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Systemic Risk
 
 
 
     
     
     
     
   
 
 
This module monitors the company’s collective exposure to common risk factors vs. global financial system risks (e.g. interdependencies between financial system and market participants) and alerts when changes in exposures occur. It is both a lookup database and monitoring/alerting engine. Systemic Risk module relieves risk and compliance groups of the arduous and daunting tasks of finding, gathering and analyzing the same information and discovering exposures before it’s too late.

Partial list of factors used in systemic risk calculations include:
 
Global trade imbalances
 
Global cash flows
 
Derivatives trading
 
Global credit markets
 
Interest rates
 
Dollar
 
Inflation
 
GDP
 
Housing markets
 
Regulatory changes
 
Available credit
 
Economic growth
 
FX reserve buildups
 
Global market indices
 
Employment stats
 
Commodities markets
 
Currency markets

For determining a company’s collective exposure to common risk factors, the system analyzes financial holdings at the enterprise, business line, department, trading desk or account levels, or combination. Next, rules are activated in the rules/alert engine that signals when exposure levels exceed client-determined tolerance thresholds.

Refreshed daily, it is powered by technology that automatically updates global financial information from over 70 sources.

 

 

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