Risk modelling standards and best practices for companies engaged in IDF projects
Read more
About
Risk-literate users in vulnerable countries should be able to access all relevant models and datasets, use them on their preferred platform, develop them further and have trust in the results.
Enhanced risk understanding at the local level will lead to a much higher standard of decision making in resilient investment and residual risk transfer. It will also make for a more informed and equal conversation with international finance institutions.
Please see the recently published IDF report on the Development Impact of Risk Analytics for further details of this campaign of work.
Read moreThe group asserts that adoption of open risk modelling principles, platforms, models and data standards are the key to this essential spread of risk insight. Benefits will not only accrue to vulnerable countries and the agencies working with them, but will deliver efficiencies for risk modelling in all sectors worldwide.
The RMSG’s activities are categorised as follows:
Theme 1: Improvement of Risk Modelling Infrastructure
Theme 2: Model and data content, and capacity building
Group Members
Leadership
Ian Branagan
Member of IDF Operating Committee and Co-Chair of IDF Risk Modelling Steering Group (RMSG)
Renaissance Re
Jenty Kirsch-Wood
Member of IDF Operating Committee and Co-Chair of IDF Risk Modelling Steering Group (RMSG)
UNDRR (United Nations Office for Disaster Risk Reduction)
Membership
- AIG
- AIR
- Allianz Re
- Aon
- Aon Impact Forecasting
- Aviva
- AXA Group
- Axis
- Bank of England
- Centre for Disaster Protection
- CoreLogic
- DfID
- GCRF
- GEM
- Geneva Association
- Guy Carpenter
- ImageCat
- InsuResilience Global Partnership
- JBA Consulting
- JBA Risk Management
- KatRisk
- Lloyd’s of London
- MS Amlin
- Munich Re
- Oasis LMF
- Renaissance Re
- RMS
- Scor
- Simplitium
- START Network
- Swiss Re
- Talbot
- UN DRR
- UN OCHA
- MCII
- Willis Towers Watson
- World Bank Group
- Xceedance
- Zurich
Workstreams
Theme 1: Improvement of Risk Modelling Infrastructure
Building efficiency and reducing cost and duplication in the risk modelling and data ecosystem, through continuous development of open platforms, an industry wide interoperability programme and advocacy development of open standards.
Read moreThis effort is led by the (re)insurance industry with benefits for public, private and third sector actors in the world of disaster risk finance and investment in risk reduction. The industry will deliver a scalable, easy to use open modelling platform and standards for all sectors to use in building and running models. This will give risk owners the capability to develop the local view of risk so essential to their risk management strategies.
Priority Actions
Overall the group seeks ever stronger collaborations in risk modelling cross all sectors. It’s Theme 1 (Infrastructure) projects are:
- Through technical development projects, the group will deliver a cloud-based open source modelling platform with a reinsurance grade financial module. It will do so in collaboration with potential users from across private, public, development and humanitarian sectors.
- The group is managing a continuous programme of improvements to interoperability between risk modelling data sets, bringing the benefits of choice, transparency ease of use and cost reduction. Proofs of concept in interoperable exposure data sets have already been achieved.
- Working collaboratively on common data standards.
Theme 2: Model and data content, and capacity building
A programme to promote accessibility and use of models and data on open platforms. RMSG supports IDF and its partners’ country projects, offering consultancy, quality assurance, convening of model and data projects and model cataloguing. It is also ready to assist countries and cities in the development of their capacity in finance-aware risk understanding.
Read moreThe aim is to increase the availability and use of open risk models and complementary data sets, particularly in countries covered by InsuResilience Vision 2025 objectives. Model development will use the open frameworks and tools developed under Theme 1; in addition to demand-led projects the programme will define and deliver a set of benchmark strategic region/risk models.
RMSG proposes a formal public-private sector entity and programme to accelerate the growth of risk understanding in vulnerable countries, through adoption of open risk modelling tools and principles. Provisionally named the Global Risk Modelling Alliance, the entity would be the delivery vehicle.
Global Risk Modelling Alliance
In June 2022 the IDF partnered with the V20 Group of Ministers of Finance and the German government to launch the Global Risk Modelling Alliance (GRMA). The GRMA is a central component of the IDF’s mission to accelerate the spread of risk understanding where it is needed the most. A foundation of locally-owned risk insight will help protect vulnerable communities and create the confidence needed for investment in resilience.
Find out more here.
