5 JUNE 2024 – Tokyo – Numerical Technologies (“NumTech”) is excited to announce the successful migration of Japan Securities Finance Co., Ltd. (“JSF”) from NtInsight®, to NtSaaS® for Market Risk. NtSaaS, NumTech’s flagship financial risk management SaaS, is rapidly becoming the preferred choice for numerous financial institutions seeking cutting-edge risk management solutions in Japan.
Since 2019, JSF had been leveraging NtInsight through Infrastructure as a Service (IaaS) provided by AWS. The decision to migrate to NtSaaS was driven by a strategic initiative to enhance operational efficiency, improve application maintainability, and advance risk measurement capabilities.
At JSF, the Risk Management Department plays a critical role in quantifying and managing market risks, complemented by stress tests to reinforce risk quantification and management. Furthermore, to validate the reliability of the risk measurement model, back-testing is conducted to compare calculated VaR with hypothetical profit/loss scenarios for a fixed portfolio. This transition also saw the integration of the historical method, widely utilized in the banking industry, alongside the conventional variance-covariance method. NumTech spearheaded the development of an ETL tool to streamline the generation of input data for risk measurement, allowing JSF’s risk management department to focus on their core responsibilities.
Kentaro Nakajima, Deputy Manager at JSF’s Risk Management Department, expressed, “Given our extensive experience with AWS and proficiency in public cloud services, the transition to NtSaaS was seamless for us. With NumTech’s support, we efficiently incorporated the historical method into our risk assessment framework, completing testing swiftly and seamlessly transitioning to the live environment.
As the trend of rising interest rates persists, financial institutions face an increasing need to establish new frameworks. Leveraging its expertise in financial risk management, NumTech continues to develop advanced services tailored to support the evolving needs of the financial industry.
