Risk Analysis may be characterized as a technique to quantify uncertainty by identifying and assessing factors that can affect the success of a project or achieving a goal. Our Risk Analysis services are applicable to many industry sectors such as property-casualty insurance (including actuarial pricing & reserving), healthcare, real estate, banking & financial services, energy and others. To facilitate decision making regarding assumption and transfer of risk, investing and other strategies, we can provide the following:
- Model Development – create a new or simplify an existing model (in Microsoft Excel format) that specifies assumptions related to a distinct business proposition, problem or situation and displays anticipated financial flows and potential consequences;
- Variable Identification – recognize key variables in the model stating their range of possible values within probability distributions and categorizing uncertainties being analyzed with consideration of any quantifiable correlation or dependency among them;
- Simulation Analysis – examination of the model by running many iterations (using Monte Carlo simulation) and testing scenarios to determine the range and probabilities of all reasonably possible outcomes for the desired results being analyzed as well as illustrating the consequences of different courses of action; and
- Results Illustration - display key statistics of desired outputs and inputs in user-friendly tables and graphs that can be easily interpreted to facilitate management's risk decision-making and action plans.
To visualize the Risk Analysis service, an initial custom illustration can be made available on a complimentary basis. Subsequent analyses and consultations are billed on an hourly or fixed fee basis typically varying by size of client or transaction.
Our Risk Analysis services are delivered in partnership with Palisade Corporation, the maker of the popular risk and decision analysis software @RISK and the DecisionTools® Suite.