The Advanced Risk Analysis Module (RAM) is a complex software which is able to calculate the requirements for the Initial Allowance Fee. It does so by analyzing the what-if scenario of virtually any market transaction.
The RAM is continually being enhanced so that it can continue to offer the ability to calculate risk for the widest range of products.
RAM is used by numerous end-users, which includes both buyers and sellers as well as realtors and mortgage lenders, developers and builders.
How RAM works
The RAM software calculates the worst loss possible that might reasonably occur to a portfolio of products during a specified time period which is generally one month. Through this calculation, it is able to evaluate the portfolio risk.
A set of numeric values is used to indicate whether a specific contract will gain or lose value under different conditions. The numeric value for every risk scenario is a representation of the gain or loss of that contract which factors in the price change.
Users can set the maximum price movement that is likely to happen for every product as well as the changes in rules and rates to create their own parameters.