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Risk Lighthouse LLC is dedicated to bringing its clients a customized, cost-effective and balanced approach to financial asset and liability risk modeling. Every company is different and each has its own unique set of business characteristics. In recognition of this, we strive for long-term, collaborative relationships with clients that address management’s specific issues through a customizable, academically rigorous, integrated set of models without the overhead and costs of highly complex and specialized software and asset class based systems. Our methodology represents a blend of quantitative and qualitative approaches. Our quantitative analysis is built on a straight-forward yet flexible set of integrated models covering many asset and liability classes.

We take a Risk Intelligence Approach to developing plausible economic scenarios and customizable risk modeling tools. This framework has the following components: 

  1. Model integrated economic scenarios (as backdrop) based on i) actual historic environment, ii) stochastic scenario generation, or iii) deterministic scenario using forward-looking views.
  2. Develop tools that model various components of the business (assets and liabilities) in a transparent, intuitive fashion.
  3. Analyze the impact of key risks in an integrated fashion using the same economic backdrop, not a general correlation matrix assumption.