How does BlackRock Aladdin’s risk-management models work?

BlackRock Aladdin’s risk-management models introduce a change variable for valuation and risk by deploying statistics/econometrics and then track the change in these variables. 

Thanks for invitation, and I am really sorry for my late, because I were  had a lot of work.

Hi Farah I hope you find this answer useful. Models within Aladdin are created by the Financial Modeling Group (FMG) within BlackRock Solutions that is subdivided into teams that create specific models for interest rates, VaR, and mortgages. Without diving into heavy detail, each model deploys econometric/statistical techniques that rely on certain explanatory variables to help explain changes in valuation and risk. To ensure that the models perform well over time, the team backtests the model to assess its goodness of fit vs actual market events. BRS models are then deployed to clients via several tools available in Aladdin. Each client has the ability to tailor and adjust the models to their liking depending on certain views, or idiosyncrasies that exist in their portfolios. Aladdin client's also have the ability to harness the models by applying customized scenario analysis that fit their market view, or running historical stress scenarios. For example, if a portfolio manager is concerned about silver prices in Asia he/she could apply shocks to global silver prices and see its impact to the value of Asian stocks, currencies and bonds held within his/her portfolio based on correlations. Similar types of stress scenarios are also deployed to fulfill regulatory requirements such as Solvency2, Basel III, and The Fed's CCAR stress tests.