Risk Dynamics helps clients create sustainable modelling and analytics platforms to support their businesses in a data-driven world. From core regulatory capital and risk models to business decision analytics and model risk management, we create value by improving performance across the model lifecycle.
Risk Dynamics is a team of over 200 experts in data, analytics, model development, and model risk covering all major geographies across the globe. As part of McKinsey & Company, we combine quantitative analysts, PhDs, actuaries, former regulators, and business consultants to provide a powerful combination of deep analytics expertise, industry knowledge, regulatory perspective, and distinctive capabilities in corporate strategy and transformation.
We work with companies across financial services, energy, manufacturing, pharmaceuticals, healthcare, and many other sectors to develop and deploy leading capabilities in data, analytics, modeling, and model risk management. We support clients in everything from large-scale analytics programs to in-depth modeling exercises.
Given the complexities of the global marketplace, it is critical that FIs improve the management of their model life cycle to improve efficiencies and controls. By taking a more integrated, strategic approach to the management of the model life cycle, banks can unlock massive model development and validation potential.
Traditional nowcasting has served its purpose well, but the COVID-19 crisis proved a challenge for typical nowcasting models. Today’s next-generation nowcasting approach reduces the number of variables for more accurate outcomes and making it easier to interpret estimates, understand structural breaks, and provide up-to-the-moment information.
Organizations must adopt concrete, dynamic frameworks to manage AI risks. This pinpointing, prioritization and management of AI risks now should be part of a holistic, long-term strategy to create value for the future.