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Risk management and hedging

Due to the increasing complexity of the risk environment and the development of more advanced ways to measure and manage risk, the importance of risk management and hedging is increasing. Enterprise risk management (ERM) includes the methods and processes used by organizations to manage risks and identify opportunities to help them achieve their objectives. Increasingly, regulators and other market participants are recognizing the important role that derivatives can play in risk management. By implementing hedging systems, insurers can remove or minimize the option risks and maintain consistency with IFRS 17 requirements.

RNA Analytics maintains a partnership with Numerix, a US-based technology company, to provide solutions for hedging and Economic Scenario Generation (ESG). This partnership combines our diverse consulting experience and Numerix's analytical expertise to deliver strong value for the insurance market.

Examples of the work we do:

  • Enhance models for ERM
  • Implement systems for RBC, Solvency II, and Insurance Capital Standards (ICS)
  • Asset and liability management (ALM)
  • Finance variability management
  • Curve Fitting
  • Implement risk expense model
  • Implement Greeks reporting system
  • Implement Numerix hedging system
  • Calculate guaranteed reserves and fair value
  • Generate risk-neutral and real-world scenarios