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The Solution

RiskBox Enterprise

The end-to-end solution to the never-ending risk quantification and mitigation problem.

RiskBox Enterprise combines leading edge academic research with state of the art development approach to generate a platform-independent solution that can run on any platform, in cloud or on-premise, and to be integrated with any other systems, anywhere, anytime, with minimum costs for maximum benefits.

RiskBox - Solution Simulator

For now we are able to demonstrate only part of RiskBox’ capabilities, respectively the Inherent Risk calculation based on a few banking product types and a range of values for transaction volumes.

The calculation determines the total size of a potential loss, expressed in RUs (Risk Units), based on the transaction volume accepted by an organization on a certain type of product.

Follow the instructions below in order to find out how risk exposure can be quantified in a more relevant way for more pro-active decision making capabilities.

Product Type Selection

Select the product type from a list of standardized financial products. Each product type brings a specific EUF (Exposure Uncertainty Factor) value to the calculation.

Transaction Volume Band

Choose a transaction volume that is closest to your real life experience. For simplicity’s sake we grouped them into bands of minimum and maximum daily transaction values.

Click "Calculate"

…to find out the total non-financial risk exposure that the daily transaction volume brings to the organization, expressed in Risk Units (RUs). We are confident that seeing such a result will be a first for most of you.

Inherent Risk Calculation Results will be displayed here...

How to understand the result?

The result is based on a standardized calculation method that combines the following:

  • Product type
  • Product-specific EUF (Exposure Uncertainty Factor)
  • Value Band Weighting (transaction volume value bands)

The Inherent Risk (IR) value returned by this calculation, expressed in Risk Units (RUs), represents the total risk exposure generated by the daily volume of transactions for the respective product.

How can it be used?

Monitor its accumulation and reduce it through improved mitigation.

Based on the Risk Accounting method, the Inherent Risk values are reduced through the increasing of the Risk Mitigation Index (RMI)

The Risk Mitigation Index represents the effectiveness level of the risk mitigation measures applied to each activity within a business process through which product transactions are running. Therefore, if a transaction generates an Inherent Risk value of 100 RUs, if the total Risk Mitigation Index of the business process is 75, the remaining Residual Risk accumulated is then 25 RUs.

How?

By fully implementing RiskBox.

RiskBox calculates all these parameters in real time, giving you the ability to proactively address risk accumulations before turning into losses. RiskBox allows you:

  • to set and monitor thresholds for risk accumulation
  • to improve mitigation in a structured way (addressing the weakest points first, prioritizing actions based on mitigation potential, costs or duration)
  • to decide on the most realistic risk portfolio composition (and more)

How does RiskBox work?

Simplicity is key to effectiveness and efficiency. RiskBox Enterprise is a modular solution offering unmatched implementation versatility.

We built our solution keeping in mind the highly complex requirements of large financial services organizations. To be able to match such requirements, it had to be as simple as possible.

Our solution is made up of modules that can be implemented as an end-to-end solution (RiskBox Enterprise – recommended) or can be used as parts of the existing information infrastructure.

The only key component is the RiskBox calculation engine. The other components can be integrated from compatible technology providers, configured using existing platforms or developed from scratch.

The calculation engine can be easily placed between the data integration layer and the presentation layer (reporting, analysis, dash-boarding, alerting tools) used by the organization. It can be deployed on premise, in a 3rd party cloud, as a physical hardware device or a virtual device on a variety of operating systems and connectivity options.

Implementation options may vary depending on the complexity of the existing infrastructure, the results that need to be obtained, time and budget constraints.

The Data Access Layer

Designed to retrieve the necessary data from any data source available, it orders and converts the data in the format necessary for performing the calculations.

Data can be retrieved, transformed and sent to the calculation engine as a stream, thus enabling real-time calculations, apart from the classic, asynchronous data access.

The Configuration Layer

Required for the solution parametrization according to the Risk Accounting method. Inputs such as best practice scores (BPSs), exposure uncertainty factors (EUFs) as well as other best practice or operationally relevant parameters.

Such input is only necessary yearly or twice a year, or whenever adjustments are required, based on the results.

The Calculation Engine

Combines transaction data (transaction volumes) with the results of the best practice level calculation based on the configuration data to determine:

The Inherent Risk – IR (the total size of the possible loss in Risk Units – RUs), The Risk Mitigation Index – RMI (the risk mitigation effectiveness), The Residual Risk – RR (the remaining risk exposure to be covered)

The Presentation Layer

Actionable intelligence is made available through advanced data visualization capabilities, powerful analytics, regulatory reporting, timely alerts as well as suggestions for corrective measures to improve results.

Risk exposure scores can be ranked and tracked by relevant business dimensions, such as products, geographies, business lines, business units etc.

Get in touch now...

Risk exposures accumulate as you read this, why not let us help you quantify them?

Write to us at: info@m-asterisk.com

...or fill in the form to the right.
You can also reach us by phone:

+4 0722 301496