SolutionsRisk Management

Today’s commodity markets demand risk management solutions that drive instantaneous transparency into portfolios containing multiple commodities, instruments and currencies. Risk managers need the ability to quantify positions and exposures in real-time and to act quickly on that information. To execute strategies or hedges, risk managers must first understand the impact of incremental positions on a portfolio and gain insights into potential risks and rewards utilizing scenario analysis. Executed strategies must be booked, marked, and settled throughout the term of the transaction. Additional requirements often include tools to support decisions (what-if scenarios), identify opportunities, maintain curves and forecasts – as well as manage deals from capture to confirmation to invoice and general ledger.

ContraXcentral™ Risk Management component provides risk managers, analysts and staff with comprehensive risk position reporting and viewing capabilities. Users may view risk position information for an entire portfolio, a partial portfolio or individual trades, and can select different grouping levels. ContraXcentral™ Risk Management calculates real-time risk position valuation and exposure reports for portfolios, partial portfolios or individual trades filtering on calculation type, currency, products, time period, forward mark and other user-defined criteria. This component provides even greater flexibility by supporting user-defined trading strategies. Strategies may be created to allow grouping and risk reporting of groups of trades or strategies, and allows comparison to defined strategy limits. The component’s strategizing capability also identifies hedges and calculates hedge effectiveness, making the information available for FAS 133 reporting. Users can also create, maintain and use their own risk position report formats and templates within the system.