Patent ID: 8060422

Claim:
A system for managing risks associated with a group of instruments issued by an entity comprising: a data storage module for storing information associated with said group of instruments; and a computing system, in communication with said data storage module and said entity, for determining behavioral and market risk assumptions associated with said group of instruments, said computing system including: a processing module for dividing risks associated with providing said group of instruments to an individual or group into behavior risks, the behavior risks being risks arising from exercise of rights by another party under the instruments, and market risks as well as identifying said market risks for transfer outside of said entity; a calculation module for modeling said entity's exposure under said group of instruments wherein said behavior risks associated with providing said group of instruments are separated from said market risks associated with providing said group of instruments; a risk assessment module for assessing said risks associated with the issuance of said group of instruments wherein said risks are comprised of behavior risks and market risks; a communication module for transferring to a third party said separated market risks associated with said, group of instruments; wherein said group of instruments are grouped based at least in part on demographic characteristics, investment style, product chassis and rider design.