What is Financial Risk Management Software?

Financial Risk Management Software manages exposure to various forms of risk for financial institutions.

These tools stress test portfolios through scenario simulations, working to identify various types of risk across multiple asset classes, measure the potential amount of risk, and generate plans of how to deal with idiosyncratic and systematic forms of risk.

They help generate reports, and aid investors in evaluating potential deals and investment opportunities and how they might fit into a portfolio.

Financial risk management programs can help investment firms and other businesses generate value by identifying quality hedging opportunities to mitigate risk. Running a portfolio through scenarios that can be analyzed and reported on can help organizations find the best investment opportunities and hedging arrangements using available financial instruments.

Other financial services software may integrate with risk management software and connect with other sources of data.