HSBC Builds Risk Advisory Tool in Google Cloud

HSBC announced it has launched a new innovative solution on Google Cloud to manage credit risk more efficiently in its trading portfolio. Using Google Cloud technology, the HSBC Risk Advisory tool enables the bank’s traders and risk managers to run multiple “what if” scenarios simultaneously and quickly, to identify capital requirements necessary to cover potential rating downgrades and default risk of credit products, such as corporate bonds. The HSBC Risk Advisory tool harnesses the power of cloud computing, where billions of data points are generated, with results delivered in minutes, allowing HSBC traders to better manage their trading portfolios on an intraday basis. HSBC’s market risk digital development team is now looking to build on this innovation to include the impact of climate risk on the trading book. The HSBC Risk Advisory tool would take into account the rating agencies’ ESG scores to assess where trading portfolios may be more susceptible to climate change risk.