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4D Analytics: Unique to Risk Insights

Risk Insights 4D Analytics™ approach has been developed to gain enough  information to make a first-pass at estimating and evaluating uncertainty, and to elicit information in a way that is comfortable for those providing the estimates e.g. not using High-Medium-Low ratings!

Explorer is revolutionary.  Explorer isn’t like other risk software.   It is the application of  uncertainty management science, advanced algorithms, powerful analytics, and scenario-based assessments.

Since Explorer makes it quick and easy to identify and structure uncertainty, it is especially useful when deciding where to focus further activity, or as a precursor to Monte Carlo simulation and deeper dive analysis.

Our Risk Interconnection Map is an unique way of presenting risk information. Compared to Probability Impact matrices which only display severity and likelihood, the interconnection map enables four dimensions to be visualized:

Risk likelihood – pessimistic and optimistic scenarios
Risk severity – worst-case and best-case
Risk interconnection – identify the connections between risks
Strength of interconnection – identify your most influential and influenced risks

 

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Mapping risk interconnectedness

When we accept that risks are interconnected it follows that we should consider interconnectivity in our risk analysis and management. When the interconnectedness of events is frequently cited as being at the root of large-scale failure, then why are risks still largely analysed and managed independently or in isolation?  While there has been progress in looking at risks from a portfolio perspective and balancing the total amount of risk, more can be done to factor dependencies and linkages in the assessment of risks and how they are addressed.

Identifying and assessing interconnectedness promotes a broader and deeper understanding of the risks to your organisation.  Risk Insights Explorer is a unique tool which can help organisations:

  • Identify relationships between risks
  • Ensure that risk connections are analyzed and addressed
  • Understand the ripple effects of decisions
  • Avoid unintended or unanticipated consequences
  • Inform risk responses and increase the effectiveness and efficiency of risk action plans
  • Encourage proactive communication and engagement.

Risks are represented as circles (nodes)

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Risk insights Explorer supports BoE Exploratory Scenarios

The Bank of England (BoE) stress tests examine the potential impact of a hypothetical adverse scenario on the health of the banking system and individual institutions within it.

From 2017, the annual cyclical scenario will be complemented by an additional scenario intended to probe the resilience of the system to risks that may not be neatly linked to the financial cycle — the ‘biennial exploratory scenario’.

Risk Insights Explorer’s unique functionality enables Banks’ to map the BoE exploratory scenarios and undertake advanced risk interconnection analysis.

Read more:

The 2017 exploratory scenarios