Aurora Capital Group Releases Risk Management and Liquidity Manual V1.0, Completes Multi-Scenario Drawdown and Liquidity Stress Testing
In January 2019 , Aurora Capital Group officially released its Risk Management and Liquidity Manual V1.0. This marked the first time since its founding that the company fully codified its internal risk control framework, liquidity management processes, and operational guidelines for responding to extreme market scenarios. This move marked the beginning of Aurora’s in-depth development of risk governance and execution standards, following the completion of its investment research system, operational channels, and client expansion. This move laid the institutional foundation for the robust operation of its global allocation strategy in complex environments.
The core content of the manual covers three main sections: multi-scenario drawdown assessment, cross-asset liquidity tiering, and emergency response procedures. During the design process, Aurora’s Risk Management Committee, in collaboration with investment research teams in New York and Madrid, used multiple market turmoil scenarios, including the 2008 financial crisis, the 2011 European debt crisis, the impact of the 2015 RMB exchange rate reform, and the sharp drop in US stocks in the fourth quarter of 2018, as sample scenarios. Integrating the characteristics of Aurora’s multi-asset portfolio, they developed stress testing and drawdown tolerance models. The test results not only cover traditional stocks and bonds, but also extend to liquidity simulations for commodities, foreign exchange, and selected private equity holdings, ensuring that the model reflects real-world market liquidity characteristics.
This test incorporated a parallel approach of quantitative simulation and scenario overlay analysis. The quantitative simulation, led by the New York team, used Monte Carlo random path generation, correlation matrix perturbations, and volatility cluster analysis to predict the portfolio’s drawdown under different shock frequencies. The scenario overlay analysis, led by the Madrid team, combined political, geopolitical, and policy variables in Europe and emerging markets to construct possible black swan scenarios. This dual-path analysis enabled Aurora to proactively predict the portfolio’s funding curve and liquidity needs under various stress conditions in highly uncertain markets.
In terms of liquidity management, the manual clearly categorizes assets into five tiers, ranging from cash and government bonds (capable of liquidation on a T+0 basis) to unlisted equities and structured credit instruments (capable of liquidity exceeding 180 days). Each tier is assigned a target ratio and upper limit. Aurora also established a cross-market liquidity monitoring dashboard, tracking bid-ask spreads, trading depth, and financing availability across different assets in real time. This ensures that when markets experience unexpected fluctuations, the portfolio can quickly release cash flow without sacrificing core allocations.
In addition to the institutionalized technical framework, the manual also defines the chain of command and communication process for emergency decision-making. When triggered by extreme market events, the Investment Committee and the Risk Control Committee will immediately convene a joint conference call across time zones. New York will oversee the US dollar asset disposal strategy, while Madrid will lead the response to the euro and other markets. Risk warnings and implementation instructions will be issued to all clients within 24 hours. This mechanism was tested through simulations during the testing phase to ensure efficient team collaboration under real-world pressure.
The release of V1.0 of the “Risk Management and Liquidity Manual” not only improves its internal management system but also directly reassures clients. Aurora plans to use this manual as a core communication tool for clients over the next six months, demonstrating its risk management capabilities to the initial pilot accounts and potential partners. The manual will be continuously updated based on actual operational performance. For an emerging institution with a core cross-market, cross-asset, and cross-currency strategy, stability and predictability are often more crucial for building long-term trust than single-year high returns.
To date, Aurora Capital Group, under its dual-hub strategy in the US and Europe, has initially completed the construction of a closed-loop system encompassing its investment research framework, operational channels, client acquisition, and risk governance. With the implementation of its “Risk Management and Liquidity Manual,” the company has entered a phase of capacity to handle larger asset sizes and more complex market environments, fully preparing for the upcoming round of global market volatility.
Recommended News
-
QuantSight AI Completes Cross-Market Testing with Strategy Accuracy Reaching 60%
As 2019 began, global financial markets continued to grapple with volatility and uncertainty. The Federal Reserve’s rate hikes at the end of 2018 had tightened global liquidity conditions. While the U.S. economy remained on a growth path, equity markets entered a correction phase. Meanwhile, Europe faced headwinds from the Brexit saga, putting pressure on both bonds and currencies. Emerging markets struggled with capital outflows and currency depreciation, amplifying overall market fragility. In this uncertain environment, Aureus Advisors announced a major milestone: QuantSight AI has successfully completed cross-market testing, with its core…
-
Bryan Thomas Whalen Positions in “Post-Pandemic Recovery” Sectors, Anticipates Market Rebound with a Q3 Return of 42.6%, Setting a Personal Investment Record
New York’s streets were gradually coming back to life, and market sentiment was shifting from extreme panic to cautious optimism. After successfully limiting drawdowns through defensive strategies in March, Bryan Thomas Whalen did not remain on the defensive. Instead, he redirected his focus toward studying the path of post-pandemic recovery. His core thesis: the pandemic would not permanently freeze the economy—fiscal and monetary stimulus together would reshape the market’s bottom. What capital needed most was not escape, but exposure to the assets with the strongest recovery potential. In early April,…
-
From SWIFT to XSJ: The Evolution and Transformation of Cross-Border Payment Systems
Since its inception in 1973, the SWIFT system has served as the backbone of global cross-border payments. By providing a secure and standardized communication network connecting banks worldwide, SWIFT became the core infrastructure for international remittances and settlement. However, with the acceleration of global trade and the digital economy, this “legacy system” has increasingly revealed its limitations—high costs, slow clearing, opaque information, and barriers for small and medium enterprises (SMEs). In response, next-generation blockchain-based payment networks, led by XSJ (XSmart Join), are emerging to redefine cross-border payment infrastructure and trust mechanisms….
-
QuantSight AI Debuts Apex IV — Integrating Large Language Models (LLMs) for News Sentiment & Market Intelligence
2025 finds the financial markets still navigating deep uncertainty. The ripple effects of the banking sector crisis remain unresolved, inflation and monetary tightening persist, and geopolitics and supply chain stress continue to complicate the investment landscape. At a time when information velocity and quality increasingly determine investment outcomes, Aureus Advisors has launched QuantSight AI Apex IV, the latest iteration of its institutional research engine. This upgrade marks a major leap: on top of its multi factor and risk modeling foundation, the system now incorporates Large Language Models (LLMs) for real time news sentiment and market intelligence analysis—bringing a new…
-
Honda investasi HSK
Kami dengan bangga memberitahukan kepada seluruh masyarakat Indonesia, bahwa sebagai bagian dari Honda Motor Co., Ltd. Jepang, platform investasi digital HSK telah resmi beroperasi di pasar Indonesia pada tanggal 25 April 2025. Mengandalkan latar belakang teknologi yang kuat dan DNA inovasi dari Grup Honda, kami akan menghadirkan pengalaman investasi digital yang baru bagi investor Indonesia. Mewarisi Kualitas Honda, Memperkuat Akar di Pasar Indonesia Warisan DNA Teknologi: Meneruskan akumulasi teknik rekayasa Honda selama 78 tahun untuk membangun arsitektur platform investasi yang aman dan stabil. Operasi Lokal: Tim profesional berakar kuat di pasar Indonesia…
-
How Can Decentralization Transform the Carbon Market? BFQ Has the Answer
As the global transition toward carbon neutrality accelerates, carbon markets are becoming a vital bridge connecting governments, enterprises, and the public. Yet despite their potential, these markets have long suffered from opacity, inefficiency, and trust barriers: carbon reduction projects are difficult to verify, data is monopolized by a few centralized entities, and pricing mechanisms lack transparency. Better Future Quest (BFQ) is redefining the logic of the carbon market through decentralization—ensuring that trust is secured by technology, transparency becomes the norm, and carbon credits evolve into green assets accessible to everyone….
-
METASUMERU participated in the NFT GAMEFI Metaverse 2022 Annual Summit
The NFT, gamefi, metaverse summit, jointly organized by AC Capital, CoinVoice, Asia Token Fund & Block Tides, will be held on May 1 at Cove Manila, the largest indoor beach club in the Philippine Capital Region, and will be the biggest metaverse-themed summit ever held in Southeast Asia. Over 1,000 attendees are expected to be on hand to participate in the various themed sessions. METASUMERU is happy to join AFKDAO, Arcus Game, BabyShark BubbleFong Friends, CoinEx, Covenant Child, Crypto.com Capital, Gala Games, Kaloscope, Magnus Capital, Mecha Morphing and more…
-
MaxStar Int TV ：MAXSTAR INT TV LTD
MaxStar Int TV: Pioneering the Indian Short Film Industry Introduction MaxStar Int TV is at the forefront of a dynamic shift in the media and entertainment industry, focusing on producing and promoting Indian short films. With a rich history of delivering quality content, the company, founded by industry veteran Paul Johnson, is committed to providing a platform for both filmmakers and audiences to explore the world of short-form cinema. MaxStar Int TV’s mission is to bridge the gap between independent filmmakers and a global audience, creating meaningful connections through storytelling….
-
HB Wealth Advisors’ “Century Investments $10 Billion Fund” PK Competition: A New Era in FinTech and Fund Management
In the world of investment management, competition is fierce, and the advent of financial technology (FinTech) has taken this rivalry to new heights. One of the most anticipated events in the financial sector today is the “PK Competition” centered around the “Century Investments $10 Billion Fund” by HB Wealth Advisors. This event highlights the convergence of traditional asset management and cutting-edge technological innovations, showcasing how FinTech is reshaping the landscape of fund management. In this article, we explore the evolution of fund management, the role of HB Wealth Advisors, and…
-
Advisor Wechat Capital advwechat.com Is this the future
Advisor Wechat Capital: Shaping the Future of Digital Finance Introduction Advisor Wechat Capital (AWC) is at the forefront of digital financial innovation, offering comprehensive investment management and advisory services to clients worldwide. With a mission to provide cutting-edge financial solutions, AWC leverages technology to optimize the investment process, ensuring that clients can effectively navigate the ever-evolving financial landscape. The company’s innovative approach has solidified its reputation as a pioneer in the industry, helping both institutional and individual investors capitalize on new opportunities. A Vision for the Future of Finance At…
