Operational risk solution of the year: The Analytics Boutique
InsuranceERM's judging panel praised The Analytics Boutique (TAB) for providing an innovative and comprehensive solution that helps financial institutions perform operational risk scenario analysis in a structured manner.
Released in December 2017, the firm's Structured Scenario Analysis (SSA) is a web platform that collects and manages risk scenario analysis for capital modelling and risk mitigation.
Founder Rafael Cavestany says: "The operational risk solutions market is moving from traditional traffic lights for risk assessment and qualitative classification of risk to economic value-based metrics: monetary cost of risk, net present value (NPV) of mitigation actions, buffer capital for adverse events and so on."
This is what exactly SSA does. It provides a full workflow, together with on-the-fly user-friendly modelling and Monte Carlo simulation permitting the monetisation of risk estimates, rather than a traditional traffic lights and risk maps system for risk assessment.
The solution is used by 11 clients including Axa Group and 54 of its national entities.
TAB won best analytics solution in InsuranceERM's 2018-2019 UK & Europe awards and the judges were most impressed again this year.
The platform's ability to drive the monetisation of risk estimates really impressed one InsuranceERM judge.
Another liked TAB's focus on structured scenario analysis.
TAB plans to improve its software and make it even more user friendly by adding automation and eliminating low value tasks.
Cavestany adds: "At the same time, we are developing our software with further features for quantification of risk (Bayesian networks and other) and making sure its outputs can be easily integrated into the daily management, resource allocation and strategic planning."