9-1 Final Project Submission: Risk Analysis Model

Topic: 9-1 Final Project Submission: Risk Analysis Model

Paper details:

The final project for this course is the creation of a data analytic–enhanced risk analysis model with documentation and visualizations that accurately communicate the severity of risk and the importance of data analytic enhancement for a given organization and associated data sources. Throughout the course, you will be responsible for completing the formative milestones that will be used to inform the final submission. This assessment will evaluate your mastery with respect to the following course outcomes:  Evaluate established data analytic risk assessment techniques and practices for utility and accuracy in application to various data models  Recommend business-appropriate enterprise risk management tools and techniques that support risk management programs, policies, and strategies  Establish enterprise risk management visualization practices for organizations that adhere to industry standards while supporting organizational risk assessment and management programs  Create audience-appropriate risk analysis models and visualizations that accurately communicate severity and levels of risk  Articulate the importance of data analytics for successfully enhancing risk management programs, policies, and strategies Prompt Create an analysis report detailing the current state of Company XYZ’s risk management, and propose policy and program improvements to enhance risk assessment within the enterprise. Company XYZ, a property and casualty insurer, has a strong record of using data analytics to manage market risk, credit risk, and insurance risk. After a risk and control self-assessment revealed greater than expected operational losses (largely from fraudulent automobile accident personal injury claims), Company XYZ decided to commit the necessary resources to bolster its operational risk program. The company’s stated goal is to have an operational risk management program that performs at the same high level as its other risk programs, all of which are to report into a single chief risk officer. Company XYZ already has in place an industry-standard special investigations unit (SIU) that is responsible for investigating claims that are suspected of being fraudulent. The unit is understaffed, however, so it is unable to address the high volume of auto accident bodily injury claims that are deemed suspicious in the claims adjudication system. Company XYZ decides that its established SIU is the appropriate operational risk function on which to begin bolstering its operational risk management program. Among the investments needed by its SIU to address operational losses to fraudulent claims, XYZ identified a top priority as a greater investment in data analytics to better help it rank order those claims that are most suspicious. Company XYZ has also identified a need to invest in a risk management system to consolidate risk data from the entire organization, not just its SIU. Further, the company believes its risk management system should provide robust visualization of internal loss data and also integrate external loss data (to be made available by subscription). Your assignment is to recommend a risk analysis approach that allows Company XYZ to prioritize its limited resources against the most suspicious auto accident bodily injury claims. Additionally, it is your assignment to recommend a risk management system technology platform that integrates the SIU analytic output with the internal loss data reported by other business functions within Company XYZ. Specifically, the following critical elements must be addressed: 1. Risk Assessment Techniques and Practices a. Provide the background information for your organization. What are the risk assessment goals for the organization? b. What risk assessment programs, polices, strategies, and practices are currently in place within the organization? To what extent are these strategies appropriate for the organization? Consider the organization’s current techniques and practices for risk assessment. Evaluate the existing techniques for their accuracy in assessing risk within the organization’s data model. c. Recommend alternative techniques and practices that would improve the organization’s risk management assessment accuracy. What evidence exists to support the improved accuracy and utility of these techniques for the organization? d. What research supports data analytic enhancement through risk assessment techniques and practices? Why is enhancing risk assessment potential important for this organization? 2. Enterprise Risk Management (ERM) Tools a. Recommend risk assessment and management tools that are appropriate for the organization’s background and its risk assessment and management goals. b. Many ERM tools are available, but not all are appropriate for every organization. Describe the ERM tools that best support the organization’s programs, policies, and strategies, and explain why you ultimately chose the ones you recommended. What supporting evidence or documentation exists to describe these ERM capabilities and organizational support? 3. Visualization Recommendations a. What are the current industry-standard risk management visualization techniques? Which ones have potential to support the organization’s general risk goals? What supporting evidence or documentation is available to support your conclusions? b. Propose visualization strategies that support the organization’s programs, policies, and strategies for risk assessment and management. Justify your proposal(s) with relevant research and examples where appropriate. 4. Presentation Use your proposals to create a presentation that transparently communicates the level and severity of risk for stakeholders while highlighting the usability of the proposed tools. This is your opportunity to promote the use of data analytics in risk assessment and management. a. Create enterprise risk management visualizations that best demonstrate the organization’s macro- and micro-level risks and their severity. b. Tailor your visualizations to the needs of your audience. This will require consideration of the experiences of your audience, the message you intend to deliver, and so on. c. Promote data analytics as a necessity for enhancing risk assessment through improving risk assessment and management programs, policies, and strategies for your company by explaining how using real data can make a significant difference for the organization. Requirements of Submission: This assignment must follow these formatting guidelines: double spacing, 12-point Times New Roman font, oneinagnch margins, and APA citations.SHOW MORE