Red Swan Risk and Asset Control team up to provide integrated security master and model risk service

Red Swan Risk is enhancing its multi-asset class portfolio risk management solution, RiskON, through Asset Control’s managed service offering, PaSSPort, to provide a 'seamless data experience' to its clients. 

The collaboration between the two companies will provide asset managers with a managed service which delivers a high-quality, data mastering, data analytics and model risk solution.

Hedge funds, pension funds, funds of funds, asset managers and banks need to manage model risk with increasingly more control and transparency. This has to be done across data inputs, model configuration, statistics, stress scenarios, reporting and analysis. Front office risk management, as well as back office oversight, require these capabilities.

Red Swan’s RiskON platform provides seamless aggregation of portfolio holdings data with security level risk and reference data using a unified data model. This gives users the transparency and control over risk modelling decisions needed to monitor, analyse and manage model and portfolio risk through a web-based UI and API hosted on AWS.

However, supplying a model risk management solution with all the required financial product terms and conditions typically requires a separate security master solution that integrates, cross-references and validates various market data feeds. Finding and then channeling high-quality data can be difficult and time-consuming.

The partnership addresses the fact that asset managers today are spending too much time collecting, mastering and cleansing data before they can even take advantage of advanced technologies like RiskON. PaSSPort, is providing security master as-a-service to power Red Swan Risk’s solutions with a robust and scalable data management system that exposes full data lineage. Clients can easily leverage the partnership capabilities by extending the PaSSPort scope beyond the initial RiskON use case and into the enterprise. 

It is in this context that Asset Control, through the provision of its managed data service, PaSSPort, can play a key role in helping users quickly and easily verify data quality.

Nathan Wolaver, Asset Control MD of the Americas, says: “Teaming up with John Matwey and the team at Red Swan Risk is a great way to leverage PaSSPort to help clients take advantage of RiskOn suite of analytics tools, but to do so in a sustainable framework that delivers operational advantages that can easily be extended beyond the initial use.  This example is further proof of our capabilities in proving a trusted foundation for partners that are looking to accelerate their delivery timelines and give their clients an easier operating model.”  

John Matwey, founding partner, Red Swan Risk, says: “Asset managers face an ongoing struggle to manage model risk challenges including model selection, model configurations, market data, and reference data.  Together with Asset Control, Red Swan can provide more powerful tools for validating and managing the critical reference data that impacts model risk.  We are excited to work with Nathan Wolaver and the team at Asset Control to make it easier for our clients to deal with these challenges.” 

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