GEDI Exchange

Member profile: Riskfuel

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Riskfuel is a company that harnesses AI to produce ultra-fast versions of the proprietary software that banks and insurance companies use to value and risk manage their portfolios of financial instruments, delivering both new business opportunities and significant reductions in operating costs.

In a short pitch, how would you describe Riskfuel's offerings? What makes it innovative? What industry sectors and/or customers are you focused on?

Riskfuel works with banks and insurance firms who use very slow, complex models to calculate the value of their portfolios. Riskfuel creates super-fast copies of these models that are a million times faster. For the first time, traders can finally see how their portfolios are behaving as the market is changing, quarterly reporting can be completed in a fraction of the time, and firms benefit from much lower compute usage – which means lower costs and a smaller environmental footprint.

Providing more detail, what is the value proposition of Riskfuel's offerings? Examples could include the underlying technology, new capabilities, cost reduction, risk reduction, improved performance, new business model, etc.

Riskfuel has developed machine learning techniques to accelerate the valuation and risk calculations by a million-fold. What once took all night to run, can now be completed in seconds. Riskfuel provides real-time valuation and risk management reflecting up-to-the-second market conditions, for a fraction of the cost of the status quo.

The Riskfuel AI learns what it needs to do by ‘observing’ the client’s slow model. The result is a software module that plugs into the client’s existing environment in place of the original slow model. It behaves the same, it has the same inputs, and it has the same outputs. But it is a million times faster.

What is Riskfuel's biggest achievement/success story to date?

In January 2021, our first customer, Scotiabank, went live with Riskfuel-accelerated models in their new XVA (a family of valuation adjustments) risk platform and subsequently won Risk Awards 2021 “Technology Innovation of the Year.” Recently, Bank of Montreal announced their partnership with Riskfuel after a successful pilot project to accelerate the valuation of autocallable notes. Riskfuel is currently working on pilots with several global banks.

What does the future hold for Riskfuel?

Riskfuel will expand our market outside of Canada. We're piloting Riskfuel solutions with several banks from all around the world, and we expect the number and geographic diversity of our customers will grow throughout 2022.

What is Riskfuel's connection to the University of Waterloo?

The co-founders met during their undergrad days at UWaterloo. Both earned BASc and MASc degrees in Engineering from UWaterloo.

Why did you decide to join the GEDI Exchange? What are you looking for? What do you want to get out of it?

We’re looking to make connections with larger enterprise, technology partners, and UW talent.

Riskfuel