Pioneering Research in Operational, Cyber, and Climate Risks
Elseware has been a leader in applied research since its inception, continuously advancing the field of risk management with innovative methodologies and groundbreaking studies.
Our legacy
Meet The Founders
Founders Patrick Naim and Laurent Condamin were pioneers in applying neural and Bayesian networks to the financial sector in the 1990s.
Their work laid the foundation for our structured scenario approach, XOI, which we introduced in 2005 as a revolutionary method for operational risk modelling.
Risk modelling and quantification expert. Consultant for major banks, insurance and oil & gas companies in the US, UK and Europe. Author of several books in risk quantification, Bayesian networks, and data modelling.
Expert in risk quantification for operational risk, climate-related risks, and ESG risks. Other areas: stress tests, credit rating modelling, project risk analysis, and cost-benefit analysis for major financial institutions in Europe, US and UK.
current research
Cyber Risk & Climate Stress Modelling
Modelling Cyber Risks
Cyber risk consistently ranks among the top operational risks for businesses worldwide. Our collaborative research in cyber risk management aims to model risks for financial institutions, providing accurate risk simulation and impact assessment.
Recognised for its excellence, our cyber risk model, based on the XOI approach, won the best industry initiative award from Risk.net in 2020 and contributed to the Federal Reserve of Richmond's Cyber Risk Workshop.
Modelling Climate Risks
Climate change presents systemic environmental risks that demand a unique assessment framework. Our research evaluates these challenges through a comprehensive approach involving scenario assessment, stress analysis, impact aggregation, and mitigation strategies.
This methodology helps financial institutions understand and prepare for the long-term impacts of climate change on their operations, aligned with TCFD and ECB guidelines.
Our methodology
Research Built on Four Core Blocks
We advocate for a top-down approach to define relevant business segments, ensuring a thorough and tailored risk assessment for every client engagement.
Scenario
Evaluating economic and physical consequences of climate change and operational risk events, grounded in historical data and regulatory frameworks.
Stress
Assessing impacts on specific business segments through severe-but-plausible stress scenarios calibrated to CCAR, ICAAP, and TCFD requirements.
Aggregation
Integrating segment impacts into a comprehensive Monte Carlo analysis to produce probability-weighted loss distributions at 99.9% VaR.
Response
Developing mitigation strategies, insurance programme optimisations, and capital allocation decisions to manage identified risks effectively.
publications & collaborations
Research Documentedin Leading Journals
Elseware's research has been documented in various publications and developed in collaboration with leading institutions. Explore our latest papers and collaborative projects to gain deeper insights into our pioneering work.
Collaborate With UsInterested in Our Research?
Contact us to learn more about our projects or to explore collaboration opportunities with our research team.