We provide independent advice and implementation of solutions that
improve our clients' performance by shaping their risk exposure.
| Risk advisory and derivatives specialists |
Risk Management Solutions (RMS) is P-Solve's specialist risk advisory and derivatives team. We have been advising on, designing, implementing and managing risk advisory and derivative solutions since 2003. |
| Extensive market and trading experience |
Within the team we have tremendous experience of risk advisory and trading experience in Fixed Income, Currency, Commodity and Equity derivatives; we have been on the sell side of the business as market makers in a range of derivative markets. We feel this gives us an advantage in securing the fair price for any transaction. |
| We help reduce trading costs |
Due to the technical nature and complexity of derivatives it is very easy for counterparties to hide the true cost of trading. These costs can run into the hundreds of thousands of pounds for an average scheme. Using our own models and pricing sources combined with our expertise we can ensure that these hidden costs are taken out. |
| Market presence |
We have excellent links with the major counterparties in derivatives; our method of implementing is different from most if not all traditional investment managers and ensures that we receive the most competitive pricing from our counterparties. Our continued presence in the market also acts as a price reducer as the counterparties continually pitch for our business. |
Pragmatic solutions
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RMS has a range of proprietary tools for designing and monitoring a wide range of risk management strategies. These include bespoke analysis of corporate and pension scheme risk measured on different bases and testing of the robustness of hedge designs against these risk measures.
The RMS team helps clients make smarter, more effective and economical use of derivatives to achieve their performance objectives. We apply a distinctive combination of expertise, experience and track record to every assignment. We understand how financial risk management and analytical needs can be met using derivatives.
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In-house bespoke pricing and modelling
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We have built a central database for Interest Rates, Inflation Rates, Dividends and Volatilities; this combined with our pricing library allows us to examine how rates, inflation and volatilities move over time allowing us to make informed market judgments about liability and asset hedging. A tool for back testing strategies has been developed; this allows us to back test any derivative based hedging strategy and examine how successful this strategy would have been historically for a given historic period.
A pricing library along with our swap valuation tool allows us to value an array of derivatives that can be used as a risk reduction tool or a portfolio enhancement tool. |
Full service – education through to implementation and management
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We operate a full service from basic education, design, assistance with legal documentation, implementation and ongoing management. At all steps in the timeline we keep our clients fully informed and educated and explain any residual risks to which the client is still exposed. |
| Track Record |
In total we have implemented over £16 billion of derivative based solutions. In all of these we have acted as the advisor and have then followed through that advice by assisting with implementation and the ongoing governance and monitoring of the strategy. In addition we are currently advising on an additional £10 billion of derivatives solutions where we act in conjunction with the client to ensure that a suitable derivatives strategy is being implemented at a fair price to the client. |