RiskPool

Network Effects

EBITDA boost

Significant scale-based savings resulting from our cross-customer hedging and netting approach (i.e. our risk pooling process) can increase your EBITDA by up to 12% p.a. which again is equal to an increase of 16% in sales. Add to this selected commodity upsides, e.g. various sorts of steel or rare earths which thanks to RiskPool become hedgeable for the very first time, and you might see in total up to an 80% annual net profit increase. Hence your EBITDA and net profit will go up sharply.

Compliant

Simple and clean insurance solution

RiskPool reduces compliance burdens tremendously; just think of KYC checks, MiFID II, EMIR and the likes, which for an insurance policy are no longer applicable from a customer’s perspective. At the same time you are getting rid of all potential legal litigations over contract details (e.g. derivatives pricing) related to hedging transactions.

ERP integrated

Works with all leading systems

Our close collaboration with major ERP system providers ensures a seamless integration and stable processes. For now RiskPool and our other Products work with the following systems:

Cross-Product Integration

Seamless integartion with complemenatry products

RiskPool is seamlessly integrated with all other products including those provided by third parties since this way we can achieve the maximum utility for you. Thus cross-border transactions, financings or financial solutions want be a complex issue anymore.

Automation

No treasury department needed anymore

Enjoy an increased focus on your core business with automation taking all the financial risk management hassles (e.g. going global without worrying about FX rates) and potential human errors out while the use of artificial intelligence and the inherent insurance asset management contributions are improving results further.

Robo Advisor

Get instant help

If you face any trouble, you can always let our dedicated support team help you or ask the built-in and proactive robo advisor for help. They are ready for you 24/7.

Customer Success Stories and Cases Studies

A selection of notable and recently onboarded clients

Economic rationale

Deep dive on the theory underlying our solution

Per economic zero-sum-game-theory all available forex, rates and commodity market instruments worldwide added up will return zero profits since the earnings of one stakeholder are the losses of another one. This is because FICC markets are speculative ones, while the stock market for example is a non-speculative market. Every single profit is taken from other market participants whether banks, corporations, or day traders. However, this does not mean that in every individual transaction there is a winner and a loser since there can be mutual advantages due to different currency positions held for varying amounts of time. So, positions will always offset each other in the markets. For corporates/business speculation is usually nothing they like to participate in (exempt from a few financial services firms) and hence reliable rates and spots are clearly preferred over uncertain gains. That is exactly what we are doing by giving customers fixed or capped rates with defined bandwidths of risks and for agreed on periods, matching these preferences with those of other corporations directly. Thus, many positions will eliminate each other and in consequence reduce the residual risk which needs to be transferred to “speculators” and other financial intermediaries in the derivatives market and/or securitised product market (yes we are currently planning to securitise and sell parts of the residual risk). However, since based on our statistical analysis at least (the number is quickly growing with global size) more than 40% of positions can be cleared among customers directly only for the decreasing number of remaining risk positions hedging contracts need to be bought, which is a clear cost advantage given to the customer in addition to not having to run own treasury systems and risk management departments. Beyond this all risk positions are anonymised using a number code logic and thus data protection absolutely ensured and nothing the customer needs to worry about. More so all positions are only transferred to our mutual insurance pool and matched there; hence no direct customer to customer transfers. At the same time the pricing is as mentioned before set dynamically based on our real costs (forecast) and billed at the end of previous month in advance for the next month. The premiums are invested – to insurance standards – in the capital markets, driving the need for hedging instruments further downwards as the insurance asset management returns are integrated into calculations of residual risks to be covered by derivatives less investment returns and in consequence in the premium calculations. With this kind of quasi-internal FICC risk pricing we become a market maker in FICC prices by taking lots of volume out of the original derivatives markets and thus impacting overall pricing of FICC instruments in general and in favour of our customers




Market Size

The market size for such an insurance solution is 2,637bn USD with Asia being the largest market (1,058bn USD), North America (910bn USD) second largest and Europe (712bn USD) third. At the same time, it is crucial to quickly expand internationally and win customers on all continents at the same time to get contrary risks position on the platform (network effects apply). Additionally, a value of at least 385bn USD in estimated revenues could be added coming from financial institution risk management itself. All values are double checked by first using a bottom-up calculation approach derived from the KPMG study and secondly by using macro FICC reports from the Bank for International Settlement.
The according Bank for International Settlement (BIS) data is as follows: Gross market value in bn USD for FX is 883, for Rates is 1,477, and for Commodities is 283, giving us a total of 2,637bn USD. (Nominal amounts outstanding according to BIS respectively are 15,965bn USD, 19,722bn USD, 1,949bn USD resulting in a total nominal market value of 37,636bn USD)
Thus the market size of 2.64tn USD is clearly confirmed and likely even exceeded especially if considering current growth market rates in excess of 10% annualy.


Sebastian Hess
Chief Economist







Technical Aspects

Deep dive on the technology and process underlying our solution



Harnessing the capabilities of Google's infrastructure while making data privacy and protection a top priority
Process steps

1. Real-time tracking of exposures via ERP system plugins

2. Immediate transfer of identified exposures from the customers balance sheet to our own one (insurance pool)

3. Maximising total utility: Automatic rate, duration and volume setting (price optimisation considering real costs – incl. point 4 prev. months results – and customer benefits) and global netting process (“cross-customer” -> economic zero-sum game in FICC markets)

4. Hedging of residual risks (incl. overhedging) and market making as appropriate

5. Calculation of premiums depending on applicable risk classes, insurance asset management contribution, exposure transferred and mentioned real costs

6. Annual calculation and redistribution of excess premiums paid (difference to 2.25% monthly invoice*)



Using Julia as Programming Language

- Avoids the two language problem which usually exists for most finance firms and hence it is easy to react quickly to new requirements and situations, i.e. very short times to market
- Additionally our whole system becomes more stable to run and less error-prone since no re-writing is required with Julia
- Effortless integration of additional data sources and fast customer onboarding
- Julia is one of the most advanced languages for numerical analyses and parallel computing while also being effective for general-purpose programming, web use or as a specification language

In addition to this we use a Blockchain technology-based data verification and transaction plausibility checking process (macro-level) within a closed network of centralized databases (micro-level) allowing us to harness the advantages of both information architectures with a high degree of efficiency.

Cross-Product Integration

FinCaT

Well integrated with all cash management, payment and trade finance solutions provided by third parties via our FinCaT marketplace

FundMaster

Easy cross-border funding solutions based on a direct integration with the FundMaster tool / marketplace

Asset Management

Effective focus on investment processes and targets rather than having to deal with market risks and thus eliminating the need to constantly adjust hedging positions in portfolio management

Growing fast

Expanding RiskPools integration constantly accross new offers

Become a pro with Mountain

Mountain assures the best quality & attention of your website deserves. Regardless of if it is your Business, Agency, Nonprofit, Portfolio or anything else.

As it will be updated regularly, Mountain ensures the best quality against its value.

Learn more

Standard

The perfect match for most pairs
  • $7 Month to month
  • 20 Pages, Galleries, and Blogs
  • Unlimited Bandwidth and Storage limit
  • 2 Contributors
1.94%
of annual revenues
on average
  • 20 Powerful Website Metrics
  • 12 Free Custom Domain for one year period
  • Upto 30 Annual purchase
  • 24/7 Customer Support
2.51%
of annual revenues
on average

Featured Works

Our awesome and worth boasting project

Backpack Content
UI Elements icon
Sunset bulb glow
Graphics
study table
graphics media
workspace stuff
media icons