Value and risk management system

• US 7,873,567 B2
• Filed: 12/29/2003
• Issued: 01/18/2011
• Est. Priority Date: 02/05/2001
• Status: Expired due to Fees

• Current Assignee: Jeffrey Eder
• Original Assignee: Asset Trust, Inc.
• Inventors: Eder, Jeff Scott
• Primary Examiner(s): Badii, Behrang
• Application Number:
  US10/747,471
• Publication Number:
  US 20050071266A1
• Time in Patent Office: 2,577 Days
• Field of Search: 705/36, 705/39, 705/36.R, 705/35, 705/37, 705/38
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• 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

A method of and system for transforming data from a plurality of systems into models of each of the segments of organization value and using said models to support the analysis, measurement and optimization of one or more aspects of organization risk and value.

Claims

1. A method for financial management, comprising:

preparing data from a plurality of organization related systems for use in processing,

using a computer to calculate a value of each of two or more segments of an organization value and develop a model of a contribution of one or more elements of value and one or more external factors to the value of each of the two or more segments of an organization value by learning from said data where learning from the data comprises identifying one or more performance indicators for each element of value and each external factor,

determining the value contribution of each element of value and each external factor to the organization value using said segment of value models and the calculated value of each segment of value,

obtaining a plurality of event risk information for the organization,

analyzing said performance indicators and said event risk information as required to develop two or more scenarios for a future organization financial performance, and

quantifying a plurality of risks by element of value, external factor and segment of value by simulating organization value under each scenario using the segment of value models, and displaying said value contributions and risks in a paper document or an electronic display

where the quantified risks each consist of an expected reduction in value, and

where the segment of value models comprise two or more causal predictive models that each rely on a set of transformed data to summarize the impact of each of the one or more elements of value and one or more external factors on the segments of value that are selected from the group consisting of current operation segment of value, derivative segment of value, market sentiment segment of value, excess financial asset segment of value and real option segment of value and combinations thereof.

2. The method of claim 1, wherein the one or more elements of value physically exist and are selected from the group consisting of alliances, brands, channels, customers, employees, information technology, intellectual property, investors, partnerships, processes, production equipment, vendors, visitors and combinations thereof.

3. The method of claim 1, wherein the one or more external factors are selected from the group consisting of numerical indicators of market conditions, numerical indications of prices and numerical indications of the organization performance compared to expectations of organization performance.

4. The method of claim 1, wherein the performance indicators comprise one or more causal performance indicators.

5. The method of claim 4, wherein the method further comprises identifying one or more changes that will optimize a total organization risk, a total organization value or a combination thereof for each scenario by analyzing the results of the simulation.

6. The method of claim 1, wherein the organization physically exists.

7. The method of claim 6, wherein the method further comprises identifying one or more changes that will optimize a total organization risk, a total organization value or a combination thereof for each scenario by analyzing the results of the simulation with a multi-criteria optimization algorithm.

8. The method of claim 1, wherein the method further comprises identifying one or more changes that will optimize the value of the real option segment of value alone or in combination with the value of one or more of the other segments of value selected from the group consisting of current operation, derivatives, financial assets, market sentiment and combinations thereof.

9. A financial management system, comprising:

computers connected by a network 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;

prepare data from a plurality of organization related systems for use in processing,

calculate a value of each of two or more segments of an organization value and develop a model of a contribution of one or more elements of value and one or more external factors to the value of the two or more segments of an organization value by learning from said data where learning from the data comprises identifying one or more performance indicators for each element of value and each external factor,

determine the value contribution of each element of value and external factor to the organization value using said segment of value models and calculated segment values,

obtain a plurality of event risk information for the organization,

analyze said performance indicators and event risk information as required to develop two or more scenarios for a future organization financial performance, and

quantify a plurality of risks by element of value, external factor and segment of value by simulating organization value under each scenario using the segment of value models, and display said value contributions and risks in a paper document or an electronic display

where the quantified risks each consist of an expected reduction in value, and

where the segment of value models comprise two or more causal predictive models that each rely on a set of transformed data to summarize the impact of the one or more elements of value and one or more external factors on the segments of value that are selected from the group consisting of a current operation segment of value, a derivative segment of value, a market sentiment segment of value, an excess financial asset segment of value, a real option segment of value and combinations thereof.

10. The system of claim 9, wherein the one or more elements of value physically exist and are selected from the group consisting of alliances, brands, channels, customers, employees, information technology, intellectual property, investors, partnerships, processes, production equipment, vendors, visitors and combinations thereof.

11. The system of claim 9, wherein the one or more external factors are selected from the group consisting of numerical indicators of market conditions, numerical indications of prices and numerical indications of the organization performance compared to expectations of organization performance.

12. The system of claim 9, wherein the one or more performance indicators for the external factors and the elements of value comprise one or more causal performance indicators.

13. The system of claim 12, wherein the method further comprises identifying one or more changes that will optimize a total organization risk, a total organization value or a combination thereof for each scenario by analyzing the results of the simulation.

14. The system of claim 9, wherein the organization physically exists.

15. The system of claim 9, wherein the method further comprises identifying one or more changes that will optimize the value of the real option segment of value alone or in combination with the value of one or more of the other segments of value selected from the group consisting of current operation, derivatives, financial assets, market sentiment and combinations thereof.

16. A non-transitory program storage device having sequences of instructions tangibly stored therein, which when executed cause the processors in at least one computer to perform a method for integrating organization systems into an overall financial management system, comprising

preparing data from a plurality of organization related systems for use in processing,

calculating a value of each of two or more segments of an organization value and developing a model of a contribution of one or more elements of value and one or more external factors to a value to each of the two or more segments of organization value by learning from said data where learning from the data comprises identifying one or more performance indicators for each element of value and each external factor,

determining the value contribution of each element of value and external factor to the organization value using said segment of value models and calculated segment values,

obtaining a plurality of event risk information for the organization,

analyzing said performance indicators and event risk information as required to develop two or more scenarios for a future organization financial performance,

quantifying a plurality of risks by element of value, external factor and segment of value by simulating organization value under each scenario using the segment of value models, and displaying said value contributions and risks in a paper document or an electronic display

where the quantified risks each consist of an expected reduction in value, and

where the segment of value models comprise causal predictive models and the segments of value are selected from the group consisting of a current operation segment of value, a market sentiment segment of value, a derivative segment of value, an excess financial asset segment of value and a real option segment of value and combinations thereof.

17. The program storage device of claim 16, wherein the one or more elements of value physically exist and are selected from the group consisting of alliances, brands, channels, customers, employees, information technology, intellectual property, investors, partnerships, processes, production equipment, vendors, visitors and combinations thereof.

18. The program storage device of claim 16, wherein the one or more external factors are selected from the group consisting of numerical indicators of market conditions, numerical indications of prices and numerical indications of the organization performance compared to expectations of organization performance.

19. The program storage device of claim 16, wherein the one or more performance indicators comprise one or more causal performance indicators.

20. The program storage device of claim 19, wherein the method further comprises identifying one or more changes that will optimize a total organization risk, a total organization value or a combination thereof for each scenario by analyzing the results of the simulations with a multi criteria optimization algorithm.

21. The program storage device of claim 16, wherein the organization physically exists.

22. The program storage device of claim 21, wherein the method further comprises identifying one or more changes that will optimize a total organization risk, a total organization value or a combination thereof for each scenario by analyzing the results of the simulations with a multi criteria optimization algorithm.

23. The program storage device of claim 16, wherein the method further comprises identifying one or more changes that will optimize the value of the real option segment of value alone or in combination with the value of one or more of the other segments of value selected from the group consisting of current operation, derivatives, financial assets, market sentiment and combinations thereof.