Platform / Risk Management
Trade With Foresight.
Not Hindsight.
Elwood's Risk Management System provides a live, unified picture of your entire portfolio. Run stress scenarios and market-impact simulations to set limits with confidence, monitor exposure across counterparties and venues, and surface concentration risk before it builds.
Fragmented Risk Data Leaves Institutions Exposed
Digital asset risk often spans multiple venues, asset classes and counterparties. When execution, portfolio and collateral systems operate independently, institutions lose real-time visibility into true exposure.
Key risks include:
No consolidated cross-venue exposure view
Delayed or inconsistent risk metrics
Limited stress testing across asset classes
Manual aggregation of derivatives and spot exposure
Incomplete visibility into margin and liquidation risk
Institutional risk oversight requires continuous, standardised exposure monitoring, not periodic reporting.
The Fully Integrated Risk Management System
Consolidated Exposure Aggregation
Aggregate spot, derivatives and structured product exposures across exchanges, custodians and counterparties into a single institutional risk view.
"What If" Scenario
Analysis & Stress Testing
Model shocks across spot, volatility and time horizons with correlation overlays to assess portfolio resilience under dynamic market conditions.
Pricing & Structuring Engine
Utilise a pre-trade structuring tool to model prices for listed instruments and complex OTC products, including vanilla and exotic options.
Aggregated Risk Decomposition
Leverage "bucketed risk" views for an aggregated breakdown of your portfolio by underlying, instrument, and expiry across key risk metrics.
Limit Monitoring & Controls
Define and monitor exposure thresholds, concentration limits and margin requirements in real time.
Value at Risk (VaR) & Historical Scenarios
Gain crucial insights with historical VaR analysis and replay past market events (e.g., a major de-pegging or liquidation cascade) to assess how your portfolio would have performed.
Standardised Risk Data Layer
All exposure data is normalised within Elwood’s unified architecture, ensuring consistent risk calculations across execution, portfolio and reconciliation workflows.
Proactive Risk Management Across The Full Trade Lifecycle
Elwood’s Risk Management System (RMS) isn't a backward-looking report generator; it's a dynamic, forward-looking toolkit that integrates risk intelligence directly into your decision-making process, from initial structuring to post-trade analysis.
Pre-Trade
Model exposures and simulate shocks before deploying capital.
Execution
Monitor real-time exposure impact as orders are executed.
Post-Trade
Recalculate portfolio sensitivities, P&L and margin requirements instantly.
Frequently Asked Questions
What is a digital asset Risk Management System?
The purpose of a digital asset Risk Management System (RMS) is to enable institutions to monitor exposures, calculate sensitivities and model stress scenarios across multiple venues and asset classes.
What is Value at Risk (VaR) for crypto and why is it important?
Value at Risk (VaR) for crypto is a statistical measure that quantifies the potential loss a portfolio could face over a specific time horison, at a given confidence level. It's crucial because it provides a single, standardised metric to understand a portfolio's risk exposure. Elwood's RMS uses historical simulation methods tailored for crypto's unique volatility, giving you a more reliable measure of your downside risk than traditional models.
Can risk metrics be monitored in real time?
Yes. Exposure aggregation, margin monitoring and risk recalculations occur continuously as market conditions change.
How does the Elwood RMS perform historical stress testing?
Yes. Our platform includes a historical simulation engine that allows you to "replay" major market events from the past; such as a stablecoin de-pegging, a major liquidation cascade, or an extreme volatility shock. You can run these scenarios against your current portfolio to see how it would have performed, providing invaluable insights to help fortify your strategies for future events.
How does the Elwood RMS integrate with other systems?
Our RMS is designed for flexible integration. For a seamless, real-time workflow, it connects natively with our Portfolio Management (PMS) module, allowing you to run risk analytics on a live IBOR. Alternatively, it can be connected to your firm's own proprietary systems via our flexible APIs, allowing you to use our advanced quantitative models as a powerful overlay on your existing portfolio data.
How does the Elwood RMS handle pricing for complex OTC derivatives?
Our RMS includes a powerful pricing and structuring engine capable of accurately valuing complex Over-the-Counter (OTC) instruments, including vanilla and exotic options. By inputting the specific parameters of a derivative, our models can generate a theoretical price and calculate all associated risk Greeks, allowing you to validate counterparty quotes and understand the true risk of a position before you trade.
Strengthen Institutional Risk Oversight
Gain real-time exposure intelligence across digital asset markets.