Noetzold & Noetzold

Benefits of the Risk Management System and Consulting from N&N

The market of corporate risk management systems offers a wide range of products of differing quality and technology. Noetzold & Noetzold is the leading supplier of enterprise-wide risk management software solutions with a consistent risk model that covers all types of risk and with a risk aggregation that takes into account correlations among all risks and risk factors. Noetzold & Noetzold delivers highly professional risk management consulting that covers all aspects of risk management and strategy, including the seamless integration of risk management into business processes and structures.

The Opture® risk management system from Noetzold & Noetzold draws on the experience in financial institutions where risk management has become a core business. It improves the enterprise-wide treatment of correlated risks and extends the concept and models specifically for operational risks. These improvements are especially valuable for companies that seek:

  • coherent enterprise-wide coverage and integration of their risk management functions.
  • contain non-market-driven risks that result from business processes or from internal risk factors.
  • contain risks that are not easily quantifiable but could have a strong impact on earnings or liquidity.

Benefits of Risk Management Software

The Opture® risk management software from Noetzold & Noetzold is an enterprise-wide system that integrates all risk management functions. It combines best practice methods with the state-of-the-art technology to yield the following benefits:

  • Advanced risk management models and methods for faithful representation of all risks and correct risk aggregation.
  • Correct risk aggregation considering all risks, opportunities, measures, risk drivers, and all mutual correlations.
  • Identification of risk bundles (= correlated risks with simultaneous occurrence and extreme losses) and diversification effects (= uncorrelated or negatively correlated risks).
  • High-performance Monte Carlo simulator for high-precision risk aggregations and simulations.
  • Fully customizable selection of risk portfolios and evaluation over arbitrary (future) time periods.
  • Risk monitoring and limit system with escalation method (e.g. via email, sms, etc.).
  • Modular and upgradeable software solution (e.g. Risk Documentation, Risk Controlling, Risk Management, Risk Engine).
  • Specialized modules (e.g. Credit Risk Management, Risk Management Strategy).
  • Portfolio optimization for optimal risk steering and resource allocation.
  • Optimal usability due to configurable user interface (e.g. reduced complexity for common users).
  • State-of-the-art system architecture guarantees efficient integration into almost all corporate environments.
  • Web based intranet solution.

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Benefits of Risk Management Consulting

Noetzold & Noetzold integrates the risk dimension into conventional management systems and planning (operational and strategic) processes. The benefits of risk management consulting from N&N are:

  • Transparency on and control over corporate risks and exposures to risk factors.
  • Monitoring, simulation, and forecasting of risks and risk factors.
  • Stable planning data due to reduced exposures to risk factor volatilities.
  • optimized risk-return position for given risk strategy.
  • Realized premia from proper diversification and portfolio optimization.
  • Basis for reliable decisions under uncertainty.
  • Coherent methods and processes for all enterprise-wide risks and their interrelations.
  • Enhanced efficiency due to unified methods and processes.
  • Enhanced diversification due to global, enterprise-wide scope covering also interrelations between different risk models.
  • Enterprise-wide market data management and market database

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Benefits of Risk Management Service

The Risk Management Service of Noetzold & Noetzold delivers customized quarterly risk management reports based on the output of Opture® Risk Controlling and Risk Management. The risk reports include detailed analyses of main results, suggestions for efficient risk mitigation measures, and presentations for the board and/or management. The benefits of the Risk Management Service are:

  • Quantitative risk data collection with experienced risk managers from N&N (e.g. high data input quality, creation of a risk data base).
  • Risk aggregation and simulations with Opture® risk management software.
  • Calculation of all risk figures, detailed analyses, and suggestions for optimal risk mitigation.
  • Customized risk reports and presentations.

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Benefits for Shareholders / Board Members

Noetzold & Noetzold enables shareholders / board members to:

  • Enhance transparency and obtain control over corporate risk exposures.
  • Manage efficiently enterprise-wide risks (e.g. optimal risk mitigation, portfolio optimization).
  • Optimize resource allocation with risk-return performance metrics.
  • Monitor all risks on all corporate levels.
  • Evaluate operational and strategic decisions under risk-return aspects and anticipate future developments.
  • Guarantee strong corporate governance and regulatory compliance (e.g. fulfillment of legal requirements).

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Benefits for Group / Division Management

Noetzold & Noetzold enables group and division management to:

  • Make operational and strategic plans, capital allocations, and investment decisions with risk-adjusted performance metrics.
  • Verify that risk exposures are controlled by optimal mitigation strategies.
  • Extend conventional management systems with risk dimensions and optimize the risk-return position.
  • Identify sub-optimal projects and activities that draw profits.
  • Monitor risk-adjusted KPIs (key performance indicators) and KRIs (key risk indicators, risk factors).

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Benefits for Divisional Operation

Noetzold & Noetzold enables divisional operation to:

  • Develop contingency plans to mitigate or recover efficiently from high-impact risks identified in the risk analysis.
  • Implement an enterprise-wide early warning system based on KRIs.
  • Define risk-adequate MBOs based on risk-return targets.
  • Identify potential operational improvements based on risk-return analysis.
  • Manage the operational business under risk-return aspects.

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