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Risk Tolerance Clarified

Risk Tolerance Clarified is a collaborative financial analysis tool that provides a clear and customized view of risk resilience across your entire organization.

Risk Tolerance Clarified is a collaborative financial analysis tool that gives a clear and customized view of risk resilience across your entire organization, empowering your organization to define an integrated risk tolerance statement.

It enables you to identify financial strengths and weaknesses specific to your areas of interest, as well as stress test your resilience to adverse financial scenarios. This live and interactive financial analysis arms you to understand risk in the context of your corporate strategy.

With Risk Tolerance Clarified, you will:

  • Understand your vulnerabilities and reveal your strengths. How do your financials compare to your peers? What do they say about your solvency potential, earnings power and cash flow utilization?
  • Engage the entire organization. Establish a risk tolerance strategy through risk and finance all the way up to the C-suite and board of directors.
  • Embed an efficient risk view. Empower smarter and more consistent business decision making.
  • Optimize risk management within your corporate strategy.
  • Foster growth, encourage innovation and take Calculated Risks.
Areas of Interest Loss Amounts shows graphically the loss amounts that would move each metric outside of acceptible thresholds.
Areas of Interest Loss Amounts - Risk Tolerance Clarified screenshot

Why should you use Risk Tolerance Clarified? Use this tool to:

  • Gain immediate insight into your financial prowess compared with your peers.
  • Understand how your current financial picture can change under any adverse financial scenarios.
  • Develop an explicit view of how your organization should manage risk. Risk Tolerance Clarified calculates various financial thresholds that adversely affect your areas of interest, enabling you to incorporate risk into smarter business decisions.

For whom is it appropriate?

  • This tool is designed for companies of all sizes, public or private.
  • Risk Tolerance Clarified is especially useful for organizations with various decision making stakeholders responsible for financial results.

What geographies does this tool support?

  • Risk Tolerance Clarified is a global financial analysis tool supporting all geographies.
Growth of Metric and Components Over Time shows the development of both the metric and, if a ratio, the component parts. This helps identify trends over time.
Growth of Metric and Components Over Time - Risk Tolerance Clarified screenshot

When should you use Risk Tolerance Clarified? Use it:

  • As part of enterprise risk management discussions to form a unified and company-wide risk tolerance statement.
  • When making a business decision that require an incorporated view of risk.
  • With our other risk quantification tools to make informed risk management decisions.

What can I do with information gained from Risk Tolerance Clarified?

  • Implement an effective risk management culture
  • Take calculated risks
Areas of Interest - Acceptable Deviations section allows you to set acceptable deviations for metrics within each selected area of interest. Shown here, setting preferences for metrics related to Liquidity.
Areas of Interest Acceptable Deviations - Risk Tolerance Clarified screenshot
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