Patent Document ID: 8224734
Application ID: 12399932
Patent Flag: 1

Claim One:
1. A system for financial risk cover analysis, modeling, monitoring and control comprising: a computer having a processor; a receiver for receiving a previously designed Financial Risk Cover into a computer readable storage memory device, the Financial Risk Cover comprising at least returns behaviors including probability distribution functions and dynamic statistical matrices connecting statistical behavior of each potential allocation of a Financial Risk Cover submanager to a resultant statistical behavior of a Financial Risk Cover associated with a client portfolio; a set creator portion of the computer for creating a set of alternative Financial Risk Cover configurations in a computer readable storage, memory by employing one or more genetic optimization processes to produce unpredictable variations of configurations; a simulator portion of the computer for modeling each of the alternative Financial Risk Cover configurations against a set of potential or expected transient market events representative of a plurality of combinations of transient events; a set modifier portion of the computer for removing each alternative Financial Risk Cover configuration which fails to meet performance objectives during the modeling from the set of alternative Financial Risk Cover configurations; and an output portion of the computer for outputting into a computer readable storage memory device each remaining alternative Financial Risk Cover configuration wherein each alternative Financial Risk Cover configuration represents a plurality of investment instruments, each investment instrument being associated with an initial cash position; an analyzer portion of the computer for analyzing performance data relating to a plurality of Financial Risk Cover submanagers, creating probability distribution functions, and creating dynamic statistical matrices connecting statistical behavior of each potential allocation for each submanager to a resultant statistical behavior of a Financial Risk Cover associated with a client portfolio; a modeler portion of the computer for receiving the probably distribution functions, and employing quantitative analyses to model returns behavior of each submanager wherein cross relationships and temporal relationships of each submanager and all combinations of submanagers are preserved; wherein the analyzer analyzes performance data reflecting daily performance statistics relative to each other potential submanager within the plurality of submanagers; and a monitor/controller portion of the computer for: calculating a plurality of boundary conditions having pairs of upper limits and lower limits, wherein the boundary conditions comprise at least a Bayesian trees process, monitoring performance of a Financial Risk Cover having a configuration according to at least one remaining configuration in the total set of configurations by measuring one or more performance parameters on a periodic basis, and responsive to one or more performance parameters being outside one or more corresponding boundary conditions, producing an updated set of alternative Financial Risk Cover configurations.