A New Paradigm

Founded at the crossroads of quantitative finance and cutting-edge information technology, Risknowledge introduces a new paradigm for financial risk management.

Based on own fundamental research in the field, Risknowledge proposes advanced tools for risk model validation, capable not only to determine the significance of model performance, but also to quantify the discrepancy between risk predictions and the actual, realized risk of a portfolio, thereby permitting to estimate and manage true risk.

Model validation at Risknowledge becomes a direct comparison between predicted risk and true risk. This rigorous approach, akin to scientific experimentation, allows the observability of specific risk measures like Expected Shortfall.

After all, we should keep in mind that models are just models; they generate only idealized risk predictions, which must be validated against actual risk, that is what we care about.

This paradigm represents today the most advanced model validation scheme for Value-at-Risk and Expected Shortfall models, the industry standards for internal and regulatory risk controls.

Our Advantages:

True Risk Management: Shifting from predicted risk management to actual risk management

Integrated Model Training and Validation: Enhancing model accuracy through continuous model refinement

Model selection: Risknowledge offers model performance scorings permitting to select the best risk model among different alternative formulations

Our Expertise:

At Risknowledge, we deliver advanced risk analytics solutions through exceptional software engineering. Our team of experts is dedicated to innovation, rigor, performance and scalability, thanks to proprietary methodological and computational advances in the field.