Specialised risk management and measurement

Specialised risk measurement and management for insurance companies

Turmoil in the financial markets and the forthcoming Solvency 2 regime alike are increasing pressure on insurers to manage risks more effectively. This includes managing underwriting, credit, market, operational, business and liquidity risks, as well as maintaining sufficient levels of capital to support those risks.

Risk management is becoming increasingly complex, with risks often interrelated, and requiring tools and techniques constantly increasing in sophistication. Reply solutions, designed to develop, implement and embed effective risk management into an organisation include:

  • Supporting data quality management initiatives – regarding both internal and external data;
  • Supporting the analysis and definition of the risk appetite and related strategies for effective management, and transfer of risk to give an optimal rate of return;
  • Developing, documenting and rolling-out of standards and methodologies by which risk exposures are measured or quantified and managed in all businesses;
  • Supporting the building, calibrating and independent validation of the risk model;
  • Designing and, more importantly, implementing risk models within an organisation’s infrastructure (people, process, data and technology);
  • Developing adequate monitoring framework of the portfolios of assets and related risk exposures, as well as designing and producing regular management information reports;
  • Working with an organisation to ensure that a disciplined and harmonised approach to the management of risk is supported by adequate governance and operating model for risk modelling and validation;
  • Acting as an interface with an organisation’s regulator(s) on specific risk modelling-related issues, and providing advice to businesses on regulatory requirement and best practice approaches.

Reply specialist risk modelling team help organisations improve their ability to identify, measure and manage risk. Reply use a variety of techniques relying on historical data where available, probabilistic simulation, extreme value theory and expert panelling techniques to determine likely losses (severity and frequency) incurred across a variety of risks inherent to a transaction, portfolio, business unit or organisation.

Reply provide specialist risk measurement and management services in the following areas:

  • Underwriting Risk;
  • Credit Risk;
  • Operational Risk;
  • Market Risk;
  • Business Risk;
  • Treasury and Liquidity Risk;
  • Asset Liability Management;
  • Emergent Risks.

Contents about - Tag: Specialised risk measurement and management for insurance companies