Willis Towers Watson has launched a new advisory capability to help chief financial officers and risk managers reduce volatility and minimise their total cost of risk. Connected Risk Intelligence is a single source for financial executives to establish optimal risk strategies across their organisation through a portfolio approach to risk.
Connected Risk Intelligence has been built around IGLOO, one of the leading proprietary decision support systems to the insurance sector. It brings advanced risk modeling and simulation capability, including dependency and correlation modeling, to the corporate sector. This process enables clients to significantly reduce risk while lowering costs.
Kevin Snowdon, Regional Director, Risk & Analytics, Asia, said “With the challenging environment today, the ability to combine analytics with industry data to better understand risk at a portfolio level is of upmost importance. This deeper understanding of the correlations of risk, especially for large and complex risk portfolios, helps organisations to identify better ways to reduce volatility by leveraging the benefits of diversification. It provides a decision framework for companies to select alternative strategies to dynamically respond to the ever-changing business environment. This optimisation can lead to a 10 to 30% reduction in risk and/or insurance cost savings per year.”
Connected Risk Intelligence identifies how to take advantage of market inefficiencies providing the ability for clients to optimise the balance between retained and transferred risk across a broad range of risks that affect their business. It is an innovative approach which provides clients with a broad understanding of their risk portfolio to enable better informed decisions about their risk finance strategy in aggregate rather than within traditional line of business silos. This process reduces volatility, improves costs and ultimately liberates capital for better uses. It aims to transform the perception of risk management from a cost center to a value center.
John Merkovsky, Head of Risk and Analytics at Willis Towers Watson, added “’Today’s risk manager and CFO have only been able to view risk financing as individual transactions, compartmentalised by line of business. Connected Risk Intelligence is a combination of advanced modeling technology and our own optimisation expertise which will revolutionise the way organisations view risk management. By using Connected Risk Intelligence, we can help clients identify the combination of solutions that move their overall risk finance portfolio to the Efficient Frontier and exploit arbitrage opportunities along the way. For the first time, companies can have absolute certainty that their risk strategy is exactly right for their business and that they are paying precisely what they need allowing effective capital deployment elsewhere.”
Connected Risk Intelligence is available for large corporate clients with complex risk portfolios.
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