be deployed quickly, cheaper to deliver and own and provide on-going cost benefits, which is why our approach and the ongoing investment in our people, product and technical capabilities means that we can deliver powerful, robust and flexible solutions whatever the complexity of the risk requirements or the size of the firm’s portfolio.
Razor Risk helps financial institutions meet today’s risk measurement, management, reporting and control challenges – whilst also future-proofing those of tomorrow.Peter Walsh
Razor™ has been specifically designed to cope with the number and complexity of trade types, transaction volumes and risk measurement treatments typically seen in banks, brokers, dealers, investment firms, clearing houses and treasury management offices. From the moment a trade, position, market-data update or end-user request hits the system a response is returned at the speed needed to ensure operations are maintained across the impacted business processes in line with productivity and client service targets.
Razor Risk has and continues to, invest extensively in our modern distributed architecture to exploit standard low-cost Wintel or Linux hardware. The unique balanced distributed processing capability efficiently organizes and caches the multiplicity of risk valuations over the networked servers, delivering exceptional performance and scalability at a fraction of the cost of alternative technologies. In memory functions ensure Risk and capital calculations are always “up-to-the-minute”. Benchmarks demonstrate the outstanding performance and linear scalability of Razor™.
Razor™ supports a broad range of instruments within all asset classes: Interest Rates, Inflation products, FX, Equities, Credit Derivatives and Energy & Commodities. Another key feature of the Razor™ design allows new, third party or proprietary pricing modules and analytics to be quickly configured and added to the system. Where specific compliance or regulatory approvals have been established, Razor provides an ideal environment to protect and document relevant performance and operational uses.