Value at risk insights engine

• US 9,336,503 B2
• Filed: 07/22/2013
• Issued: 05/10/2016
• Est. Priority Date: 07/22/2013
• Status: Active Grant

• Current Assignee: Walmart Apollo, LLC (WalMart Inc.)
• Original Assignee: Wal-Mart Stores Texas LLC (WalMart Inc.)
• Inventors: Andelman, Alex Daniel
• Primary Examiner(s): Rivas, Omar Fernandez
• Assistant Examiner(s): MOLL, NITHYA JANAKIRAMAN
• Application Number:
  US13/947,851
• Publication Number:
  US 20150025933A1
• Time in Patent Office: 1,023 Days
• Field of Search: None
• US Class Current: 1/1
• CPC Class Codes: G06Q 10/0635 Risk analysis of enterprise or organisation activities

Abstract

A method for risk mitigation comprises calculating on at least one processor, a likelihood of occurrence for a risk event, a degree of disruption for the risk event and a disruption time for the risk event. Each risk event is in a list of risk events. The likelihood of occurrence is based on a frequency of risk of the risk event. The degree of disruption is based on a severity of risk of the risk event. The disruption time is based on a duration of restoring an asset to a condition prior to the risk event. A value at risk based on the likelihood of occurrence, the degree of disruption and the disruption time is determined for the risk event. A mitigation action is determined to reduce the value at risk. An indication of the mitigating action is presented on a user interface.

Claims

1. A computer-implemented method for risk mitigation comprising:

storing in a first memory module of an Incident Management (IM) system, a received list of risk events for a plurality of stores, each risk event in the list of risk events having a frequency of risk and a severity of risk;

storing in a second memory module of a Claim Zone (CZ) system, a received online list of insurance claims for the stores, each insurance claim in the list of insurance claims having a duration of restoring an asset to a condition prior to the risk event, the asset contained in one of the stores;

calculating by a special purpose computer processor a likelihood of occurrence for one of the risk events in the list of risk events and for one of the stores in the plurality of stores, the likelihood of occurrence based on the frequency of risk;

calculating by a special purpose computer processor a degree of disruption for one of the risk events in the list of risk events and for one of the stores in the plurality of stores, the degree of disruption based on the severity of risk;

calculating by a special purpose computer processor a disruption time for one of the risk events in the list of risk events and for one of the stores in the plurality of stores, the disruption time based on the duration of restoring the asset to the condition prior to the risk event;

determining by a special purpose computer processor for one of the risk events in the list of risk events and for one of the stores in the plurality of stores a value at risk, the value at risk based on the likelihood of occurrence, the degree of disruption and the disruption time; and

determining by a special purpose computer processor a mitigating action to reduce the value at risk, wherein determining the mitigating action includes at least one of exchanging the asset in one store in the plurality of stores with a different asset in another store in the plurality of stores or replacing the asset in one store in the plurality of stores with a similar asset in another store in the plurality of stores.

2. The method of claim 1 wherein the list of insurance claims further comprise a cost of restoring the asset to the condition prior to the risk event.

3. The method of claim 1 wherein calculating at least one of a likelihood of occurrence, a degree of disruption and a disruption time is performed on at least one processor.

4. The method of claim 1 further comprising presenting an indication of a mitigating action on a user interface.

5. The method of claim 1 further comprising storing in the second memory module of the CZ system, a cost of restoring the asset to a condition prior to the risk event, storing in a third memory module of a Point of Sale (POS) system, a list of transactions for the stores, each transaction in the list of transactions having a first sales volume before the risk event and a second sales volume after the risk event and wherein the mitigating action includes minimizing at least one of the disruption time, a difference between the second sales volume and the first sales volume, the cost of restoring an asset, and the value at risk.

6. The method of claim 1 wherein determining the value at risk further comprises modifying the value at risk based on an input from a subject matter expert.

7. The method of claim 1 wherein determining the value at risk further comprises modifying the value at risk based on demographic information.

8. The method of claim 1 wherein the list of risk events further comprises a type of risk and determining the value at risk is further based on the type of risk.

9. The method of claim 8 wherein the type of risk is a storm.

10. The method of claim 1 wherein the type of risk is a flood.

11. A computer-implemented method for risk mitigation comprising:

calculating on at least one processor, a likelihood of occurrence for a risk event in a list of risk events, the likelihood of occurrence based on a frequency of risk of the risk event;

calculating on the at least one special purpose computer processor, a degree of disruption for the risk event in the list of risk events, the degree of disruption based on a severity of risk of the risk event;

calculating on the at least one special purpose computer processor, a disruption time for the risk event in the list of risk events, the disruption time based on a duration of restoring an asset to a condition prior to the risk event;

determining for the risk event in the list of risk events, a value at risk based on the likelihood of occurrence, the degree of disruption and the disruption time;

determining a mitigating action to reduce the value at risk; and

presenting an indication of the mitigating action on a user interface, wherein determining the mitigating action includes at least one of exchanging the asset in one store in a plurality of stores with a different asset in another store in the plurality of stores, or replacing the asset in one store in a plurality of stores with a similar asset in another store in the plurality of stores.

12. The method of claim 11 wherein the mitigating action includes minimizing at least one of a disruption time, a difference between a first sales volume before the risk event and a second sales volume after the risk event, a cost of restoring the asset to a condition prior to the risk event, and the value at risk.

13. A computer program product for risk mitigation, the computer program product comprising:

a non-transitory computer readable storage medium having computer readable program code embodied therewith, the computer readable program code comprising;

computer readable program code configured to calculate on at least one processor, a likelihood of occurrence for a risk event in a list of risk events, the likelihood of occurrence based on a frequency of risk of the risk event;

computer readable program code configured to calculate on the at least one processor, a degree of disruption for the risk event in the list of risk events, the degree of disruption based on a severity of risk of the risk event;

computer readable program code configured to calculate on the at least one processor, a disruption time for the risk event in the list of risk events, the disruption time based on a duration of restoring an asset to a condition prior to the risk event;

computer readable program code configured to determine for the risk event in the list of risk events, a value at risk based on the likelihood of occurrence, the degree of disruption and the disruption time;

computer readable program code configured to determine a mitigating action to reduce the value at risk, wherein the mitigating action is determined by at least one of exchanging the asset in one store in a plurality of stores with a different asset in another store in the plurality of stores, or replacing the asset in one store in a plurality of stores with a similar asset in another store in the plurality of stores; and

computer readable program code configured to present an indication of the mitigating action on a user interface.

14. The computer program product of claim 13 wherein the computer readable program code determines a mitigating action by minimizing at least one of a disruption time, a difference between a first sales volume before the risk event and a second sales volume after the risk event, a cost of restoring the asset to a condition prior to the risk event, and the value at risk.