Many companies adopt VaR due to its simplicity in interpretation (e.g., there is a 5% chance that company X will lose more than USD1 million).
However, VaR has its flaws if not used carefully. It relies heavily on underlying financial models and does not account for catastrophic risks (i.e., significant losses at very small probabilities), leaving management unprepared for extreme events.
At Real Consulting, we help clients assess their risks through comprehensive risk analysis services using various techniques.
We assist clients in running Monte Carlo simulations using well-constructed financial models and sound assumptions.
We help clients build their financial models, leave these models with them, and train their analysts to run them.
Our Risk Simulator is one of the most advanced Excel-based risk simulation software in the market. It is powerful, fast, and flexible enough to adapt to any financial model while remaining simple enough for everyday use.