Collaborative risk transfer system

Abstract

An automated method and system ( 100 ) for the collaborative, on-line development and delivery of customized risk transfer programs. A profile of risk, liquidity and foreign exchange is obtained from each customer via a network connection. A series of scenarios under both normal and extreme situations are then developed in order to provide a complete picture of the risks facing the customer base. Information from external sources and internals systems is then combined with the scenarios to drive simulations that identify the optimal mix of risk transfer for each customer and the required pricing for risk transfer transactions. The optimal mix is then presented to the risk exchange system operator ( 21 ) for optional editing, rejection or acceptance. After the optimal mix has been determined, asset sales and purchases are completed as required to bring the asset mix in line with the specified mix. The information regarding the proposed risk transfers is reviewed by the customer ( 20 ) and optionally accepted. If accepted, the transactions are completed in an automated fashion.

1 - 41 . (canceled)  
     
     
         42 . A computer readable medium having sequences of instructions stored therein, which when executed cause the processor in a computer to perform a risk transfer operation method, comprising: 
 obtaining quantified risk data for a plurality of customers where the quantified risks are selected from the group consisting of event risks, contingent liabilities, volatility risks and combinations thereof,    analyzing the quantified customer risk data to identify one or more swap transactions between customers that will reduce their risk, and    optionally completing one or more of the identified transactions in an automated fashion.    
     
     
         43 . The computer readable medium of  claim 42  where the customers are enterprises, multi company corporations or value chains.  
     
     
         44 . The computer readable medium of  claim 42  where the quantified risk data are obtained from the group consisting of data provided by one or more customers, analysis of data supplied by one or more customers, analysis of data from external sources and combinations thereof.  
     
     
         45 . The computer readable medium of  claim 42  where the swap transactions exchange risk associated with one or more elements of value, risk associated with one or more market value factors and combinations thereof.  
     
     
         46 . The computer readable medium of  claim 45  where the elements of value are selected from the group consisting of alliances, brands, channels, customers, customer relationships, employees, equipment, intellectual property, partnerships, processes, production equipment, supply chains, vendors, vendor relationships and combinations thereof and market value factors are selected from the group consisting of commodity prices, inflation rate, gross domestic product, volatility, interest rates, insider trading, consumer confidence, organization performance against expectations, the unemployment rate and combinations thereof.  
     
     
         47 . The computer readable medium of  claim 42  where the quantified risk data identifies risk by category of value where the categories of value are selected from the group consisting of current operation, real options, market sentiment and combinations thereof.  
     
     
         48 . The computer readable medium of  claim 42  where the method further comprises: 
 obtaining risk transfer operation regulatory requirements and performance data,  
 generating scenarios for customer risk transfer and risk transfer operation performance using the performance data, regulatory requirements and customer risk data;  
 identifying and displaying the optimal mode for customer risk transfer and risk transfer operation under each scenario, and  
 optionally implementing the optimal mode for a chosen scenario in an automated fashion.  
 
     
     
         49 . The computer readable medium of  claim 48  where the risk transfer operation is an insurance company, risk exchange or broker.  
     
     
         50 . The computer readable medium of  claim 48  where the scenarios are selected from the group consisting of normal, extreme and combinations thereof.  
     
     
         51 . The computer readable medium of  claim 48  where the optimal operating mode for each customer is the mode that maximizes their expected value for a given level of risk within the constraints imposed by the capital they have available for risk transfer purchases.  
     
     
         52 . The computer readable medium of  claim 48  where implementing the optimal customer risk transfer includes completing transactions from the group consisting of insurance policy transactions, swap transactions, derivative transactions and combinations thereof.  
     
     
         53 . The computer readable medium of  claim 48  where the optimal mode for the risk transfer operation is the mode that maximizes value while satisfying regulatory requirements.  
     
     
         54 . The computer readable medium of  claim 48  where implementing the optimal mode for the risk transfer operation includes taking actions selected from the group consisting of contingent capital contract changes, contingent capital contract purchases, investment duration changes, investment mix changes, product additions, product specification changes, product price changes, changing reserves and combinations thereof.  
     
     
         55 . The computer readable medium of  claim 48  where a multi-criteria optimization can be used to identify the optimal operating mode for optimizing two or more aspects of financial performance for the risk transfer operation or customers.  
     
     
         56 . A risk transfer system, comprising: 
 networked computers each with a processor having circuitry to execute instructions; a storage device available to each processor with sequences of instructions stored therein, which when executed cause the processors to: 
 obtain data for a plurality of customers,  
 quantify one or more risks for each customer by category of value using said data where the categories of value are selected from the group consisting of current operation, real options, market sentiment and combinations thereof and where the risks are selected from the group consisting of event risks, contingent liabilities, volatility risks and combinations thereof, and  
 analyze the quantified customer risk data to identify an optimal set of risk transfer transactions for each customer.  
   
     
     
         57 . The system of  claim 56  where the optimal set of transactions is completed in an automated fashion.  
     
     
         58 . The system of  claim 56  where transactions are selected from the group consisting of swaps, derivative purchases, insurance purchases and combinations thereof.  
     
     
         59 . The system of  claim 56  where the customers are companies, multi company corporations or value chains.  
     
     
         60 . The system of  claim 56  where the organization related data complies with a common xml schema.  
     
     
         61 . The system of  claim 56  where risks are further quantified by element of value and market value factor where the elements of value are selected from the group consisting of alliances, brands, channels, customers, customer relationships, employees, equipment, intellectual property, partnerships, processes, production equipment, supply chains, vendors, vendor relationships and combinations thereof and market value factors are selected from the group consisting of commodity prices, inflation rate, gross domestic product, volatility, interest rates, insider trading, consumer confidence, organization performance against expectations, the unemployment rate and combinations thereof.  
     
     
         62 . The system of  claim 56  where the value impact of each element of value and market value factor is identified as part of risk quantification.  
     
     
         63 . The system of  claim 56  where the optimal set of transactions for each customer is the set that maximizes the value impact of the transferred risk within the constraints imposed by the customer's available capital.  
     
     
         64 . The system of  claim 56  where organization related data are obtained from the group consisting of advanced financial systems, basic financial systems, web site management systems, alliance management systems, brand management systems, customer relationship management systems, channel management systems, intellectual property management systems, process management systems, vendor management systems, operation management systems, sales management systems, human resource systems, accounts receivable systems, accounts payable systems, capital asset systems, inventory systems, invoicing systems, payroll systems, enterprise resource planning systems (ERP), material requirement planning systems (MRP), scheduling systems, quality control systems, purchasing systems, risk management systems, the Internet, external databases, user input and combinations thereof.  
     
     
         65 . The system of  claim 56  where the optimal operating mode for each customer is the mode that maximizes value for a given level of risk within the constraints imposed by the customer's available capital.  
     
     
         66 . The system of  claim 56  where the method further comprises: 
 obtaining risk transfer operation regulatory requirements and performance data,  
 generating scenarios for customer risk transfer and risk transfer operation performance using the performance data, regulatory requirements and customer risk data;  
 identifying and displaying the optimal mode for risk transfer operation under each scenarios, and  
 optionally implementing the optimal mode for a chosen scenario in an automated fashion.  
 
     
     
         67 . The system of  claim 66  where the risk transfer operation is an insurance company, risk exchange or broker.  
     
     
         68 . The system of  claim 66  where the scenarios are selected from the group consisting of normal, extreme and combinations thereof and the optimal operating modes are determined for each scenario.  
     
     
         69 . The system of  claim 66  where the optimal mode for the risk transfer operation is the mode that maximizes risk transfer operation value while satisfying regulatory requirements.  
     
     
         70 . The system of  claim 66  where implementing the optimal mode for the risk transfer operation includes actions selected from the group consisting of contingent capital contract changes, contingent capital contract purchases, investment duration changes, investment mix changes, product additions, product specification changes, product price changes, reserve changes and combinations thereof.  
     
     
         71 . A risk transfer method, comprising: 
 obtaining value impact and risk data by element of value and market value factor for each of a plurality of customers,    analyzing said data to identify an optimal set of risk transfer transactions for each customer where the optimal set of risk transfer transactions is the set that minimizes the value impact of retained risks within the constraints on risk transfer imposed by the capital available for risk transfer purchases, and    optionally implementing the optimal set of risk transfer transactions where customer risk transfer transactions are selected from the group consisting of insurance policy transactions, swaps, derivative transactions and combinations thereof.    
     
     
         72 . The method of  claim 71  where the elements of value are selected from the group consisting of alliances, brands, channels, customers, customer relationships, employees, equipment, partnerships, processes, supply chains, vendors, vendor relationships and combinations thereof.  
     
     
         73 . The method of  claim 71  where market value factors are selected from the group consisting of commodity prices, inflation rate, gross domestic product, volatility, interest rates, insider trading, consumer confidence, organization performance against expectations, the unemployment rate and combinations thereof.  
     
     
         74 . The method of  claim 71  where the quantified risk data are obtained from the group consisting of data provided by one or more customers, analysis of data supplied by one or more customers, analysis of data from external sources and combinations thereof.  
     
     
         75 . A risk transfer apparatus, comprising: 
 management systems for a plurality of customers,    means for accessing and storing data from said management systems,    means for obtaining and storing risk transfer operation regulatory requirements and performance data,    means for generating scenarios for customer risk transfer requirements and risk transfer operation performance using the performance data, regulatory requirements and customer data where the customer risks are selected from the group consisting of event risks, contingent liabilities, volatility risks and combinations thereof; and    means for identifying, displaying and optionally implementing the optimal mode for risk transfer operation.    
     
     
         76 . The apparatus of  claim 75  where the customers are enterprises, multi company corporations or value chains.  
     
     
         77 . The apparatus of  claim 75  where the value impact of each element of value and market value factor is identified as part of scenario development.  
     
     
         78 . The apparatus of  claim 75  where management systems are selected from the group consisting of advanced financial systems, basic financial systems, web site management systems, alliance management systems, brand management systems, customer relationship management systems, channel management systems, intellectual property management systems, process management systems, vendor management systems, operation management systems, sales management systems, human resource systems, accounts receivable systems, accounts payable systems, capital asset systems, inventory systems, invoicing systems, payroll systems, enterprise resource planning systems (ERP), material requirement planning systems (MRP), scheduling systems, quality control systems, purchasing systems, risk management systems, the Internet, external databases, user input and combinations thereof.  
     
     
         79 . The apparatus of  claim 75  where implementing the optimal mode further comprises completing actions selected from the group consisting of contingent capital contract changes, contingent capital contract purchases, investment duration changes, investment mix changes, product additions, product specification changes, product price changes, reserve changes, implementing an optimal set of risk transfer transactions for each customer and combinations thereof.  
     
     
         80 . The apparatus of  claim 79  where customer risk transfer transactions are insurance policy transactions, swaps, derivative purchases and combinations thereof.  
     
     
         81 . Swaps for transferring element of value risks where the elements of value are selected from the group consisting of alliances, brands, channels, customers, customer relationships, employees, equipment, partnerships, processes, supply chains, vendors, vendor relationships and combinations thereof and the risks and where the risks are event risks, contingent liabilities, volatility risks and combinations thereof.  
     
     
         82 . Independent software applications that integrate data in accordance with a common xml schema by management system where management systems are selected from the group consisting of advanced financial systems, basic financial systems, web site management systems, alliance management systems, brand management systems, customer relationship management systems, channel management systems, intellectual property management systems, process management systems, vendor management systems, operation management systems, sales management systems, human resource systems, accounts receivable systems, accounts payable systems, capital asset systems, inventory systems, invoicing systems, payroll systems, enterprise resource planning systems (ERP), material requirement planning systems (MRP), scheduling systems, quality control systems, purchasing systems, risk management systems, the Internet, external databases, and combinations thereof.