Interview with Olga Orekhvo, Chief Operation Officer of CompatibL

1. 4 The World Financial Review January - February 2022
approaching
CompatibL is a leading provider of custom
software development services and trading
and risk management software solutions.
At a time when many companies are
turning to the cloud as the foundation of
their IT strategies, Chief Operating Officer
Olga Orekhvo explains how the cloud is
just one – albeit an extremely potent – shot
in the company's software solutions locker.
MANAGEMENT
RISK
Power Influencers
Interview with
Olga Orekhvo, Chief Operating
Officer of CompatibL
with your head
in the cloud

2. www.worldfinancialeview.com 5
Thank you for gracing us with your time,
Ms Orekhvo! To begin with, can you give us
a few words on why you chose to pursue a
career in IT?
Thank you for having me at the World
Financial Review!
I had always felt drawn to and predisposed
toward working with technology (hardware and
software in general). From the very moment I
unboxed my first Atari 8-bit personal computer
and wrote my first code in BASIC, I knew that
this passion was here to stay.
There is a long list of advantages to pursuing
a career in IT, and I would emphasise three of
them: a dynamic environment that promotes
innovation and creativity; working in a team
of smart, strategically oriented and talented
people; and ample opportunities for profes-
sional and personal development.
Since its launch in 2003, CompatibL
has become an industry leader and
technology-oriented partner for many
successful organisations today. What
would you say have been the principal
factors in the company’s success?
At a time of fierce
global competition,
proficient and devoted
people have always been
our moving force in gaining a
competitive advantage in the
industry. The vision and the
leadership team headed by the
company founder, Alexander
Sokol, were instrumental in
CompatibL’s success.
Being able to bring the most
talented people with both
programming and math back-
grounds together is one of CompatibL’s core
strengths. We pride ourselves on being a rare
quant- and engineer-minded company. Our forte
is our unrivalled ability to apply quantitative
analysis and engineering know-how to problems
in order to create efficient and scalable solu-
tions. We were deliberate in building this culture
and believe it sets us apart from the competition.
In very simple terms, what are the compo-
nents of a software solution? Can such a
system be assembled today from “off the shelf”
components, or is it necessary to do bespoke
development in each case?
There are many different components of a
software solution, but the most basic are: the
database, the back end,
the user interface (UI),
and the business logic.
The database is the heart
of every software solution,
providing the underlying
structure for storing and
managing your data.
The back end can cover
different things in each
case, such as API design,
database architecture,
server configuration and
deployment, etc. The UI
is how users interact with
the application. The business logic is where all
of your data is managed and how it's organised.
Together, these parts provide a fully functional
program that can solve a particular problem.
We pride ourselves on
being a rare quant- and
engineer-minded company.
Our forte is our unrivalled
ability to apply quantitative
analysis and engineering
know-how to problems in
order to create efficient
and scalable solutions.

3. 6 The World Financial Review January - February 2022
Thinkofitlikeacar.TheUIisthesteeringwheel,
brakes, and gears; it's how you interact with the
application. Business logic and data structures
are like the engine, transmission, and chassis;
they make sure everything runs like it should.
It’s possible to build such a system today, but
bespoke development or at least some modi-
fications or extensions to the already-built
software will likely be necessary in many
cases. It makes sense from a security perspec-
tive, but also from a functionality perspective.
An off-the-shelf solution will get you an initial
offering, but it won't be tailored to your very
specific needs.
There is a saying that goes, “Most quants
can’t code, and most engineers can’t do
math.” One look at your varied portfolio of
services quickly debunks this theory. How
important was it for the company to be the
exception to this rule?
From day one, CompatibL’s most challenging
thing was to become an exception to the “most
quants can’t code, and most engineers can’t do
math” rule, and to bring together people who
can do both. We’ve hired and trained quants
who know a lot about software engineering,
and we’ve hired and trained software engineers
who also have in-depth knowledge of math and
quant models. Combining both quant and engi-
neering expertise in one team is what helped
us to get through this challenging episode, and
it’s what still makes CompatibL so effective in
developing software and services specific to
the financial industry.
For 17 years and counting, CompatibL has
remained independent and free of the pres-
sures that come with venture capital and
outside shareholders. What do you think have
been the primary reasons for this autonomy?
Fundamentally, CompatibL is structured
to dream very big. We have always faced
uncertainty with a plan and considered any
turbulence, which is a normal part of each
company’s evolution, as a wide range of possi-
bilities. Innovation is no longer a luxury, and
to achieve progress, be better prepared, we
incorporate the lessons we have learned into
decision-making processes and challenge
the status quo. Our resilience strategy helped
CompatibL withstand several global crises,
including the global financial crisis, which
shaped the industry significantly. Clear goals
and resilience – these are the vital ingredients
of our autonomy.
Your company prides itself on building soft-
ware models from the ground up and making
sure that that they integrate seamlessly with
other models. Could you give us a general over-
view of how it all works?
CompatibL makes seamless integration
possible by using our flexible microservices
architecture, which permits individual cloud
deployments for each service. These micro-
services communicate via REST semantics
and can be hosted in Docker and deployed
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4. www.worldfinancialeview.com 7
on any cloud/cluster infrastructure supporting Docker
or similar container technologies. Or they can be self-
hosted on a dedicated server. This allows us to combine
microservices written in Python, Java, C++, and C#
within an integrated workflow, including user-imple-
mented extension modules. Clients are able to add
new microservices and have them executed as part of
CompatibL’s software workflows.
We also implement the analytics and business logic
using a set of open APIs called CompatibL Runtime, with
open-source adapters
available in Python,
Java, and C#. This is
why CompatibL’s soft-
ware can easily run on
a wide variety of cloud,
storage, messaging, and
in-memory cache tech-
nologies selected by the
client, instead of forcing
the client to adopt the set
of technologies and soft-
ware versions required
by the vendor.
The unique feature of CompatibL Runtime is its ability
to run the same code on a broad range of relational and
NoSQL database types without deterioration in perfor-
mance. Thanks to its unique architecture, CompatibL
Risk can run on relational databases such as Postgres,
document databases such as MongoDB and DocumentDB,
wide table databases such as Cassandra, and key-value
databases, such as Dynamo and HBase.
Can you describe your customers’ involvement in
the process of developing services for them?
We take a human-centred approach to product research
and design. We spend time with customers to understand
the problems they face. We’re constantly gathering feed-
back from our customers
and listening to their
ideas, wishes, and
suggestions for improve-
ment. We want to create
the product that's just
right for them, and we've
learned that this means
taking time to listen and
understand their needs
and concerns before we
develop a product.
We really value the
customer experience
and offer 24/7 support. When starting a new project,
having round-the-clock support is crucial to keeping our
customers happy.
Most of our projects have ongoing requirements rather
than being a one-off opportunity. Our agile software devel-
opment delivery model offers agile project management
We take a human-centred approach
to product research and design.
We spend time with customers
to understand the problems they
face. We’re constantly gathering
feedback from our customers and
listening to their ideas, wishes, and
suggestions for improvement.

5. specifically for that, which helps satisfy customers’ expec-
tations and deliver a flawless product on time.
What are your clients’ typical reactions when you
describe the approach to developing a software solution?
Might they have concerns because they perceive the
technology to be not yet mature enough or the process
not sufficiently clear?
It’s not unusual for software developers to be asked about
their approach to building a new feature or developing a
new software solution, and you’ll typically hear one of two
things: it’s like baking a cake or it’s like building a house. In
the case of CompatibL, it’s more like building a megapolis,
with layers and layers of levels built upon each other.
We normally see reactions that vary from very enthu-
siastic to rather reserved. The more cutting-edge the
client is, the more enthusiastic they are about exploring
modern agile ways of developing a software solution, such
as extreme programming or feature-driven development.
It’s also not uncommon for us to encounter concerns about
whether we can deliver on time, whether we can deliver a
reliable solution, and what guarantees we can provide if
the outcome is not satisfactory.
Most of our clients understand the complexity of the
technology and processes involved in creating a software
application. They realise that we’re doing due diligence and
taking all of the variables and unknowns into account to
make sure we build a solution that truly meets their needs
and solves their business problem.The steps we outline make
the development process transparent and very easy to under-
stand, and our business development team is always available
to help our customers through any questions or concerns.
Whatdoyouthinkaretheprimarybenefitsthatsoftware
solution services can offer in a post-pandemic setting?
The software solution services industry is heavily cloud-
driven, from simple data storage to advanced automation
and collaboration tools. Most companies today are using
cloud technologies, whether they realise it or not. With
the cloud being so obvious a choice for businesses today,
it’s amazing to see that some companies have been so slow
to react. But now that they realise the need for a proper IT
infrastructure and a company-wide approach, they’re ready
to start focusing on their technology assets.
Cloud-native solutions can take full advantage of cloud
services’ “pay per use” billing model, which helps optimise
the cost of variable application loads. Financial services
firms run many compute-intensive processes as part
of their end-of-day workflows as well as intra-day – for
example, during portfolio optimisation or when executing
a new trade. Using legacy architecture on-premises or in
the cloud for variable loads results in ineffective resource
8 THE WORLD FINANCIAL REVIEW JANUARY - FEBRUARY 2022
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6. www.worldfinancialeview.com 9
use, as either the physical or virtualised
instance cannot be ramped up or down seam-
lessly when the application is running, while
the ability to ramp up or down a cloud-native
service is readily available.
To unlock the full potential of the cloud,
the software must be re-engineered around
services and deployment pipelines. It must
use modern cloud-native technologies, such
as serverless computing, distrib-
uted NoSQL databases, and cloud
object storage. Only by fully
embracing cloud-native archi-
tecture, using services-based
technologies and tools, and
demanding the same of the firm’s
vendors can a financial services
firm realise the full benefits of
the cloud.
Another benefit of the cloud
is its high degree of redundancy,
even when running in a single
geographic region. Even-higher
redundancy can be achieved
by using a different geographic
region as a hot standby. This
leads to significant cost savings
compared with deploying an
on-premises application at a
disaster recovery site.
Inoneofourcasestudies,byimplementing
serverless cloud-native technologies, we
were able to reduce the infrastructure cost
of CompatibL Risk Cloud deployment on
AWS by an average of 62 per cent, and on
Azure by an average of 72 per cent compared
with deploying the same application in an
on-premises data centre. This three-to-four-
fold cost advantage was made possible by
leveraging true serverless cloud-native tech-
nologies, rather than running the existing
application on virtualised servers.
However, when faced with a complex
project with tough deadlines and budget
limitations, project leadership often takes
the path of least resistance and simply
transplants existing software architecture
to the cloud by relying on the infrastruc-
ture-as-a-service (IaaS) offering of their cloud
provider. This option results in migrating the
application by merely creating its mirror image
in the cloud, with each on-premises server
migrated to its virtualised cloud counterpart.
While this approach requires few changes in
the software itself, in the long run it deprives
organisations of the tremendous value and
potential of cloud-native technologies.
CompatibL also works in the area of secu-
rity and compliance, apart from its already
rich archive of delivered technology-powered
solutions. Can you tell us a little bit about this
part of your work?
Security and compliance have always been
important pillars of the financial sector. Today,
we're building on that foundation to meet the
emerging need for cloud transformation. Our
customers primarily focus on moving out of
their data centres, but adopting the cloud is not
just about technology transfer. There is a lot
more to cloud transformation than the actual
transfer of assets. CompatibL helps to identify
and evaluate IT risks and develop custom secu-
rity strategies to cover any gaps. Our team of
experts is focused on advising financial organi-
sations on security compliance, risk control, and
governance. Whether it’s in the cloud, on the
network, or at the endpoint, we offer our exper-
tise to help safeguard and improve the existing
security governance of our clients. This includes
data privacy, third-party risk, and IT regulatory
compliance following their specific business
challenges, goals, and requirements.
Given that most of your projects reside
in the cloud, how do you think the current
hybrid and fast-paced work situation will
affect the digital climate?
The cloud presents a lot of opportunities, but
also a lot of challenges. We're working to make
The software
solution services
industry is heavily
cloud-driven, from
simple data storage
to advanced
automation and
collaboration tools.
Most companies
today are using
cloud technologies,
whether they
realise it or not.

7. 10 The World Financial Review January - February 2022
sure our customers can easily realise their ideas with our
risk cloud software and are able to work without limi-
tations. In the cloud, you have freedom, which enables
fast-paced work and eliminates the traditional boundaries
of on-premises systems.
The advent of remote work during the pandemic has
significantly reduced management’s resistance to having
applications in the cloud rather
than in-house. The most important
change has not been technolog-
ical but psychological, as, during
the pandemic period of remote
work, both management and the
employees have grown comfort-
able with not having their systems
hosted in their physical proximity.
Remote work is making steady
inroads in the industry through
more tolerant attitudes toward tele-
commuting on some days of the
week, but its expansion has been
slow. COVID-19 is having a tremen-
dous impact by normalising remote work and, in a matter
of months, has brought about transition that would other-
wise take years or perhaps even decades. Without a doubt,
this rapid shift accelerated the digital transformation and
the adoption of new technologies for working remotely.
The lasting impact long after the pandemic ends will
be the ability of organisations to successfully manage a
geographically distributed workforce with a reduced need
for in-person contact, providing new opportunities for
expansion and recruiting. And this can only be achieved by
leveraging the cloud.
Other than being an invaluable tool in transition to
remote work, the impact of the cloud on software devel-
opment has been critical for adapting to rapidly changing
market conditions during the pandemic. Faced with the
need to make rapid changes to their software systems,
financial institutions have seen first-hand how the cloud
provides a faster and more effective way to rapidly evolve
their software and IT infrastruc-
ture compared with the traditional
on-premises model.
The business outlook on the secu-
rity of cloud infrastructure compared
with hosting sensitive data locally is
also changing. With remote and new
hybrid working models expected to
be the norm for employees, on-prem-
ises-based access to data is now seen
not as an advantage but as a liability.
Speaking of disruptors, cyber-
security continues to be one of the
primary concerns and is an area of growing regulatory
focus. How do you assure clients that this is not an issue?
Cybersecurity is one of our top priorities. When devel-
oping CompatibL Platform, we focused on four key
principles to ensure that the platform withstood cyber-
threats: privacy, security, resiliency, and agility. We
introduced a list of policies and procedures to ensure
effective cybersecurity based on a number of foundational
elements, including a risk-based approach, a strong lead-
ership programme, and a culture of respect for our clients'
Cybersecurity is one of
our top priorities. When
developing CompatibL
Platform, we focused
on four key principles to
ensure that the platform
withstood cyberthreats:
privacy, security,
resiliency, and agility.
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8. www.worldfinancialeview.com 11
security. We also have a
dedicated internal cyber-
team that utilises leading
security technologies
to protect our customer data, and we have formed strong
partnerships with best-in-class providers in this space.
Securityrisksareoftencitedasthereasonsomefirmshave
not transitioned to the cloud. Previously, financial services
executives believed that just because a server is local and
housed at a site owned by the company, it is more secure
than the cloud. However, this is a false sense of security. A
security breach will likely be not from someone breaking
into a data centre and physically accessing the local server,
but through a cyberattack. If you look at some of the most
significant security incidents, most of them happened when
an on-premises or data centre network was compromised
through a cyberattack, rather than through a breach of phys-
ical security. In the modern world, you cannot operate while
disconnected from the internet. No matter how good your
internal network security is, just the fact that you are using a
non-standard network already makes it less secure than the
highly standardised networks of AWS, Azure, IBM, or any of
the other major cloud providers.
Cloud infrastructure providers have whole teams and
divisions staffed by extremely competent people who work
on cybersecurity. Over time, and especially during the
pandemic-era remote work, banks have learned to trust
their cloud providers with protecting their data and systems,
and their trust has not been misplaced. Cloud providers can
do things that an individual organisation cannot do without
a massive budget, and they can be your trusted partner in
securing your network from cyberattacks.
Among the many advantages of running cloud-native
systems is enhanced cybersecurity. A cloud-native applica-
tion reduces cybersecurity risks by using a standard set of
cloud services and technologies, which presents less penetra-
tion risk than non-standard on-premises or hybrid networks.
Like many other sectors, information technology and
financialserviceshavetraditionallybeenmale-dominated
arenas. How would you characterise the current situation
in the industry in terms of progress towards achieving an
equitable gender balance?
The reality is that male-dominated arenas are losing
out to the competition and becoming outdated in many
different professional
contexts. Leading IT
and financial services
companies don’t want
to create a disadvantage and strive to reap the benefits of
gender diversity. However, while the industry has come a
long way in becoming less male-dominated over the past
10 years, there is still room for improvement.
What do you see as the main challenges faced by
women today embarking on careers in financial services?
What advice would you give them?
No one has it easy at the beginning. It’s hard individually to
resist the statistics that suggest an act of discrimination may
target the members of a particular group whose productivity
goes unobserved, and this group is perceived to have a lower
average productivity or a different mindset. My advice is to
be adaptive and agile, set objectives, and adjust as you move
forward. Sometimes you need to twist, turn, make a small
change, and carry on walking toward your ultimate goal.
What can we expect to see from CompatibL in the
coming months?
Machine learning is rapidly becoming a must-have in
financial trading and risk applications. At CompatibL,
we’re at the forefront of this change. CompatibL is
conducting cutting-edge research on machine learning
models for portfolio valuation and risk management, and
was the first vendor to bring a machine learning credit
limit model into production. As part of the next release
of our platform planned for Q1 of 2022, we plan to release
a full suite of machine learning models for valuation and
risk across all asset classes.
Machine learning is rapidly becoming
a must-have in financial trading and
risk applications. At CompatibL,
we’re at the forefront of this change.
Olga Orekhvo has joined CompatibL in 2014
and serves as Chief Operating Officer. She
is responsible for overseeing day-to-day
company operations and contracting
matters. Also, Olga manages compliance
department at CompatibL, ensuring
full compliance with laws, regulatory
requirements, policies, and procedures.
EXECUTIVE PROFILE