Are ALL your positions mapped accurately in your risk system, instead of just mapping to cash because that’s how it was setup from the start? Maybe it’s time to check your exposure in real estate, construction equipment and supplies, and what effect a changing lending environment may have on your holdings.
Many times, a risk system will be implemented to run by risk solution providers, with some mappings left to be fixed later. But in the frenzy to just get the risk system in place, these remaining mappings are often left incorrectly mapped, skewing every risk report thereafter.
In order to really know a potential scenario’s effects, like a ballooning real estate bubble, managers need confidence in their risk reporting. And that starts with basics, like accurate position mapping.
Among the top 50 markets, 26 were considered overvalued and only seven were undervalued. Expanding the data out to the top 100 markets, 40 were overvalued, while 32 were at value and 28 were undervalued.
Whether a $300b asset manager or a $150b pension,
Red Swan clients rate our Map Editor software as “essential” to their risk management solution.
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