Advancing Risk Management with Simulation

A project was undertaken for a global financial institution to improve its Risk Management framework using Monte Carlo Simulation. The objective was to enhance risk assessment accuracy and reduce high-risk loan exposure by 30% within six months. The project focused on refining input variables and simulating thousands of potential outcomes for better scenario planning and stress testing. Key benefits included a 65% improvement in risk forecasting accuracy, leading to more informed lending decisions, optimized capital reserves, and enhanced financial resilience.