INTRODUCTION TO KAMAKURA CORPORATION RISK SOLUTIONS
The Kamakura Risk
Manager Vision
Kamakura's entire approach to financial risk measurement and
management can be summed up in four short words: Integrated, Modular,
Transparent and Flexible.
Integrated
Enterprise wide risk management is often discussed but difficult to
implement. Too often, rate risk measurement assumes that credit risk and
liquidity risk are constant. At the same time, credit risk measurement
assumes that rate risk and liquidity risk are held constant. Kamakura
offers totally integrated credit risk, market risk, asset and liability
management, and performance measurement in a single piece of software.
Total integration of functions within Kamakura Risk Manager's single
unified system permits:
- Use of a common enterprise wide-data base for all functions. Input
is simpler, output is easier to reconcile and there are not model data
differences to explain.
- Common financial analytics, consistent across credit risk, market
risk, ALM and transfer pricing.
- Common graphic user interface, minimizing staff training time
- Completely open input and output data base architecture for enterprise
wide reporting
- Common reporting tools across all functions
This integration is not only desirable from a cost and efficiency
stand point, but it is also essential for true enterprise wide risk
management.
Modular
Kamakura clients often start with a few risk modules and then turn on
additional functionality over time. Modularity allows acquisition of the
specific risk functionality needed by a client while providing a growth
path to a more integrated risk solution. It reduces the initial
acquisition cost of a risk solution and can also reduce the cost of
migrating to an integrated risk solution.
Transparent
Kamakura clients have full access to both the modeling details and
the underlying mathematics. We don't believe in black boxes and neither
do financial institutions regulators.
Flexible
Kamakura clients can choose from a broad selection of tools and
features. Kamakura offers reduced form and structural credit models,
default probability estimation from current market prices and from
historical default data bases, seven different yield curve smoothing
methods, six different term structure models, three stochastic models
and much more. Reports can be generated by using over 250 "canned
reports" in Crystal Reports, by using MS Excel invoked within KRM or
with any standard report writing tool. Download our detailed information
brochure
(151 kb PDF).
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