Risk and Capital Modeling for Sound Decision Making
At Inscap we believe in a process of detailed quantitative modeling to reveal new ways to look at and structure risk. Standardized “black box” methods are of little use in coming up with creative solutions to the unique problems our clients face, so we build bespoke models from the ground up for each project. These models can be sophisticated, but remain fully transparent to reflect a collective thought process in which the client is fully engaged. The model itself is only ever a reflection of the thinking and it should be scientific and analytic as far as possible and being apt to deepen business insight. But we are also mindful of the benefits of an approach that is pragmatic and hands-on.
Our models use a combination of spreadsheets, stochastic simulation plug-ins and the free open-source statistical/GUI programming language “R” depending on data processing requirements, ongoing client application of the model and client preference. A key feature of our analytics services is the ability to deliver user-friendly models for further use by our clients, in order to allow sensitivity testing and data updates for instance.
Modeling is carried out in teams, comprising at least one experienced actuary and one senior corporate finance professional. A formal peer review process ensures accuracy, reliability and thorough stress-testing of assumptions.