Our Innovation Analysts recently looked into emerging technologies and up-and-coming startups working on solutions for the financial services sector. As there is a large number of startups working on a wide variety of solutions, we want to share our insights with you. This time, we are taking a look at 5 promising risk management startups.
Heat Map: 5 Top Risk Management Startups
For our 5 top picks, we used a data-driven startup scouting approach to identify the most relevant solutions globally. The Global Startup Heat Map below highlights 5 interesting examples out of 293 relevant solutions. Depending on your specific needs, your top picks might look entirely different.
Black Swan Technology – Cyber Risk Management
With inflating levels of cybercrime, the importance of cyber risk management in finance is vital. Fraudsters create various theft schemes to trap banks and FinTech clients in order to acquire their data. As a result, startups across the world work on elaborate and sophisticated online security tools. These include anti-fraud surveillance programs and in-advance cyber-attack identification software that detects these risks with greater accuracy.
The US-based startup Black Swan Technology addresses the problems of financial risks associated with cloud service outages. It builds a Cloud Outage Risk Engine (CORE) to analyze and evaluate the risks of utilizing public Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) for data storage. In addition, the company also creates hedging tools to prevent data breaches during cloud outages.
SPIN Analytics – Credit Risk Management
Banks and financial institutions have to be confident that their borrowers will be able to repay the debt in the future. Unfortunately, during the assessment process, they face the challenges of inefficient data management and insufficient credit risk modeling tools. In order to solve these issues, FinTech companies utilize social media analysis, spending history data management, artificial intelligence (AI), and related technologies.
British startup SPIN Analytics develops RiskRobot, a software for credit risk management in financial institutions and corporations. The solution applies big data management methodologies, machine learning, AI, and credit analytics to build advanced credit risk models. In addition, it detects potential defects in various credit risk strategies thereby improving decision making.
Sharpfin – Asset Risk Management
Asset, or wealth, risk management aims to lower or eliminate the risks associated with the use of banks or other companies’ assets, both tangible and intangible. As established companies face issues with optimizing asset management systems, maintenance, and depreciation problems, startups facilitate an advanced process of asset risk management by introducing machine learning, performance optimization, and investment option analytics.
The Swedish company Sharpfin offers a suite of applications for wealth risk management. The suite allows users to view consolidated company assets, manage shareholders’ registry, and design investment restrictions. Moreover, it helps conduct real-time risk monitoring, calculate common risk measures, and create wealth risk reports.
Regtify – Operational Risk Management
Operational risk management involves the widest category of risks that banks and financial companies need to manage. This includes country risk, political risk, legal risk, and environmental risk, among others. In order to cope with these uncertainties, financial institutions require complex software that assists in regulatory environment monitoring, specific factors analytics, data mining, warehousing, and their corresponding compliance management.
Cypriot startup Regtify develops risk management software for financial industry firms. The company focuses on monitoring changes to regulatory norms and legal conditions and does so by tracking a corporate’s key performance indicators and by conducting liquidity stress tests. Overall, the solution aims to reduce exposure to operational risks.
G-Square – Market Risk Management
The volatility of markets, economic conditions, commodity prices, interest rates often becomes the concern of risk managers in financial organizations, especially ones offering investment banking services. FinTech companies utilize continuous monitoring, predictive analytics, and advanced modeling to detect potential market risks and straightforwardly take them into account for elaborating risk management strategies.
The Indian company G-Square builds AI-enhanced market risk analytics for banks, portfolio management entities, and other financial firms. The company employs market data science, deep learning, language processing, and business analytics in order to create insights that keep track of and manage arising market risks.
What About The Other 288 Solutions?
While we believe data is key to creating insights it can be easy to be overwhelmed by it. Our ambition is to create a comprehensive overview and provide actionable innovation intelligence for your Proof of Concept (PoC), partnership, or investment targets. The 5 risk management startups showcased above are promising examples out of 293 we analyzed for this article. To identify the most relevant solutions based on your specific criteria and collaboration strategy, get in touch.