Approximity Risk Management Tools

Approximity Risk Management Tools is a software system. It is made up of two composite parts – Approximity Portfolio Risk Analyzer and Approximity Scenario Generator. It is used on an extensive basis and works both on its own as well as a substitute of other software systems such as the SAP.

Description of Approximity Risk Management Tools
The Approximity Risk Management Tools are also known as ARMT. The Approximity Risk Management Tools may be described as a software device that is extensile. It is used primarily in order to find out the amount of risk that is associated with a portfolio that has been made up of bonds and stocks.

Working Process of Approximity Risk Management Tools
The Approximity Risk Management Tools work by bringing together the methods of simulation and estimation.

This is done for the purpose of creating a group of situations that are practical in the context of the portfolios as well as the strategies for trading. This is practised a lot in case of the bonds that are issued by the government.
The following Advanced Risk and Performance Management methods are also used in this context:
Fair Capital Allocation
VaR
RORAC
ES

Usage of Advanced Risk and Performance Management
The Advanced Risk and Performance Management may be used on its own. However, it has also been used as a substitute for software systems like the SAP.
Parts of Advanced Risk and Performance Management

The Advanced Risk and Performance Management is made up of two parts:
Approximity Portfolio Risk Analyzer
Approximity Scenario Generator
In the Approximity Scenario Generator the Advanced Risk and Performance Management focus on modeling easy situations for the financial markets of stocks and bonds. In this part the best financial market models like the Cox-Ingersoll-Ross Model, serve as good examples.

This part provides an overview of the possible market risks and the processes like risk management and stress-testing are pretty important in this context.

More Information Related to Risk Management
Risk Management Companies Risk Management Framework
Risk Management Courses Risk Management Policy
Types of Risk Management Risk Management Process
Risk Management Analysis Risk Management Strategy
Risk Management Tools Risk management Consulting
Risk Management Jobs Risk Management Plan
Risk Management Report Risk Management Magazine

Last Updated on : 8th July 2013