August 13, 2020

Financial Awareness Day: Mitigate financial risk with machine learning

In the spirit of Financial Awareness Day, we want to bring your attention to financial risks.

Keeping an eye on your finances, personal or business, is a no-brainer. Knowing what you spend and where you spend is crucial to continue making sound financial decisions and remain in budget. But are you fully aware of every risk across all your assets?

Say you manage a huge pension fund worth billions of dollars and you’re aware of every single movement in the market, but are you really aware of the true money at risk on any given hour of the day?

At ElectrifAi, we come across businesses every day that don’t consider everything in their risk analysis plan. Financial managers can be incredibly smart and aware of potential risks, but there is always another thing to be aware of that financial models easily target.

Risks happen across the entire organization that could affect you financially. We help organizations become more financially aware with machine learning models.

Curious to find out how machine learning can help you reduce your financial risk? Read on!

Machine learning brings together all asset class data sources into normalized and cleansed data store

When you apply analytics on any one asset class or investment strategy, you’re missing what happens when you look across everything. You are more financially aware if you can have everything in one place.

That’s where machine learning comes into play. All your asset class data sources are normalized and cleansed and kept together in one data store. Saving you time and energy, financial models keep track of all the risks and challenges in one place. Other systems may not apply the analysis across all the asset classes.

Get a true VAR across the entire portfolio and suite of managers

Everyone is definitely aware we are in a high volatility environment due to the pandemic. But do you really understand how much you are risking? The question is, how much can you afford to lose in your portfolio?

Given how turbulent the markets can be right now, even though the markets have been going up, no one ever really knows when the next Bear Market will come.

You need to understand how much you have at risk, not just in one portfolio, but across everything you own. If you have everything in one place, you can apply all the analytics needed to add value at risk.

Intuitive, out-of-the-box easy to use widgets for analyzing performance, risk factor analysis, returns, and scenario testing

When you have all your data in one place and you know the value at risk, you can complete other analyses to gain insights as to how your entire portfolio is performing. You can do different kinds of risk factor analyses against the portfolio.

For example, you can test different what if scenarios. What if there is another market crash? What if the market stabilizes? What if there is a currency crisis in Europe, how is that going to affect your portfolio?

You can also run your performance analysis against many market factors. Are all the profits gained by just pure luck because of market rally? Or simply by taking higher risk through leverage? By factoring model analysis, the hard work or easy ride can be easily identified. A big market rally can be determined on certain factors missing from your radar if machine learning models are utilized.

Doing all this analysis allows you to fine-tune your strategy so you have less at risk and a bigger chance to pull through the tough times.

One-stop shop for data integration and portfolio management software

You can try to create all these analyses yourself. But know this requires compiling all the data from different data providers and putting it together using spreadsheets or another way to complete the analyses.

Who has the time for that? Contact a specialty firm like ElectrifAi and ensure the data is formulated correctly, 24/7. One of the benefits we provide is anomaly detection. Our machine learning corrects the data all in one place. We cleanse the data and create the analytical platform. Thus, it is much easier for someone to understand and manage while simultaneously optimizing portfolios.


Machine learning can help you become more aware of financial risks by making it easier to understand your overall position in the market. How much you have at risk and how you can optimize and improve the distribution of your investments.

Even as a personal investor, you have money in stocks and bonds, artwork at your house and real estate investments. You have a lot of different places to check your investments, such as logging into Realtor.com, your bank account or your stock trading site. What if you had the ability to bring those investments into one screen and see everything at once?

Making financial decisions with machine learning helps you make better decisions. Having all the information at your fingertips in one convenient location will make your life a lot easier!