In keeping with the provisions of this partnership, Odyssey has embedded RiskMetrics Groupâs risk statistics, which are made available through a âSoftware as a Serviceâ (SaaS) model. Hosted Application Services are managed by RiskMetrics Group as an Application Service Provider (ASP).
Fully integrated with Odyssey's TripleâA PlusTM platform and adapted to the specifics of private wealth management and separately managed accounts, the Portfolio Risk module sets up a risk tolerance to measure and manage risk, using a variety of risk statistics. It also efficiently monitors portfolio risk suitability at enterprise and client/portfolio levels and offers a more standardised, streamlined, disciplined approach to risk-adjusted portfolio management. Financial institutions can then communicate the risk to clients and provide full details in a high quality report.
Didier Pitton, Product Marketing Director, Odyssey, comments: âDriven by competition, compliance and the increasing sophistication of investment products, financial institutions have to implement strict rules to protect private investors and ensure they understand and manage their portfolioâs risk. Odysseyâs Portfolio Risk module helps wealth managers to provide private investors with more detailed guidance on the risks of investment strategies and the instruments proposed. This includes more practical information on how risk materialises, how correlations affect portfolios and the degree to which diversification can reduce risk. It also allows wealth managers to offer more in-depth information on how abnormal market conditions could impact portfolios.â
The solution will empower Odysseyâs clients to verify the compliance of portfolios with pre-trade risk impact suitability tests and create risk threshold alerts for all risk statistics. Odyssey clients can take advantage of RiskMetrics Group's broad universe of financial instruments, reliable time series and well documented risk methodology through a single contract with Odyssey.
Martin Spencer, Head of RiskMetrics Wealth Management Business, Europe, adds: âTodayâs investment and regulatory landscape requires a rigorous risk management culture with supporting risk tools and analytics. By embedding RiskMetrics Groupâs portfolio risk analytics we have strengthened Odysseyâs private wealth management solution ensuring its clients have access to the very best in portfolio risk.â