Cognity is the new market benchmark in risk management and portfolio construction solutions: a "real world" alternative to those provided by conventional vendors that makes quantitative risk management relevant to the realities of today’s volatile markets.

Cognity directly addresses the needs of the new market paradigm through profound improvements in underlying methodology for modeling of real world phenomenon including fat-tails, asymmetric dependence, volatility clustering and risk asymmetry.

Cognity offers multi-dimensional risk transparency:

• Transparency in varying degrees of portfolio opaqueness by measuring risk across holdings, returns and exposures on the same platform.
• Transparency in risk modeling assumptions, parameters and intermediate results.
• Transparency in portfolio tail-risk and respective risk contributors.
• Transparency in risk language by bridging the gap between risk managers, portfolio managers and executive committees.

Cognity overcomes the dangerous limitations of the classical risk management framework by providing the most realistic and accurate risk estimation available. These insights help Cognity users to actively manage tail-risk, improve the risk-return profile of their portfolios and communicate objective value added to their clients. Cognity clients are uniquely positioned to:

• Strategically manage risk - monitor portfolio risk evolution over time and detect risk profile changes and style drifts.
• Ensure accurate diversification - actively manage tail risk and gain insight into the true tail risk diversifiers and contributors.
• Anticipate and communicate the impact of abrupt market downturns on P&L and risk - construct complex multi-dimensional stress scenarios.
• Improve investment decision making - build consensus through fat-tailed risk budgeting.
• Enhance transparency and communication with investors and regulators - implement a structured investment process.
• Gain new investors - demonstrate increased commitment to active risk management.

Understanding investor and regulator reporting requirements, Cognity includes all traditional risk statistics and models. Side-by-side comparisons between post-modern and traditional models provide valuable insight and ensure confidence.

Despite the complexity of the modeling required, this unique analytic insight is delivered through a practical set of user-friendly software modules. Cognity is a global, multi-currency, cross asset solution covering an extensive list of asset classes and instrument types.

Explore the key modules of the latest Cognity holdings-based release.