>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> ENTERPRISE RISK Bloomberg Trading Solutions MANAGE RISK WITH CONFIDENCE SHARPEN YOUR VIEW Managing risk is more critical than ever. And more complex. Risk managers must contend with rapidly evolving regulatory requirements, front-ofﬁce demands and investor priorities—not to mention technology and data challenges—all with limited resources. Bloomberg Trading Solutions can help. Our Enterprise Risk solution enables buy-side and sell-side ﬁrms to create comprehensive views of market risk, mitigate daily risk and prepare for periods of unexpected stress. >>>>> MAKE INFORMED TRADING DECISIONS AND DRIVE REGULATORY COMPLIANCE WITH A SOLUTION DESIGNED FOR CHIEF RISK OFFICERS & MARKET RISK MANAGERS >>>>>>>>>>>> COMPREHENSIVE MARKET RISK SOLUTION FOR BUY-SIDE AND SELL-SIDE FIRMS BUILT ON BLOOMBERG’S DATA, PRICING ANALYTICS, OMS AND DISTRIBUTION Designed to help ﬁrms quickly identify risk in the trading book and manage it more easily, the Bloomberg Enterprise Risk solution delivers comprehensive market risk analysis in a powerful, versatile and highly intuitive experience. Risk management teams can rely on this solution to create transparent views of enterprise risk across the ﬁrm or business unit and drill down all the way to speciﬁc positions. Together, comprehensive risk measurement capabilities and broad asset class coverage empower market risk managers to gauge risk levels precisely and make faster, more incisive recommendations for the ﬁrm. The solution makes regulatory compliance faster and more effective too. It features required risk measures, including VaR, VaR backtesting, stressed VaR, counterparty exposure, issuer concentration, leverage, sensitivities and complete stress testing capabilities and risk limits. In other words, risk teams have all the information they need to meet regulatory requirements on the buy side or the sell side. °°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°° Address Basel 2.5/3, CCAR, DFAST and EUwide stress tests on the sell side and Form PF, UCITS and AIFMD on the buy side. °°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°° Enterprise Risk Solution Bloomberg Data Bloomberg Price Analytics Bloomberg Order Management Systems Bloomberg Distribution Because this solution integrates seamlessly with the Bloomberg solutions and services that ﬁrms already use in daily workﬂow, it gives market risk teams access to: • High-quality market and reference data to fuel precise, granular risk calculations and reporting • Extensive pricing analytics for any security covered by the Bloomberg Professional® service • Easily integrated positions pulled directly from Bloomberg Asset and Investment Manager (AIM), Bloomberg Trade Order Management Solutions (TOMS), Bloomberg Sell-Side Execution and Order Management Solutions (SSEOMS) or delivered through automatic feeds • Faster distribution of output and reports through the Bloomberg Professional service And as a hosted technology, the Enterprise Risk solution provides exceptional speed, reliability and cost-efﬁciency, without the need for ﬁrms to make drastic changes to existing IT infrastructure. °°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°° Give risk managers access to extensive data, powerful analytics and easy distribution to decision-makers. °°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°° COMPREHENSIVE RISK ANALYSIS VALUE AT RISK, STRESS TESTING AND GREEKS The Bloomberg Enterprise Risk solution includes all the standard risk measures the buy side and sell side rely on for internal risk management, management reporting, investor reporting and regulatory compliance. These comprehensive capabilities allow ﬁrms to consolidate all risk calculations in one place. • Access more than 500 risk measures across 300 security types • Run all required risk measures, including VaR, stressed VaR, backtesting, stress tests and Greeks • Use ﬂexible slice-and-dice capabilities to drill down to individual securities and see the impact at any level of the ﬁrm • Perform advanced VaR analysis, calculating VaR and stressed VaR against movements of speciﬁc variables and asset types • Identify signiﬁcant moves easily with complete transparency in day-over-day changes and historical trends • Automate required calculations for compliance • Run stress tests from a library that includes historical crisis scenarios, regulatory stress tests and asset-class-speciﬁc scenarios — or design your own in SHOC, our scenario designer SOPHISTICATED STRESSED VAR CALCULATIONS ARE CRITICAL FOR MEETING NEW REGULATORY REQUIREMENTS. °°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°° Run stress tests from a library that includes historical crisis scenarios, regulatory stress tests and asset-classspeciﬁc scenarios. °°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°° CUSTOMIZE YOUR OUTLOOK PERSONALIZE YOUR MARKET RISK PERSPECTIVE Every ﬁrm has unique regulatory, investor and internal risk management requirements. To support as many of these needs as possible, the Bloomberg Enterprise Risk solution is designed to be highly conﬁgurable. Dashboards are customizable. Detailed views can be set up to show the most important results for your trading strategies. In addition, risk models can be conﬁgured at a highly granular level. • Choose risk models for speciﬁc instruments or asset classes, conﬁgure data settings and control aggregation • Create unique perspectives with customizable dashboards and detailed views • Set up your ﬁrm structure with complete ﬂexibility, so you can easily assess risk at the ﬁrm or business unit level as well as evaluate individual traders and portfolio managers • Implement custom risk calculations and consolidate all your risk calculations in one system • Create custom stress scenarios by stressing multiple market variables • Use Bloomberg industry classiﬁcations and other reference data to precisely understand risk exposures CUSTOMIZABLE INTERACTIVE DASHBOARDS MAKE IT FAST AND EASY FOR RISK MANAGERS TO ACCESS AND SHARE IMPORTANT METRICS. °°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°° Visualize data in the way that makes the most sense for your team, your ﬁrm and your strategy. °°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°° STREAMLINE YOUR WORKFLOW ENHANCE SPEED, EFFICIENCY AND ENTERPRISE PRODUCTIVITY When risk solutions do not provide sufﬁcient analytics, asset class coverage or functionality, they create more problems than they solve. Lacking coverage of business or regulatory requirements means risk teams spend more time supporting multiple systems, performing manual calculations and creating reports. The Bloomberg Enterprise Risk solution helps eliminate these costly, time-consuming processes, so ﬁrms can use internal resources more efﬁciently and analysts can be more productive, spending more time doing what they do best. • Correct and sign off on risk reporting batches quickly and easily • Perform real-time exception handling with full proxy capability using Bloomberg Security Master data • Archive all risk statistics daily • Gain immediate access to sophisticated data and analytics, covering all securities that are priced on the Bloomberg Professional service • Ofﬂoad the burden of system management to a hosted platform that is automatically monitored, maintained and upgraded • Expect consistent, continuous performance because Bloomberg monitors systems 24/7/365 to ensure quality and prevent issues • Scale up risk measurement and analysis easily as trade volumes rise exponentially • Receive world-class service and support from seasoned experts who understand how to get the most out of your solution INTEGRATE YOUR EXPERIENCE CHOOSE A SOLUTION DESIGNED TO WORK WITH CURRENT PLATFORMS The Bloomberg Enterprise Risk solution is not only a stand-alone application. It is also part of an integrated family of offerings ﬁnancial ﬁrms rely on every day. Speciﬁcally, the Enterprise Risk solution is fully integrated with Bloomberg Order Management Systems, AIM, TOMS, SSEOMS, the Bloomberg Professional service and our Reference Data Services. And the advantages of this integration are powerful. • Pull positions automatically from Bloomberg platforms without complex implementations or processing • Use Bloomberg connectivity and integration solutions to implement feeds from non-Bloomberg platforms • Push risk information to traders, portfolio managers, CROs, CIOs, compliance managers and other senior managers using existing Bloomberg infrastructure, setting the stage for more effective collaboration • Create stress scenarios easily with SHOC, Bloomberg’s scenario designer • Access sophisticated pricing analytics for every security covered by the Bloomberg Professional service • Fuel risk computations and aggregation with trusted market data from Bloomberg Reference Data Services PULL POSITIONS AUTOMATICALLY FROM AIM, TOMS AND THE BLOOMBERG PROFESSIONAL SERVICE. °°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°° ENTERPRISE RISK AIMS TOMS SSEOMS The Bloomberg Enterprise Risk solution is speciﬁcally designed to work with Bloomberg Order Management Systems. °°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°° EXTENSIVE RISK MEASURES The Bloomberg Enterprise Risk solution gives risk management teams access to an extensive array of metrics. VAR STRESS TESTS GREEKS • VaR • Stressed VaR • VaR Backtesting • Asset Class VaR • Marginal VaR • Incremental VaR • Expected Shortfall • Standard Deviation • Relative VaR/Tracking Error (Clients Provide Benchmark) HISTORICAL CRISIS SCENARIOS • European Debt Crisis 2011 • Global Financial Crisis 2008 • US Subprime Credit Crisis 2007 • Second Gulf War Crisis 2003 • 9/11 Terrorist Attack Crisis 2001 • Dot Com Bubble Crisis 2000 • Russian Default Crisis 1998 • Asian Financial Crisis 1997 • Mexican Credit Crisis 1994 • First Gulf War Crisis 1990 • Wall Street Crash of 1987 RATES • IR01 Currency FWD • IR01 Currency Spot • IR01 Parallel Spot • Vega Cube ASSET CLASS SHOC SCENARIOS • Rate Curves • Volatility Surface • FX • Equity • Spread Curves • Inﬂation REGULATORY STRESS TESTS • Form PF EQUITY • Delta by Name • Vega by Name • Equity Vega • Vega Cube FX • FX Delta by CCY • FX Vega CREDIT • CR01 by Tenor • Rating by Tenor • Name Risk • Sector Risk ABOUT BLOOMBERG TRADING SOLUTIONS Bloomberg Trading Solutions addresses your entire workﬂow with front-end portfolio, inventory, sales and trading, and middle and back ofﬁce operations solutions for buy-side and sell-side ﬁrms. Fully integrated with the Bloomberg Professional service, our solutions ensure faster, easier access to trusted ﬁnancial news, data and analytics, with coverage of multiple asset classes. °°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°° Bloomberg Trading Solutions and the Bloomberg Enterprise Risk solution enable ﬁrms to manage market risk more easily and prepare to meet the rapidly changing needs of markets, regulators and investors. To learn more, contact our Market Risk team at [email protected] °°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°° BEIJING +86 10 6649 7500 FRANKFURT +49 69 9204 1210 LONDON +44 20 7330 7500 NEW YORK +1 212 318 2000 SÃO PAULO +55 11 2395 9000 SYDNEY +61 2 9777 8600 DUBAI +971 4 364 1000 HONG KONG +852 2977 6000 MUMBAI +91 22 6120 3600 SAN FRANCISCO +1 415 912 2960 SINGAPORE +65 6212 1000 TOKYO +81 3 3201 8900 bloomberg.com/trading-solutions/risk The data included in these materials are for illustrative purposes only. ©2014 Bloomberg L.P. All rights reserved. S47015500 0914