| | Practice Areas | |
| | Enterprise Risk Management: Risk Analytics | |
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MCR has pioneered a unique approach
to quantifying risks and incorporating quantification into financial forecasts
of earnings and cash flow. Using Monte Carlo simulation approaches, MCR examines
each risk to determine its potential impact from either an ongoing or unique
event perspective. Using quantitative techniques, the variability is captured
in probability distributions.
Using MCR’s Financial Risk and Strategy Tool (FRST™)
or a viable client forecasting model, the risks are incorporated into the financial
planning model to ensure the impacts are properly captured in the model logic
flow. The resulting risk measures, such as Earnings at Risk or Cash Flow at
Risk, are developed and analyzed to support a wide variety of financial processes,
including budgeting, financial planning, cash management, earnings guidance
and strategic planning.
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