Red Swan Risk is enhancing its multi-asset class portfolio risk management solution, RiskON, through Asset Control’s managed service offering, PaSSPort, to provide a seamless data experience to its clients. The collaboration between the two companies will provide asset managers with a managed service which delivers a data mastering, data analytics and model risk solution.

Hedge funds, pension funds, funds of funds, asset managers and banks need to manage model risk with increasingly more control and transparency. This has to be done across data inputs, model configuration, statistics, stress scenarios, reporting and analysis. Front office risk management, as well as back office oversight, require these capabilities.

“Teaming up with John Matwey and the team at Red Swan Risk is a great way to leverage PaSSPort to help clients take advantage of RiskOn suite of analytics tools, but to do so in a sustainable framework that delivers operational advantages that can easily be extended beyond the initial use,” Nathan Wolaver, MD of the Americas for Asset Control, said. “This example is further proof of our capabilities in proving a trusted foundation for partners that are looking to accelerate their delivery timelines and give their clients an easier operating model.”

“Asset managers face an ongoing struggle to manage model risk challenges, including model selection, model configurations, market data and reference data,” Matwey, founding partner of Red Swan Risk, said. “Together with Asset Control, Red Swan can provide more powerful tools for validating and managing the critical reference data that impacts model risk. We are excited to work with Nathan Wolaver and the team at Asset Control to make it easier for our clients to deal with these challenges.”

Red Swan’s RiskON platform provides seamless aggregation of portfolio holdings data with security level risk and reference data using a unified data model.  This gives users the transparency and control over risk modeling decisions needed to monitor, analyze and manage model and portfolio risk through a web-based UI and API hosted on AWS.

However, supplying a model risk management solution with all the required financial product terms and conditions typically requires a separate security master solution that integrates, cross-references and validates various market data feeds. Finding and then channeling high-quality data can be difficult and time consuming.

The Red Swan/Asset Control partnership addresses the fact that asset managers today are spending too much time collecting, mastering and cleansing data before they can even take advantage of advanced technologies like RiskON. PaSSPort is providing security master as-a-service to power Red Swan Risk’s solutions with a data management system that exposes full data lineage. Clients can leverage the partnership capabilities by extending the PaSSPort scope beyond the initial RiskON use case and into the enterprise.