PortfolioScience: Charting A Robust Path Through Reliable Analysis

Ittai Korin, Founder and CEO
A rigorous risk analysis infrastructure is the strongest arrow in the quiver for both buy-side and sell-side of organizations to combat unprofitable investments, halt prospective counter-party exposure, and leverage risk occurrences through innovation and development. The approach to risk assessment has changed dramatically in recent years, due to wider adoption of automated systems and cloud computing technologies that deliver greater analytical and systemic monitoring capabilities. In the same light, Application Programming Interfaces (API’s) are widely used by both buy-side and sell-side entities to tie in analytics and data from multiple systems. This is done to provide advanced, systemic exposure analysis to both in-house users and to outside clients. As a result, the concept of an API-driven risk engine in the cloud is gaining more traction in the enterprise risk analysis marketplace. As key drivers of cloud-based risk analytics in the financial sector, PortfolioScience delivers a comprehensive solution set, demonstrating that there is more to this risk vendor than meets the eye.

Bolstered by its risk engine in the cloud called RiskAPI®, PortfolioScience’s service includes a robust and dynamic system to identify and analyze market risk. The solution focuses exclusively on quantitative risk calculations used to identify and evaluate such exposures (such as Value at Risk and stress testing). As opposed to serving as a reporting or graphical interface-driven application for risk analysis, the solution is entirely quantitative and numerical in nature, includes all required market data, and is accessible in a purely programmatic manner. “Instead of approaching customers, partners, and potential consumers in the sector and saying, ‘Here is an application,’ we say, ‘Here is a quantitative engine that includes all the data you’ll need,’” states Ittai Korin, Founder and CEO of PortfolioScience. RiskAPI provides customers with a variety of analytical functions that can be specifically controlled, combined, and integrated through a customizable programmatic API. The API is designed to be accessible by any programming language a company employs, regardless of its coding methodology. As a result, a development team can quickly integrate and execute risk analysis according to simple or complex risk requirements. Since the relevant market data is also included as part of RiskAPI, it is often fully integrated by clients in a matter of days or weeks rather than months or more.

PortfolioScience’s users include buy-side firms such as hedge funds and commodity producers, sell-side firms such as execution providers and clearing firms, and software service providers such as order management systems (OMS’s), reporting providers, and commodity/energy trading & risk management systems (CTRM/ETRM’s).


Instead of approaching customers, partners, and potential consumers in the sector and saying, ‘Here is an application,’ we say, ‘Here is a quantitative engine

RiskAPI supports businesses with a multitude of risk model requirements for positions and portfolios, such as multi-model Value at Risk, derivative valuation, and exposure analysis. The system also includes stress testing, an integral part of the risk assessment processes for many market and regulatory participants. Through stress testing, portfolio managers, traders, and risk officers can estimate potential losses by modeling shock scenarios and applying them to portfolios in order to measure potential losses, crucially, before they take place.

RiskAPI is available as two distinct services: The RiskAPI Enterprise service and the RiskAPI Add-In. The former allows firms to integrate PortfolioScience’s risk engine into their framework, via Java, .Net, Python, or REST. The latter, the RiskAPI Add-In, provides a single-user Excel interface into the system, allowing desktop users to easily connect to and utilize the many quantitative features of the risk engine within a spreadsheet environment. The Add-In is an affordable, but robust alternative to an enterprise risk system, providing easier access to the cloud API for funds, trading desks, or entities without coding capabilities. Also available is the Factor Index Toolset, which includes a set of API methods that allow users to create time-series data for bespoke factor indexes based on a variety of statistical and fundamental metrics. Each version of the service allows numerous RiskAPI calculations to be easily selected and applied across funds, portfolios, positions, or user-defined categories to produce multi-layered risk results and analysis.

These benefits, along with the company’s 20 years of experience in the industry, fortifies the risk posture and analytical capabilities of its clients, making it a one-of-a-kind service provider in the marketplace.

Company
PortfolioScience

Management
Ittai Korin, Founder and CEO

Description
PortfolioScience is a risk management technology company that works with financial institutions, brokerages, hedge funds, commodity producers, and software companies. The firm’s solutions provide fund managers, traders, risk officers, and investors with on-demand access to sophisticated risk analysis capabilities.PortfolioScience’sserviceincludesa robust and dynamic system to identify and analyze market risk. The solution focuses exclusively on quantitative risk calculations used to identify and evaluate such exposures (such as Value at Risk and stress testing)