More on Risk

In a recent blog post titled Risk Management Software Should be Booming, I made the case for the emergence of two software classes in commodities – Commodities Advanced Risk Analytics and the Commodities Risk Platform. I also suggested that the overall status of the RM part of the CTRM software category was getting more focus and that risk aspects of CTRM were being bolstered in response to a series of inter-related trends that are driving risk management to the forefront in commodities. ComTech may soon be floating a research idea around this general topic and in thinking about that, several other aspects of risk management came to mind. One of those is the need to get closer to real-time with risk calculations of all types. In most legacy CTRM solutions, large complex calculations are ran as ‘batch’ jobs over night to provide a retrospective look at measures like PnL, MtM, VaR and so on at the end of the previous day. This is then the starting point for the next 24-hours of activity resulting in a new set of calculations performed overnight to start the next day. These days however, particularly in very active markets and in markets that are… continue reading

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