A Risk Management app to assess financial portfolios by using historical data and diagnostic tools for a leading provider of investment decision support tools worldwide
Client: MSCI Inc. is an independent provider of investment decision support tools to investment institutions worldwide. Their line of products and services includes indexes, analytical models, data, real estate benchmarks and ESG research. MSCI’s research-based indexes and analytics tracked by fund managers have facilitated the world‘s leading investors to build and manage better portfolios. These indexes cover stocks under various categories and are used as standards to evaluate the performance of financial portfolios.
Challenge: RiskMetrics RiskManager is an application developed by MSCI which is used as a scalable SaaS framework for enterprise-wide risk management. RiskManager assesses financial portfolios by applying special algorithms using historical data and features powerful editing and diagnostic tools to provide clients with portfolio analysis capabilities.
RiskManager accepts data in a complex RML format to assess client’s records accurately. This makes it difficult for MSCI’s Clients lacking technical skills to provide data to RiskManager effectively. Due to this complexity of format, MSCI’s clients had formerly experienced some setbacks in transforming their financial portfolios. The challenge here was to get the client’s data converted from their native system format into RML in an easy, standardized, robust and quick manner.
Solution: MSCI trained SSI’s technical staff over various aspects of their applications so that SSI could effectively play the role of a bridge between MSCI and their clientele. SSI developed a tool which allowed end users to attain configurable options like selecting certain statistics/algorithms or backtracking performance of their portfolio on past dates.
The application first reads a financial portfolio, transforms it into RML format and uploads it to RiskManager via web service. Once the evaluated data is received from RiskManager, it parses that data and transforms it into a comprehensible format which can then be used by clients with minor configuration changes.
Result: The application helped improve the operational efficiency of end clients of MSCI that utilized the application and solved a pain point.
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