An Industrial Strength Recon System

In the wake of the 2008 Financial Crisis, another layer of complexity in regulatory requirements has been added to the operational structure of investment management firms.  Market-shifting events like the Madoff Ponzi scheme and Lehman Brothers bankruptcy created a need for checks and balances to ensure reconciliations are done by an outside party to further protect investors. In the light of these developments, it has become increasingly important for managers to have access to trade and position level information at all times. Therefore, managers have been investing more time and effort into their operational processes and infrastructure around data and analytics as the demand for reporting and regulatory scrutiny has dramatically increased. In our view, a sound infrastructure armed with on-demand tools provides the best defense against regulatory breaches and operational failure.

The new Imagine Reconciliation System is a web-based solution that is made to fit perfectly into any operational infrastructure and is capable of addressing the entire reconciliation life cycle. With automated matching and exception processing, our reconciliation product lowers operational risk while at the same time reducing operational costs. As we have observed with many managers in the industry, manual reconciliation can take several hours a day while creating a higher risk of potential of errors. Our reconciliation system infrastructure sits on a complex backbone directly hooked up to your Imagine account, where your positions reside. Our system is on-demand, reliable, and can process thousands of trades within a matter of seconds while offering a simple, intuitive end-user experience.

Imagine Does the Heavy Lifting

Imagine consultants offer a no-impact implementation with a product that is scalable for any size business. By managing approximately 80% of the workflow, this product will reduce your team’s efforts significantly.

reconart_workflow

Our reconciliation product provides canned dashboards that are tailored to delivering immediate views and easy drill-downs of your important data providing you with operationally critical analytics.

With a super low-impact implementation, an on-demand, web-based product with a robust reconciliation engine might be what you need to make your operational infrastructure stronger. Imagine can make this easier to achieve than you might think.

______
About the Author
Murat Sen is a Consultant in Imagine’s New York office working on consulting engagements and client-facing product management projects. A native of Istanbul, Turkey, Murat holds an MBA from Cornell University.

Murat can be contacted by email or phone: 646.827.4433

A New, Flexible Stress Test Product

The stress test app is built on Imagine’s Consulting Team’s modus operandi, “Tell us what your risk technology need is and we can tailor whatever Imagine has to offer for you.”

The idea of developing a separate product for stress testing came to life when we observed our clients and general end users of financial tech products. Both groups, when using historical stress testing for estimating how their portfolios would perform during documented periods of extreme market movements, had the same two major pain points: ease of use and transparency.

Ease of Use

Our studies showed us that end users were getting lost in complicated setups. They also wanted more control over the scenario designs and stress factors and models. We addressed this concern and created a comprehensive infrastructure on which the app runs and stresses the positions. With initial setup from Imagine Consulting team, users are able to alter the setups by modifying scenarios, risk factors, and fallback strategies depending on their asset types, investing styles, and risk management needs without having to write a single line of code. On top of this, if the user wants a completely different way of shocking positions or seeing the results – for example seeing the worst of or best of scenario for a period – this is also possible as the app is very flexible.

Transparency

Users wanted two things; transparency in their results and the ability to visualize analysis with graphs, tables, and smart dashboards. These were vital for our clients, and our product makes it easy to drill-down into complex portfolio structures and multi-layered aggregations. We designed the app so users have the ability to see results in a factor-by-factor detailed data table and a fully configurable set of data visualizations that enables the user to identify trends and discover patterns. This way, what looks like a very straightforward historical stress test will help the decision makers see the “stories” hidden behind historical data available to everyone else.

______
About the Author
Murat Sen is a Consultant in Imagine’s New York office working on consulting engagements and client-facing product management projects. A native of Istanbul, Murat holds an MBA degree from Cornell University.

Murat can be contacted by email or phone: 646.827.4433