Operational risk modelling vendor of the year
The Analytics Boutique (TAB) takes the view that analytics teams, rather than designing and developing code, should be focused on value-added tasks, assisted by user-friendly tools that incorporate industry standards and best practices, with full model governance, integrity of data and mechanised report generation.
TAB’s OpCapital Analytics for operational risk modelling helps institutions gain a deep understanding of op risk exposures and potential losses. The solution enables the modelling and integration of the four key data elements – internal loss data, external loss data, scenario analysis and business environment internal control factors. This allows estimation of economic and regulatory capital requirements and loss forecasting under stress scenarios.
Structured Scenario Analysis is a web-based solution for planning, developing and modelling risk scenarios under structured expert judgement methods. It enables users to implement robust and efficient scenario analysis processes to increase the quality of loss estimates, mitigating cognitive biases, linking risk measurement and mitigation, and producing robust potential loss metrics and stable capital estimates.
A regulatory validation reporting tool automatically generates reports that contain all the required parameters, modelling options and inputs for an external analyst to replicate a model. The information is derived from the audit trail and is therefore consistent with it.
TAB’s software goes beyond modelling and, by monetising the cost of risk, produces critical metrics that are understandable by senior management and can be used in the daily risk management of the institution. The metrics include capital requirements, net present value of mitigation plan investments and insurance policies, and monetary savings given mitigation plans.
To avoid ‘black box’ models and ensure users have full control of the modelling process, the company publishes its methodologies and opens its source code to clients.
The company recently added ModelRisk View for managing model risk through the lifecycle of a model, from development to validation, monitoring, internal audit, regulatory investigations and corrective action plans. The module creates a repository of documentation and will set up alerts for redevelopment, validation or other relevant actions.
Rafael Cavestany Sanz-Briz, founder of and chief executive officer at TAB, says: “TAB provides a complete suite of fully integrated op risk analytics covering operational value-at-risk, scenario analysis, loss forecasting and prediction models, with industry standards and best practices for Solvency II, Pillar 2 and own risk and solvency assessment. Our solutions are user-friendly, eliminating manual processes and complex coding, and have strong model governance and reporting, with full audit trail and traceability. Special emphasis has been given to model validation and regulatory reporting functionalities as we responded to our clients’ needs for model reporting approval by several regulators. Finally, our tools maximise efficiency by eliminating all low value-added tasks, such as scenario aggregation, reporting and data management.”
“TAB offers a solid, end-to-end solution. It is more than just modelling, with analytics and reporting and model risk management.”
“Comprehensive, with a useful model risk component added recently.”
“The company’s open systems policy is to be applauded.”
“A comprehensive solution that integrates with existing financial planning tools. Has a flexible and open approach.”