As history has demonstrated, given the risks and potential mitigants, it is critical to have a robust risk management infrastructure, which involves both qualitative and quantitative considerations. Valerian provides clients with customized risk management and valuation models, which may be integrated into existing trading, risk management and valuation platforms.

Valerian’s management team has knowledge of capital markets and the insurance industry, as well as experience in stable value, ensuring a rigorous “first principles” approach to product risk management.

Quantitative risk management tools available from Valerian, include:

  • Modeling:
    • Stress scenario analysis and stochastic risk models for pricing, valuation, capital and management of products and business
  • Financial Reporting Tools:
    • Resources which calculate various financial reporting metrics such as risk-based capital, statutory reserves and other management reporting information (ex. commonly used tail risk measures; economic capital and/or conditional tail expectation)
  • Cash Flow and Product Analysis:
    • Experience studies of applicable cash flows, including correlation with various broad market indices, statistical fit to probability distributions and correlation analysis to assist in assessing risk of product or trades

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