In recent years there has been considerable emphasis on ex-ante risk management. Against a background of diminishing return levels, the need for more efficient risk allocation has been widely recognised. This has led to an increased use of derivatives and alternative investment strategies. Pension Funds have therefore introduced risk budgeting and risk mandates on a large scale.
To enable pension funds to catch up with these developments, ORTEC has developed an ex-ante risk management system. This system allows pension plans to construct risk budgets and to monitor and manage risk. It allows you to look at both risk control and investment management.
PRISMA allows pension funds to inform their board frequently about expected solvency changes and the consequences for indexation and policy regarding contributions. PRISMA looks at both the assets and the liabilities in an integrated manner.