Risk Management Systems

Risk management systems facilitate both the calculation and the assessment of the investment risk of security holdings. Not only in accordance with statutory ob­li­ga­tions for capital investment companies, these sys­tems' employment form rather the mainstay for man­aging the various assets separately. The risk profiles of the individual objects as well as of the combined assets have to be taken into account.

The employees of NOVOSEC have profound knowl­edge of designing, implementing and supporting the following components:

Calculation of Market Price Risks

The individual fund assets have to be aggregated to a composite risk at the fund level, whilst observing the relevant correlations.

Limit Load

The assessed fund risks have to be confronted with the specified comparison assets and a limit load must be determined. Daily supervision is necessary to react immediately to a possible infraction of stat­u­to­ry or contractual limits. A system-based monitoring pair­ed with powerful notification functionality is a prime control instrument for fund managers.


In accordance with derivative regulation, a daily back-­

test­ing result has to be calculated on the fund level, com­par­ing the actual fund developments to the pre­dict­ed risk indices.

Data Supply and Processing

Whether it be multiple external systems or providers, large amounts of data are supplied daily, from which cor­re­spond­ing reports have to be generated and pre­sent­ed to the fund managers.

NOVOSEC has many years of experience in building and integrating risk management systems. Ensuring the stability and reliability of highly critical applications is a core competence of our company.