17.7 Conclusion: NORM contribution to risk assessment
It is clear that the successful incorporation of financial news will provide risk assessment
measures with an appropriate tool to more closely estimate actual risks. Since the
technology is available to semantically analyse news so that qualitative information
can be extracted, the most interesting development will be to incorporate this qualitative
information into risk assessment measures.
The main concrete result of NORM—as a news-based analysis solution—is that it is
able to adapt market risk assessment metrics. This solution consist of risk management
software and financial services, creating a financially stable model that ensures trans-
parent asset liquidity management. The results will improve the risk management of
assets under management and provide an early warning system for the risks involved,
based on real-time market developments before they become apparent in quantitative
market signals. Apart from early warnings on regulatory issues and fraud detection,
it also provides a unique opportunity for traders to limit risk and improve their alpha.
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