#RISK ENGINE PLUS#

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers. Get The REGTECH Book now with the O’Reilly learning platform. In this chapter, we demonstrate how we can achieve this target, and offer a brief overview of the architecture involved.Ĭomputationally, in the first step, the central module (I 0) in SRE produces organization-specific risk application programming interfaces ( ORAPIs) – a set of. Secondly, the cloud-based architecture would mean pay per usage, customized to model complexity and data requirements of individual banks. The engine is un-styled when run stand-alone. It can also be mounted within an administration application. It is mounted in a thin Flood Risk Front Office Rails application host in order to be deployed. Firstly, major cost operations and functions of model building, data storage and quality, model validation, and even risk report building would be shared across all participants. A Ruby on Rails engine delivering the complete public-facing functionality of the Flood risk activity exemptions service. The main advantage of such a model is extreme cost reduction for any organization, for two main reasons. SREs can replicate all major risk engine functionalities like value at risk ( VaR) calculation, risk reporting, stress testing, and so forth on a cloud instance that is shared across financial organizations without any of them needing to expose their internal data and model publicly. The idea of a shared risk engine ( SRE) as a concept is to build a cloud-based, secure risk engine as a shared service that simulates all the major risk-related functionalities at significantly lower cost.Īn SRE would be a common platform shared across multiple organizations albeit in a safe and secure way without compromising on any data privacy.

Merits and Demerits of a Shared Risk Engineīy Rohit Ghosh 1 and Harshwardhan Prasad 2 Risk Engine Design as a Key Security Enhancement to the Standard Architecture for Cognitive Radio: 10.4018/978-1-4666-6571-2.ch030: Even though security.

Risk engine