Document 6610448

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ENTERPRISE RISK
Bloomberg Trading Solutions
MANAGE
RISK WITH
CONFIDENCE
SHARPEN
YOUR VIEW
Managing risk is more critical than ever. And more
complex. Risk managers must contend with rapidly
evolving regulatory requirements, front-office
demands and investor priorities—not to mention
technology and data challenges—all with limited
resources. Bloomberg Trading Solutions can help.
Our Enterprise Risk solution enables buy-side
and sell-side firms to create comprehensive views
of market risk, mitigate daily risk and prepare for
periods of unexpected stress.
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MAKE INFORMED TRADING
DECISIONS AND DRIVE
REGULATORY COMPLIANCE
WITH A SOLUTION DESIGNED
FOR CHIEF RISK OFFICERS
& MARKET RISK MANAGERS
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COMPREHENSIVE
MARKET RISK
SOLUTION FOR
BUY-SIDE AND
SELL-SIDE FIRMS
BUILT ON BLOOMBERG’S DATA, PRICING
ANALYTICS, OMS AND DISTRIBUTION
Designed to help firms quickly identify risk in
the trading book and manage it more easily, the
Bloomberg Enterprise Risk solution delivers
comprehensive market risk analysis in a powerful,
versatile and highly intuitive experience.
Risk management teams can rely on this solution to
create transparent views of enterprise risk across
the firm or business unit and drill down all the way
to specific positions. Together, comprehensive risk
measurement capabilities and broad asset class
coverage empower market risk managers to gauge
risk levels precisely and make faster, more incisive
recommendations for the firm.
The solution makes regulatory compliance faster
and more effective too. It features required risk
measures, including VaR, VaR backtesting, stressed
VaR, counterparty exposure, issuer concentration,
leverage, sensitivities and complete stress testing
capabilities and risk limits. In other words, risk
teams have all the information they need to meet
regulatory requirements on the buy side or the
sell side.
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Address Basel 2.5/3,
CCAR, DFAST and EUwide stress tests on the
sell side and Form PF,
UCITS and AIFMD on
the buy side.
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Enterprise Risk Solution
Bloomberg
Data
Bloomberg
Price Analytics
Bloomberg
Order Management
Systems
Bloomberg
Distribution
Because this solution integrates seamlessly
with the Bloomberg solutions and services that
firms already use in daily workflow, it gives market
risk teams access to:
• High-quality market and reference data to fuel
precise, granular risk calculations and reporting
• Extensive pricing analytics for any security
covered by the Bloomberg Professional® service
• Easily integrated positions pulled directly from
Bloomberg Asset and Investment Manager
(AIM), Bloomberg Trade Order Management
Solutions (TOMS), Bloomberg Sell-Side
Execution and Order Management Solutions
(SSEOMS) or delivered through automatic feeds
• Faster distribution of output and reports through
the Bloomberg Professional service
And as a hosted technology, the Enterprise Risk
solution provides exceptional speed, reliability and
cost-efficiency, without the need for firms to make
drastic changes to existing IT infrastructure.
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Give risk managers
access to extensive
data, powerful analytics
and easy distribution to
decision-makers.
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COMPREHENSIVE
RISK ANALYSIS
VALUE AT RISK, STRESS TESTING AND GREEKS
The Bloomberg Enterprise Risk solution includes all the standard risk measures the buy side and sell side rely
on for internal risk management, management reporting, investor reporting and regulatory compliance. These
comprehensive capabilities allow firms to consolidate all risk calculations in one place.
• Access more than 500 risk measures across
300 security types
• Run all required risk measures, including
VaR, stressed VaR, backtesting, stress tests
and Greeks
• Use flexible slice-and-dice capabilities to drill
down to individual securities and see the impact
at any level of the firm
• Perform advanced VaR analysis, calculating VaR
and stressed VaR against movements of specific
variables and asset types
• Identify significant moves easily with complete
transparency in day-over-day changes and
historical trends
• Automate required calculations for compliance
• Run stress tests from a library that includes
historical crisis scenarios, regulatory stress tests
and asset-class-specific scenarios — or design
your own in SHOC, our scenario designer
SOPHISTICATED STRESSED VAR
CALCULATIONS ARE CRITICAL
FOR MEETING NEW REGULATORY
REQUIREMENTS.
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Run stress tests from
a library that includes
historical crisis scenarios,
regulatory stress
tests and asset-classspecific scenarios.
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CUSTOMIZE
YOUR OUTLOOK
PERSONALIZE YOUR MARKET RISK PERSPECTIVE
Every firm has unique regulatory, investor and internal risk management requirements. To support as many
of these needs as possible, the Bloomberg Enterprise Risk solution is designed to be highly configurable.
Dashboards are customizable. Detailed views can be set up to show the most important results for your
trading strategies. In addition, risk models can be configured at a highly granular level.
• Choose risk models for specific instruments
or asset classes, configure data settings and
control aggregation
• Create unique perspectives with customizable
dashboards and detailed views
• Set up your firm structure with complete flexibility,
so you can easily assess risk at the firm or
business unit level as well as evaluate individual
traders and portfolio managers
• Implement custom risk calculations and
consolidate all your risk calculations in one system
• Create custom stress scenarios by stressing
multiple market variables
• Use Bloomberg industry classifications and
other reference data to precisely understand
risk exposures
CUSTOMIZABLE INTERACTIVE
DASHBOARDS MAKE IT FAST AND
EASY FOR RISK MANAGERS TO ACCESS
AND SHARE IMPORTANT METRICS.
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Visualize data in the way
that makes the most
sense for your team, your
firm and your strategy.
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STREAMLINE
YOUR WORKFLOW
ENHANCE SPEED, EFFICIENCY
AND ENTERPRISE PRODUCTIVITY
When risk solutions do not provide sufficient analytics, asset class coverage or functionality, they create more
problems than they solve. Lacking coverage of business or regulatory requirements means risk teams spend
more time supporting multiple systems, performing manual calculations and creating reports. The Bloomberg
Enterprise Risk solution helps eliminate these costly, time-consuming processes, so firms can use internal
resources more efficiently and analysts can be more productive, spending more time doing what they do best.
• Correct and sign off on risk reporting batches
quickly and easily
• Perform real-time exception handling with full proxy
capability using Bloomberg Security Master data
• Archive all risk statistics daily
• Gain immediate access to sophisticated data
and analytics, covering all securities that are
priced on the Bloomberg Professional service
• Offload the burden of system management to
a hosted platform that is automatically monitored,
maintained and upgraded
• Expect consistent, continuous performance
because Bloomberg monitors systems 24/7/365
to ensure quality and prevent issues
• Scale up risk measurement and analysis easily
as trade volumes rise exponentially
• Receive world-class service and support from
seasoned experts who understand how to get
the most out of your solution
INTEGRATE YOUR
EXPERIENCE
CHOOSE A SOLUTION DESIGNED
TO WORK WITH CURRENT PLATFORMS
The Bloomberg Enterprise Risk solution is not only a stand-alone application. It is also part of an integrated
family of offerings financial firms rely on every day. Specifically, the Enterprise Risk solution is fully integrated
with Bloomberg Order Management Systems, AIM, TOMS, SSEOMS, the Bloomberg Professional service
and our Reference Data Services. And the advantages of this integration are powerful.
• Pull positions automatically from Bloomberg
platforms without complex implementations
or processing
• Use Bloomberg connectivity and
integration solutions to implement feeds
from non-Bloomberg platforms
• Push risk information to traders, portfolio
managers, CROs, CIOs, compliance managers
and other senior managers using existing
Bloomberg infrastructure, setting the stage
for more effective collaboration
• Create stress scenarios easily with SHOC,
Bloomberg’s scenario designer
• Access sophisticated pricing analytics for
every security covered by the Bloomberg
Professional service
• Fuel risk computations and aggregation with
trusted market data from Bloomberg Reference
Data Services
PULL POSITIONS AUTOMATICALLY
FROM AIM, TOMS AND THE BLOOMBERG
PROFESSIONAL SERVICE.
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ENTERPRISE RISK
AIMS
TOMS
SSEOMS
The Bloomberg Enterprise
Risk solution is specifically
designed to work with
Bloomberg Order
Management Systems.
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EXTENSIVE
RISK MEASURES
The Bloomberg Enterprise Risk solution gives
risk management teams access to an extensive
array of metrics.
VAR
STRESS TESTS
GREEKS
• VaR
• Stressed VaR
• VaR Backtesting
• Asset Class VaR
• Marginal VaR
• Incremental VaR
• Expected Shortfall
• Standard Deviation
• Relative VaR/Tracking Error
(Clients Provide Benchmark)
HISTORICAL CRISIS
SCENARIOS
• European Debt Crisis 2011
• Global Financial Crisis 2008
• US Subprime Credit Crisis 2007
• Second Gulf War Crisis 2003
• 9/11 Terrorist Attack Crisis 2001
• Dot Com Bubble Crisis 2000
• Russian Default Crisis 1998
• Asian Financial Crisis 1997
• Mexican Credit Crisis 1994
• First Gulf War Crisis 1990
• Wall Street Crash of 1987
RATES
• IR01 Currency FWD
• IR01 Currency Spot
• IR01 Parallel Spot
• Vega Cube
ASSET CLASS SHOC
SCENARIOS
• Rate Curves
• Volatility Surface
• FX
• Equity
• Spread Curves
• Inflation
REGULATORY STRESS TESTS
• Form PF
EQUITY
• Delta by Name
• Vega by Name
• Equity Vega
• Vega Cube
FX
• FX Delta by CCY
• FX Vega
CREDIT
• CR01 by Tenor
• Rating by Tenor
• Name Risk
• Sector Risk
ABOUT
BLOOMBERG
TRADING
SOLUTIONS
Bloomberg Trading Solutions addresses your entire
workflow with front-end portfolio, inventory, sales
and trading, and middle and back office operations
solutions for buy-side and sell-side firms. Fully
integrated with the Bloomberg Professional
service, our solutions ensure faster, easier access
to trusted financial news, data and analytics, with
coverage of multiple asset classes.
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Bloomberg Trading Solutions and the
Bloomberg Enterprise Risk solution
enable firms to manage market risk more
easily and prepare to meet the rapidly
changing needs of markets, regulators
and investors. To learn more, contact our
Market Risk team at [email protected]
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The data included in these materials are for illustrative purposes only. ©2014 Bloomberg L.P. All rights reserved. S47015500 0914