Context and Purpose
Kwantis is developing an advanced risk assessment and reporting model for an International energy company to consolidate risk data and economic scenarios into a unified framework. This initiative aims to enhance the processing and analysis of key risk indicators (KRIs) by implementing Monte Carlo simulations, creating a more efficient and streamlined approach.
Key Activities
The project encompasses structured activities to ensure a seamless transition and effective implementation:
- Documentation Review: Comprehensive analysis of current input and output files currently involved in risk management processes.
- Workflow Definition: Designing an automatic workflow, integrating existing data sources and templates into the new model.
- Model Implementation: Developing a model that leverages Monte Carlo simulations, with a focus on integrability, robustness, auditability, and performance.
- Validation: Cross-validating the new model’s results, generated through Monte Carlo simulations, against existing outputs to ensure consistency and accuracy.
Reporting and Outputs
The system will generate detailed reports, including probabilistic distributions, percentile analysis, and customizable views filtered by entities, business lines, or risk categories. It will integrate data from global affiliates and economic scenarios to analyze diverse risk factors comprehensively.
Once implemented, the model will streamline data integration, enhance calculation precision, and provide detailed quarterly reports with consolidated inputs. Customizable reports will support multi-dimensional risk analysis and financial impact assessment.
Training and Support
Kwantis will deliver a user manual and stakeholder training to ensure the model’s effective use. This initiative demonstrates Kwantis’s commitment to providing efficient, transparent, and robust risk management solutions tailored to complex organizational needs.