| February 26, 2010
Andrew Wood
CEO of Razor Risk Technologies
RUST: Please start with an overview of Razor.
WOOD: Razor Risk Technologies is an Australian public company (ASX: RZR) focused on helping financial services institutions worldwide to measure and control risk through our professional services and our enterprise risk management product, Razor. Our business is specifically about addressing the complex issues surrounding risk management; issues that were highlighted during the economic downturn with the collapse of institutions such as Lehman Brothers. We understand that to measure and manage risk effectively, it's necessary to manage the total exposure of a financial institution.
RUST: Describe the major competitive landscape.
WOOD: The global financial crisis highlighted the deficiencies in many of the current approaches to risk management and the technology solutions used to measure and control risk. Our Razor product, with its speed of performance and breadth of risk analytics, is uniquely positioned to meet the increasing client and regulatory demands for real-time risk management and more proactive and robust risk forecasting.
We have a strong focus on the Central Counterparties (CCP)/Exchange risk management space, and are the leading risk management framework around the Central Counterparty 12 (CCP12) members, the industry association of the world's principal clearing organisations. The recent international regulatory proposals to push a higher volume of trades through CCPs/Exchanges make these organisations our biggest immediate potential growth market.
RUST: Who are your major customers?
WOOD: Razor Risk Technologies' clients span the globe and include central counterparties, stock exchanges, and financial institutions. Broken down geographically, our clients include: Australia: ANZ Bank, ASX, Treasury Corporation of Victoria, NAB; Indonesia: KPEI; Americas: International Derivatives Clearing Group, Royal Bank of Canada, Federal Home Loan Bank of Pittsburgh; UK: HSBC, LCH.Clearnet, MF Global.
RUST: What are your priorities for the next year?
WOOD: Our top priority is to keep ensuring our clients' technology solutions not only meet but exceed current needs. Due to constant changes in business drivers and ever-growing regulatory amendments, our clients' needs are continuously changing. Razor, being a risk framework, can readily adapt to meet these changing needs. Key areas for us in the next 12 months are liquidity risk management and incremental risk charge (IRC), as well as real-time risk measurement. We are also prioritising investment in sales and marketing to support expansion in the Americas, UK, and Asia/Pacific markets.
RUST: Where do you expect to see the company five years from now?
WOOD: Razor Risk Technologies will remain solely focused on risk management. Our target clients have risk management as a top priority and our goal is to significantly expand our client base globally, whilst enhancing and extending our products and services. Having no debt and growing underlying cash, we are in a position to look at core business acquisitions at the appropriate time.
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