In modern finance, risk is everywhere — in portfolios, supply chains, ESG exposure, and geopolitical uncertainty. But the real challenge is not the presence of risk… it's how hidden and interconnected it has become.

The Challenge

Risk is not static. It changes with market conditions, internal processes, and external threats. Periodic risk assessments quickly become outdated and are often backward-looking.

Traditional risk models fall short because:

• They rely on linear assumptions that oversimplify real-world dynamics

• They struggle to process high-dimensional, fast-changing data

• They miss non-obvious correlations and systemic vulnerabilities

• They often react too late, after losses have already occurred

The challenge is not just identifying risk — it's predicting and preventing it at scale.

Quantum-Inspired Risk Management

QUBO formulations and tensor-based optimization — can uncover hidden risks and improve portfolio resilience in complex financial systems

• Models risk relationships as a multi-dimensional network

• Uses QUBO to optimize risk exposure across portfolios, clients, or processes

• Detects non-linear and hidden dependencies (e.g., contagion risk)

• Flags high-risk combinations before events materialize

It's like having a quantum-like radar scanning your system 24/7 for emerging threats and weak spots.

What It Does:

Benefits of Using HessQ for Risk Management