The Challenge
A mid-market asset management firm was preparing for SEC examination but lacked a consolidated view of risk exposure across asset classes. Compliance officers spent 40+ hours per quarter manually assembling audit reports from disparate spreadsheets. The firm needed real-time monitoring to avoid regulatory penalties.
Key Business Questions
- What is our total risk exposure by asset class and region?
- How does our portfolio performance compare against benchmark indices?
- Which departments have compliance gaps that could trigger audit findings?
- What is our Value-at-Risk (VaR) and how has it trended?
The Solution
We designed a Risk & Compliance command center that unifies market data, position records, and regulatory checklists:
💰 Exposure Tracking
$42.3M total exposure monitored across Equities, Fixed Income, Derivatives, and Commodities with real-time position updates.
📊 VaR Analysis
95th percentile 1-day Value-at-Risk at 2.8% with Monte Carlo simulation backtesting and stress scenario modeling.
🛡️ Compliance Scoring
97.6% compliance score with department-level breakdown: Risk Management (56%), Trading (96%), Ops (57%), Compliance (96%).
🌍 Regional Heatmap
Risk exposure heatmap across AMER, EMEA, and APAC regions identifying concentration risk by geography and asset class.
Dashboard Views
Technical Implementation
Data Architecture
SQL Server with Python-based risk calculation engine. Bloomberg API integration for real-time market data. T+1 position reconciliation.
Key Metrics
- Total Risk Exposure ($)
- Value-at-Risk (VaR) %
- Compliance Score by Dept
- Portfolio Alpha/Beta
Risk Models
- Monte Carlo VaR Simulation
- Historical Stress Testing
- Concentration Risk Analysis
- Liquidity Coverage Ratio
Security
SOC 2 compliant deployment with encrypted data-at-rest, audit trails, and dual-authorization for trade limit changes.
The Results
"When the SEC examiner walked in, we pulled up the dashboard in 30 seconds. Every question they had was answered live on screen. That's a first for our firm."