Noetzold & Noetzold

Key Differentiators of the Opture® System

The Opture® system is the leading fully aggregating enterprise-wide risk management system world-wide.

Experience and Competence

Noetzold & Noetzold is specialist and market leader for fully aggregating corporate risk management systems and risk management consulting. N&N employs only experienced specialists (risk manager, risk profiler, financial engineers and IT-specialists) with international industry background, many of them within manufacturing companies. N&N guarantees efficient and professional implementation processes, which means e.g. minimal workload and high motivation for our customers. N&N accompanies their customers during structuring and implementation of the risk management process to assure high quality, efficient processes, and maximum satisfaction on client side. With most of our clients we have a long-term relationship, far beyond the first project, as expert and sparring partner. N&N assists customers with topic such as risk management system configuration and implementation, risk management process configuration and implementation, risk management organizational concept and implementation, risk data collection (establishment of a consistent and complete risk database, risk quantification, etc.), communication of risk management basics, world-wide trainings, optimal risk steering, etc.

Flexibility and Scalability

The Opture® system can represent all corporate structures (e.g. matrix structure) and can easily adjusted to structural reorganizations (e.g. due to acquisitions of new business or divestments). The system is easily extendable with specialized modules (e.g. credit risk management, risk-adjusted valuation of investments), is easily integrable with existing management systems, and is highly scalable (to higher user load, larger risk base, higher aggregation load).

Technology and Performance

The risk engine of the Opture® system is built on advanced risk management models and methods. It can handle virtually any type of risk and each risk can be quantified with a large set of configurable parameters. (The full set of about 70 parameters is utilized only for exceptional cases. Normally the administrating risk manager assigns corporate defaults to most parameters to ease input for the average risk owner.)

The Opture® system can handle a virtually unlimited number of risks, opportunities, measures, and risk factors. A well-developed risk management will consider of the order of thousand risks with up to hundred risk factors, will consider full correlations and other interdependencies, with hundreds of risk categories, and a dozen criteria for gross / net risk value differentiations.

For aggregations on this scale the engine needs to sample thousands of dimensions. The Opture® high precision, high performance Monte Carlo aggregates an enterprise-wide full P&L risk portfolio with all correlations and with all risk figures (involving thousands of regression analyses over all dimensions) on scales of seconds and with an average precision of the order of 1 per mille. Note that a performance advantage of 3-4 orders of magnitude means seconds instead of hours. (The actual performance advantage over a straight intuitive unoptimized implementation is presumably close to 6 orders of magnitude or more.) It also means that hardware upgrades have only limited effect and cannot make up for a lack in Monte Carlo performance.