Enables Increasingly Complex Stochastic Simulations to Run at Greater Speed and Affordability
Conning believes that the time has come for financial firms to start taking advantage of the opportunities this new technology affords. “Financial risk modeling has become more sophisticated, increasing the demands on companies’ computing infrastructure,” said
Hritcko added, “Robust modeling of global economies, capital markets, financial instruments, and complex corporate holdings across tens or hundreds of thousands of scenarios requires an enormous amount of processing power, and modelers may find themselves having to choose between long run times and maintaining large grids of high-powered servers.” Hritcko also noted that cloud computing allows computing power to be available on demand, with no cost of ownership when it’s not needed. By leveraging economies of scale, simulations can be run at a speed that would be prohibitively expensive to achieve with a dedicated in-house system, enabling larger and, therefore, more informative simulations than were previously practical.
“From the earliest days of stochastic modeling, modelers have taken advantage of advances in computing power, enabling the creation of simulations that would have been infeasible in past decades,” said
Conning (www.conning.com) is a leading global investment management firm with a long history of serving the insurance industry. Conning supports institutional investors, including pension plans, with investment solutions and asset management offerings, award-winning risk modeling software, and industry research. Founded in 1912, Conning has investment centers in
Conning’s risk management software platform includes GEMS® Economic Scenario Generator, FIRM® Portfolio Analyzer, and ADVISE® Enterprise Risk Modeler, offering greater accuracy in financial risk modeling and providing deeper insights for decision making, regulatory and rating agency compliance, and capital allocation. In addition, the Investment Optimizer module works seamlessly within GEMS®, FIRM® and ADVISE® to perform effective strategic asset allocation analyses and identify optimal investment strategies.
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NOTE TO THE EDITORS
To provide additional information about Conning’s Grid-as-a-Service functionality, Conning’s Risk Management team has written Cloud Computing for Financial Risk Modeling, which includes a detailed overview of the security and reliability features built into the system.