Portfolio Risk Management
From concentration risk to factor exposure and tail risk, 3forge aggregates and monitors all dimensions of portfolio risk in real time. Connected directly to your risk models, limits framework, and market data feeds, the platform replaces end-of-day risk reports with a continuously updated operational risk layer.
The Challenge
End-of-Day Risk Reports Cannot Support Intraday Portfolio Management
Modern portfolios expose managers to multiple risk dimensions simultaneously, and monitoring all of them effectively requires a live system, not a morning report based on last night's closing prices.
Multi-dimensional risk blindness
Modern portfolios expose managers to factor risk, concentration risk, liquidity risk, and counterparty risk simultaneously, and monitoring all dimensions with a daily VaR number is insufficient.
Limits enforcement gaps
Risk limits set at the portfolio level mean nothing unless they are being monitored continuously, since a limits breach discovered at end of day has already happened and must be reported.
Intraday factor model latency
Most factor models run overnight on yesterday's positions, leaving intraday factor drift invisible until the next morning's report arrives, often too late to act on.
Infrequent stress testing
Running stress scenarios monthly or quarterly is insufficient for actively managed portfolios, as managers need to project macro scenario impact on the current live portfolio at any time.
The 3forge Approach
Continuously Updated Portfolio Risk Across All Dimensions
3forge connects to factor model providers, risk calculation engines, and market data feeds to update all key risk metrics, including VaR, expected shortfall, beta, DV01, and concentration, continuously as positions and prices change throughout the trading day.
Key Capabilities
What You Can Build with 3forge
Live Risk Dashboard
Monitor VaR, expected shortfall, beta, DV01, and duration continuously as positions and prices change, with no manual refresh required.
Concentration Analysis
Identify position, sector, and factor concentration risks as they develop throughout the trading day, with automated alerts when concentration approaches configured limits.
Limits Monitoring
Track risk budget utilization and position limits in real time, alerting compliance and risk teams before a limit is breached, not after.
Intraday Factor Exposure
Connect to factor model providers to update factor exposure estimates continuously as prices and positions change throughout the session.
Stress Testing
Apply predefined and ad hoc stress scenarios to the live portfolio at any time and see the projected impact on P&L and all key risk metrics immediately.
Risk Attribution
Decompose total portfolio risk by factor, strategy, desk, and instrument to identify the primary sources of risk at any moment of the trading day.
Get started
Ready to see it live?
Book a 30-minute demo with a 3forge solutions engineer and see live portfolio risk monitoring running on your positions and market data.