Is your company at risk?
"Risk is either a trading firm’s main asset or principle liability. As a trader you shouldn’t trade a market view if you don’t know the calculated, accurate risk. A directional trader, acting on a short-term decline or rally in an underlying, will be looking for risk associated with market price. For a volatility trader expecting a decrease in market volatility, the trader will want to sell exposure to that volatility. But at what risk? And who validated their data?
The decisions of the individuals put in place to manage weigh heavily in creating a company’s risk culture and ultimately its risk profile. Risk analysis is based on pricing and volatility. Firms need reliable and stable pricing and volatility models that fit the products they trade. Only then can they ensure what they see is
correct, current and can always be relied upon."
Risk Fundamentals, Product Management at Orc Software