RISK MANAGEMENT.

Providing Robust independent and flexible risk management services to financial institutions in the Fund Management Industry. 

RISKRADAR, YOUR ONLINE RISK MONITORING PLATFORM.

An interactive online platform that manages and monitors portfolio risk for a variety of UCITS/AIF fund structures and investment strategies.

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“A risk management process is key in protecting investors from risks to which UCITS are exposed in relation to the performance of the activity of the collective portfolio management.”

- ESMA (European Securities & Markets Authority)

Independent & Flexible Approach to Risk Management

Our Risk Service offering is NOT based on the traditional model of purchased software on the client’s side. Our clients do not have to invest in technology, nor hire staff to run all these aspects nor take care of the data management. Arkus integrates all of these moving parts into one service offering allowing our clients to focus on their core business. 

We collect all the data from the fund administrator and or custodian bank and check it for completeness and accuracy before we upload it in our proprietary system RiskRadar where the risk calculations are carried out. The resultant metrics and the underlying analysis are used to create meaningful reports for all types of risk metrics. 

UCITS Compliant Risk Reporting

AIFMD Compliant Risk Reporting

Bespoke reporting services

Risk consultancy services

UCITS Reporting

  • Global Exposure

    VaR (Absolute or Relative) vs. Commitment (Incl. Netting -/Hedging arrangements)

  • Liquidity Risk Monitoring

    Asset and Liability Side (incl. stress test of redemptions)

  • Counterparty Risk

    OTC Limits and combined

  • Concentration Risk

    Portfolio concentrations across several dimensions and sub categories

  • FX Exposure

    Breakdown of currency exposures across investments and portfolio investments

  • Stress Testing

    Historical as well as factor stresses

  • Synthetic Risk Reward indicators

    Including alert if SRRI is falling outside the current risk class

AIFMD Reporting

  • Market Risk Profile

    Drafting/revision of risk profile & RMP - IRR - Net Equity Delta - Net DV01 - Net CS01

  • Liquidity Risk Profile

    Liquidity Report

  • Counterparty Risk

    Counterparty Report

  • Borrowing & Exposure Risk

    Leverage (Gross Method, Commitment Method)

  • Stress Testing

    Risk Scorecard

  • Concentration Risk

    Portfolio concentrations across several dimensions and sub categories

  • Operational Risk

    Risk Assessment profiling & Reporting Tool

  • Annex IV Report

    Risk Related Fields (CS01, DV01, VaR, Leverage, Stress Testing, etc..)

Risk Consultancy

Experts in investment risk management, Arkus has the resources and knowledge to support you in multiple areas of risk-related topics. The creation of a Risk management process and the related Risk Profile of your portfolios can be a complex and time-consuming procedure considering the continuous regulatory changes. We can assist you in that process by putting at your disposal the necessary expert resources. Our consultancy services consist of the following: 

  • Risk Model Validation

    Validation of model as per the ESMA 10/788 standards

  • Review of Risk Management Procedure

    Analysis of respective and relevant documentation

  • Drafting of Risk Management Process & Policy

    In accordance to the Laws and regulations

  • Drafting of Risk Profiles

    Comprehensive Methodology and Proven Track-Record

  • Support to Permanent Risk Management Function

    Pre-defined agreement

  • Ad-Hoc Support

    Flexible risk consultancy and support

Arkus will create an interface with the data supplier in order to establish a stable date flow for the relevant information. Upon receiving the relevant data needed from the administrator/custodian bank we check it for completeness and accuracy before we uploading it in our proprietary system RiskRadar™ where the risk calculations are carried out. The resultant metrics and the underlying analysis are used to create meaningful reports for all types of risk (Market Risk, Liquidity, Counterparty, and Concentration).

Furthermore, Arkus will also take care of the ongoing data management related to the production of the risk reports. The position data obtained will be enhanced with relevant market data by Arkus´ analysts.

Feeds:

  • Refinitiv (Thomson Reuters) API
  • Bloomberg FTP

Data Stored:

  • 14,000 Equity & Fund Prices & Volumes
  • 80 Exchange Rates
  • 750 Active Yield Curves
  • Security Reference data (17,000 active securities):

Data Management Processes

  • 31 Fund Admins supported
  • 36 Data Sets
  • 4 Jurisdictions
  • Look through functionality

 

Regulation puts a particular emphasis on the adequate identification, monitoring, and reporting of operational risks. In Luxembourg, the CSSF has consistently expressed that it will put a particular focus on this area. 

At Arkus we have developed a practical operational risk self-assessment tool to support our clients perform a structured assessment of their operational risks; then onward, this toll can be used as an on-going monitoring framework.

The resultant reports address sensitivity, threats, vulnerabilities, risks and recommends cost-effective safeguards to mitigate threats and associated exploitable vulnerabilities. Leveraging on our practical expertise with this report will:

  • Draft a practical operational risk matrix based on a criticality scoring framework identifying probabilities and impact of potential risks and their mitigation factors;
  • Establish an on-going monitoring framework to be used by the PRMF Officer. 

A Comprehensive yet Module Approach 

AIF’s/UCITS Risk Profiling 

  • Identification and formalization of all risks inherent to an AIF’s/UCITS specific strategy by creating a risk hierarchy
  • Consistency of investment process

AIFM/UCITS RMP Review/Drafting

  • Draft/review of existing Risk Management Policy (RMP). Which includes documenting governance, key risks and KRISs, Limits, Monitoring and Reporting. 

Risk Reporting

  • Provide tailored risk reporting reports
  • Prepare CSSF regulatory risk reporting compliant reports in the respective template

Risk Monitoring

  • Based on Key risks identified, regular monitoring of KRIs and escalation in case of breach
  • Assist to compile, or prepare regular board reporting on risk; alert summaries, etc.
  • Fast decision-making process underpinning rapid implementation
  • More efficient resource allocation
  • Scalable Platform
  • Efficient intra-day risk exposure calculations
  • Validated risk model
  • quality of data source thanks to trusted source providers ( Bloomberg & Thomson Reuters)
  • Regulatory expertise embedded in our solution
  • Reliability of our IT platform (Inline with cyber security requirements, penetration test performed with success by external audit, platform re-designed to take into account potential threats)

Reports are delivered in three different manners: 

  • Via Email
  • SFTP Transfer
  • Access via our online risk monitoring platform, RiskRadar.  

Industry News & Events

VOLATILITY RISK NEWSLETTER - AUGUST EDITION

07th August 2020 – Newsletter

ESMA RECOMMENDATION ON LIQUIDITY RISK FOR FUNDS

26th February 2020  – News

TRANSLATED GUIDELINES UNDER ARTICLE 37 MMF

15th March January – News

Monthly Market Volatility risk newsletter

August Edition available here

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Contact

Business Development

Sergio Lopera

sergio.lopera@arkus-fs.com

+ 44 (0) 207 264 2027

-

General Enquiry

info@arkus-fs.com

T : + 352 42 26 11 111

F : + 352 42 26 399

Luxembourg - HQ

European Bank & Business Centre

6B Route de Treves

L-2633

Senningerberg

London

150 Minories

City Of London

London

EC3N 1LS

DUBLIN

Ferry House

48-53 Mount Street

Lower Dublin 2

Ireland

France

7 Rue Roy

75 008

Paris

 

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