Qualitative and quantitative modeling of enterprise risk management and risk registers

• US 9,811,794 B2
• Filed: 03/14/2014
• Issued: 11/07/2017
• Est. Priority Date: 02/11/2009
• Status: Active Grant

• Current Assignee: Johnathan Mun
• Original Assignee: Johnathan Mun
• Inventors: Mun, Johnathan
• Primary Examiner(s): Chad, Aniss
• Assistant Examiner(s): Rogers, David M
• Application Number:
  US14/211,112
• Publication Number:
  US 20140200953A1
• Time in Patent Office: 1,334 Days
• Field of Search: 703 2, 705 728, 705 38
• CPC Class Codes: G06Q 10/04 Forecasting or optimisation specially adapted for administrative or management purposes, e.g. linear programming or "cutting stock problem" market predictions or forecasting for commercial activities G06Q30/0202
• CPC Class Codes: G06Q 10/0635 Risk analysis of enterprise or organisation activities
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

The present invention is applicable in the field of corporate finance, corporate capital investments, economics, math, business risk analysis, simulation, decision analysis, qualitative risk analysis, risk management, quantitative risk analysis, and business statistics, and relates to the modeling and valuation of investment decisions under uncertainty and risk within all companies, allowing these firms to properly identify, assess, quantify, value, diversify, and hedge their corporate capital investment decisions and their associated risks. Specifically, the present invention looks at starting from a comprehensive qualitative risk register and moving the analysis into the realms of quantitative risk modeling, simulation, and optimization.

Claims

1. A computer-implemented system for qualitative and quantitative modeling of risk management comprising:

a processor;

and a enterprise risk management (ERM) risk register module comprising computer-executable instructions stored in non-volatile memory,

wherein said processor and said ERM risk register module are operably connected and

provide a user interface to a user, wherein said user interface is a risk register that allows said user to organize and manage one or more risk elements;

wherein said user interface allows said user to manage and designate authorized users and risk managers;

wherein said processor and said ERM risk register module receive risk element input from said user, wherein said risk element input is comprised of said one or more risk elements entered by said user;

wherein said processor and said ERM risk register module analyze said risk element input, wherein a risk analysis is performed on each of said one or more risk elements;

wherein said processor and said ERM risk register module create risk analysis charts, wherein one or more graphs are generated based on said risk analysis of each of said one or more risk elements;

wherein said processor and said ERM risk register module analyze risk level trends of said one or more risk elements, wherein in patterns of change in risk level for said one or more risk elements can be plotted over time;

wherein said processor and said ERM risk register module forecast changes in said risk level of said one or more risk elements, wherein said risk level trends are evaluated to provide a predictive analysis of future risk level change of said one or more risk elements;

wherein said processor and said ERM risk register module recommend one or more risk mitigation programs based on said risk level trends and said predictive analysis of future risk level change, wherein each of one or more risk mitigation programs are evaluated for effectiveness;

wherein said one or more mitigation programs comprise one or more mitigation measures; and

wherein said one or more mitigation measures each have a due date;

and wherein said ERM module and said processor send an alert to said designated authorized users and risk managers when said risk level of said one or more risk elements exceeds a stipulated risk level limit based on the time remaining based on the due date to complete any risk mitigation measures.

2. The computer implemented system of claim 1, further comprising a communications means operably connected to said processor and said ERM risk module.

3. The computer implemented system of claim 1, wherein said one or more risk elements can be segmented and managed according to one or more of i) by company, ii) by division, iii) by one or more of geography, operations, product line, activity, and department, and iv) by risk categories.

4. The computer implemented system of claim 1, wherein said ERM module and said processor perform risk mapping to reveal how each of said one or more risk elements effect each segment of an organization.

5. The computer implemented system of claim 1, wherein said ERM module is a network based module for basic inputs by end users.

6. The computer implemented system of claim 1, wherein said ERM module is a local module for administrative use.

7. The computer implemented system of claim 1, wherein said one or more graphs are selected from the group of graphs comprising bar graphs, heat map matrixes, Pareto charts, scenario tables, tornado charts, and pie charts.

8. The computer implemented system of claim 7, wherein each of said heat map matrixes is a key risk indicator heat map that is color coded to detail a plurality of risk levels.

9. The computer implemented system of claim 8, wherein said key risk indicator heat map is organized by risk classification categories based on said plurality of risk levels.

10. A computer-implemented method for qualitative and quantitative modeling of risk management said method comprising the steps of:

providing a user interface to a user, wherein said user interface is a risk register that allows said user to organize and manage one or more risk elements;

allowing said user to manage and designate authorized users and risk managers;

receiving risk element input from said user, wherein said risk element input is comprised of said one or more risk elements entered by said user;

analyzing said risk element input, wherein a risk analysis is performed on each of said one or more risk elements;

creating risk analysis charts, wherein one or more graphs are generated based on said risk analysis of each of said one or more risk elements;

analyzing risk level trends of said one or more risk elements, wherein in patterns of change in risk level for said one or more risk elements can be plotted over time;

forecasting changes in said risk level of said one or more risk elements, wherein said risk level trends are evaluated to provide a predictive analysis of future risk level change of said one or more risk elements; and

recommending one or more risk mitigation programs based on said risk level trends and said predictive analysis of future risk level change, wherein each of one or more risk mitigation programs are evaluated for effectiveness;

wherein said one or more mitigation programs comprise one or more mitigation measures; and

wherein said one or more mitigation measures each have a due date;

sending an alert to said designated authorized users and risk managers when said risk level of said one or more risk elements exceeds a stipulated risk level limit based on the time remaining based on the due date to complete any risk mitigation measures.

11. The computer implemented method of claim 10, wherein said one or more risk elements can be segmented and managed according to one or more of i) by company, ii) by division, iii) by one or more of geography, operations, product line, activity, and department, and iv) by risk categories.

12. The computer implemented method of claim 10, further comprising the step of performing risk mapping to reveal how each of said one or more risk elements effect each segment of an organization.

13. The computer implemented method of claim 10, wherein said one or more graphs are selected from the group of graphs comprising bar graphs, heat map matrixes, Pareto charts, scenario tables, tornado charts, and pie charts.

14. The computer implemented method of claim 13, wherein each of said heat map matrixes is a key risk indicator heat map that is color coded to detail a plurality of risk levels.

15. The computer implemented method of claim 14, wherein said key risk indicator heat map is organized by risk classification categories based on said plurality of risk levels.