Competences
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The economic globalization, the layers of structured derivative products and the rapid growth of high-frequency algorithmic trading make the financial markets today much more vulnerable and interdependent compared to 20 or 30 years ago. However, the quantitative methods applied currently for regulatory compliance and risk management are based on core mathematical models from the 50-ties and 60-ies of the last century. This core no longer works! Financial institutions often rely on stress testing in an attempt to fill up these gaps. Stress testing transforms an arbitrarily chosen scenario (like shift 200 basis points of the yield curve) or arbitrarily chosen past extreme events (like the Black Monday) into a hypothetical loss of the current portfolio. It is hard to make any sense of the results as there is no reasonable way to assess how this past event or extreme scenario applies to the future — most likely it won’t. Stress testing as done today is just a placebo! |
The solution we deliver: robust modelling and forward-looking stress testing. Learn more…UniversalOwner was established to solve this problem. Our risk management software, software-as-a-service and consulting services help the financial institutions to identify, interpret and measure the market dynamics which lead to financial crashes. UniversalOwner combines recent research achievements and highly scalable open-source technology. UniversalOwner develops a forward-looking stress-testing methodology that addresses the true limitations of quantitative risk management, on a client-specific, case-by-case basis. UniversalOwner enables the management to align risk allocation and performance targets and to turn risk management from a cost centre into a competitive advantage. UniversalOwner provides the risk manager with a view beyond risk silos and beyond traditional but meanwhile out-dated quantitative risk measures. |
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We believe that it is possible to bring the financial industry to a sustainable path using the methods and tools available today. However, this cannot be achieved top-down, through ‘more’ or ‘better’ government regulation. In fact, the amount and complexity of risk management regulation for financial institutions has increased dramatically during the last decade. Ironically the same period was characterized by multiple financial crashes and spectacular value meltdowns. UniversalOwner was established to tackle this problem bottom-up: UniversalOwner has a lightweight approach to bring advanced risk management methodologies to small and mid-size financial institutions. UniversalOwner fosters co-operation through an open-source calculation tool. The calculation layer leverages upon R, the most powerful open-source tool for statistical computing, supported by a community of more than 500.000 data analysts and programmers worldwide. UniversalOwner promotes prudent risk management and sound sustainability practices. For example, we do extensive research to find practical tools to integrate sustainability metrics (e.g. environmental, social or governance) into mainstream risk management. |
The company current status: lean start-up from a European financial hub. Learn more…UniversalOwner is a privately-held Limited Liability company (Sarl), registered in 2012 and with offices in 62 Rue de Strasbourg, L-2560 Luxembourg. Located centrally in Europe, Luxembourg is an established financial centre. Luxembourg’s asset management sector is the second largest in the world and its private banking sector is ranked sixth in the world. This makes the country an ideal place for companies serving the financial sector. UniversalOwner seeks growth opportunities mainly through partnerships with other companies: Financial institutions often have in-house risk management projects to supplement their existing compliance environments in order to capture more accurately extreme downside risk (tail risk). UniversalOwner is a natural starting point for in-house projects. Our application and services help to cut significantly the cost and the implementation time of the project while keeping the full flexibility of the in-house development approach. Consulting and software companies who offer services in the area of software and risk management can easily implement and adapt the UniversalOwner application to cover exactly the requirements of their clients. The application can also be white-labelled and used as a plug-in to a larger system. |
Our customers:
The financial institutions who need our software, software-as-a-service and services are of various types: asset owners, such as pension funds, endowments, foundations, family offices and insurance companies; institutional and retail asset managers, such as managers of pension assets, mutual funds (UCITS), exchange traded funds (ETFs), hedge funds and private wealth; financial intermediaries, such as banks, broker-dealers, exchanges, custodians and investment consultants; and the treasury departments of large corporations.
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