Challenge

Validating risk models is one of the most painstaking tasks confronted during an implementation. There is often more than one risk model for any given security type and many configuration choices available for mapping decisions within any given model. Often this is performed in parallel with the development of a position feed and can lead to either very limited options or expensive development cycles each time changes are required.

Solution

By including the full schema for every model, Red Swan’s Map Editor does not impose any limitation on modeling choices. This allows the user to test any mapping configuration without a development cycle. Built-in validation tools assist in properly configuring all required fields and identifying any missing fields before it even gets sent to RiskMetrics. The Translator automatically generates an RML file and loads it into RiskManager where the results can be analyzed with our Log Reader to determine what loaded successfully and the cause of any failures.

Result

The risk model validation and testing cycle is shortened dramatically without any constraints of the available choices in the model. Model decisions can be evaluated quickly with minimal manual intervention. This allows risk analysts to choose the most optimal model, not just the one that is easiest to configure. Ultimately this leads to better, more reliable risk reporting with the most current models.