The Solution

Risk Fundamentals is the only risk system explicitly designed as both a risk management solution for institutional investors and a risk management and transparency reporting solution for hedge funds. Throughout the system’s development, company Founder and President Richard Horwitz has collaborated with Principals Leslie Rahl and Barbara Lucas of Capital Market Risk Advisors, the world’s premiere risk consultancy, to create a final product that addresses the pressing risk needs of investors and reporting needs of funds.

Reports You Can Use

• Easy to Understand The leading risk management solutions do not provide institutional investors with information that they can always comprehend. Most of their output relates to VaR, Marginal VaR, Greeks, and other esoteric measurements that are difficult to translate into action plans. Our solution offers these standard metrics to achieve its goal of comprehensiveness. However, we also provide measurements for (as examples) concentrations, exposures, and performance attribution. These are metrics that can actually drive decisions.


• The Measurements You Need Institutional investors and hedge funds require metrics for the risks that concern them most:
  • Liquidity risk
  • Leverage risk
  • Counterparty credit risks

Together, these three risks caused the current financial crisis, and, yet, the leading risk systems do not address them at all. “Indeed, Ethan Berman, the chief executive of RiskMetrics, told me that one of VaR’s flaws, which only became obvious in this crisis, is that it didn’t measure liquidity risk – and of course a liquidity crisis is exactly what we are in the middle of right now…Even more critical, it did not properly account for leverage…” (from “Risk Management,” published in The New York Times Magazine on 1/4/09).

A Price You Can Afford

• Institutional investors and hedge funds need solutions that not only work, but also work with their budgets. Our risk reporting system has an efficient, integrated delivery structure that allows us to offer it at a fraction of the cost of its competitors. Whereas our competitors create expensive service and support models and then pass on those costs to you, we have streamlined the process with automated data feeds and synergistic processing to keep your expenses as low as possible.

A Name You Trust

• CMRA, the world’s premiere risk consultancy, will be providing a new set of consulting services supported by Risk Fundamentals. These services will help institutional investors turn the output of the system into actionable decisions and help funds routinize their due diligence reporting process to lower their costs. To learn more about these services, visit www.cmra.com or read our press release.