Allegro for Counterparty Risk
As the energy industry continues to undergo dramatic change, it's more important than ever to understand counterparty risk and exposure in what is a truly dynamic marketplace. Proper evaluation of exposure is vital to mitigating the risk to your company by identifying potential problems before they become actual problems.
With Allegro's commodity risk management software, credit analysts and risk managers will get a real-time view of their exposure, including counterparty exposure. That's because Allegro's software has powerful tools embedded that are specifically meant to manage counterparty risk. Our platform, based on more than three decades of experience, is ready to mitigate the risk you're facing today, as well as what you'll encounter tomorrow.
Risk managers have multiple demands and numerous challenges, and they can arise rapidly. Allegro, and its commodity risk management expertise, can prepare risk professionals to handle whatever comes their way.
WHY ALLEGRO | CUSTOMER VOICES | OUR MISSION
How Agile is Your Current Risk Management Strategy?
As the world’s commodity markets continue to undergo dramatic change,
it’s more important than ever to understand counterparty risk and exposure.
A report from Allegro, "The Right Platform for Counterparty Risk Management,"
explains how a CTRM system may be the right decision.
Built for Counterparty Credit Management
Coping properly with risk involves everyone in the trading cycle. The front office has to stay within its trading limits, while middle and back offices manage invoices, collect and analyze counterparty credit information and oversee the overall risk landscape.
Allegro's commodity trading and risk management software addresses these requirements. Availability data for limits, configurable by contract, product and other parameters, provide traders with timely and accurate data to manage their book’s exposure, today as well as into the future.
Beyond its functionality, another advantage of Allegro is the flexibility of the system. Along with giving you the choice to deploy the system on-site or in the cloud, Allegro's CTRM technology can be extended as needed by your enterprise. That means teams throughout the organization will benefit.
The Benefits of Allegro
Counterparty Credit for Trading
Counterparty Credit for Trading
For traders, Allegro’s benefits for managing counterparty credit risk include:
- Capability to check a trade for credit impact before execution
- Ability to analyze trends to determine exposure by geography, product vertical or rating group
Counterparty Credit for Logistics and Operations
Counterparty Credit for Logistics and Operations
For logistics and operations teams, Allegro’s benefits include:
- Ability to calculate expected future exposure on delivery to ensure credit limits will not be breached in the future
- Functionality for trades “subject to credit” and collateral assignable to particular trades, legs or movements
Counterparty Credit Risk Management
Counterparty Credit Risk Management
With Allegro’s CTRM software, credit risk managers will see benefits including:
- Forward analysis to show exposure, availability, predicted margin requirements and other metrics for any future day
- Credit exposure and availability metrics that can be adopted to the way your business views credit risk
- Quantity and exposure limits can be tracked by individual counterparty, counterparty family and at any level of that hierarchy
- Limits by commodity or commodity group and also by customer-defined grouping.
- Auditable results that ensure the ability to comply with regulatory guidelines
- Margining workflow management and margin call tracking for OTC margining
- Counterparty collateral management
Counterparty Credit for Accounting and Compliance
Counterparty Credit for Accounting and Compliance
On the compliance side, benefits of Allegro for managing counterparty exposure include:
- Ability to interface with external rating agencies
- Generation of auditable results
- A customizable scoring model that can be leveraged to quickly determine a company’s creditworthiness
Trusted for Over 30 Years
Having a partner you can trust in the commodity business is essential to succeeding. Since 1984, Allegro has been the relied-upon choice of professionals needing expertise in commodity risk management software. When you decide to work with Allegro, you'll be turning to a leader who can help you manage your trades and your counterparty risk with an integrated, innovative and adaptable platform.
We're confident that Allegro's software for mitigating counterparty risk makes sense for your business. However, you likely will need a detailed use case to help your executive team understand the Allegro difference. Talk to us today, and we can give you that case.
Industries We Serve
"In the Allegro platform, we have found an innovative, sophisticated and adaptable system to meet our needs in the power trading market. Operational agility and risk management are of significant importance for Tokyo Gas and key to sustaining our competitive advantage. We're confident that, as our requirements change, Allegro will be capable of changing with us and extending our system as needed."
"We are confident that with [Allegro], we can cover our current needs, but will also have the flexibility to extend our business into other areas in the mid to long term future.”
"We've been working with Allegro since 2008, using its platform to manage our hedging program to mitigate our fuel price risk. When the time came to upgrade our legacy fuel management system, it made sense for us to evaluate Allegro’s capabilities to manage our physical jet fuel business on an integrated platform. Choosing Allegro more closely aligns our initiatives to minimize business costs and maximize profits."
Talk to a CTRM Expert Today
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