Financial models

CONTI Uses @RISK for Shipping Success

CONTI-Group has been a leader in the shipping industry since 1970, operating a large, deep-sea fleet in Germany as well as being an established global provider of ship investment funds.  With commercial shipping being one of the most economical and ecological modes of transport for cargo, tangible shipping assets, including tankers and carrier vessels, represent an important form of financial investment.

After the financial crisis of 2007-2008, the European Union introduced new requirements for better regulation and supervision of the financial sector.  These objectives aimed to introduce a new level of protection for investors by regulating and supervising all markets, and included the provision of quality and transparency in all capital market investments.

CONTI-Group was already unique in its reputation for financial transparency, but when these regulatory requirements for visibility were introduced, CONTI began using Palisade’s @RISK to construct financial models that capture and assess potential risks in the fluctuating shipping market.  This has enabled the company to provide higher levels of transparency to its investors, successfully steer its shipping fleet, and subsequently generate above-average results on its investments.

“We wanted to find a risk management solution that would comply with the requirements of the new regulations, while  also providing us with an even better way of tracking and managing financial risks,” explained Martin Stobinski, Managing Director for Risk Management, Compliance and Asset Valuation for CONTI KVG.

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Financial Portfolio Models, by Chris Albright

In this video, Chris Albright, one of Palisade’s expert trainers, walks through examining a financial portfolio with @RISK software.  He first explains the basics of an example without uncertainty, and then demonstrates examples with uncertainty involved.  Albright introduces using put options, performing a sensitivity analysis, utilizing Goal Seek and RISKOptimizer, and focusing on correlations within a spreadsheet. Watch the full video below!

Watch the “Financial Portfolio Models” example by Dr. Chris Albright