Model of Success


Tom Byrnes, managing director for North America for Ultimate Risk Solutions, said “clients recognize that regulators and rating agencies today expect companies to use models to identify and quantify risk. Therefore a company that is seriously implementing financial modeling is a company that is better aware of its risks and it’s ultimately a better managed company in the end.”


Why dynamic financial analysis technology is important Formed 2001


Independent financial software developer


HEADQUARTERS: 1 Penn Plaza, New York, N.Y.


TOM BYRNES Managing Director for North America, Ultimate Risk Solutions


of the world’s leading reinsurers, brokers, primary insurers and reinsurers included, as well as regulators, asset management and consulting firms.


“ ” Risk Explorer is used extensively by many


to insurers: Any successful insurance enterprise risk manage- ment program is typically dependent upon a solid, state of the art, DFA technology. DFA technology provides insight into a company’s future balance sheets which is vastly superior to the current “what if” scenarios or series of stress tests that an organization may perform. DFA technology enables execu- tives and planning staffs to model different scenarios, taking into account variables that impact their corporate results. This enhances their ability to make informed decisions by comput- ing all potential risks inherent in any proposed course of action


What clients are looking for from their financial risk


modeling software: They’re looking for analytical power, speed, flexibility, user friendliness, integration, risk evaluation, risk management, proven technology, cost efficiency. That said, bottom line, clients are seeking financial modeling software that provides a means to better knowledge about what can happen to their company and how to make it safer and more profitable.


How Risk Explorer is addressing these concerns: Risk Explorer enables P&C reinsurers and insurers alike to model and analyze underwriting and investment risks value rein- surance and retrocessional programs, address capital and its allocation and evaluate the volatility of income, surplus, reserves and cash flows. Risk Explorer has a wide variety of built-in risk models. The users also have the ability to include various economic models including Ultimate Risk Solutions’ own economic scenario generator which we mar- ket as Predictable Dynamics.


Do small and midsize companies have the same access


to those tools that larger ones do? Yes. Risk Explorer Express is a dynamic financial analysis software solution spe- cifically created to address the needs of smaller insurance and reinsurance companies. The Express Edition incorporates many of the features of what we otherwise would call the Full Risk Explorer Edition but with a simplified set of features tai- lored to the specific needs of smaller undertakings.


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Best’s Review October 2012


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