VaR Doesn’t Need to Be Hard
Monte Carlo can be a shipper’s best friend….
[Oslo— January 16, 2025]
For many in the shipping industry, Value at Risk (VaR) feels like an uphill battle: everyone talks about it, most want to have it, but getting it to actually work in a way that adds value can seem impossible. You’ve probably heard stories of endless programming, months of consultancy, broken models, and results that raise more questions than answers. That’s why we designed Prosmar’s VaR module in collaboration with leading shipping firms around the world.
The truth is most people give up on VaR because it’s hard to systemise, time-consuming, and reliant on advanced maths. Even if you want to integrate it into your process; building a working system from scratch often turns into a black hole of wasted resources, leading to frustration and disappointment.
Prosmar’s VaR solution is a fully integrated part of the wider Prosmar risk system, which takes the pain out of the process. Our system picks up your positional data from your existing VMS or databases on a daily basis automatically. After this our algorithms transform the information into neat monthly buckets. This process works for every position and exposure you have, whether it’s freight contracts, FFAs, or bunker hedges. The system then returns out a clean, intuitive VaR report, and all the underlying results without requiring any programming or deep statistical knowledge. Our clients can also modify the parameters of the simulation, such as the number of draws or the time period to consider.
Here’s how we make it simple:
Automated Data Integration through the Prosmar Data Centre: Forget about manually inputting or formatting your data. Prosmar pulls your positions and marks them against the relevant market curves seamlessly, saving hours of setup time.
Transparent and Understandable Returns: Prosmar has a no black boxes policy. Through the VaR module you can dig into the calculations in an easy way and see exactly what’s going on. Whether it’s simulations, market curves, or position adjustments, you’ll always know what’s going on with your business.
Monte Carlo Without the Maths: We handle the heavy lifting of generating thousands of simulations, so you don’t need to understand complex calculation processes or deal with chasing up errors, Prosmar makes all the complex calculations such as Continuous Month Forwards on your behalf.
Actionable, Digestible Outputs: Instead of drowning you in raw figures, our system delivers clear, visual insights on your risk exposure, which is perfect for decision-making at a glance. Users can also export their results into their favoured data tools to do their own deep analysis.
Built for Shipping: Unlike more generic financial tools, our system is built entirely for the freight market, factoring in industry-specific dynamics on top of years of expertise and the wisdom of our partners.
In short, you can now access VaR as a plug-and-play solution. Whether you’re a trader, charterer, or risk manager, Prosmar can help you get the insights you need without the headaches of coding or complex formulas.
Let us do the hard work so you can focus on what matters: making smarter decisions, faster.
Ready to see it in action? Reach out for a demo today.