AdvisoryWorld Announces “Batch Risk Analysis System”

LOS ANGELES, Oct. 29, 2014 /PRNewswire-iReach/ -- AdvisoryWorld, a leader in portfolio analysis, investment planning and proposal-generation software, has developed a process for risk and performance analysis and management for one or many client investment accounts associated with a broker/dealer, bank, insurance broker/dealer, investment advisor, financial planner or other financial institution. The Batch Risk Analysis System automates the process of assessing multiple risk factors across a financial service company's entire book of business to help ensure regulatory compliance and avoid liability risk. The System will be formally introduced at the T3 Enterprise Conference to be held in Atlanta, Nov. 11-13.

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Scaleable and Customizable

"Analyzing systematic portfolio risk, liquidity and performance characteristics is a critical component of compliance oversight," said AdvisoryWorld COO Michael Wilson.  "Our Batch Risk Analysis System provides financial services firms with a scalable, standardized process which has been sorely lacking in the industry. As fiduciaries, these firms need to know when client investment accounts, combined accounts, model allocations and/or individual investments are not in compliance as defined by each institution and pose a serious risk of loss to the client and a financial liability to the institution. Now they can be proactive rather than simply reactionary."

To date, there has been no comprehensive, practical method for analyzing risk, liquidity, excessive concentration, suitability based on age, risk tolerance, investment objectives and financial goal requirements; and for communicating that information to the financial service firm and its representatives. Such a method requires that each institution have the flexibility of establishing its own set of criteria by which it can determine whether a portfolio of "investable assets" is categorized as being out of compliance with a client's risk profile, liquidity and performance requirements and whether it poses a liability of financial risk to the client and the institution.

System Overview

The Batch Risk Analysis System, for which AdvisoryWorld has applied for a patent, eliminates many of the gaps in information regarding portfolio risk, volatility, performance, compliance and other institutionally defined criteria available to personnel in the enterprise.  It can be tailored to the specific needs of the enterprise, enables the just-in-time analysis and recommendation of review for investment accounts, combined accounts (e.g. household), model allocations and/or individual investments exhibiting potential risk to the client, as well as non-compliance and potential liability to the advisor and the institution at large.

The information regarding the specified risk analysis needs is continuously developed and communicated in summary format to the system operator (e.g., broker/dealer, insurance company or bank) so that they can:

·      Review/modify the construction and objective of the portfolio

·      Buy or sell positions to reconstruct the portfolio to conform to the client's risk profile and financial objectives

·      Complete the requisite transactions that have been arranged in accordance with customer instructions.

·      Analyze the client and position data provided by the user to determine if notification of non-compliance is required to be made to the client and their representative so that position modifications may be recommended

"AdvisoryWorld's unique analytics are the result of access to comprehensive third-party data, sophisticated, proprietary mathematical analysis, and the technical ability to integrate with financial services firms' internal software," said Founder and CEO Philip Wilson. "With this addition of scalability and enterprise-wide customization, our batch process solution, will create a sea change for the industry."

launch Participants

AdvisoryWorld also announced Albridge, an affiliate of Pershing LLC, and Orion Advisor Services as early launch participants for the Batch Risk Analysis System. Both firms will make the system available directly to their clients through their extensive sales teams.

"AdvisoryWorld continues to create innovative solutions that enhance the client experience delivered by financial institutions and advisors," said Anthony Johnson, Director of Albridge's Applink Provider Network. "Their latest advancements in measuring risk and calculating related scoring across tens of thousands of accounts, in a short amount of time, will be a valued complement to the Albridge Wealth Reporting capabilities."

"AdvisoryWorld is a truly exciting integration partner that has continued to invest in delivering key information that simplifies the lives of our advisors," said Eric Clarke, President and CEO of Orion Advisor Services. "By delivering risk monitoring through their integration into Orion's platform, advisors can keep a close watch on suitability and in turn use our Trade Order Management platform to rebalance accounts and place their clients in model portfolios that align with their client's unique investment."

ABOUT ADVISORYWORLD

Founded in 1987 by Philip Wilson, AdvisoryWorld is a leading provider of asset allocation, multi-security modeling, optimization, hypotheticals, cash-flow analysis and security and portfolio analysis software to investment professionals including Registered Investment Advisors, Wealth Managers, Broker Dealers, TAMPs, Banks and Insurance Companies.

The senior officers of the company have nearly 60 years of collective experience in investments, financial services and technology. As a leader in the financial services industry, the company enhances its products several times a year based on industry trends and customer requests.

The company delivers its financial tools through software, remotely as web services and customized as professional services. The portfolio analysis software and investment analysis software and technology enable RIAs and other investment professionals to optimize portfolios using the efficient frontier as well as analyze risk metrics and manage risk by using several Modern Portfolio Theory statistics such as Alpha, Beta, R2, Sharpe Ratio and Correlation.

AdvisoryWorld has integration partnerships with a wide range of financial technology firms, including Orion Advisor, Albridge Wealth Reporting, Redtail, Salesforce, eMoney Advisor and MoneyGuidePro. Learn more at www.AdvisoryWorld.com.

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Media Contact:Leslie Swid, Impact Communications, 913-649-5009, [email protected]

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SOURCE AdvisoryWorld