Moody’s RMS demonstrates new modelling capabilities

Moody’s RMS has demonstrated what it says is the first time it has integrated third party risk models through its Intelligent Risk Platform using Fathom’s US flood model.

The company said that this proof of concept demonstrates the integration of data from third party vendors that will enable users of Intelligent Risk Platform to combine Nasdaq’s 300+ risk models with Moody’s RMS’s portfolio of 400+ models.

“This unified modelling approach represents a significant milestone for efficient model availability in risk analytics,” Moody’s RMS said in a statement. “It heralds an open platform approach allowing users to view risk across multiple models from different vendors.”

Access to this combined, richer portfolio of best-in-class models is delivered by the introduction of two new modelling engines in the Intelligent Risk Platform:

A new Moody’s RMS open modelling engine designed to integrate with external modelling platforms, such as Nasdaq Risk Modelling for Catastrophes (NRMC), allowing direct connection to the Intelligent Risk Platform for seamless execution of third-party risk models available in the Nasdaq environment alongside Moody’s RMS risk models. The feasibility of this approach was evidenced using Fathom data hosted in the NRMC platform.

A new, fully integrated Moody’s RMS native modelling engine designed to allow integrated custom models, including 3rd party models such as Fathom’s US flood catastrophe model and RMS’ customers’ home-grown models, to be executed within the Intelligent Risk Platform. The native modelling engine can directly utilize selected model execution capabilities and data formats within the Intelligent Risk Platform to build risk models that may not be possible to construct with other modelling frameworks.

Moody’s RMS demonstrated the platform at its annual Exceedance conference in New York City, and used the company’s cloud-native catastrophe modelling application Risk Modeler to run Fathom’s US flood catastrophe model on Intelligent Risk Platform, both natively and via Nasdaq’s NRMC.

With the merged offering, customers will be able to use applications such as Risk Modeler, UnderwriteIQ and TreatyIQ for unified execution of RMS models alongside third-party models, and for consolidated access to third-party models running on the Nasdaq modelling service, which is based on the Oasis Loss Modelling Framework.

Cihan Biyikoglu, Executive Vice President, Moody’s RMS, said: “We are very excited about Nasdaq’s commitment to work exclusively with RMS to develop unified risk modelling in addition to facilitating integration of customers’ own models. The science and technology to make every risk known is continually evolving. At the genesis of the Intelligent Risk Platform, our intent was to unify risk analytics. Unified risk modelling with the new architecture is a critical step forward in that direction. The upcoming unified modelling capabilities within the Intelligent Risk Platform will not only simplify the great infrastructural complexity of data format conversion and enable many more customers to have access to multiple views of risk, but I believe will also accelerate industry innovation in the risk analytics space.

“Our customers expect Moody’s RMS to provide best in-class modelling, incorporating the latest science and technology. By opening the Intelligent Risk Platform to include third-party models, companies will be able to blend and group Moody’s RMS, Oasis or their own risk models to better enable unified views of risk, improve modelling efficiency and gain a unified modelling approach across all insights, systems and solutions.”