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“The purpose of information is not knowledge. It is being able to take the right action. ” Peter Drucker.

We value our clients’ risk in a way that inspire action.

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“By doubting we are led to question, by questioning we arrive at the truth” Pierre Abélard.

Our Mission

Professional and consistent risk management is of vital importance for many businesses today. There are various views regarding the purpose of risk management. In our view, risk management is the art of making decisions under uncertainty. It is it is about managing ideas, values, challenges, complexity and ambiguity in pursuit of the long-term goal of the organization. A prerequisite for managing risk is the ability to measure risk consistently and in a way that inspire action on those that direct the risk-taking activities. EnvisionRisk solves these two complex challenges with our service solution for market- and counterparty default risk.

Why We Do It

Our purpose is to make risk management transparent, unbiased, consistent and relevant so that our clients can make intelligent decisions with risk in mind.

How We Do It

We add value by ensuring that risk is made tangible as a scarce resource and consequently as an economic cost comparable to other costs. This way, risk and rewards are measured on the same scale and unbiased decisions can be made taking both into account.

“If you can't measure it, you can't improve it.” Peter Drucker.

What We Do

We provide advanced calculations of financial risk measures for market- and counterparty default risk. Our services are centered around our Economic Scenario Generator which simulates future states of the markets.

  • We provide risk predictions for portfolios of financial instruments.
  • We help build custom risk dashboards based on our risk framework so that risk insights are timely available for decision makers on all levels of the clients’ organization.
  • We provide an economic capital framework that makes risk tangible and comparable to rewards so that our clients can make intelligent business decisions.

13.000+ Instruments from multiple asset classes (FX, Equity, Commodity, Fixed Income)

Risk aggregation for complex account/portfolio hierarchies

Wide-ranging (40+) different base currencies

Assorted volatility assumptions (Point-in-Time, Through-the-Cycle and Downturn)

Different risk horizons

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“What gets measured gets managed. ” Peter Drucker.

Make Your Risk Count

Financial price-risk management is complex – EnvisionRisk has the tools to make it simpler. Our core service helps our clients maximize risk adjusted returns by calculating risk in a way that leads to actionable insights. Our services are centered around our Economic Scenario Generator which simulates future states of the markets. Our services enable a transparent, consistent and relevant dialogue between risk takers and risk managers so that clever decisions with risk in mind can be made.

Our Service

EnvisionRisk’s core service offerings are:

  • Forward looking risk predictions for portfolios of financial instruments – for example Value-at-Risk (VaR) and Expected Shortfall (ES) aligned with the EU regulations (Basel IV/FRTB).
  • Backward looking risk adjusted performance measures for risks taken. For example, Risk Adjusted Return on Capital (RAROC) and Shareholder Value Added (SVA).
  • Risk Reports for a better understanding of key risk drivers.

Our Approach

To assess relative performance on a risk-adjusted basis, we – like many large international banks – calculate risk-adjusted performance measures, where economic capital measures play a key role. The focus on risk adjusted returns allows for a simple decision rule when using risk prediction for risk management purposes. This simple rule mitigates human biases by providing decision makers with fact-based inputs. It converts subjective predictions in to decisions based on consistent, objective, practically quantitative data. And it creates a shared vocabulary which enhances collaborating between risk managers and risk takers.

Our Method

The foundation for our services is our Economic Scenario Generator. It is based on an adaptable approach. The methodology behind our Economic Scenario Generator originates in classical extreme value theory, well known in the field of actuarial science. These methods are superior at adapting to the stylized characteristics of financial returns. This means that our risk calculations are precise and reliable.

We Deliver

Our risk analytics are provided for multiple asset classes, account/portfolio hierarchies and different risk horizons. EnvisionRisk provides a Software-as-a-Service (SaaS) solution. See here for an example of how EnvisionRisk’s solution can be used.

Client Profiles

EnvisionRisk is a financial risk analytics service that calculates and facilitates the risk discussion on all levels of a business. Potential clients are trading platforms offering leverage trading, corporate clients that are sensitive to changes in FX, interest rates etc. and investment managers.

Investment and Asset Managers

Investment and asset managers can use our price-risk measures for asset allocation and risk adjusted performance analysis.

Broker-Dealers

For broker-dealers it is imperative to observe the (inter)connection between the customer’s market risk and the broker’s customer counterparty risk in a holistic manner. The service provides brokers with the tools for:

  • Calculating margin levels based on Value-at-Risk or Expected Shortfall.
  • Customer counterparty risk calculations (exposure at risk).
  • Customer market risk calculations (can be shared with customers).
  • Customer and product profitability analysis, customer segmentation and portfolio optimization.
  • Capital budgeting, strategic planning, target setting and internal reporting.
  • Capital adequacy assessment.

Corporate Businesses

Companies that are sensitive to changes in FX, equity, interest rates and commodity prices, such as energy companies, airlines, manufacturers, mining companies, and freight and shipping companies can benefit from the coherent and consistent Value-at-Risk (VaR) and Expected Shortfall (ES) calculations of their risk exposure.

Contact Us

Want to say hello? Want to know more about us? Give us a call or drop us an email and we will get back to you as soon as we can.

+45 3154 2550

Bentzonsvej 18, 2. sal
2000 Frederiksberg
Denmark

info@envisionrisk.com