BlackSwan

BlackSwan, developed by FINARTIS SA, is an asset allocation and risk management platform designed to assist users in avoiding extreme events by providing sophisticated quantitative risk metrics and accurate distributions. According to the vendor, the platform caters to companies of various sizes and is utilized by financial institutions, asset management companies, investment banks, hedge funds, and wealth management firms.

Key Features

Asset Allocation / Risk Management Platform: BlackSwan is an asset allocation and risk management platform that, according to the vendor, helps users avoid extreme events through the utilization of sophisticated quantitative risk metrics and accurate distributions.

Built-in Market Risk Module: The platform includes a constantly evolving and back-tested market risk module, which, according to the vendor, ensures relevance to prevailing market risks.

Range of Risk Metrics: BlackSwan provides users with a range of risk metrics such as value-at-risk, volatility, expected shortfall, and tracking error, allowing them to assess and manage risk effectively, according to the vendor.

Portfolio Optimization Tool: The platform assists users in identifying the risk profile of their portfolio and proposes optimal asset allocation based on risk preferences. According to the vendor, it minimizes risk metrics such as volatility, tracking error, expected shortfall, Monte Carlo expected shortfall, and maximum drawdown.

Real-time Testing: Users have the ability to perform real-time testing to observe how risks are being reduced and change economic factors to test portfolio reactions to different economic outlooks, according to the vendor.

Computation of Risk Metrics: BlackSwan computes various risk metrics such as volatility, value-at-risk (VaR), and expected shortfall, basing quantitative finance calculations on concrete economic factors, according to the vendor.

Advanced Models: The platform supports advanced models that include fat-tailed distribution, historical simulation, and Monte Carlo simulations, enabling accurate assessment and management of risk, according to the vendor.

Credit Exposure and Risk Contribution: BlackSwan accurately computes credit exposure and understands risk contribution by financial instrument, asset class, industry sector, and currency, according to the vendor.

Factor Model: The factor model accurately identifies the Beta of a portfolio, providing insight into how portfolio returns will fare against the market. According to the vendor, it incorporates economic forecasts and relevant seasonal trends to improve portfolio performance prediction.

Volatility Estimation: BlackSwan allows for timely measurement of volatility by analyzing economic cycles of portfolio assets. The platform offers multiple methods for volatility estimation, including historical, EWMA, and GARCH methods, according to the vendor.