Risk

All companies and organisations have to accept a certain level of financial modelling risk and understanding and reducing this risk is a critical part of corporate governance.

Effective management of modelling risk improves long term profitability and assists organisations to:

• avoid major negative profit downgrades due to financial modelling errors
• improve strategic decision analysis
• reduce costly team inefficiencies

Corality’s offering in risk management covers a range of aspects including financial modelling risk, validation of actuarial and financial models, analysis of correlated business drivers, scenario analysis and evaluation. We tailor our approach to risk analysis and work individually with each client to pinpoint and quantify key risks and how best to manage them.

The Corality Risk Review offers a thorough assessment of corporate modelling risk and delivers effective solutions to the operational, financial and strategic risks related to your organisation’s decision-making processes, modelling capabilities and team structure.

During the risk review process Corality’s senior consultants will work with your team to identify key risks using our industry benchmarking system. The assessment allows us to deliver tangible and pragmatic advice on how to reduce the modelling risk of your organisation.

Benefits from the Corality Risk Review include:

• reduction of costly modelling errors
• avoiding black-box financial models
• identifying key man risk
• strategies outlining how to work faster with increased quality
• strategies for managing critical modelling risk

Best practice modelling methodology – SMART

Corality best practice modelling methodology, SMART, meets the needs of decision-makers and financiers across all major project finance industries. It decreases model risk and results in robust, transparent and user-friendly models suitable for analysis by all stakeholders.

Find out about the SMART modelling methodology.

Corality is a full service analytical consulting firm. Read more about our consulting services.

Corality Risk Review (pdf)