Step/Module 1: Structured risk detection and evaluation
― Business Risk
― Brand/Reputation Risk
― IT/Cyber Risk
― Operational Risk
― Conduct/Compliance Risk
― Can integrate the outputs of other risk engines such as Market VaR
― Other categories can be added, as needed
Step/Module 2: Input quality assurance and efficiency
Step/Module 3: Aggregation and Monte Carlo
― Risk bearing capacity and monitoring given risk profile, based on different thresholds and soft and hard limits and linked to liquidity, solvency and risk appetite
― Diversified risk profile resulting from the aggregation of risks
― Monetary cost of risk and its allocation/consolidation of risks across various legal entities, subsidiaries etc.
― Economic value added and NPV of mitigation plans and risk transfer ― Optimization of insurance policies
― Identification of major sources of value volatility
Step/Module 4: Output metrics and counter measures