Risk Integrated launches cloud-based risk simulation engine

Risk Integrated, providers of quantitative risk analysis software for commercial real estate (CRE) lending, has launched SFS Cloud-Burst, which enables lenders to analyse CRE portfolios quickly.

Cloud-Burst is an enhancement to the firm’s Specialized Finance System (SFS). It allows risk managers to access the massive computational processing power of cloud providers, without having to purchase, store and maintain servers in-house.

Dr Yusuf Jafry, CTO of Risk Integrated, said: “With SFS Cloud-Burst, risk managers now perform sophisticated Monte Carlo analysis of their entire real estate portfolios within minutes, rather than hours.”

Prior to Cloud-Burst, risk managers could use parallel processing to reduce the overall run times, but they were limited by the amount of physical hardware installed. This also required a significant initial expense for banks to buy and maintain servers, which is not cost-efficient if used infrequently, such as for a monthly portfolio stress testing report.

The firm says that access to unlimited computing power enables the SFS risk engine to analyse portfolios of any size in any time frame. Clients can provision hundreds of servers on demand, and run portfolio risk scenarios whenever needed.

Dr Chris Marrison, CEO of Risk Integrated, explained: “By leveraging their existing investment in the SFS enterprise solution, the SFS Cloud-Burst enhancement provides our clients with a huge improvement in measuring, reporting, and understanding the risks in their CRE portfolio.”

At the heart of SFS Cloud-Burst, is a software and network interface between the existing SFS software, installed either on the bank’s in-house infrastructure, or in a partner data centre with Risk Integrated’s outsourced offering.