Risk Consulting

Risk consulting is provided by the solutions Insurance Value, Insurance Mapping and DEUS.

Aim of the Insurance Mapping and the Insurance Value is a transparent decision platform which is safe for later reviews of the decision finding.

Aim of DEUS is the prevention of large losses, especially of those which are uninsurable or for which insurance can be obtained only partially.

In the Insurance Value solution, we check the impact of insurance on a given risk profile.

At bank institutions, the operational risk catalogue is the basis for the examination. As per order of our clients, all or selected risk situations will be checked.

We use the policies bought by the client. The risk situation will be examined against all policies bought by the client, and in a mathematical and tested process, a residual loss value which is given despite the policy will be identified. We differentiate between the existing policies as delivered to us by the client, and these policies as we would have designed them once we had been the broker.

Also, we will examine the risk situation also against policies which had not been bought by the client but which are available in the market and, as far as our experience goes, would have created an additional transfer value.

In a second step, the residual loss value will be compared to the respective premium expense.

The total assessment will provide the client with a comprehensible and documented ranking of the most efficient policies being a transparent basis for a premium invest.

All previous mandates led to a full and complete restructuring of the insurance portfolio.

The insurance mapping will be billed on hourly fees.

If a risk profile is not yet existing, we offer jointly with our network partners support for the establishment of a risk profile.

Insurance Value is the quantitative measurement of the residual loss value identified by the insurance mapping against self-insurance.

We compare the costs of charging the pure loss amount by additional insurance costs (administration, sales, tax) on the one and by in-house capital costs on the other hand. By modelling the most different varieties of loss amounts, deductibles, frequencies and costs we define the optimal point of intersection between self-insurance and risk transfer.

DEUS is a jointly with three global leading consultants and IT conglomerates developed solution for risk prevention.

Especially at bank institutions, supervisory authorities still observe a challenge for the efficient identification and management of operational risks in the right time. The capital underlying has had a partial effect only – ten years after the inception of capital underlyings which had been regarded as pre-emptive, manipulations in the proprietary trading area (Société Genérale, UBS), the Libor and in currencies indicate the limited effect of prevention of pressurizing capital. Still, Prevention of loss is better than financing a loss.

DEUS offers a new approach: By the supervision of the compliance with given processes on the level of electronic data streams, deviation from the expected target state and normal conditions will be detected automatically – irrespectively of the causes. The underlying algorithm examines the deviation upon the relevance.

Irrelevant deviation will be ignored, relevant deviations will trigger an alarm in the widest variation up to the automatic stop of the critical process. For instance, it is irrelevant whether a deal confirmation comes by fax or by mail. However, it is very relevant if a cancellation of a deal is confirmed by a mail which is sent from another IP address than shown in the headline of the mail.

Our approach based on the expected target state overcomes the difficulty of systems searching for mistakes to keep up with the development of new ways to avoid control systems. Our flexible programmability allows a fast and cost-effective amendment of the controlling system to changing product- and process environments.