Is your data quality a risk?

Head of Global Solution Marketing & Enablement, Risk Analytics, IBM

For buy-side financial institutions, choosing a risk solution that can deal with the myriad risk, regulatory and market challenges in a volatile financial environment boils down to a single word: confidence. Are you confident in the data underlying your risk numbers?

Have confidence in your data and your risk numbers

If you are to maintain and attract clients, your clients must have confidence in your decision making. Your portfolio managers, in turn, must have confidence in the risk systems they use to make critical decisions. They must also be able to rely on the consistency and quality of the data input that makes possible the analytics supplying the foundation for such decisions. Unreliable data produces unreliable analytics, making truly risk-informed decision making impossible—thereby undermining clients’ confidence and threatening the profitability and growth of your business.

In trying to meet this challenge, buy-side financial institutions are on the horns of a dilemma. Clients and portfolio managers alike demand that accurate, reliable data be the foundation of a firm’s risk analytics—but cost-effectiveness is ever more important to senior managers and executives. Taking a traditional approach, using data from multiple sources, presents a number of obstacles, including the difficulty of sourcing reliable data and the challenge of managing different data sources. Accordingly, such an approach can heighten total costs of ownership while also making them difficult to predict.

Buy-side firms face a crucial question: How can you select a risk solution that gives you confidence in your risk numbers—all while optimizing cost-efficient return on investment (ROI)? Confidence is integral to the equation:

confidence in the risk system itself + assurance of data quality = confidence in your risk analytics confidence in your risk system

Choosing a provider that enjoys an established reputation in the industry can help buy-side firms confidently select the risk system that is right for them. Look for solutions whose award-winning pedigree offers not only the power and sophistication to meet the risk requirements of multi-asset portfolios, but also the speed and flexibility to meet the everyday business needs of portfolio managers.

Reliable market data separates good analytics from best-in-class analytics, for the investment decisions your portfolio managers make are informed by your risk analytics. Ensuring the accuracy and consistency of data inputs into your risk analytics, as well as being transparent about how data is collected and managed, helps create confidence in the resulting risk numbers—and thus in your managers’ risk-informed decision making.

Empower your risk analytics

Today, buy-side firms can supply both of these requirements for risk analytics with IBM Algo Risk Service on Cloud. Offering the advanced capabilities of a customizable, on-premises risk solution in a cloud-based service, this solution provides award-winning risk analytics and multi-asset class coverage with bundled market data provided by IBM Algorithmics Managed Data Services. With comprehensive and reliable market data from a single, outsourced vendor, buy-side firms not only have a cost-efficient solution—with a predictable cost structure and reduced total cost of ownership—but also a single, streamlined and integrated risk framework.  

Learn how IBM risk technology can help you better manage risk and improve business performance.

See how IBM Algo Risk Service on Cloud can contribute to client confidence—helping you drive competitive advantage and growth—by watching the following brief video: