Amplify Technology on Monday announced the launch of QuantumRisk, a proprietary analysis tool on its platform that is intended to change how advisors measure, communicate and manage risk, as well as help advisors anticipate and navigate extreme market outcomes.
QuantumRisk is based on the work of Ron Piccinini, Director of Investment Research at Amplify, who specializes in modeling “fat tail risk.” The tool replaces standard deviation and bell curve assumptions with probability modeling and market stress scenarios, taking advantage of advances in computing technology.
“Legacy risk tools were built for a market that no longer exists,” according to Piccinini.
“We designed our risk engine to reflect how markets actually behave, not how textbooks say they should. This is about giving advisors a competitive edge by making complex risk dynamics immediately visible and actionable.”
QuantumRisk assigns values based on the historical tail risk of the S&P 500. It includes a proprietary simulation engine that Amplify said models “millions of real-world outcomes in less than a second with no correlation matrix needed.”
Other features include greater risk transparency and a visual client experience that creates graphic outputs to enhance conversations between advisors and clients.
“QuantumRisk is more than simply an upgrade to risk analytics; it’s a transformative tool for enhancing client trust,” according to Vickie Lewin, Chief Growth Officer at Amplify Technology.
“Our platform is engineered to empower advisors to grow their business, and with QuantumRisk, we are taking the next step forward in allowing them to manage client expectations during market swings better,” she said.
“By embedding a modern risk score across the full client journey, we’re giving firms the ability to build more resilient portfolios, set clearer expectations and foster more confident relationships.”
Amplify announced in May that it hired Mark Fischer as its first Chief Operations Officer.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
