Enterprise Risk Management

The quantitative decision support for ERM cannot be delivered by one model / application. But output from one model may be needed as input for another. For example the calculated reserve volatility estimates are inputs for capital requirement models like Solvency II. And outputs from different ERM applications are used for reporting.

This shows the need for a common risk data and model infrastructure. A sound infrastructure with end-to-end coverage from input data management to calculation engine to output analysis and reporting reduces operational risk and increases efficieny.