What in fact is risk management? Is it only about tracking risk KPIs and enforcing limits? Certainly not. Effective risk management hinges on a deep understanding of portfolio drivers: how your positions will react to shifts in different markets, variations in transport route utilization, your own trading activity, and more. It means grasping the root causes of position changes and forecasting how those positions will move under potential scenarios. Therefore, when we discuss risk reporting, we are not referring solely to user‑friendly dashboards and KPI visualizations, even if those are important. Risk reporting must also let users drill down into the numbers and deliver the insight needed to understand drivers and consequences. Topaz embraces this philosophy. First, its reporting module lets users recreate any past state of the portfolio and risk drivers and explain day‑to‑day movements in P&L or risk indicators. Changes appear in a tree structure with broad categories, such as portfolio updates (new trades, amendments, etc.) or forward curve shifts on the top level. Drilling down the tree provides the precise cause. What was the reason for the P&L change? It could be a market price move, an FX shift, an interest rate change, and so on. Users can… continue reading