A wide range of industries, that come across a wide range of challenges, need a wide range of solutions.

• What will the price of energy be in the future?
• Will the interest rate have a major impact on your firm’s profitability?
• What is the risk of introduction of a disease associated with import of an animal product?
• How will uncertainty in sales affect your profits?

ModelRisk is a decision making tool that can be used to solve such crucial questions where analysis, optimizing, forecasting, correlation and so much more is absolutely necessary.

Please look for your industry in the partial list given on the right.
Refer to our page on Custom Solutions if your industry is not in the mentioned list.

Other institutions which can use ModelRisk are-

Professional Services firms

Professional services firms that offer consulting and analytical services can use ModelRisk for projects that include for example - optimizing processes to minimize operational risks and costs in manufacturing industries, optimizing the revenue generation strategies for a financial services company, developing approached to capital allocation and supporting various other kinds of business decisions with risk-adjusted metrics.

Academia

Professor and students in universities can use ModelRisk to teach and learn about decision making under uncertainty, developing risk, and decision analysis models in diverse disciplines including epidemiology, toxicology, environmental science and engineering, decision theory, cognitive psychology, applied mathematics, statistics, and economics.

Multilateral agencies

Multilateral institutions such as WHO, FAO, ECDC, ADB etc can use ModelRisk for large-scale risk analysis projects such as in food safety, environmental protection, toxicological investigations, integrating risk analysis in economic analysis of project investments etc.

Professional groups

Societies associated to risk analysis can use ModelRisk for developing better understanding of quantitative modeling involved and for communicating risk using visual features of ModelRisk.

Government agencies

Government offices and other public institutions can use ModelRisk to assess risks of various policy implementation programs, analysis risk-return curves for public investments, supporting decision making with objective and factual evidence etc.

Oil, Gas & Utilities

• What will be the price of energy in the future?
• How reliable is your infrastructure?
• What are the political risks involved in your operations?
• What are the correlations in your risks (e.g. lower demand correlating with lower prices, gas and oil prices)?
• How accurately can past data predict future energy and utility demand?

The energy market is dominated by uncertainty in fuel prices, regulatory changes, the increasing complexity involved in estimating and recovering reserves, and political variables.

Engineering & Construction

• Do you want to ensure project cost and schedule estimates are realistic?
• Do you want to investigate risks that could have a major impact?
• Is your risk management plan robust enough to face any catastrophes that might derail the project?

Schedule planning and cost estimation are each fraught with risks capable of derailing any project. Making this more difficult is that when developing single-point estimates, even those that include contingencies, experts will often underestimate the potential for catastrophic delays or costs. Also, schedule and cost risks are often addressed in isolation when in reality they are fundamentally linked to each other. Failing to model these connections will almost assuredly provide a result that inaccurately represents the actual overall risk of a project.

Quantitative risk analysis can provide engineers with a systematic methodology to identify and analyze potential risks as well as develop solutions to reduce or eliminate their impact. Applying the tools and processes of quantitative risk analysis is one of the most powerful methods available for project managers to identify, quantify and control or mitigate the risks involved in engineering systems.

Epidemiology & Animal Health

• Which emerging diseases could pose a risk to your country?
• What is the risk of introduction of a disease associated with import of an animal product?
• Do you want to set-up a surveillance system to monitor the outbreak of animal diseases?

Quantitative Risk Analysis and simulation modeling can be used to assess the risk of introduction and spread of emerging diseases. Import risk analysis (IRA) provides countries with an objective, transparent and defensible method of assessing the disease risks associated with the importation of animals and animal products.

Financial Services

• Will the fluctuations in exchange rate between your local currency and the US dollar affect your investment decision?
• Will the interest rate fluctuations have a major impact on your firm’s profitability?
• What is the best hedging strategy for your portfolio?

Quantitative risk analysis is a tool used widely in the field of finance and financial services. Organizations across the spectrum from the largest global banking giants to small boutique tax, compliance and business valuation firms have found great utility in quantitative risk analysis. In addition, many other financial firms also use risk analysis for tasks like derivatives pricing, options valuation, hedging, strategy testing, or any modeling that involves the representation of uncertain future outcomes.

In the current economic environment, understanding and managing risk and opportunity are, more than ever, essential to a company's future survival and prosperity. Corporate finance risk analysis can be used to quantitatively assess and compare the uncertainty surrounding your financial decision options (new projects, mergers and acquisitions, etc).

In contrast with traditional valuation approaches such as the discounted cash flow (DCF) method, risk analysis provides you with a better understanding of risks and uncertainties through their explicit identification and quantification. This enables business managers to make more informed and hence better investment decisions. Corporate finance risk analysis includes, among others, the assessment of uncertainty in input parameters, time-series forecasting, eliciting and modeling expert estimates, and determination of DCF measures of value that incorporate the identified uncertainties.The module ModelRisk for Finance and Insurance provides the use of timeseries (univariate, multivariate, wilkie models, ...).

Food Safety & Human Health

• What are the epidemiological pathways a pathogen from animal source can be transferred to humans?
• What is the risk to public health due to increasing antimicrobial resistance?
• What is the acceptable level of risk for additives in food?
• What are the emerging food safety issues and how to deal with them?

The systems of producing food and beverages for human consumption are fraught with numerous operational challenges and risks. These questions and many more related to food and beverage manufacturing can be supported using quantitative risk analysis and optimization techniques.

In addition to operational challenges, the food and beverage industry has the additional concern of food safety and animal health. In particular, hazards such as microbial risks, contamination risks and disease risks and well as regulatory requirements must be addressed.

Insurance

• What is the cash-flow risk associated with issuing a new type of policy?
• How can you probabilistically estimate the aggregate runoff risk for your portfolio of issued policies?
• How do we incorporate the risk of correlated claim costs in an aggregate claim distribution?
• How will changes in consumer demand patterns affect your business?
• How can you better estimate and control increasing levels of fraudulent claims?

Quantitative risk analysis supports decision making of both providers and consumers of insurance products. Insurance companies are continually challenged to stay current on leading edge and emerging quantitative techniques.

Insurance brokers and purchasers of insurance products are faced with a dizzying array of choices in the insurance universe that make it very difficult to select the best portfolio of policies so as to minimize both risk and expense.The module ModelRisk for Finance and Insurance provides the use of timeseries (univariate, multivariate, wilkie models,...)

Manufacturing

• What is the best stock replenishment strategy to produce higher fill levels while reducing your inventory costs?
• Need to optimize your production levels but are dealing with uncertain future demand?
• How best to predict and prevent operational bottlenecks before they occur?
• Considering an increase in your manufacturing capacity, and want to better understand and manage the project costs and schedule risks?
• Are you wondering how many people you should optimally hire?

These questions and many more related to manufacturing can be supported using quantitative risk analysis and optimization techniques

Mining & Metals

• How big is the monetary, environmental and human life risk in your mining project?
• How could fluctuations of exchange rate impact the feasibility of a mining project?
• How do you choose the best hedging strategy against future changes in the price of your commodity?

Within the life-cycle of a mine management system, from pre-feasibility to decommissioning, a mining firm is exposed to a wide variety of technical, environmental, production, financial, business and market risks.

Quantitative Risk analysis and management techniques can be used in many areas of mining including analyzing survey data, performing (financial) feasibility studies, developing a mining plan, production forecasting, as well as determining exchange rate risks and developing hedging strategies.

Pharma, Medical Products

• How can you assign a quantitative value to the information you can get from drug testing experiments?
• How can the results of in-vitro and in-vivo tests be extrapolated to human health?
• How can you capture the risks and opportunities associated with a key licensing project and structure optimal deal terms?
• How uncertain are your projections of costs and revenues?

The pharmaceutical & medical products industry is characterized by high risks & uncertainty throughout the business system. One estimate is that the pharmaceutical industry is as much as 50% riskier than the Standard & Poor's (S&P) 500. And research by Tufts suggests that only one-third of new drugs recoup their R&D investment, a sobering fact given high attrition rates, long development times and a cost of $900M - $1.7B to bring a new drug to market.

Even though potential rewards may be high - at least for the top 10% of drugs which traditionally have accounted for half the financial returns on all new drug development - companies are actively seeking viable alternatives to the blockbuster business model, given that the low-hanging fruit has been picked.

Retail

• How will uncertainty in sales affect your profits?
• What is the best location for your next store?
• How can a model of your supply chain help you to drive the operational costs down?

The retail sector is affected by uncertainty related to consumer behavior, competitor behavior, and threats of new entries, regulatory changes and emerging trends relevant to the sector or the market as a whole. Quantitative Risk Analysis in retail sector consists of analyzing market data, modeling current trends and scenario analysis of future developments in the markets that may have an impact on profitability of firms.

Telecom & IT

• Will the operational risks of outsourcing impact the profitability of your IT project?
• How much should you bid for a company, or a license?
• What risks and opportunities do emerging consumer trends and technologies represent?
• Is the health impact of electromagnetic fields from your product acceptable?

The development of virtually all telecom and IT projects involves risks related to budget, time, reliability and/or safety. Quantitative risk analysis provides us with a systematic methodology to identify and analyze potential risks as well as develop solutions to reduce or eliminate their impact. Product development, sales and commission forecasting, financial analysis, workforce optimization and new product development are all areas which can be addressed and optimized through the use of risk analysis and optimization techniques.

Transportation

• What is the uncertainty in the cost and delivery time for your next fleet or ship?
• Do you want to determine more optimal pricing frameworks and levels for your transportation services?
• Do you need to estimate and better manage the uncertainty and risk related to the costs (and revenues) associated with large capital investments?
• Do you want to determine the impact of alternative transportation schedules?

These, and many more questions related to transportation can be supported using quantitative risk analysis and optimization techniques.