A single-characteristic risk classification system is flawed. Neil Cantle and Oliver Gillespie describe an alternative way of classifying risks according to their multiple underlying characteristics.
"Agent-based models" have been used successfully to replicate complex behaviours with very simple rules. Neil Cantle examines the implications for financial modelling.
Individual risks like volatility aren't the problem, argues Milliman's Neil Cantle. The way they combine is.
Our guide to 18 systems from 14 vendors shows a wide range of approaches. All of them have features relevant to compliance with Solvency II and some are prepared for pillar II and III requirements.