Red Swan Risk, a leading developer of standardized market risk data management and business processes, announced that it has been selected to manage risk reporting for Vermillion Asset Management.
Under the agreement, Red Swan will utilize its suite of risk data management tools to support Vermillion's risk process. In addition, Red Swan will continue to provide in-depth risk analysis and consulting services, working directly with Vermillion portfolio and risk managers to ensure an accurate view of portfolio risk.
"The financial services industry has put a tremendous focus on the importance of risk management over the past several years, but little attention has been paid to the importance of standardizing the risk data management processes. As a result, the industry is comprised of a patchwork of risk system deployments with varying degrees of quality and confidence in the overall risk process," said John Matwey, Red Swan Risk managing partner. "Without standard processes for managing risk data it is nearly impossible to know if end-result risk reports portray an accurate representation of an asset manager's risk profile. We are very pleased to be working with Vermillion to bring this additional layer of rigor and confidence to the risk management process."
Drew Gilbert, co-founder and managing partner at Vermillion commented, "During the past five years, Red Swan has maintained the highest standards in supporting our risk management reporting and overall risk process. Extending our relationship is an indication of the level of trust and confidence Vermillion continues to place in Red Swan."
The Red Swan Suite of Risk Processing Tools, the keystone of which is the RS Translator SM, automate risk data normalization, mapping, translation, validation, monitoring and reporting. RS Translator provides a robust and intuitive way to build and manage the complex risk mapping rules required to generate accurate risk reports. This tool, which is the first commercial software of its kind, is designed to automate the risk data mapping and reporting process, and is fully interoperable with industry standard risk analytics systems including MSCI MSCI's RiskMetrics. The Red Swan Risk Reporting Suite includes daily internal risk reports, investor risk reports and Form PF regulatory reports.