Beyond the Standard: Predictive Performance Risk Analytics

Modeling fat tails properly is not an easy task. Our risk management software methodology capitalizes on continuous research of fat-tailed modeling for financial applications that began in 1987. Continually improving and evolving our platform, we have invested collectively more than 100 years of research and development. Special care is taken to research market issues in-depth and then implement those models that provide the most realistic explanation of the behavior.

This is our mission – addressing the needs of the new market paradigm and delivering unique risk analytics insight through a practical set of user-friendly risk management software modules that, despite the complexity of the modeling required, guides portfolio and risk managers to make better decisions.

Cognity risk management software is engineered at its core to consistently and robustly model the real world phenomena of financial assets including:

• Fat-tails - the high risk of extreme events.
• Tail and Asymmetric Dependence - correlations become much higher during market stress.
• Volatility Clustering - high volatility stays high for a while, when it's low it stays low for a while.
• Risk Asymmetry - negative extreme events are larger in magnitude than positive extreme events.
• Long Range Dependence – statistical dependence between returns observed at different times decays slowly with the time difference.

Cognity's patented fat-tailed risk analytics framework translates our intellectual property into analytics that are predictive and reliable across all asset classes and market regimes.

Cognity's risk analytics dashboard reporting approach allows you combine your standard "normal" risk measure along side those of our patented fat-tailed risk management software framework:

The Cognity real world framework is implemented with special emphasis on handling realistic and very large dimensions, accurate parameter estimation, speed and scalability. Cognity risk analytics are unsurpassed in commercial risk management software offerings,