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Qontigo Integrates Ortec Finance's Climate Risk Scenarios Into Enterprise Risk Management Solution, Axioma Risk

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With OPAL's Goals-Based Planning Solution, we aim to translate client’s financial goals into an optimal investment strategy reflecting their personal ambitions, cash flows and risk appetite. Additionally, Ortec’s solution links investment portfolios to financial goals and tracks the progress over time on a daily basis, based on actual portfolio values...

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by Ortec Finance
| 31/10/2022 12:00:00

New York, Rotterdam - Qontigo, a leading provider of innovative risk, analytics, and index solutions, has partnered with Ortec Finance, a leading global provider of technology and solutions for risk and return management, to provide climate stress testing capabilities within Qontigo’s Axioma RiskTM for clients to assess climate risks in their portfolio.

With increasing regulatory pressures worldwide, asset managers and asset owners require more robust insights into their exposures to climate risk. By combining Ortec Finance’s state-of-the-art climate risk-aware economic and financial scenarios with Qontigo’s unique portfolio management and risk analysis solutions, clients can seamlessly translate climate transition scenarios to their portfolios to assess exposure and climate resilience.

Ortec Finance’s Climate MAPS solution translates climate pathways and policy assumptions into their impact on financial variables, such as equity returns at country or sector level, or credit spreads at country level. These financial variables are mapped to the factors in Qontigo’s multi-asset class risk solution to enable top-down climate-informed stress tests. The climate pathways consider both transition and physical risks, and include a range of narratives including Orderly and Disorderly Net-Zero, Failed Transition as well as the NGFS climate scenarios.

“As the race to net zero continues across the globe, buy-side firms not only need a better understanding of how their portfolios are impacted by climate risk. This partnership enables forward-looking climate scenario analysis across asset classes, regions, and sectors. Axioma Risk clients can calculate their portfolio analytics and stress test scenarios under different market conditions to help make better informed, climate-aware decisions,” said Lisa Eichler, Managing Director of Climate and ESG Solutions at Ortec Finance.

“Our clients want a consistent view of risk and return across their organisation. Utilising Axioma Risk’s customisable scenario engine, we mapped Ortec Finance’s climate-informed projections to risk factors in Axioma Risk, allowing clients to gain insight into the drivers of climate risk that aligns with their overall portfolio risk assessments. This significantly improves our clients’ ability to measure the impact of climate change on their portfolios while allowing for intuitive decomposition with standard risk factors,” said Chris Sturhahn, Chief Product Officer for Analytics.

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