Risk management
Managing risk is the core of our work
RISK MANAGEMENT
RETURNS ARISE FROM TAKING RISKs. RISK MANAGEMENT IS CENTRAL TO VARUNA’S SUCCESS.
Our integrated risk management framework combines sophisticated analytics and highly efficient processing capabilities to enable monitoring from the microscopic level of a single position to the macroscopic level of the portfolio of strategies. By understanding risks and measuring how they evolve, we can act with speed and precision.
“While generating positive skew is the domain of traders, surviving high kurtosis is our constant focus. When asked to explain kurtosis, I always say: 'when markets are on the move, things that modelers say would occur once every few hundred years end up happening multiple times in a week.’”
— Paola Apruzzese - CTO
FOCUS
We do not only consider market risk. We consider all risk. to mention just a few:
Infrastructure Risk
A highly complex technical infrastructure can fail. We strive for redundancy and fail-safe management.
Portfolio And Strategy Risk
The weightings inside of our portfolio are established through a sound academic approach. Accurate simulations, stress tests and correlation analyses (both across strategies and across time) ensure that returns are maximized at the chosen risk tolerance level.
Personnel Level
Personnel risks are among the most relevant, and often neglected, structural risks. We minimize the risk of any human factor and apply redundancy.
