"With its range of functions and simplicity, risk kit as an excel add-in allows us to develop, test and use new models as prototypes quickly and reliably. With risk kit as the mathematical heart, these models can then be implemented in a production environment."

##### Gangolf Hirt, Risk Manager, Oyak Anker Bank

Rapid Prototyping of Monte-Carlo simulations and risk analyses

• The components of modern quantitative risk management at hand
• Easy handling

# Product - Highlights

• Integration in Microsoft Excel or other frameworks
• All functions usable as Excel cell functions
• 50 univariate probability distributions each available as
• random numbers
• cumulative distribution function
• inverse cumulative distribution function
• density or mass function
• 10 multivariate distributions and copula functions
• 17 univariate and multivariate stochastic processes
• Resampling of empirical data
• Graphical and statistical analysis of Monte-Carlo simulations
• Rating methods
• Portfolio optimization
• Sensitivity analysis
• Calibration of distributions and stochastic processes
• Network floating license for enterprise wide use

# Handling

In a series of illustrative movies learn more about Risk Kit. Click to watch movie in a popup.

# RISK KIT 7 NEW FEATURES

Risk Kit 7 is now available and provides:

• Three-dimensional risk maps
• Different graphic types for several distributions in one chart
• New function CompoundWithInsurance
• Simplified and more intuitive licensing
• Cash flow at risk-functions
• Full compatibility with all models developed with Risk Kit 6
• Validity of all professional licenses
• Activation of Risk Kit toolbar when a new model is opened
• Compatibility with Excel 2016 and Windows 10

## Risk Maps

With the size of the bubbles a third dimension is introduced into risk maps so that financial losses can be displayed in combination with reputational losses or risk concentrations.

## SEVERAL GRAFIC TYPES IN ONE CHART

Several distributions in one chart can be plotted transparent so that their overlap becomes recognizable.

Alternatively, each distribution can have a different type.

## COMPOUND-DISTRIBUTION WITH INSURANCE PAYMENTS

Already in Risk Kit 6 the compound distribution existed that models the random sum of random losses. This situation is often relevant for operational risks.

In Risk Kit 7 this method is extended for the possibility of insurance claims by the function CompoundWithInsurance where for each loss and for the total sum of losses a deductible and maximum liability can be stated. The method returns the total losses, the sum of insurance payments and the uncovered losses.

## INTUITIVE LICENSING

The licensing was considerably simplified and got a more intuitive design. Risk Kit notifies the user if a license will expire during the subsequent days and offers the option of a prolongation directly from Excel or online.

## CASH FLOW AT RISK

Risk Kit 7 introduces two new methods for the calculation of cash flows.

The function Cashflows calculates payments for individual trades, while TotalCashflow determines total positions for entire portfolios of trades.

The function can process large numbers of trades at once.

The trades can be described precisely by a large number of parameters. Both functions support the calculation of market and liquidity risks.

## XML FORMAT OF CHART LAYOUTS

Risk Kit provides chart layouts in an XML format, which allows for an easier adjustment of chart layouts.

## CONFIGURATION OF STATISTICS INCLUDED IN GRAPHS

Risk Kit introduces a feature which allows the user to configure the statistics shown in Plot and Scatter Plot charts. A new Statistics tab in the graph dialog allows the user to easily drop or include statistics as well as define the order in which they are displayed.

## CONFIGURATION OF DUMPED STATISTICS

With Risk Kit the user is able to configure the list of statistics, which need to be dumped into Excel after simulation. In addition, the user is able to change the order in which the statistics are displayed.

## ADDITIONAL PARAMETERISATION FOR THE LOGNORMAL DISTRIBUTION

Risk Kit introduces an additional parameterisation for the lognormal distribution. This allows for controlling extreme values of the distribution, especially if parameters are based on educated guesses.

## EXTENDED FUNCTIONALITY OF THE RISK KIT TOOLBAR

With Risk Kit a complete redesign of the Risk Kit Toolbar is released. The updated Toolbar provides additional features, which make it easier to select functions, create models, and simulate them. The most common functions can now be accessed in just two clicks. In addition, recently used functions are accessible directly via the new button Recently Used Functions.

To support users in selecting the appropriate distribution, graphs of the respective distributions where added.

## EXTENDED FUNCTIONALITY OF THE FUNCTION WIZARD

The Risk Kit Function Wizard has been upgraded and can now be used like any other standard function dialog in Excel. This implies that keyboard short cuts can be used to select or deselect cells or ranges.

In addition, the updated Function Wizard is able to handle functions that return more than one value by allowing the entry of such functions as array formula.

## EXTENSIVE MODEL CHECK BEFORE START OF THE SIMULATION

To better support the simulation process, Risk Kit verifies the model and identifies issues right before the simulation. If there are errors in the model, the user will be notified and receives a detailed description of the problem.  In addition, Risk Kit guides the user during the creation of the model and helps to avoid mistakes that may lead to errors during the simulation.

## CELL MANAGER

In previous versions of Risk Kit it used to be difficult to handle large models with a big number of inputs and outputs. Over time such models are complicated, the data is shared between multiple cells so that it becomes less obvious where the inputs and outputs of the model are located. Risk Kit introduces the Cell Manager that gives an overview of all durable cells in the model and allows to navigate between these cells. The Cell Manager is available via the Risk Kit Toolbar. By default, all durable cells in all opened workbooks are displayed.

## CACHING OF SIMULATION RESULTS

Risk Kit keeps all simulation results in memory so those figures are not lost after the recalculation of the worksheet. The big advantage of this is that additional statistics or even sensitivities can be calculated without the need to restart the simulation.

## EXTENDED DISPLAY OF ESTIMATED DISTRIBUTION PARAMETERS

Risk Kit extends the calibration results with estimated distribution parameters. This supports the User in choosing the appropriate distribution.

The selected function can be copied directly to the worksheet.

## IMPROVED HANDLING OF CHARTS

Risk Kit introduces the new functionality Chart Window, which enables the user to arrange the charts on the screen in two different ways: the user can choose between arranging the chart windows in a tile matrix or in a cascade.

## BETTER SUPPORT FOR RESTRICTED ENVIRONMENTS

With Risk Kit users working on restricted environments without administrator privileges can enable or disable the add-in individually.

## ACTIVATION OF RISK KIT TOOLBAR AT START UP

The new version of Risk Kit enables users to activate the Risk Kit Toolbar upon start-up of Excel automatically. However, this function is not activated as default.

## NEW EXAMPLE WORKBOOKS

Additional example workbooks were added with Risk Kit, which allows the user to get to know the Monte-Carlo simulation and other features of Risk Kit. These new workbooks are accessible via Example Workbooks.

## FREE USAGE FOR COMMERCIAL PURPOSES

As before, Risk Kit is free even for commercial purposes. In Risk Kit we only show the logo of the product once per fifty starts of the add-in.

## SUPPORT FOR EXCEL 2016 AND WINDOWS 10

Risk Kit introduces the support for Windows 10 and Excel 2016. As before, we continue to support all Windows operation systems starting from Windows XP and all Excel versions starting from Excel 2003 without any restrictions.

Download the ‘New Features’ [PDF] document to get a detailed description of all new features in Risk Kit.

# Do you have more questions?

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