Red Swan Risk and Alveo team up to provide integrated security master and model risk service for asset managers

8 July 2020 – Red Swan Risk is enhancing its world-class multi-asset class portfolio risk management solution, RiskON, through Alveo’s managed service offering, PaSSPort, to provide a seamless data experience to its clients. The collaboration between the two companies will provide asset managers with a managed service that delivers a high-quality, data mastering, data analytics, and model risk solution.

Hedge funds, pension funds, funds of funds, asset managers, and banks need to manage model risk with increasingly more control and transparency. This has to be done across data inputs, model configuration, statistics, stress scenarios, reporting, and analysis. Front office risk management, as well as back-office oversight, require these capabilities.

Red Swan’s RiskON platform provides seamless aggregation of portfolio holdings data with security level risk and reference data using a unified data model.  This gives users the transparency and control over risk modeling decisions needed to monitor, analyze, and manage model and portfolio risk through a web-based UI and API hosted on AWS.

However, supplying a model risk management solution with all the required financial product terms and conditions typically requires a separate security master solution that integrates, cross-references, and validates various market data feeds. Finding and then channeling high-quality data can be difficult and time-consuming.

The partnership addresses the fact that asset managers today are spending too much time collecting, mastering, and cleansing data before they can even take advantage of advanced technologies like RiskON. PaSSPort is providing security master as-a-service to power Red Swan Risk’s solutions with a robust and scalable data management system that exposes full data lineage. Clients can easily leverage the partnership capabilities by extending the PaSSPort scope beyond the initial RiskON use case and into the enterprise.

It is in this context that Alveo, through the provision of its managed data service, PaSSPort, can play a key role in helping users quickly and easily verify data quality.

Nathan Wolaver, Alveo MD of the Americas, said: “Teaming up with John Matwey and the team at Red Swan Risk is a great way to leverage PaSSPort to help clients take advantage of RiskOn suite of analytics tools but to do so in a sustainable framework that delivers operational advantages that can easily be extended beyond the initial use.  This example is further proof of our capabilities in proving a trusted foundation for partners that are looking to accelerate their delivery timelines and give their clients an easier operating model.”

John Matwey, founding partner, Red Swan Risk, said: “Asset managers face an ongoing struggle to manage model risk challenges including model selection, model configurations, market data, and reference data.  Together with Alveo, Red Swan can provide more powerful tools for validating and managing the critical reference data that impacts model risk.  We are excited to work with Nathan Wolaver and the team at Alveo to make it easier for our clients to deal with these challenges.”

About Red Swan Risk

Red Swan Risk is a leading developer of standardized market risk data management and business processes for hedge funds and asset managers. The firm offers a powerful combination of specialized applications through the web-based RiskON platform together with customized Managed Services.  RiskON’s innovative architecture provides a powerful platform for advanced risk and return analysis of multi-asset class portfolios, with highly configurable tools that manage a myriad of complex risk modeling, security data mapping, and portfolio aggregation processes.  Based in New York, Red Swan is staffed by a seasoned team of financial scientists, risk managers, engineers, and developers.

For more information, please visit www.redswanrisk.com

About Alveo

Alveo is the market leader in data quality software solutions for financial data. Focused on business user enablement, we help clients simplify complexity and ensure users across the buy and sell-side make the most of their data assets by providing easy data integration, data cleansing, distribution, and data discovery solutions.

We service a blue-chip client base globally and our award-winning solutions provide rigorous processes to secure high-quality data, easy integration into business user workflows, and a trusted environment for advanced analytics. Delivered through managed services, cloud or on-premise deployment, our highly scalable products help the world’s most successful financial institutions meet their risk management, valuation, security master, and operational needs with mission-critical reliability.

Alveo recently launched its Ops360 data workflow solution that offers users end to end control on their financial data management process for sourcing, mastering, governing, investigating, and exploring their financial instrument data. It is part of a product rollout that incorporates a range of new open source technologies into the Alveo platform.

For more information, please visit www.greshamtech.com/products/prime-edm

*Please note: This press release was originally published under Alveo Technologies. As of the publication date, Alveo Technologies is now known as Prime EDM under Gresham. Any prior Alveo content has been updated to reflect Gresham's current branding and offerings.