Market Risk Management

SAS is uniquely positioned to address a number of market risk challenges surrounding market and position data with a single platform that handles all your data integration, analytical and reporting needs. With SAS, you can:

• Analyze and measure market risk using a range of techniques – e.g., VaR, sensitivity analysis, profit/loss analysis and various types of scenario analyses.
• Decompose portfolio risk in additive risk contributions, and analyze the relative importance of risk factors in determining portfolio loss, using out-of-the-box, grid-based, distributed and parallel processing capabilities for complex instruments.
• Analyze the effect of static and dynamic hedges and trade strategies, and determine optimal portfolios by back-testing and scenario-testing models.
• Explore the effect of changing risk factors on the value of positions in the portfolio using stress testing.
• Automate market and internal data feeds, as well as the process of accessing, cleansing and merging detailed position data, with data management capabilities that let you build metadata-driven visual process flows.
• Gain greater insight into risk at different aggregation levels in order to make more informed decisions for managing market risk, and then perform re-aggregations on the fly thanks to SAS' ability to retain all intermediate results generated in market risk simulations.

Only SAS provides an enterprise view of market risk across the entire firm as part of an integrated risk platform that banks can depend on to support their market, credit, ALM and firmwide risk needs. With SAS, you get:

• Flexibility. Implement a wide variety of approaches for risk factor modeling and instrument valuation using either pre-configured or customized analysis projects to meet your institution's specific needs.
• Extensibility. Define and value any type of asset at any level of complexity internally, without having to rely on software updates or outside consultants.
• Scalability. Handle extremely large numbers of portfolio positions, including complex instruments, via grid-based, parallel or distributed computing, providing desired market risk estimates within required time frames.
• Accessibility. Run risk analyses, query and drill down to highly granular position-level results via user-preferred interfaces, such as a Web browser and Microsoft Excel.
• Productivity gains. Enable both business and quantitative users to spend less time preparing data and more time managing market risk.