A business is not just about buying and selling a product or service. It is much more than that. For a business to run properly, everything needs to be on point, for that management is necessary.
In fact, it wouldn’t be wrong to say that management is necessary for every step of a business. The most important factor in this is to manage the financial assets, risk, and other investments of the business.
From financial planning to look after bonds and equity of investors, it includes everything. Now, we all know business and risk go hand in hand. Therefore, in a business apart from investment management, risk management is also required.
Risk management is all about recognizing and controlling those venturing threats that can affect the organization's financial assets. It is mostly done to protect the company from harm and its future. Risk management makes the work environment safe.
Now, thanks to technological advances, this also can be done by software. This article talks about the biggest investment and risk management software, BlackRock Aladdin.
“Wealth is only a benefit of the game of money. If you win, the money will be there.”
What is Blackrock Aladdin?
No, as the name suggests, it is not related to Aladdin and the magic lamp from the Arabian Nights. Although the work it does is not less than that of a genie fulfilling wishes. Aladdin (Asset, Liability, Debt, and Derivative Investment Network) is a system whose work is to keep an eye on the markets and stop anything going wrong.
It connects people and technology together to manage funds. It is part of BlackRock, Inc an American global, Investment Management Company. This system was found after BlackRock's was founded in the year 1988. In the year 2000, Aladdin was introduced as a system for investment management user
This software works with thousands of computers for 34 hours and is continuously striving to manage the financial ecosystem of the world.
Interestingly, Aladdin was first created to handle BlackRock’s business. Now, apart from BlackRock, it is used by different clients of BlackRock's to manage their investments.
Since the financial crisis in 2008, the demand for Aladdin has surged all over the world and it has now become one of the most important parts of the investment management industry in the world.
How does Blackrock Aladdin Work?
The system is involved in portfolio management to risk management; it’s all about providing a smooth investment process to the client with the help of a number of computers and people. With the tools required for portfolio management like trading, operation, and accounting, it gives out proper risk analytics.
Aladdin gives out powers through its tools to the user so that they can communicate efficiently and if any problem arises, they can solve it quickly during the investment process.
Interesting Features of Aladdin
Some of the features that make Aladdin different and unique are:
- Over 55,000 investment workers are connected with Aladdin and depended on it.
- It has more than 240 clients all over the world.
- Thanks to the existence of this brilliant software, it eliminates the need for paperwork.
- Eradicate excessive repair costs of machines.
- This software provides the facility of trading bonds without the need of a middleman.
- The software manages the wealth of some of the biggest companies.
- The software contains a centralized database.
- Aladdin contains a climate risk reporting app, that notifies if there is any risk that can be caused by climate change to their portfolio.
Top Companies that use Aladdin
This is an insurance company founded in the year, 2004 by Dave Reedy. Aladdin manages Genworth Financial, along with eFront, another software that manages the alternative investment, it keeps an eye on risk management and asset allocation of the company.
Fannie Mae is an enterprise that deals with mortgage financing. It was founded by Franklin D. Roosevelt in 1938; its main motive is to create a sustainable housing finance system. In 2015, Fannie Mae associated itself with Aladdin.
The global financial service deals with asset management, wealth management; principal investment were founded in 1969 by Stan Owens. Macquarie has taken up Aladdin in the team for their asset management.
The capability of the software Aladdin by BlackRock can be seen since the 2008 financial crisis. It has become the world’s most powerful risk management system and some of the largest enterprises are dependent on it. Needless to say by managing $21 trillion and counting, it is ruling the investment management industry of the world.
Is Aladdin a Part of BlackRock?
Yes, Aladdin is an electronic system for investment management by BlackRock.
Who is the CEO of BlackRock?
Laurence Douglas Fink is the CEO of BlackRock.
Which companies use BlackRock Aladdin?
Genworth Financial, Fannie Mae, and Macquarie are some of the top companies that use BlackRock Aladdin.