Finance & Banking

Maximizing Investment Returns and Minimizing Risk using Probabilistic Analytics

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From complex derivatives to individual retirement portfolios, Palisade solutions help investors at all levels achieve their goals.

Whether you work at Goldman Sachs, the local credit union, a corporate treasury department, or a public agency, anyone in the finance and banking sector knows that they face risks that were unheard of until recently. As an industry operating in ever-changing regulatory environments and volatile geopolitical economies, banks and investment firms are exposed to a wide range of constantly-changing uncertainties that can negatively impact bottom lines and shareholder value.

Regulation of the banking industry continues to evolve as the public becomes less tolerant of inappropriate practices and demands more transparency. At the same time, consumers will demand more automation, comprehensive services, and fraud protection. Cyber risk is and will continue to be a significant challenge, as bad actors become more sophisticated and motivated. Meanwhile, global currency markets continue to be volatile, influenced by local and regional geopolitical forces and trade policy. This introduces more uncertainty into international investment decisions. Furthermore, individual retirement planning is becoming more complex, and must account for unknowns with respect to pensions, government programs, market volatility, and healthcare. Analytics are a critical piece of the financial puzzle, as they not only improve outcomes for all stakeholders, but also reduce operating costs.

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The next ten years in risk management may be subject to more transformation than the last decade. [The risk function in 2025] is likely to have broader responsibilities and be very engaged at the strategic level.”

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@RISK and DecisionTools Suite for Finance & Banking

A majority of leading companies and agencies in the finance and banking sector rely on @RISK and DecisionTools Suite software solutions to meet these challenges head-on, all from the familiar spreadsheet environment. @RISK and the DecisionTools Suite bring robust analytics such as Monte Carlo simulation, optimization, decision trees, sensitivity analysis, and predictive data analysis to Microsoft Excel. This enables users of all levels to contribute to better decision-making – with or without data, and with or without a statistics background.

How Finance & Banking Leaders Use Palisade

Investment Planning & Portfolio Optimization
Optimize multiple portfolio assets (such as stocks, bonds, and real estate) to maximize return while minimizing risk. Perform efficient frontier analysis to identify the best portfolio for a given level of risk.

Products: @RISK, TopRank, RISKOptimizer, Evolver, NeuralTools, StatTools

Currency Hedging
Mitigate exposure to currency volatility through an optimized options and futures strategy that accounts for uncertainty.

Products: @RISK, TopRank, PrecisionTree, RISKOptimizer, Evolver, NeuralTools, StatTools

Real Options Valuation
Quantify the value of real options, or the right to undertake an investment or not, in the face of uncertainty future outcomes.

Products: @RISK, TopRank, PrecisionTree, RISKOptimizer

Calculate the probability of different losses on a portfolio over a given time period, given uncertain investment outcomes

Products: @RISK, TopRank, RISKOptimizer, Evolver

And Much More!
From credit risk to regulatory compliance and everything in between, Palisade solutions are used to address a wide range of finance and banking challenges.

Includes @RISK and all products mentioned above

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With @RISK, we can adapt our analysis to meet any special circumstances of a client or investment scenario.”

Matthew Rosenberg
Managing Partner, RoseCap Investment Advisors

Customer Success Stories

Federal Home Loan Bank
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Brendan McGrath
Director of Credit Risk Analysis, Federal Home Loan Bank of Indianapolis

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The @RISK framework gives you robust tools to do sensitivity analysis and optimization, so our model gives us the ability to do a variety of stress testing and what-if analysis on the portfolio.

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Art Misyan
Director of Foreign Exchange, Merck

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Simple VAR analysis is not good enough. We love [@RISK] because it incorporates distribution fitting and gives us the flexibility to evaluate alternative distributions on screen.

Procter & Gamble
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Bob Hunt
Associate Director for Investment Analysis, Procter & Gamble

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PrecisionTree is really the only tool that can correctly value [real options], multiple sequential decisions where uncertainty is private risk.

Cornell University
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Dr. Calum Turvey
Professor of Agricultural Finance, Cornell University

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On the derivatives side, I show how @RISK can be used to price exotic options.



Case Studies


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