MSCI Inc. has launched Risk Insights, the first module of a new analytics platform, MSCI Insights, that calculates, stores, and delivers a broad range of risk measures to help investors identify trends and respond to rapid changes in markets.

Institutional investors will be able to access a wide range of MSCI data and analytics through MSCI Insights, which will feature performance attribution, index data, ESG data, and climate data modules, the firm announced. Additional MSCI Insights modules are slated for release in the fourth quarter of 2022 and in 2023, it added.

MSCI Risk Insights automates many analysis and reporting tasks usually performed manually by risk analysts. Automation allows investors to quickly and effectively understand the overall level of risk in their portfolios, how that risk has changed, what caused the changes, and what actions can be taken to achieve their unique investment goals, the firm explained.

Jorge Mina, global head of analytics at the firm, said: “Investors are increasingly leveraging a wide range of analytics in their investment process. But the explosion of information available to them in the modern investing ecosystem has led risk management teams to focus on synthesizing large amounts of data to generate reports rather than deriving meaningful insights around market trends.”

He added: “The risk module of MSCI Insights creates a single channel for institutional investors to not only review and house data, but also allows them to transform it into actionable information that ultimately supports a wide range of front-to-back investment activities.”

MSCI Risk Insights provides investors with historical risk data and the ability to customise a set of dashboards delivered on the cloud containing a broad set of metrics including time-series risk, factor risk, and stress tests.

These data visualisations can help investors seeking to:

  • Find concentrated positions, sectors, factors, or portfolios;
  • Identify what contributed to a portfolio’s change in risk and understand the elements that drive the risk in those portfolios over time;
  • Analyse how portfolios and their risk profiles have changed over different periods and regimes; and
  • Pinpoint statistically significant outliers.

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