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Risclarity: Driving Efficiencies in Portfolio Accounting

CIO VendorRick Higgins, Founder & Chief Innovation Officer
To compete in today’s competitive capital market, financial advisors and wealth managers require timely access to clients’ portfolios and financial data, reporting assets, and transactions outside the advisor’s purview. The bulk of data procured can add value via validation, enhancement, and presentation. Sure, there are numerous tools available to deal with large data sets, however, with unique client specifications and requirements, there is only so much a traditional accounting system can do. This is what Risclarity intends to change. The company offers best-of-breed tools centered on integrating portfolio accounting information and market data into a database supported by robust data analytics. From optimizing transaction levels to allocating the amount of ownership percentages across the portfolios, Risclarity rolls it all into a series of reports for easy client consumption and investment analysis.

Explaining how Risclarity is best-suited to redefine wealth reporting, Founder and Chief Innovation Officer, Rick Higgins points to the most critical element that his company brings to the table—integration. The company specializes in integrating unrelated data sources through a single-tenant centralized data hub, creating a homogeneous ecosystem between institutions and disparate systems. With a rich experience in the family office industry, the founders of Risclarity maintain a boutique engineering and consulting practice with a blend of engineers and accountants that truly comprehend the components of technology, accounting, and investments. “We have rich experience in building operations and an expert team that develops software to solve the problems in capital market,” states Higgins.

At the core, Risclarity drives efficiencies and streamlines processes for family office clients enabling them to view their data as effectively as possible.
The company’s portfolio management software is equipped to handle a spectrum of asset classes in the clients’ investment portfolio such as realestate, private equity, and collectibles. The software’s ability to tag and group assets, run allocation modeling, vector analysis, and traditional allocation types of reports across different investment types is what makes Risclarity a game changer in the capital market arena.

The company’s software is custom developed and is highly configurable—whether in a cloud environment, data center, or at client offices, allowing the clients to construct unique reporting and data feeds. To compensate for the incomplete reporting, Risclarity’s portfolio accounting system establishes data feeds and reconciliation processes to simply supplement the corresponding reporting component. Additionally, the company offers an outsourced operations team to support reconciliation, data aggregation, manual entry, performance analysis, and consulting services to setup accounting books and chartered accounts. “It’s a small piece of our business but we utilize that in conjunction with our software and technical solutions, becoming the best fit to supplement a client’s existing operations team,” Higgins adds. Risclarity leverages its software to enhance the client’s existing workflow, assisting the client’s operations team to overcome the challenge of analyzing and closing the gaps in a traditional accounting system.

Risclarity helps its clientele overcome a longstanding issue pertaining to the use of a general ledger system for traditional bill payment, financial statements, and tracking real estate and personal assets. Risclarity integrates the general ledger system with a portfolio accounting system to efficiently carry performance reporting, data aggregation from custodial banks, and managing financial assets. In doing so, the clientele’s accounting teams gain greater visibility of investment information in the general ledger system, and the portfolio management teams gain visibility across personal assets and liabilities in the portfolio accounting system, with the desired set of tools.

Looking ahead, Risclarity aggressively strives toward partnering with software vendors, both existing and new, to extend its outreach and indulge in out-of-the-box integration. From setting up new accounts and on-boarding to client reporting, accounting and reconciliation, Risclarity is dedicating time and energy to enhancing its workflow tools for better workflow management.