The riskart® motor concept is different from the traditional design of a financial software application. Generally, financial software is composed of different “business modules”, each module matching a financial sector, a financial activity or a financial instrument family (for instance the CDS, Forward or the IRS module, etc).
However, riskart® is composed of “motors”, deliberately called so to emphasize the differentiated approach compared to traditional software engines. These motors can be used by all traditional modules, allowing riskart® to rapidly build the functionalities of traditional “business modules”.
riskart® motors are depicted in the functional diagram on the left, which explains how riskart®’s software provides an innovative approach to the middle and back office management of OTC derivatives:
- riskart® Hedge Accounting Motor
- riskart® Collateral Motor
- riskart® Reconciliation Motor
- riskart® Accounting Motor
- riskart® Settlement Motor
- riskart® Integration Framework
Each of these motors provides a tool for customization. Using this approach, riskart® has produced a software that is much more compact, easy to maintain and modify, and has avoided code duplication.
The other major advantage of the riskart® motor approach is that, in the event the Client requires a new type of business module, or there is an opportunity in the market for a new business module, riskart® is able to create it in a much shorter timeframe and with much higher reliability than compared with the development of traditional new software.
To guarantee even greater speed and flexibility, riskart® has also adopted a programming methodology based on the use of “satellites”, which maintains the same rigorous quality in terms of programming standards as the “core” riskart®, but allows for new “motors” to be developed independently.
The interaction between different motors allows the Client to define the detailed characteristics of each financial contract or each administrative activity (back office functions, reconciliation, settlement, etc.)
riskart® motor is the combination of two separate components: a configurator and a manager that are available to users via a standard GUI. The configurator is the software component that presents the list of parameterizations typically required by an OTC derivatives contract. For example, in the case of a financial contract, the configurator presents the list of possible administrative events, “free” fields for other relevant information, calculation formulae, accounting fields, etc.
Needless to say: each motor needs to be customized by each Client. For each motor, riskart® has prepared a standard configuration for the most common financial instruments and requirements, but this approach still allows the Client extreme flexibility in further tailoring the system, if required, for the management of his own specific contracts or administrative activities.
The Manager is the component that processes the data prepared by the configurator. For example, in the above-mentioned case of the financial contract, the Manager processes those administrative events which have been selected and presents the user with a series of fields configured according to the user’s input and ready to perform the requested calculations.
The structure of the riskart® motor is such that any change effected by the configurator is immediately processed by the Manager without having to access riskart®’s source code.