Saturday, November 15, 2014

Hypothetical Risk Valuation System

IT systems of banks and investment funds are versatile. They have been grown for years and today financial institutions increasingly rely on the quality of their quantitative technology. Such a trend has made computational finance topmost important.

Computational finance is a cross-disciplinary field that focuses on the financial services industry and relies on mathematical finance, numerical methods and computer simulations to make investment decisions and facilitates portfolio risk management.

Despite the fact banks tend to develop risk valuation systems in-house all of them can generally fit into the given below schema.

How the system works