(Image source: Promotional video at Willis Towers Watson’s Connected Risk Intelligence page.)
Willis Towers Watson (London), a global advisory, broking and solutions company, has launched a new advisory capability aimed at helping chief financial officers and risk managers reduce volatility and minimize their total cost of risk. The firm describes the new Connected Risk Intelligence advisory services as a single source for financial executives to establish optimal risk strategies across their organization through a portfolio approach to risk. The new service was launched at RIMS this week and is available for large corporate clients with complex risk portfolios.
Willis Towers Watson reports that Connected Risk Intelligence has been built around IGLOO, a proprietary decision support system to the insurance sector. The system brings advanced risk modeling and simulation capability, including dependency and correlation modeling, to the corporate sector, enabling clients to significantly reduce risk while lowering costs, according to the firm.
Connected Risk Intelligence is designed to guide clients to take advantage of market inefficiencies, providing them the ability to optimize the balance between retained and transferred risk across a broad range of risks that affect their business, Willis Towers Watson asserts. “It is an innovative approach, which gives clients a broad understanding of their risk portfolio to enable better informed decisions about their risk finance strategy in aggregate rather than within traditional line of business silos,” a company statement says. “This process reduces volatility, improves costs and, ultimately, liberates capital for better uses. It aims to transform the perception of risk management from a cost center to a value center.”
Changing How Organizations View Risk Management
“Today’s risk manager and CFO have only been able to view risk financing as individual transactions, compartmentalized by line of business,” observes John Merkovsky, Head of Risk and Analytics, Willis Towers Watson. “Connected Risk Intelligence is a combination of advanced modeling technology and our own optimization expertise, which will revolutionize the way organizations view risk management.”
“By using Connected Risk Intelligence, we can help clients identify the combination of solutions that move their overall risk finance portfolio to the Efficient Frontier and exploit arbitrage opportunities along the way,” continues Merkovsky. “For the first time, companies can have absolute certainty that their risk strategy is exactly right for their business—this means they are paying precisely what they need allowing effective capital deployment elsewhere.”