RiskButler.com

Business

Improve financial performance and introduce a new risk culture!

Business case

Example: A company has a probability of 1 percent to lose at least USD 5 million over a 30 day time frame. The company’s risk appetite is USD 0.5 million over the same period. If we assume that without RiskButler.com the company would not be aware of the exposure, then using RiskButler.com potentially saves the company a potential loss of least USD 4.5 million.

Safe

RiskButler.com runs on a secure and flexible IT infrastructure with BigData technology. You choose it as a local system, or a partly or fully cloud-based system.

Easy

RiskButler.com is fully automated and integrated into your company by simply integrating it with the company’s existing accounting system, and it is easy to use.

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Risk limits

Your company's Board (should) decide the risk appetite for the business, and these risk exposure limits are integrated in a sophisticated yet simple manner supporting all business organisation structures. Limits are placed and tracked at the different parts of the organisation, from the entire organisation as a whole down to the individual transaction.


Become a first mover!

How we see it!

Three types

Enterprise customers can broadly be divided into three categories, and all can benefit from using RiskButler.com.

3

Companies that do not proactively take care of their financial risks, and consider it an unknown and uncontrollable factor: “sometimes we win”, “sometimes we lose”.

2

Companies that want to take care of their financial potentials, or try to hedge their financial risks, but do not have the necessary tools to do it.

1

Companies that already have some procedures and tools in use, and would like to dedicate more resources to steer their financial management.


Why?

RiskButler.com is a data-driven analytical service which simply & well-structured helps companies establish a sound risk management culture!

Understand how future movements in financial markets can affect your company’s bottom line, both positively and negatively.

Make informed risk exposure hedging decisions to avoid unwanted future losses in earnings and cash flows.

Ensure transparent risk analysis of the entire company for both internal and external stakeholders.

Focus on core competencies while having control of the financial risks and potentials (upsides).

Measure the performance risk in accordance with the latest US and international hedge accounting standards.

Ensure that the company’s risk exposure is kept within the company's economic capacity and objectively stated risk appetite.


My company?

The Return On Investment can be huge!

Which companies?

Generally, companies with a relatively large financial exposure which is about a third of all larger companies. Your business can for example be exporting, producing, commodity consuming, in logistics such as air transportion, road transportion, shipping, or in brokerage and the like.

Companies that commit themselves on export markets (e.g. currency risk) and/or are dependent on commodity prices in the production or performance of the industry, e.g. airlines are highly exposed to changes of fuel prices.

Fast track

We provide a fast track to get up and running on the technical solution.

Contact us today

We typically talk to people from finance departments (treasury departments), accounting departments, IT departments, sourcing or procurement departments, or the top management or board. Please contact us in any case, to get your questions answered.

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New possibilities

Better opportunities

A Presentation

Certainly companies in industries such as oil, mining, chemicals and banking have a history of developing sophisticated risk awareness programs. Yet, some of the most spectacular risk failings have occurred within such organisations.

Commodity price exposure is a key risk in e.g. oil, mining and chemicals. Citation from a Canadian oil executive:

“In our industry the price of oil is not something we are able to control. We must have well-developed plans to adjust our business and operational plans and, if needed, we must be prepared to implement those plans. Price impacts can be material, so you have to think this through ahead of time.”

There needs to be a culture, a process and a sophisticated technical solution for enabling successful risk management.

RiskButler.com is an advanced high quality technical solution that also provides support for the risk culture and the risk process, both for the short term and the long term.

RiskButler.com provides a fast track to get up and running on the technical solution, and as the gain of investment surpasses the cost of investment in weeks the decision to get started is easy.

Products

RiskButler.com supports all kinds of products, OTC and exchange-traded, has built-in data cleaning filters, and supports data of different frequencies including daily, hourly and minute-by-minute.

A portfolio may for example include commodities, foreign exchange, cash flows, equities (shares), bonds, mortgage backed obligations, swaps, and forwards, futures (energy, metals etc.) & options.

If your business has special products such as tailored hedging products for your clients, these can be valued and incorporated too in RiskButler.com.

Accounting

Throughout the life of a derivative contract, its value may bear little or no resemblance to its initial cost. Under those circumstances, traditional accounting practices that require instruments to be booked and carried at historical cost in financial statements become essentially meaningless.

RiskButler.com not only measures the values of the derivatives but also provides risk and opportunity numbers for the derivatives (as well as other products in the system).

Opportunity - the upside

Uncertainty is the situation of unknown future.

Opportunity is a state of uncertainty where some possible outcomes can have (significant) positive influences on your enterprise value.

Risk is a state of uncertainty where some possible outcomes can have (severe) negative influences on your enterprise value.

RiskButler.com measures and provides information on both opportunity, risk and valuation of individual financial products. This ensures unified and consistent results that are better.

Ease of use and decision-support

RiskButler.com provides ease of use, understanding and decision-support through relevant selection of information (processed data) and visualisations (diagrams) in customised opportunity & risk reports, reports that are relevant to you. Reports are on-line 24/7 and dynamic in the sense of being continuously updated to new information.

It does market risk (commodity, equity, foreign exchange, interest rate, volatility etc.), counterparty credit risk and liquidity risk.

Technical infrastructure

The normal setup is to use RiskButler.com as a Software as a Service (SaaS) i.e. a 24/7 cloud service through an internet/intranet browser. RiskButler.com can be implemented locally (within the enterprise) if wanted.

Communication is fully encrypted and portfolios are kept 100% private on your preferred devices (computer, mobile, tablet/iPad) and databases.

The technical platform is built using the newest web technologies, cloud computing and map-reduce type storage suitable for Big Data analysis. Integration to other systems is made easy by using standard internet technologies for information transfer.

Customization and specific configuration has been designed into RiskButler.com from the start so this is supported perfectly.

The method is complicated - just use it

To quantify the opportunity and the risk, RiskButler.com simulates millions of likely future outcomes (events) and pairs those outcomes with the calculated magnitudes of those events thereby estimating the enterprise (portfolio) value impact.

The Monte Carlo method, a statistical method, is used by RiskButler.com to simulate so-called multi-period & multi-variate Geometric Brownian Motion stochastic processes. A similar methodology is today used by some of the largest global financial banking institutions in controlling the institutions’ own internal financial portfolios.

Subjective opinions - own beliefs or third party estimates (polls) - of the future direction of for example oil prices can be incorporated in the simulations.

Big Data cluster analysis is an integrated part of RiskButler.com too. This is currently used to group very large data sets which is the situation if the portfolios include hundreds or thousands of different products.

Forecasting time horizon

The best risk time horizon to use depends on the products in the portfolio, the size of the portfolio and the trading activity (frequency). Typical time horizons are:

Research & development

Development is guided by your business needs and we collaborate directly on R&D with currently, two universities in Copenhagen and a major trading bank to refine the forecasting methods. RiskButler.com is patent pending.