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Home > Solutions > Risk Management > FinRisk > Features

FinRisk Features

An MS Excel® add-in to statistically quantify risk

• Financial Analysts can dig deeper, probe further, evaluate risks better – and take that big business decision with greater confidence.
• FinRisk is a powerful financial tool to model, simulate and analyze
  risk – including market risk
• FinRisk is for analysts, decision-makers and portfolio managers who are required to continually model uncertainty and assess risk
• Experts can use its wide array of statistical techniques to simulate scenarios, estimate probabilities and take better business decisions
• Using sophisticated Monte Carlo methods, FinRisk can show users all the possible outcomes on a Microsoft Excel spreadsheet – and help them decide what risks to take, and what pitfalls to avoid

 

FinRisk provides the best answers to these questions

• Will my new financial venture be a money-spinner?
• What are the expected returns if investment is raised by 20%?
• What is the probability that this year’s profit will exceed last year’s?
• How is my Basel II compliance shaping up?

 

The copula advantage

FinRisk supports copula-based models. Experts managing a portfolio of stocks can therefore use realistic fat-tailed distributions to get a far better estimate of VaR in a volatile market than the current estimates obtained by the variance-covariance approach that rely on normality.

• the option to stress inputs – to study their impact on the output
• scenario analysis – to identify the key drivers in a volatile market
• rainbow analysis – to colorfully depict the effect of a seven-step change in the input on the densities of the seven outputs
• stochastic goal-seek –  to show the probabilities of achieving the goal for seven chosen values of the input.