Partnership with SAS offers expanded options for BookRunner® clients
By Jeff Hasmann
To counter the high volatility of energy markets, measuring and managing risk has become a top priority for industry players. With RiskAdvisory's BookRunner®, energy market participants can first capture market positions and then proactively measure and manage the risk and credit exposure associated with energy market volatility. Now RiskAdvisory's clients can add even greater depth to their risk management with products from SAS, RiskAdvisory's parent company.
SAS provides business intelligence software solutions to 40,000 sites around the globe and is the industry leader in integrating data warehousing, analytics and traditional business intelligence tools to create intelligence from masses of data.
SAS® Risk Dimensions® equips organizations to exploit data from numerous, disparate operations. It provides a decision-support environment that measures and manages both credit and market risk in the manner most appropriate for an organization's needs. For instance, BookRunner® users can seamlessly export market and trade data to SAS Risk Dimensions to perform simulations that generate additional cashflow-at-risk and credit risk distributions.
SAS Risk Dimensions offers the flexibility to view information at whatever level of aggregation detail is required. In addition, the advanced reporting capabilities including exploring results from within a Web browser allow risk managers, senior management and others to access and communicate risk measures across the entire enterprise.
BookRunner® users can also access additional simulation abilities using SAS Risk Dimensions. For instance, a company could build several portfolios based on different relationships between risk and return. This ability is particularly useful for BookRunner® clients who do a great deal of hedging or would like to incorporate more hedging into their business. Being able to generate multiple scenarios with just one run helps you more accurately monitor your risk, says Brian Nicholson, RiskAdvisory's manager of software development.
Portfolios can be evaluated by taking both collateral and complex netting agreements into consideration. Netting can be performed at any level of the organization. Multilevel netting allows the netting effect to be evaluated on combined levels. By supplementing BookRunner® with SAS Risk Dimensions, organizations can build a complete risk platform that encompasses the front, middle and back offices.
RiskAdvisory's clients may also employ SAS Credit Scoring to assess counterparty risk. For companies that already use SAS Enterprise MinerTM, risk scoring is a cost-effective upgrade. SAS Credit Scoring helps companies accurately develop and track credit risk scores in-house, thereby reducing business risk, maximizing revenue opportunities and providing better services to customers. For instance, BookRunner® users can incorporate credit scoring to seamlessly calculate probability of default, which can then be put into BookRunner®. With in-house capabilities, users can customize the scoring process and respond more quickly to changing demands.
With SAS Risk Dimensions and SAS Credit Scoring, BookRunner® clients have options that will seamlessly enhance their risk management strategies. For more information about SAS Risk Dimensions and SAS Credit Scoring, please visit www.sas.com/news/feature/03may04/risk.html and www.sas.com/solutions/crm/scoring/ .
Jeff Hasmann is Director of Risk Solutions for SAS Institute. He can be reached at jeff.hasmann@sas.com