Vesta is built upon a set of components which offers comprehensive functionality that covers data management, scenario generation, market, credit and operational risk analytics and reporting. All components share a common data model, which maintains consistency among applications.
- Vesta Risk Monitor: The Vesta Risk Monitor module allows aggregated risk information to be meaningfully accessed at all levels of the organization. It is an easy to use, graphically rich interface. Users are able to view position and exposure data at any level of generality or specificity. Results can be broken down by any metric such as region, industry, trader, liquidity score, or numerous others factors in order to identify any unwanted concentrations of exposure. The Risk Monitor module also provides Time Series Reporting enabling information to be contextualized.
- Vesta Risk Manager: The Vesta Risk Manager module provides a more comprehensive and forward looking approach to quantifying aggregate exposures using a proprietary beta and index correlation based risk methodology. This approach resolves the problem of traditional risk methodologies which leave substantial portions of risk uncaptured and unrecognized. Many currently traded instruments simply do not aggregate well into risk approaches based on interest rate and spread sensitivities. The Vesta approach allows risk managers to look at risk the same way the front office does.
- Vesta Capital Allocator: The Vesta Capital Allocator uses information captured from Vesta Risk Monitor and Vesta Risk Manager to make risk-adjusted capital allocation recommendations. The traders and desks providing the greatest market insights should receive more capital than those providing the least. This can be evaluated by, among other approaches, comparing trader betas and expected returns, with realized betas and actual returns.
Vesta enables risk information to be “mainstreamed” to traders, portfolio managers, and business management professionals at all levels of the organization. During the recent crisis, risk information was compartmentalized, accessible only to a few technical and quantitative risk managers which led to misinformed risk allocation decisions. By disseminating the risk information more broadly throughout the organization, Vesta will allow organizations to make better risk and capital allocation decisions. Vesta is also designed to respond to rapidly changing market conditions.