The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Risk management: As easy as ASP

Application service provision has transformed prospects for suppliers of risk-management software. Systems that smaller corporations would once have found too costly, or too feature-heavy, have become available relatively cheaply and in digestible chunks from ASPs on the internet. Even larger companies can see the advantages of the ASP strategy and it is possible that the model will supersede the installed software approach. Boris Antl and Richard Laden check out what is available and forecast market developments

Installing a powerful risk-management software system is a bit like owning a horse. A horse may seem like a wonderful idea to a child, but if you try to keep one in the garage, and have to keep feeding it and mucking out its accommodation, you quickly understand that it might be better to stable the horse elsewhere. And when you realize that you are not getting a chance to ride as often as you hoped - and that the horse is getting long in the tooth - you may well conclude that you don't really need your own horse, and that it might be a better idea simply to join a riding club where you can saddle up from time to time. Like horses, in-house risk-management systems and licensed solutions are extremely costly. Maintaining in-house systems or even installations of licensed software puts a burden on a firm's IT organization. Only large financial institutions and major corporations that deal constantly in the markets have the financial resources to install such systems, the IT personnel to maintain them, and the transactional volume and portfolio complexity to require their use on a daily basis.

With the advent of e-finance application service providers (ASPs), the often-overburdened treasuries of moderate-sized firms and the smaller firms less active in the markets now have access to sources of market information, analytical tools and risk-management systems they could not previously justify purchasing.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree