Overview
RiskView 360 is our proprietary platform that consolidates risk data across all aspects of the business. It allows you to monitor and assess risk in real time, ensuring that key decisions are always backed by the most current, comprehensive data.
RiskView 360 aggregates diverse sources of risk information — market trends, commodity prices, operational performance, supply chain disruptions, and geopolitical factors—into a unified platform. This comprehensive view enables decision-makers to understand their full exposure, anticipate potential risks, and proactively take action to mitigate them. Using predictive analytics and AI-driven forecasting, RiskView 360 enables organizations to simulate different market scenarios to see how they would impact financial and operational outcomes. For example, you can test how shifts in commodity prices, demand fluctuations, or regulatory changes would affect margins or profitability, allowing you to identify strategies that are most likely to succeed.
Strategic Optimisation is tightly integrated with RiskView 360. By incorporating scenario analysis into the optimization process, we help companies build strategies that maximize opportunities while keeping risks in check. Through advanced mean-variance optimization and CVaR models, businesses can assess the risk-return profile of different decisions, from hedging strategies to investment planning, and ensure that every move aligns with the company’s long-term risk appetite. The solution’s dynamic nature means that your strategy is continuously updated based on real-time risk data, enabling businesses to adjust quickly to shifting market conditions and stay competitive.
By enabling holistic risk management and data-driven strategy formulation, this solution provides the clarity and confidence needed to make better decisions that drive growth, profitability, and stability, no matter how volatile the market becomes.
RiskView 360 aggregates diverse sources of risk information — market trends, commodity prices, operational performance, supply chain disruptions, and geopolitical factors—into a unified platform. This comprehensive view enables decision-makers to understand their full exposure, anticipate potential risks, and proactively take action to mitigate them. Using predictive analytics and AI-driven forecasting, RiskView 360 enables organizations to simulate different market scenarios to see how they would impact financial and operational outcomes. For example, you can test how shifts in commodity prices, demand fluctuations, or regulatory changes would affect margins or profitability, allowing you to identify strategies that are most likely to succeed.
Strategic Optimisation is tightly integrated with RiskView 360. By incorporating scenario analysis into the optimization process, we help companies build strategies that maximize opportunities while keeping risks in check. Through advanced mean-variance optimization and CVaR models, businesses can assess the risk-return profile of different decisions, from hedging strategies to investment planning, and ensure that every move aligns with the company’s long-term risk appetite. The solution’s dynamic nature means that your strategy is continuously updated based on real-time risk data, enabling businesses to adjust quickly to shifting market conditions and stay competitive.
By enabling holistic risk management and data-driven strategy formulation, this solution provides the clarity and confidence needed to make better decisions that drive growth, profitability, and stability, no matter how volatile the market becomes.
Techniques
Holistic Position
Aggregation
Aggregation
We start by aggregating all positions a client holds – physical inventory, forward contracts, futures, options, swaps, etc. – across all commodity classes. For example, a diversified energy company might have crude oil futures, natural gas forward sales, coal inventory, and power purchase agreements.
Our dashboard consolidates these into one portfolio view, normalizing units and aligning maturities.
This alone is a game-changer for organizations that previously managed risk in fragmented spreadsheets. With a centralized book, we can then apply analytics uniformly.
Our dashboard consolidates these into one portfolio view, normalizing units and aligning maturities.
This alone is a game-changer for organizations that previously managed risk in fragmented spreadsheets. With a centralized book, we can then apply analytics uniformly.
Value-at-Risk (VaR)
Calculation
Calculation
The dashboard calculates VaR over chosen horizons (e.g., 1-day, 10-day) at specified confidence levels (95%, 99%). It uses advanced methods beyond variance-covariance, including Monte Carlo simulation, which generates thousands of random price paths per commodity to capture non-linear behaviors like option payoffs. Historical VaR is also offered, revaluing the portfolio against actual past market moves to include events like the 2008 crisis or 2022 volatility. The output is a clear figure-for example, “95% VaR = $5 million,” meaning there is a 5% chance losses exceed $5 million over the horizon.
This metric provides a common risk language for management and meets regulatory or policy requirements.
This metric provides a common risk language for management and meets regulatory or policy requirements.
Dynamic Correlation
and Copula Analytics
and Copula Analytics
A key feature of our risk engine is its dynamic handling of commodity correlations. Unlike static correlation matrices, we use DCC-GARCH models to update correlations as volatility changes and incorporate copula models to capture extreme co-movements and tail dependencies during market stress. This approach reflects scenarios where commodities move together more than average correlations suggest, such as during crises or liquidity crunches.
As a result, our risk estimates account for worst-case common shocks, often producing slightly higher but more prudent VaR or expected shortfall figures compared to simpler methods, embodying a conservative, data-driven risk approach.
As a result, our risk estimates account for worst-case common shocks, often producing slightly higher but more prudent VaR or expected shortfall figures compared to simpler methods, embodying a conservative, data-driven risk approach.
Stress Testing
and Scenario Analysis
and Scenario Analysis
RiskView 360 includes a library of historical (e.g., “Lehman Collapse,” “COVID Outbreak”) and hypothetical stress scenarios (e.g., “Oil $150,” “Global Recession -20% demand”). Applying a scenario re-values the entire portfolio and shows profit/loss impacts by position and overall, answering “What happens if X occurs?”
These insights let risk managers and executives identify vulnerabilities. If a stress test shows an outsized loss beyond tolerance, they can proactively adjust (hedge more, reduce positions, diversify).
Essentially, the scenario tool operationalizes contingency planning.
These insights let risk managers and executives identify vulnerabilities. If a stress test shows an outsized loss beyond tolerance, they can proactively adjust (hedge more, reduce positions, diversify).
Essentially, the scenario tool operationalizes contingency planning.
Interactive Visualisation
and Alerts
and Alerts
All our analysis is shown in an intuitive web interface with interactive P&L distribution charts, commodity VaR contributions (like tornado charts), and correlation heat maps that update with market regimes. A “risk by business unit” view allows drilling down to desks or divisions. Users can set alerts for VaR breaches or commodity exposure limits, triggering email, SMS, or on-screen notifications.
Unlike typical systems, ours links alerts to analytics, showing causes like market moves or correlation changes, providing essential context for swift action.
Unlike typical systems, ours links alerts to analytics, showing causes like market moves or correlation changes, providing essential context for swift action.
Reporting
and Compliance
and Compliance
The dashboard generates automated risk reports-daily summaries, regulatory (e.g., Basel commodity risk), and management reports with clear commentary. Quantitative results are explained plainly, such as: “Our 99% ten-day VaR is $12M, driven mainly by long copper and aluminum exposure. Under a hypothetical Chinese demand shock, losses could reach $20M (mostly copper), but aluminum hedges limit downside.”
This narrative, alongside charts, helps non-quant executives and boards understand the risk, building trust in rigorous risk management.
This narrative, alongside charts, helps non-quant executives and boards understand the risk, building trust in rigorous risk management.