Financial risk management is one of the hallmarks of establishing a successful business. Not only does it safeguard your company in the present and ensure that your future objectives are also defined.
Risks are unavoidable, and I’ve had my fair share of them as I grew my businesses. I’ve also learned that getting the proper tools is extremely necessary.
If you want to get ahead of the competition, you need to take the proper risks that can accelerate your growth while avoiding the ones that can hurt your business. In this article, I’ll be giving you my personal recommendations for the 7+ best financial risk management software for 2022.
- What Is The Best Financial Risk Management Software?
- 1. Riskalyze – Top Pick
- 2. HiddenLevers – Most User Friendly
- 3. FactSet – Best For Investment Bankers
- 4. FINCAD – Best For Portfolio Management & Analysis
- 5. D&B Credit – Best For Credit Reports
- 6. Kyriba – Unified Dashboard
- 7. SmartRisk – Outstanding Customer Support
- 8. Murex – Real-Time Global Risk View
What Is The Best Financial Risk Management Software?
If you find yourself short on time, don’t worry. Take a look at my top three instead: Riskalyze, HiddenLevers, and FACTSET.
|Best overall. An all-in-one solution for most financial risk-related management. Starts at $250/month.||Most user-friendly. Intuitive financial risk management platform for new users. Starts at $300/month/||Most features. Tailored for high-level FinTech companies with sophisticated powerful features.|
|Try Riskalyze||Try HiddenLevers||Try FactSet|
Now, if you’re interested in the full guide. Here’s the rest of the information that you’ll need.
1. Riskalyze – Top Pick
Financial Risk Management Through Risk Numbers & Assessments [Starts at $250/mo]
Riskalyze is one of the staple choices of most professionals and businesses when it comes to financial risk management software.
This software solution offers some of the most powerful features that financial advisors can get their hands on.
Let’s take a look at some of these tools:
The first one is Risk Alignment. With this, you can measure a lot of important data from investors such as:
- Portfolio risk
- Proposed risks
- Market tolerance
It is also powered by the Risk Number service. This enables you to easily organize complicated data into one calculation, making it easy to digest for your clients.
Additionally, there’s the Portfolio Analytics And Research feature. Using this, you can easily check the track record of a client’s portfolio.
Not only that, but you can view modeled performances, allowing you to compare the following:
- Market indexes
- Blended benchmarks
There are also two additional features that you can have access to with Riskalyze’s analytics: Stress Tests and Scenarios.
With these two, you can check how a portfolio would have fared during different timelines. Aside from historical timelines, you can make your own scenarios.
Moreover, there’s Riskalyze Trading. It’s an automated assistant that can keep track of all your client accounts for your maximum convenience.
Riskalyze Trading also features the Intelligent Tax Optimization tool that you can utilize for your trading decisions while minimizing taxes on your client’s profits.
At the same time, you also have a network of investment research to tap into in order for you to make the proper risk solutions for your clients.
This saves you from spending too much time finding the information that you need on the web.
Other financial risk management tools use the Predictive Guesswork Model to perform risk analysis and stress testing. But Riskalyze uses the Historical Data Model to illustrate a more accurate picture of markets over the long term.
Pros And Cons Of Riskalyze
|Innovative and powerful financial risk and investment management software||Can be costly|
|Trading automation||Limited options in stress tests|
|In-depth analytics and risk number system||Often inaccurate risk tolerance results|
Riskalyze Pricing Plan
Riskalyze has three types of pricing and does not offer a free trial.
- Riskalyze Select ($250/mo): For Select, you have access to the base platform such as risk assessments, portfolio risks, retirement maps, stress tests, Riskalyze GPAs, and even access to their mobile application to use on the go.
- Riskalyze Elite ($350/mo): The Elite package provides you access to all the previously mentioned features of Select while also enjoying extra tools such as detailed portfolio statistics, timelines, security analysis, retirement plans, advisor marketing kits, and outside sync assets.
- Riskalyze Enterprise ($450/mo): Enterprise is Riskalyze’s most powerful package and is primarily intended for businesses. You and your team are given access to alignment dashboards, team branding, multi-team access controls, customizations on market assumptions, model portfolios, investment choices, and contracts. You are also given a dedicated relationship manager to make sure everything runs smoothly.
If you’re interested in using Riskalyze as your go-to risk management solution then head over to their site to learn more.
2. HiddenLevers – Most User Friendly
Reputable And Proven Financial Risk Management Software [Starts at $300/mo]
HiddenLevers is regarded as one of the most successful FinTech companies out there with almost $500 billion in assets on its platform alone.
It provides a multitude of features for executives, marketers, and financial advisors.
It’s a financial risk management software that I highly recommend.
Users are provided with tolerance surveys to determine the most significant loss a client can consider acceptable.
HiddenLevers also has basic stress testing where you can easily input custom scenarios that can potentially affect your client’s portfolio.
Combine tolerance surveys and basic stress testing, and you have yourself a powerful information tool on which to base your customer’s financial decisions.
There is also another feature where you can compare different portfolios of clients to a situation that you’ve specified.
This is a convenient way to measure all of your current clients and how each would fare well depending on the situation in the near future.
HiddenLevers gives you a platform to support your financial decisions in an all-in-one and easy-to-use package, enabling you to do the following:
- Assess risks
- Manage portfolios
- Conduct stress tests
Pros And Cons Of HiddenLevers
|Detailed financial illustrations||Can be costly|
|Fast to load portfolios||Not as intuitive|
|Great customer support||Mobile apps can be clunky|
HiddenLevers Pricing Plan
The costs for HiddenLever’s Risk Monitor and Asset Manager can only be accessed by getting in touch with their sales team.
As for their Advisor pricing plans, they offer three basic packages with a 14-day free trial available.
- Basic ($300/mo | $3,600/yr): The Basic plan provides you an easy outline of the package with interactive stress testing, custom branding, portfolio risk profiles, and comparisons, war room webinars, and digital risk questionnaires being made available.
- Elite ($1,200/mo | $14,400/yr): Elite gives you a much more powerful set of tools added on top of the previous package with portfolio optimizers, IPS generation, customizable risk questionnaires, and survey tracking to boot.
- Prime ($2,400/mo | $28,800/yr): The Prime plan provides DocuSign integrations, plenty of modeling opportunities on private equity, real estate, options, and structured products. You also have access to Hedge Fund + PE Data feeds and many more.
3. FactSet – Best For Investment Bankers
Financial Risk Management Software With Intuitive UI [Custom Pricing]
Specially made for investment bankers, FactSet is one of the leading platforms in financial management.
They also have hundreds of thousands of clients using its platform and are considered to be the fourth-biggest financial management software.
FactSet also has an outstanding implementation of financial management features that allows you to do the following:
- Visualized data sets
- Innovative interfaces
- Real-time market data
Additionally, it has integrations with plenty of other third-party applications such as Microsoft Excel.
Factset is software that’s required to be installed on a desktop for it to operate. It also has an intuitive user interface that is easy to navigate and understand from the get-go.
FactSet also features powerful machine learning tools for quantitive research. One of these is called DataRobot, a feature that allows you to access hundreds of open-source machine learning algorithms.
Combining FactSet and DataRobot power, you can create data-driven investment strategies, predictive applications, and more.
Pros And Cons Of FactSet
|Intuitive user experience design||Can be pricey|
|Robust mix of financial management features||Limited to only a desktop application that needs to be installed on a system|
|Real-time market data uploads||Lackluster equity research capabilities|
|Feature a flexible and robust enterprise risk management system|
FactSet Pricing Plan
It’s no secret that FactSheet’s plans aren’t the most affordable in the industry. This is understandable since the features it offers are top-tier.
To get a clear idea of the cost of this financial risk management software, you need to get in touch with them. They’ll give you a demo and base the pricing on your company’s needs.
4. FINCAD – Best For Portfolio Management & Analysis
Top Financial Risk Management Software For Hedge Funds [Free Trial | $1,100/mo/user]
Specializing in portfolio management and analysis, FINCAD is purposely built for financial managers, hedge funds, corporations, investors, and financial institutions.
It’s a single integrated solution to streamline workflow, improve returns, and control risks.
It offers a wide range of resources, such as:
- Scenario analysis
- Interest-rate volatility modeling
- Client order management systems
One unique aspect of FINCAD is that it offers an unlimited custom reports feature for its users.
Its new framework provides users an expanded opportunity to create custom reports on a wide range of needs, from regulatory compliances to the incorporation of internal and external data.
When it comes to providing a complex and accurate evaluation as well as risk analytics for fixed income portfolios and multi-asset derivatives, FINCAD is the solutions platform to go.
Its analytics suite also has a mobile platform available for its users to enjoy on the go.
Pros And Cons Of FINCAD
|Fast and accurate risk data||Can be expensive|
|Tailor-made for hedge funds||No platform training is available|
|Free trial available||Limited to email customer support|
FINCAD Pricing Plan
FINCAD offers custom pricing plans for its users.
Despite the lack of transparent cost options, you can still get their free trial and explore the features of their platform.
5. D&B Credit – Best For Credit Reports
Cloud-Based Financial Risk Management Software For Investors [Free Trial | $61.99/report]
When it comes to credit reports for businesses, D&B Credits is a cutting-edge platform for investors and financial managers.
This is done through its extensive credit reports that are based on compiled public and private information of the targeted business.
D&B Credit Report features are easy to navigate, and visualized data is exceptionally presented in a way that is digestible for readers to use. It displays the following information:
- Company profile views
- Delinquency risk scores
- Late payment indicators
Moreover, when it comes to risk assessment, this feature is incredibly in-depth.
It highlights a specific rating system shown alongside other assessments such as maximum credit recommendations and delinquency projections.
There are other report scores that are shown, such as:
- D&B rating
- Legal events
- Failure scores
- Viability ratings
- Trade payments
- Delinquency score
Pros And Cons Of D&B Credit
|Highly intuitive user interface||D-U-N-S number restrictions|
|In-depth reporting and scoring||Often inaccurate credit information|
|Reputable among creditors and lenders||Can be costly|
|Also, offer indueD for automated decision making|
(develop for third-party risk management)
D&B Credit Pricing Plan
D&B Credit has different price packages for their credit reports, and they do offer a free trial version of their software platform for users interested in grabbing their toolkits.
- Credit Evaluator Plus ($61.99/report): Buying the Credit Evaluator Plus provides you with a detailed company profile for the targeted business as well as risk assessments, indicators for risk of late payments, D&B maximum credit recommendations, and even D&B Paydex Score.
- Business Information Report Snapshot ($139.99/report): This one added much more detail to the report as you can enjoy payment histories, D&B Ratings, D&B Delinquency Predictor Scores, overall business risk assessments, and financial statements.
- Business Information Report On-Demand ($189.99/report): As for this plan, you’ll get speedy access to reports and access all the previous benefits added with real-time monitoring, alerts, and business events notifications.
- Credit Reporter ($799/5 reports): The Credit Reporter plan gives you all of the aforementioned benefits along with an extra 5 reports for 5 different companies. It’s much cheaper in the long term and can be a great way to search through data on a multitude of target businesses.
6. Kyriba – Unified Dashboard
Liquidity & Financial Risk Management Platform [Custom Pricing]
Kyriba is a platform that offers a wide range of solutions to its user base, including financial risk management.
Their service makes great use of comprehensive business intelligence capabilities to easily identify and understand financial risks, particularly in foreign exchange.
Kyriba’s risk management platform also covers the following areas:
- Financial: This enables FX exposures, mark-to-market valuations, sensitivity analysis, derivatives, hedge accounting, etc.
- Counterparty: This provides exposure reporting, deal limit monitoring, and supply chain financing.
- Liquidity: This one gives you cash visibility, liquidity management, and cash forecasting.
- Operational: This covers financial controls, separation of duties, and disaster avoidance and recovery.
Kyriba offers an all-in-one solution when it comes to compiling data from ERP systems and data spreadsheets as they combine all these and transform them into:
- Analysis results
- Risk mitigation scores
They then showcase it into one single dashboard for their user base to explore and easily navigate through.
Aside from that, there is also a cash flow exposure forecasting tool for financial managers to use to create and analyze currency exposures from transactions and existing cash flows.
On top of this, Kyriba also has a complete trade agreement system where it is integrated into trading portals for confirmations and settlements.
All of this is done on the web as it is primarily a cloud-based financial platform.
You can also rely on Kyriba for fraud detection and prevention. It can efficiently provide central control centers for real-time monitoring, multi-factor authentication, and more.
Pros And Cons Of Kyriba
|Cloud-based financial platform||Needs support teams|
|Extensive bank connectivity||Complicated license management|
|Payment processing and automation||Lacks bank fee options|
|Comply with internal audit and control policies using structured and auditable workflows (cash management, payments, etc.)|
Kyriba Pricing Plan
Kyriba does not offer a free trial but you can request a product demo.
You also need to contact their sales team to get your own personalized quote.
7. SmartRisk – Outstanding Customer Support
Financial Risk Management Software For Client Communication [Free Trial | $49.99/mo/user]
SmartRisk is designed to be made for better communication between financial advisors and clients.
It has a clean and intuitive UI made for ease of use.
The same can be said for any calculations that need to be done in the program’s tools, as the UI itself practically spoon-feeds you in the right direction.
SmartRisk has a wide range of tools that financial advisors can use, such as:
- Stress tests
- Risk analytics
- Market risk management
- Portfolio management and modeling
All conveniently done through one dashboard.
SmartRisk also has one of the most outstanding customer support services that is active 24/7. There is also a chatbox for an added communication line.
Training is available through the following:
- Live consultation
SmartRisk is primarily a cloud-based service, so it can easily be accessed from anywhere that has an internet connection.
Pros And Cons Of SmartRisk
|Impressive customer service||Lacks financial features|
|Extensive onboarding material||Subpar third-party integrations|
|Clean and beautiful user interface||Portfolio creation difficulties|
SmartRisk Pricing Plan
SmartRisk offers a single package in two different payment methods, monthly and annually.
These two provide access to the same software platform, with the only difference being the period that a user is required to pay.
Monthly – $49.99
Annual – $599
It also has a free trial version for users to check out before investing in the platform.
8. Murex – Real-Time Global Risk View
SaaS Financial Risk Management Software For Capital Market Operators [Custom Pricing]
Murex is different from the rest of the financial risk management software on this list since it provides a real-time view of risks globally.
To measure the most objective functions in determining risks, it utilizes the following:
- Updated models
This platform is made just for capital market operators and financial services firms to effectively manage credit, liquidity risk and monitor the market on all asset classes.
When it comes to viewing market data in Murex’s menu system, it is easy to understand. There is also a multitude of features that it provides.
Take a look at the following:
- Credit risks
- Market risks
- Initial margins
- Liquidity risks
When it comes to mixing features, cloud-based services, and continuous support for updated financial models, Murex is the way to go.
Pros And Cons Of Murex
|Plenty of usable features||Dated user interface|
|Innovative portfolio evaluation system||Limited to four sessions at a time|
|Real-time market data||Lacks customizable dashboard|
Murex Pricing Plan
Murex does not post its pricing plans on its site for the platforms that they service. They require a custom quote from their sales team. Visit their site to get started.
When it comes to picking out the best financial risk management software, I’d choose Riskalyze as it has the best of all the worlds from innovative features, easy to navigate user interface, and reasonable pricing standards.
You can have an easier time going through the important information and data that can help you make the decisions that will make your clients happy. At the same time, enjoy convenience with the tools that you have at hand.
Riskalyze is the go-to financial risk management platform that you ought to consider moving forward with your business as it has almost everything that you just might need.