Risk management – ERM
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Thanks to a thorough quantitative approach, Elseware contributes to global risk management (ERM). Alongside vulnerability mapping, we put probabilistic models together for quantification.
This approach allows for the assessment of challenges, the identification of leveraging opportunities, and the selection of financing intruments. It has been characterized in detail in Risk Quantification: Management, Diagnosis and Hedging. Jean-Paul Louisot, pedagogical director of the CARM Institute and professor at Université Panthéon Sorbonne, Laurent Condamin and Patrick Naïm of Elseware co-authored this book.
Expertise & tools
Elseware consultants have been trained in risk management (ARM methodology – Associate in Risk Management graduates of the Insurance Institute of America) and are experts in Bayesian networks. Bayesian networks permit the integration of human expertise with statistical data within the same model. They offer a rigorous and intuitive representation of knowledge and they can adapt to changes (e.g. new data or updated knowledge).
These principles have been implemented by Elseware in the form of an equipped risk quantification method. As a matter of fact, this approach was approved for operational risk management (Basel II).
Achievements
We helped a major American oil company with risk modelling between 2003 and 2008. Since 2004, we have been involved with operational risk quantification for several French banking firms.