Risk and Insurance Optimization

Whether you want to manage a single risk better, need confidence your risk tolerance matches your risk profile, or are ready to seek optimization across a portfolio of risks, WTW’s Risk and Insurance Optimization framework can help you achieve your risk management objectives.

Whatever risk management metric you’re being judged on – free cash flow or earnings before interest, taxes, depreciation, and amortization (EBITDA) or environmental, social and governance (ESG) factors – our risk management framework is designed to support your performance. And because our Risk and Insurance Optimization framework is offered to you in modules, you can pick exactly which analytics and consulting you need to achieve your aims and avoid the costs of those you don’t.

Our ultimate aim is to give you a clarified view of your costs, risks and their variability, making clear recommendations on precisely how you can best finance your risk in the context of your business priorities, risk tolerance and governance needs.

Wherever you are in your risk management journey and wherever your risk lies, WTW’s Risk and Insurance Optimization aims to enhance the outcome. You can enter our consulting framework at any of the four modules:

1. Clarify your risk tolerance

Ensuring your risk management decisions support your organization’s financial priorities means getting a clear view of your risk tolerance. You can better understand your financial vulnerabilities and uncover your strengths with WTW’s Risk Tolerance Clarified.

What do your financials say about your solvency potential, earnings power and how you’re using your cash flow? What level of loss would undermine your financial resilience? Risk Tolerance Clarified empowers you with the answers, helping align your risk management strategy with the financial priorities of the business.

Risk Tolerance Clarified

Provides a customizable financial benchmarking package for creating risk tolerance statements.

2. Identify all of your risks

Extend your internal risk management function and identify risk exposures, risk control effectiveness and risk transfer needs with our enterprise risk management (ERM) approach tailored to your risk priorities. This process identifies, evaluates and prioritises the key risks to the business.

3. Quantify your risk using powerful risk analytics

How can you know when your insurance strategy is paying off? Our Dynamic Total Cost of Risk (TCOR) platform delivers actuarial probabilistic models precisely tailored to your risk profile, considering both company loss and exposure data as well as wider market data. Our models reveal what losses look like in typical, bad and catastrophic years and test your retention and programme design options.

Dynamic TCOR can model expected, retained and ceded losses for all major coverages within your insurance portfolio. WTW’s proprietary risk-specific models simulate loss outcomes at the full range of likelihood levels, demonstrating potential TCOR volatility and empowering you with the insight to fully evaluate your risk and insurance strategy for value and effectiveness.

Dynamic TCOR

Dynamic TCOR presents a holistic, concise view of your total cost of insurable risk (TCOR) across all classes of insurance.

4. Optimize your risk portfolio

If you’ve already mastered your risk tolerance, identification and quantification, Connected Risk Intelligence provides confidence your risk strategy – for both insurable and uninsurable risks – is right for the business. We identify the most efficient risk financing strategies, with risk exposure within stated tolerance levels while spending precisely what you should to protect the business and no more.

Use Connected Risk Intelligence to reduce spend, optimize your risk finance decisions and reveal the rationale for releasing risk capital to deploy elsewhere in the business.

You can remodel rapidly to explore the impact of risk mitigation measures and use Connected Risk Intelligence to optimize a single risk or your entire portfolio.

Connected Risk Intelligence

The key to an optimal risk financing strategy is to consider risks in portfolio. Reveal the path to the efficient frontier of risk finance.