Risk management and portfolio construction provider, Axioma, has entered the multi-asset class risk arena with the introduction of Axioma Risk - a risk management platform for risk officers, portfolio managers, asset managers and consultants.

Axioma Risk, the company's initial offering in this arena, is a unified risk management platform for middle to front office users offering risk reporting, risk analysis and decision support for multi-asset class portfolios.

"What we are witnessing today is an increasingly complex risk environment where multi-asset class investing is proliferating," said Ian Webster, Axioma's managing director for Europe. "Axioma Risk's state of the art toolset, built with the latest technology, gives clients the power and flexibility to address the most complex and diverse risk questions. As a unified platform, portfolio managers and risk officers can now speak the same language when it comes to risk."

Axioma Risk, said Webster, is fully customisable and designed specifically for decision support, enabling a full spectrum of users to tailor risk reporting and analysis to their specific needs. Users may choose single or multi-step simulations, historical (empirical) simulations, Monte Carlo simulations or linear parametric models.

The platform's simulation-based analytics use Axioma's robust factor models which are fully integrated into the platform. According to the firm, multiple built-in options enable users to fine-tune their analyses and results and create stress tests to measure the impact of potential events. Front office quality analytics use a leading pricing library and the platform is fully integrated with market data, thus providing a turnkey solution for handling exchange-traded and illiquid securities.

In addition, Axioma Risk uses cloud technology to perform complex and time-consuming calculations and analytics in parallel across a large grid of processors. This same architecture enables a deployment option that guarantees the confidentiality of client holdings and trading strategies by sending only single security requests to the cloud for computation. Portfolio weights never go beyond the client's firewall, said the firm.

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