In 1995, FEA was approached by JP Morgan and asked to implement their risk methodology in software. Since then, Value-at-Risk has become the standard framework for measuring and reporting risk in Banks and Financial Institutions worldwide. FEA has accumulated valuable experience in this field thanks to over 100 implementations of our VaR measurement and management software. FEA’s VaRworks tool provides a framework for identifying, quantifying, and managing investment risks. Its "drill-down" capabilities offer crucial insights for determining the main sources of risk in the portfolio and identifying the components of the portfolio that act as a natural hedge. At FEA, we strive to ensure that our products evolve to keep pace with important methodological advances, such as the introduction of Stress Testing and Extreme Value Theory, and the ongoing development of new derivative instruments. Our dedicated customer service staff works closely with FEA’s financial engineering and development team to ensure that customer requests are quickly translated into product enhancements. Financial Institutions in the US, Europe, Latin America, and Asia use VaRworks to actively measure and manage risk. For example, the subsidiary of a European Bank in New York uses VaRworks and MakeVC to calculate VaR on a daily basis. The firm’s top management sets a VaR limit for the different business units. With VaRworks and MakeVC, the Risk Managers in New York can track and drill down sources of risk within their Money Market and Treasury portfolios, and adjust their portfolios accordingly to remain within VaR limits. With the help of FEA’s support and educational department, they were able to develop a system to calculate volatility and correlation datasets on a daily or intra-daily basis using MakeVC and Bloomberg® feeds. In 2001 they were able to complete a smooth transition from Variance-Covariance to Historical Simulation VaR to achieve consistency with the firm-wide risk reports. In addition to VaRworks and MakeVC, other FEA products that may be of interest to banks are: @EQUITY @INTEREST @GLOBAL StructureTool @ENERGY/Basics @ENERGY/Advanced @ENERGY/Forward Curve @ENERGY/Swing @ENERGY/Weather @ENERGY/Storage Click on a product name for a detailed description and a list of features. We would be happy to provide a personal demonstration of any product, or feel free to contact us to talk with one of our staff directly.