CVA risk systems are integral to an institution’s ability to price derivatives and manage its risk. EM Risk brings IP to a client’s system implementation, not take it away.  We can help at all stages of their system development cycle:

• High level systems analytics component architecture – we provide advisory around latest advances in performance based analytics that will save money on hardware and software purchases
• Functional requirements and specifications – we can help you develop CVA requirements based on analysis of your trading portfolio so that the implementation is optimised to reduce delivery risk
• Pricing and risk system selection, validation and vendor liaison – we provide advisory on which vendors to use and what approaches to take with vendors in delivering CVA, we can save you time and money on the right vendor or system build strategy
• System specific project management – we have a team of specialist delivery managers who have vendor and internal build experience of CVA systems
• Quantitative business analysis --  we have expertise in all areas of quantitative analysis across the market place Tier 1 builds, vendor implementations (Sungard, QuiC, Algorithmics)
• Systems analytics development – we have extensive experience in analytics development to support the implementation process (.Net, QuiC Script)
• Range of tried and tested enabling tools to validate complex processes – Exhale Model Validation and System Test Framework

We approach CVA systems in a unified manner, applying our extensive knowledge of the methodology, technology and market data that are part of a risk or trading system implementation.  Where analytical integration is required, we can work with you to provide system solutions.  We have extensive knowledge of most of the major system vendor solutions in the risk management space.  If clients wish to buy a new system, we can advise them on the package that meets their requirements and, if they wish, manage the selection process.

CVA systems can prove to be extremely difficult to implement due to the complex nature of the simulation.  We can provide vendor implementations with additional resources and consulting to help them implement their products to your satisfaction.  We have a comprehensive approach to delivering complex systems analysis and testing to ensure accuracy of the system calculations:

• Model validation – we provide not just model approval but use tried and tested validation approaches for large CVA systems
• Methodology gap analysis – we provide essential analysis expertise to understand the market data and pricing analytics methodology gaps
• Analytics system test – we can help you confirm the accuracy of the system analytics and its behaviour requires
• Generation of key performance indicators – we can help senior management understand the success of the implementation across the bank’s trading portfolio

We have a proven record in delivering CVA advisory, system upgrades and migration capability of exposure measurement calculation engines.  Our methodology for delivery provides complete transparency of deliveries using financially driven indicators to measure success.  Not only can we avoid project black boxes for complex projects such as Monte Carlo calculations, we can insure that the projects are delivered under a cost benefit approach by ensuring methodology change impact can be clearly understood in terms of financial benefit.