How does one keep a legacy built on dynamite from exploding? The Nobel Foundation found its solution in RiXtrema's Portfolio Crash Test tool.

The Nobel Foundation has chosen a Web-based stress-testing tool from RiXtrema to safeguard the foundation's $560 million endowment. The New York-based risk-modeling and stress-testing solutions firm developed the tool to allow advisors to identify and adjust to potential problems in a portfolio's performance before they occur.

“RiXtrema is a unique tool for performing scenario analysis instead of relying solely on historical data,” Nobel Foundation CIO Gustav Karner said. “It will help the Nobel Foundation in fully understanding all of the risks in our portfolio.”

Made available to financial advisors in 2013, the Portfolio Crash Test relies on stress testing to identify risks—a method that measures the potential impact of plausible hypothetical scenarios.

The Nobel Foundation, based in Stockholm, Sweden, annually awards prizes in physics, chemistry, physiology or medicine, literature, and peace through assets originally made available in the will of Alfred Nobel, the inventor of dynamite.

RiXtrema recently introduced Advisor BioniX, a technological solution for advisors using the same risk-management model.