Market Risk for the Front Office

ActiveViam |
June 4, 2021

Risk controllers and risk analysts may sit together with traders on a trading floor but the two functions, while complementary, don’t always run smoothly as one.

The market risk desk has to check, recheck and validate the numbers from the previous trading day and make sure they match up or explain why they don’t.

The virtuous circle continues when, at the start of each day, traders then look at their Value-at-Risk (VaR), sensitivities and market data to validate the numbers in the portfolio.

Highly volatile markets and overnight data batch runs leave a lot of room for error. What if the system used the wrong market data? What
if something was incorrectly entered?

Trading desks are under enormous pressure to generate profit and manage risk while doing so and the way a bank manages its market risk is fundamental to reaping the highest rewards from the least
amount of risk.

Read our brochure to understand how Atoti can help.

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