In a recent policy paper, the Association of Chartered Certified Accountants (ACCA) named the “failure of institutions to appreciate and manage the inter-connection between the risks inherent in their business activities” as a key factor that led to the credit crisis. The paper goes on to list the lack of influence of risk management departments and weakness in risk reporting as additional primary factors. According to the ACCA, “[Senior managers] did not understand the risks and were using risk assessment with tools which were inappropriate.”
As the global recession deepens, the ACCA paper underscores the growing emphasis on risk analysis in financial institutions and all businesses. @RISK and DecisionTools Suite software is specifically designed for risk analysis using Monte Carlo simulation and other techniques which can show virtually all possible outcomes, however unlikely. In today’s current economic climate, objective quantitative analysis of all risks cannot be overlooked.