UFS Expert Sheet Data Modeling


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Do You Know How to Steer
the Value of Your Business?

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UFS Expert Sheet Data Modeling

  1. 1. e XP ert SH eet Do You Know How to Steer tHe Value of Your BuSineSS? Data Modeling Essential to any financial based decision is the support of efficient and stable analytical models. The models developed at Uphantis Financial Services are Our excellent knowledge base and designed to represent the performance of a business, a project, an asset, state-of-the-art data or any form of a financial investment. The methodology employed for each modeling techniques are purpose, however, substantially varies. In accounting, modeling is used to designed to meet your forecast the evolution of financial statements with focus on cash flow, while organization’s most in investment management, it is often used to simulate scenarios of financial complex challenges: events -such as asset price and market movements - but also as an optimi- zation mechanism for managing and controlling investment risks. • Manage and monitor risks • Simulate asset Uphantis Financial Services is formed of highly skilled professionals, whose prices, market knowledge and expertise in financial modeling cover three key areas: movements and derivatives pricing • Finance Reporting and Control • Efficiency • Risk Management optimization • Portfolio Management • Controlling investment risks Market Groups Treasury & Finance Solutions Financial Corporates Public Sector Institution Cash & Treasury Management Services: Competences: Risk & Performance Management • Advisory Services • Strategy & Organisation • Interim Services • Processes & Systems • Consultancy Services • Modeling & Valuation System & Risk Technology • Strategic Board Information • Treasury Management Corporate Finance Management • Fi/Co Registration Systems Deze Expert Sheet is een uitgave van UPHANTIS Financial Services
  2. 2. Finance, Reporting and Control Uphantis Financial Services provides a complete quantitative mod- eling analysis of the organization’s financial performance. Internally, we use trend analysis to examine the firm’s performance over time. Externally, we compare the firm’s financial position rela- tive to the industry using peer group analysis. Both internal and external analyses involve ratio and common-size techniques and help to identify the key financial performance driv- ers of the organization. This approach sets the cornerstone to performance forecast and planning, followed by scenario and stress testing. The analysis is particularly valuable when the need for efficiency optimization exists, and/or when support to financing decision of new invest- ments is required. In the latter case a quantification of the financ- ing implications is made and the expected added value is analyzed. Risk Management Risk Management has significantly become the center of at- models to support the hedging against and monitoring of financial tention for virtually all market participants. May this be due to risks. Our models perform valuations of structurally complex stricter regulations, survivorship, shareholders concerns or other financial derivatives, of which Swap agreements, plain vanilla and triggers, there has been growing emphasis on whether and how exotic options, as well as other forms of financial instruments organizations manage and monitor the many risks they are facing. that require advanced quantitative skills. Having developed models Uphantis Financial Services has developed in-house quantitative based on Monte Carlo Simulation methods, we have mastered the process of asset price evolution, a central application in evalua- tions of path dependent / exotic type options and Value at Risk, Using Monte Carlo Simulations, in Uphantis Financial Services we have mastered: both typically characterized by multidimensional risk. Based on the Black-Scholes-Merton framework, Uphantis Financial Services • Asset price evolution process, has also created closed-form models for option pricing to be used • Valuations of path dependent / exotic type options. when applicable. Our Swap models provide continuous valuation • Value at Risk (VaR) of Swap contracts, may these be based on currencies, interest rates Accomplished results: or different asset types. • Identifying collateral charges mispricing Our models are well suited to handle both the setup of hedging • Substantial monetary reimbursements strategies, as well as continuous valuation of hedging positions. • Minimize risks for better business continuity 2
  3. 3. Portfolio Management Portfolio Management is the art of monitoring and controlling investments, balancing performance with risk and matching invest- ment with objectives. Typically, any portfolio is made of different investment asset class- es. One common breakdown is as shown in the illustration here next, however, the relative size of each asset class varies according to the investor’s risk profile. Within each asset class further break- downs may be made. For example, one way the equity class can be subdivided is into small, medium and large market capitalization, while fixed income securities can be broken down into corporate bonds and government bonds. Each asset class reflects a different risk and return characteristics and will perform differently under different market environments. Put together, however, an invest- ment portfolio composed of different asset classes provides better diversification and lower risk than otherwise. Uphantis Financial Services provides analysis of financial securi- ties, risk-return analysis and support to asset allocation decisions, Services enjoys the full commitment of our team to providing all based on the targets and risk tolerance profile of the investor. state-of-the-art solutions supported by advanced quantitative This applies both to setup of new and the optimization of existing modeling techniques. Our mission is first to build up full under- investments. standing of your organization’s need(s), drill it down to obtainable objectives, then develop an appropriate mathematical model that Taking top-down approach, we perform fundamental analysis and best supports the solution. This framework has been successfully use simulation models to predict the evolution of securities and implemented in solving complex risk management issues in the portfolio values. Our expertise is suitable to support both invest- Over-The-Counter derivatives market for some of our clients. ment entities as well as Corporate Treasurers. Our developed expertise in path-dependent option valuation has, What is our added value to your organization? in certain cases, lead to identification of collateral value-mispricing In Uphantis Financial Services we believe in applying the best and substantial monetary reimbursements. In other cases, such solutions to the specific needs of each of our clients. Moreover, in new project investments, we have provided our clients with though many processes are standardized, organizations are often optimization and financing solutions based on a forecast and plan- faced with changes and dilemmas that require unique vision and ning models. Our instrument- and knowledge-base is significantly unconventional approach. The customer base of Uphantis Financial flexible to meet the organization’s many challenges! 3
  4. 4. Connecting our future Uphantis Financial Services is composed of experienced amihood Shema Postbus 2007 professionals from various fields and backgrounds, Financial Consultant 6710 CA Ede including: Uphantis Financial Services E info@uphantis.com I www.uphantis.com • Accounting Pascalstraat 15 • Audit 6716 AZ Ede ede: M +31 (0)6 24 49 91 08 Pascalstraat 15 • Control E amihood.shema@uphantis.com 6716 AZ Ede • Treasury i www.uphantis.com T +31 (0)318 439 780 • Banking F +31 (0)318 439 781 • Mathematics ton Verbeek • IT Director Maastricht: Uphantis Financial Services Australiëlaan 1 6199 AA Maastricht Airport As a fast growing organization we are quick to identify Pascalstraat 15 T +31 (0)43 365 35 88 opportunities and are highly responsive to market 6716 AZ Ede F +31 (0)43 365 43 18 needs. We provide an optimal mix of financial advice M +31 (0)6 21 49 90 53 and opportunities, supported by long existing experi- E ton.verbeek@uphantis.com amsterdam: ence within the financial industry. Our strong relations i www.uphantis.com Paasheuvelweg 50 B with financial institutions are particularly valuable for 1105 BJ Amsterdam organizations seeking financing support in ever grow- T +31 (0)20 45 26 330 F +31 (0)20 45 26 331 ing regulatory environment. ’s Hertogenbosch: Uphantis Financial Services provides first class advice Vughterweg 47 L and consulting in Financial Excellence through govern- 5211 CK ’s-Hertogenbosch ance, financial performance, total asset optimization T +31 (0)73 610 4490 and risk management. We guide and support the or- F +31 (0)73 612 1506 ganization throughout valuation processes and provide solutions tailored to meet its specific needs within data modeling. about uphantis as an iCt service provider, With its substantial knowledge and instrument base of uphantis is an expert in the application of advanced data modeling, Uphantis Financial Services is prepared technologies and methods for for the many market challenges of tomorrow. the integration and streamlining of company processes within medium and large organisations: • Management Consultancy • Service Center • SaP Services • financial Services • network Solutions • embedded Solutions • Products • Document Services