Risk management with the overall strategy in mind

Risk management

Risk Management

Due to constant financial innovation and the ongoing search for return in a risk-controlled manner, it is more important than ever to ensure that a proper governance and risk control framework is in place. It allows the institutional fund to take informed decisions and invest with full understanding of the potential risks involved with each strategy.

Managing investment portfolios is a complex process. There is a tendency to focus on the micro-level, whereas macro-level decisions usually have a greater impact on risk and return. Ortec Finance risk management solutions fit seamlessly to the investment process, starting with the strategic decisions and then drilling down to actual investment portfolios. It is crucial to monitor investment portfolios in light of the strategic objectives rather than on a stand-alone basis.

Stochastic scenario analysis should be the corner stone of risk management. Ortec Finance provides solutions that capture the entire balance sheet and policy instruments, translating risk into the appropriate metrics for the various stakeholders. In combination with our ex-post performance solution, we can provide a consistent picture of the asset owners’ risk based on the past, present and future.

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Strategic risk management

  • Keep track of strategic objectives
  • Combined view on short and long term
  • Focus on macro-decisions
  • Support the decision-making process
  • Stakeholder perspective

What-if analyses

  • Assess impact of policy alternatives
  • Determine appropriate hedging strategies
  • Stress test to help understand possible future risks

Risk analyses

  • Simulation of balance sheet with large number of scenarios
  • Identify most important risk drivers
  • Improve understanding of balance sheet dynamics


  • Ensure all stakeholders receive appropriate reporting
  • Visually display the key risk analysis
  • Automate the reporting proces
Working paper Financial Risk Management for pension funds
Working paper

Financial Risk Management for Pension Funds