R-square Philosophy

Why R-square RiskLab ?

Since the inception (2009) past FIVE years ago R-square RiskLab (RsRL) has been the obvious voice of modeling of Liquidity Risk (LR) & Interest Rate Risk (IRR).

In order to calculate the risk involved, we use models. We know that the world is too complex to be translated in a couple of equations and formulas.  The models should reflect the essentials and should be internally free of contradictions. As we know during the subprime crisis in USA (2008) we saw that the models for credit risk were too simple. The financial derivatives were too complex and too complicated. Rating agencies did not do their job well and gave misleading indications. The fact that mortgages given to doubtful debtors could be securitized and then sold at a high rating certainly triggered the selling of such bad loans. The avalanche and domino effect came later and resulted in the loss of “zillions” of dollars and euros. The dependence between economic agents was underestimated and wrongly modeled. The fact that economic reality is too complex and that we therefore can only rely on easy models is not completely correct. The working of a model is always the same:  junk in, junk out.  So we must be careful and before writing the equations we must discuss what phenomena to put in and in what way we can do it.


R-square RiskLab has achieved with a unique footage as one of the world leaders in Finance & Energy business. RsRL is currently working on benchmarking, ALM (asset-liability management), counterparty risk measure, structured product, pricing and developing tool(s). As per our experience goes we should have the opportunity to upgrade or improve mathematical models (deterministic, stochastic & Markovian et al), methodologies and sophisticated best-practices based on years of experience of “risk measure” with top companies across countries in all major industries.

R-square RiskLab has a strong catch-hold and experience on SUKUK markets. R-square RiskLab initiates SUKUK with the world of mathematical finance.

R-square RiskLab is the pioneer entity that combines Quant -ERM (Enterprise Risk Management) with company level or country level FRM (Financial Risk Management) and mitigation strategies in a configuration.

R-square has a strong sector focus with dedicated Centers of Excellence (an interface of R&D and consulting). RsRL has a very experienced delivery team lead by experts of risk management, asset allocation, asset-liability model and investments with experience to provide customer with the perfect solution for the business need.

Our unique integrated delivery model combines local intimacy with global experience and delivery. R-square is efficient enough to deliver irrespective of the size of any project with a shortest time frame (due to our most sophisticated models and technology).

We (RsRL) will soon have DFA+2015 (Dynamic Financial Analysis Plus 2015) technology to give client a unique strategy and helps decision process towards fruitful result oriented guidance. So far we developed multi factor seasonality based economic scenario generator model (ESG) for economic risk capital issues.

“If the facts don’t fit the theory, change the facts.” - Albert Einstein

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