Risk modelling standards and best practices for companies engaged in IDF projects
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 more
The 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
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 more
This 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.
Overall the group seeks ever stronger collaborations in risk modelling cross all sectors. It’s Theme 1 (Infrastructure) projects are:
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 more
The 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.