The Risk Modeler (formerly the OpRisk Modeler) is the industry’s most advanced tool for modeling risk under the P&C Loss Modeling Approach. It allows one to model risk under both the traditional P&C Loss Modeling Approach, where frequency and severity are fit independently or sequentially and the ALEC method, where frequency and severity are fit simultaneously to produce the combined best-fit parameters. The tool also supports advanced graphical analysis. The Risk Modeler is unique in many ways. It is also the only such tool that allows one to combine expert opinion with empirical loss data (where the loss data are insufficient or obsolete) in an objective, transparent and theoretically valid manner and to accurately model data that are truncated, heterogeneous, subject to clustering and contain outliers.
The Risk Modeler also includes an ultra-high speed Monte Carlo simulation engine which allows users to calculate Value at Risk (VaR), Conditional Tail Expectation and Tail VaR under different correlation assumptions, with or without insurance.