ERisk knows that risk management is more than risk measurement and modeling. The benefits of better models will only be realized if the proper foundations are laid within the organization and model implementation is accompanied by a feasible rollout strategy. ERisk’s proven project management process has Foundations and Rollout as the “bookends” to our risk modeling mandates; be it a silo-risk initiative or of an enterprise wide nature. 

Foundations

This phase is concerned with performing the groundwork necessary for a successful risk and capital initiative. The phase includes performing diagnostics and developing frameworks and blueprints.  We assist clients with solution identification, planning and securing management buy-in, employing a range of vehicles including facilitating visioning seminars, performing gap analyses, building project plans and developing business cases. 

Risk Modeling

ERisk has extensive risk modeling experience, including both implementing our economic capital analytics solution, Abacus, and building bespoke models.  We have built credit, market and operational risk models for a range of institutions, including regional banks, financial services firms, insurers, energy companies and large corporations.  Customized solutions can be delivered through applications ranging from spreadsheets to industrial strength software.  We assist with all information architecture issues supporting the modeling process including data, systems integration and parameter calibration. 

Rollout

This phase serves to capture the project’s promised benefits by ensuring that the model is used to best effect throughout the organization.  Education and training is a component of most of our mandates.  Moreover, we assist with organizational design and deployment of the new risk models into existing processes such as underwriting, budgeting and planning, new product development and management reporting.  We also provide expert advice on margin enhancement projects, including implementing risk-based pricing, customer profitability strategies and designing incentive based compensation schemes.

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