Short term market risk models have been studied and developed for many years. But it was only after the recent challenges from the global credit crisis and faster evolving markets – coupled with increased pressure from regulators - that a number of risk system vendors started to research new methodologies for forecasting short term risk.

Solutions for asymmetric distributions, daily horizons, forecasts of short term factor correlation and volatility regimes, which used to be developed independently, can now been addressed simultaneously in a new generation of robust short-term risk models, allowing fund managers to hedge risk during turbulent markets and deliver performance that is truly in line with their investment strategy.