AspectCTRM’s Commodity Risk Management Module provides a powerful credit and market risk solution, and an affordable alternative to using spreadsheets. Address a multitude of risks including: price, volume, volatility, quality, delivery counterparty, credit and multi-currency, with a full spectrum of physical and financial tools. The second data is entered into AspectCTRM, users can perform instant analysis and monitor individual portfolios and exposure across the organization. Aspect clients are able to integrate this Module with their internal systems to complete the cycle and gain real-time commodity risk management and analysis controls.
AspectCTRM features best-in-class functionality for credit, counterparty, market, and price-related risks. The global recession has pushed companies to perform better, reduce costs, create more profits, manage counterparty credit risk more closely, and obtain credit in a tight market. The resulting demand on CTRM systems includes more simulation and “what-if” analytics; supporting financial services companies who are taking more active physical positions – and delivering more proactive risk management capabilities and visibility throughout the enterprise.
A series of several studies conducted over the years revealed that 91% of the spreadsheets surveyed contained errors. A simple, honest mistake can cost a company millions in losses, and many have learned firsthand the hard way. What is the use of spreadsheets to manage trading and risk activity costing your business? Waving a spreadsheet at the bank is no longer acceptable in today’s climate when trying to secure credit. Banks require risk reporting from professional systems.
Default risk is higher than ever and maintaining credit worthiness is a challenge for companies of all sizes. You’re watching your exposure while your customers are watching theirs. With AspectCTRM, you gain best practices reports and management to control credit risk exposure and ensure the companies you’re doing business with can pay for services. AspectCTRM delivers all the reports you need, including: Real-time risk exposure reports by counterparty; credit limits and warnings notifications; trade entry preventions for violators; exposure reports for contracted, delivered, invoiced and overdue transactions; over-the- limit and threshold reports and more.
AspectCTRM calculates P&L, exposure and VaR in real time and reports by portfolio, strategy, book, trader, region and more. Like our Trade Management functions, it relies on OLAP reporting tools that are used to continuously update and monitor physical and financial portfolios with exposure reporting intraday and in real-time as market prices are updated. Most vendors perform inter-day risk calculations over many hours which puts AspectCTRM users at an advantage in the market. Aspect Enterprise Solutions also builds risk reports tailored to individual corporations. For example, various versions of a daily report have been produced that provide a quantitative assessment of the various risks in each portfolio, with drill-down/drill-around functions to allow the identification of relevant events which give rise to sudden changes in exposure and position.
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