Onboarding process

Ensuro is committed to providing a seamless onboarding experience characterized by a comprehensive and efficient process. Here's an overview of the key steps involved.

Risk models are vetted by Ensuro’s Quant team. The Quant team estimates the pricing parameters and the program’s portfolio structure with the Risk Partner before the roll-out of the program. The Quant team works to optimize the outcome for all stakeholders by considering the safety of the investment, the returns for the liquidity providers, and the costs for the end customers. The onboarding consists of four steps:

1) In the initial phase, Ensuro's Risk team diligently gathers essential documentation pertaining to both the existing product structure and the envisioned future target portfolio. This documentation encompasses crucial aspects such as:

  • Product description,

  • Portfolio structure, risk limits, and risk drivers,

  • Pricing model documentation. Including historical performance and available datasets,

  • Target portfolio.

2) Subsequently, the Risk team at Ensuro undertakes a meticulous validation process of the partner's model. This validation encompasses an in-depth analysis of:

  • Model performance analysis,

  • Data quality checks,

  • Estimation of known-unknowns and need for mitigating actions.

3) Building upon the outcomes of the preceding stages, Ensuro's Risk team collaborates closely with the Risk Partner to establish:

  • Mutually agreed risk limits and target portfolio parameters

  • The pricing structure for the product is determined during this phase, taking into account the insights gained from the validation process.

  • Solvency capital requirements.

4) Once the product is launched, Ensuro's robust real-time monitoring system diligently tracks the actual performance of the product. This monitoring capability enables prompt recalibration of pricing strategies and, if necessary, updates to the risk limits. By actively monitoring the product's performance, Ensuro ensures that any required adjustments can be swiftly implemented to maintain optimal risk management and pricing efficacy.

Real-time monitoring

Once the program is live, the Quant team tracks its dynamics in real-time and performs sensitive interventions to adjust the pricing if the performance is not in line with expectations. The real-time visibility of the program allows Ensuro to carry out surgical and preventive actions rather than wholesale, a-posteriori resolutions. Ensuro has built a dashboard to allow every stakeholder to monitor the protocol’s performance in real-time, in the same manner as the Quant team.

Last updated