Risk Accounting is our enterprise risk management solution, designed to address the fundamental challenges of risk quantification and standardized risk measurement across complex financial institutions.

The Risk Accounting method incorporates a risk quantification technique that produces, for the first time, standardized measures of exposure to risk relative to all forms of risk. Exposures are quantified using a standardized additive unit of measurement unique to risk accounting — the Risk Unit (RU). Outputs in RUs are fully aggregatable across all horizontal and vertical dimensions of an enterprise, enabling cross-enterprise risk aggregation to produce risk reports by risk type, business line, product, customer, legal entity, and geography.

Leading academics and practitioners have independently reviewed the method and their findings were published in the Journal of Risk Management in Financial Institutions. The proposed risk reporting framework has been recognized as both novel in addressing the limitations of existing ERM risk measurement frameworks and practical in adapting the control and reporting frameworks that already exist in accounting and general ledger systems — a meaningful approach to BCBS 239 compliance.

For more information on Risk Accounting, contact us at agrody@financialintergroup.com.