BIRS Risk Solutions
In June 2008, Bridge Independent Risk Solutions ‘BIRS’ was created by MJ Hudson Bridge in partnership with Independent Risk Monitoring Limited (‘IRML’), now ARKUS Financial Services.
BIRS provides flexible and independent risk management solutions, including portfolio risk measurement, independent pricing of derivatives, risk analysis, interpretation and investigation to asset managers meeting UCITS and AIFMD regulatory requirements.
Risk Management Process
MJ Hudson Bridge will formalise and document a sound Risk Management Process ensuring compliance with the latest regulatory guidance and best market practice. MJ Hudson Bridge will prepare a Risk Management Policy which will include a Risk Profile for each of your portfolios, which includes:
- Key Risk Identification: risks inherent to your portfolios based on the analysis of investment objectives, policies and constraints
- Market Risks: appropriate measures based on the assets and strategies of your portfolios, including IRR, Net equity delta, Net DV01, Net CS01
- Borrowing & Exposure: Gross and Commitment Leverage
- Liquidity Risk: liquidity management & profiling techniques
- Operational Risk: risk assessment profiling, due diligence and ongoing oversight.
Data is fed directly from a Fund’s administrator/depositary to BIRS. Following the completion of an Integrity check of the data uploaded, it is uploaded to RiskRadarTM the proprietary risk system of ARKUS.
RiskRadarTM creates reports covering a comprehensive range of risk metrics ( Market Risk, Liquidity, Counterparty and Concentration)
- UCITS compliant risk report: allows you to monitor the compliance of your portfolios with UCITS regulatory requirements
- Global Exposure: VaR vs. Commitment Approach (including netting and hedging arrangements)
- Back Testing & Stress Testing: historical as well as factor stresses
- Liquidity Risk Monitoring: Asset and Liability side including stress testing redemptions
- Counterparty Risk Monitoring: OTC limits and combined
- SRRI: calculation and alert if falling outside current
- OTC: independent valuation