Risk Management

Risk Management

Risk Management
Risk management is very extensive topic and affects practically every company and individual. Risk management is the identification, assessment and prioritization of risk. After identification and assessment have clearly defined, actions can be taken to minimize, monitor and control the risks. Companies that produce goods, perform services or provide information need to be concerned with the associated probabilities of adverse effects. Probability analysis of potential risks is required for strategic planning and decision making. Companies need to answer the question “What is the value at risk?”

NordStar Group (NSG) is aware of the risk of implementing a new system. We understand the need for detailed analysis in making risk determinations and projections. We also understand the tools analysts require to make their decisions. NordStar can assist you in the design of an HPC system that scales to your specific needs.

NSG specializes in providing 2 – 64 node clusters for the SMB market and can design an HPC system that offers you the best value for your budget. Our solutions are based on tier one manufacturers like Hewlett Packard and Hitachi. NSG and our partners are committed to working with a client both during and after the sale to make sure that your goals and requirements are met.

Enterprise Risk Management (ERM)
• Interest Rate Risk
• Asset/Liability Management
• Scenario Analysis

Enterprise Risk Management is a group of processes used to manage risks. Companies can take advantage of opportunities that are identified using an effective risk management system. ERM applications allow companies to organize, predict and manage risks based on various parameters. Companies can assess the probability and the potential magnitude of an event by using risk simulations. The company can plan a response to lessen the impact on the business. Proactive risk management allows companies to both protect and create value for the company’s stakeholders. ERM applications for proactive risk management require computing power that can only be achieved with an HPC system.

Insurance Risk Management
• Heavily Regulated Environment
• Calculation Loss Ratios
• Multivariate Analysis

Risk management in the insurance industry falls into two categories: corporate risk and individual risk. Insurance companies will write policies on diverse risks for companies. Insured risks can cover a wide range of items such as a new product launch, the delivery of a shipment across the ocean or employee group medical insurance. Insurance policies for Individuals can be written for life, health, personal property (auto, boat, etc.) and real property. An insurance company must analyze different parameters for each of these to gauge the exposure risk to themselves and their investors. Massive amounts of data must be processed to determine the amount of risk associated with each policy based on its unique parameters. An HPC system is now a required tool to perform these analyses.

Portfolio Risk
• Vintage Analysis
• Credit Scoring
• Economic Modeling

Companies that deal with credit card, mortgage or investment portfolios have to constantly evaluate the risks associated with these items. They use tools and techniques that include economic modeling simulations and credit scoring. An HPC system has become a requirement to run these applications giving managers the ability to ascertain the risk their companies and investors face. Insurance and portfolio managers can study both short and long term effects of internal and external factors that affect the portfolios. Results of these studies are used to determine the potential impact on company performance and make appropriate decisions.

Individual Risk
• Credit scoring
• Credit Card Management
• Behavioral Analysis

Manufacturers and retailers use modeling on an HPC system to determine how much risk is associated with their events or projected events. Multiple factors must be analyzed when considering launching a new product, expanding into a new market, changing pricing or determining credit worthiness to determine potential outcomes. Using factors such as marketing data, historical sales data and population trends help companies determine insurance rates and products based on estimated risk. An HPC system is the best platform for running these applications based on the amounts of data input critical time factors.