Risk Accounting is a revolutionary method of quantifying risk exposures in a quantitative manner, thus providing more dynamic and actionable information to the management in respect to the evolution of exposure concentration, mitigation effectiveness and risk appetite.
Pioneered in JP Morgan Chase back in the ’90s, the method underwent extensive transformation within the academic environment in order to address all relevant risks for the financial services industry.
Moreover, portability and applicability in other sectors was also a priority as unified and consistent risk quantification and mitigation has the potential to help the formation of a risk aware culture and lead to more responsible business practices.
The Risk Accounting method is managed as a standard by a not-for-profit organisation, established in the UK, called SERRAQ (which stands for Standards for Enterprise Risk and Risk Attribution Quantification).
MetRisQ is “SERRAQ Approved” thus being guaranteed as fully compliant to the requirements of the Risk Accounting method.