A long-term perspective is critical when evaluating credit risk. Milliman consultants have been through the good, bad, and severe events of the constantly changing, cyclical financial services industry—both domestically and internationally. Our clients depend on us to increase their risk awareness, assign probability to the myriad possibilities, and advise them on emerging risks.

Revealing risk factors can make companies more competitive

To help our clients design enterprise-wide risk models, we developed Virtual Metrics™—a reinsurance performance metrics risk management platform. This powerful dashboard product reveals how a client’s risk profile compares to industry benchmarks and to their peers.

Virtual Metrics combines client data with industry information, and helps lenders to aggregate their portfolio of risk, determine risk characteristics and segmentation, and even drill down to a granular level to identify contributing factors. This product also can save money by pointing out loans that may be missing from a potential transaction. With Virtual Metrics, our clients make better-informed strategic decisions.

Developing the model for industry-wide evaluations

A major rating agency recently hired us to develop a stochastic economic capital model to address the evolving risk profile in the financial guaranty industry. Our deep expertise in this area allowed us to play a key role in building the model, developing global model parameters, and establishing the framework and methodologies. The agency now uses this model to evaluate the capital adequacy of companies throughout the financial guaranty insurance industry.