Patent ID: 8073758
Filing Date: 2011-12-06
Classification: G06Q

Abstract:
1. A system for managing risks associated with a group of financial products issued by a financial institution, the system comprising: a data storage module for storing information associated with said financial products; and a computing system, in electronic communication with said data storage module and said financial institution, for determining behavioral and market risk assumptions associated with said group of financial products said computing system including: a processing module for dividing the risks associated with providing a group of financial products to an individual or group into behavior risks, the behavior risks being risks associated with activities of an individual or group in relation to one or more of said financial products and permissible thereunder, and market risks as well as identifying the market risks for transfer outside of the financial institution; a calculation module for modeling the financial institution's exposure under said group of financial products wherein said behavior risks are separated from said market risks; a risk assessment module for assessing the risks associated with the issuance of said group of financial products wherein the risks are comprised of behavior risks and market risks; and a communication module for communicating data relating to a derivative contract for transferring the identified market risks associated with the issuance of said group of financial products, independent of the behavior risks associated with the issuance of said group of financial products, to a derivative counterparty; wherein said group of financial products are grouped based at least in part on demographic characteristics, investment style, product chassis and rider design.