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AI, ML improve LRM by cash flow forecasting

Balance the use of mathematical models and data-driven analysis to manage liquidity risk:

AI, ML improve LRM by cash flow forecasting

Raghnall Insurance Broking & Risk Management (RIBRM) helps its clients and their employees grow their business, wealth and health by protecting and managing their business and personal risks. Its areas of specialization include insurance, reinsurance, risk management and other related specialties. Raghnall serves large commercial, MSMEs, start-ups and individual clients with data-driven risk solutions and advisory services to grow their business.

Amit Goel, Director & Principal Officer at Raghnall Insurance Broking & Risk Management, as an insurance professional is determined to find opportunity in risk. He gets his goosebumps thinking about the extreme underpenetration of insurance in India and the opportunity it represents.

Ways To Mitigate Risks

In the current volatile global scenario, the main concerns of Raghnall regarding cash flow and liquidity risk are the potential impact on its clients’ financial stability. RIBRM’s aim is to provide proactive risk management solutions to its clients that take into account their specific needs and requirements. Disruptions in cash flows due to supply chain disruptions, delayed payments from clients, and reduced demand for goods and services can lead to a shortage of funds, making it difficult for the clients to meet their obligations. This, in turn, can affect their overall financial health.

Additionally, market liquidity risk impacts investment portfolios, making it difficult for them to sell their assets at fair prices, leading to losses. Amit Goel elaborates: “Factors such as war, natural calamities, supply chain disruptions, and geopolitical rivalry can create uncertainties that exacerbate cash flow and liquidity risks. We closely monitor the global scenario and advise our clients on ways to manage, mitigate these risks. We work with insurers to develop customized insurance products that can provide coverage for these risks, ensure our clients’ financial stability.”

Data Quality, Quantity

Quality and quantity of data are important parameters, that have to be considered for liquidity forecasting. Goel points out: “Many kinds of risks can be forecasted with available data. The quality and quantity of data available for liquidity forecasting can vary depending on the institution and the data sources it uses. Institutions need to ensure that they have access to high-quality, relevant, and up-to-date data to make accurate liquidity forecasts.”

Risk: Algorithmic, Expertise

Certain aspects of liquidity risk management (LRM) are algorithmic and some aspects are expertise/wisdom. Goel observes: “Overall, liquidity risk management requires a combination of algorithmic approaches and expertise-based approaches to identify, assess, and manage liquidity risk effectively. Institutions need to balance the use of mathematical models and data-driven analysis with the experience and judgment of their professionals to ensure that they are able to manage liquidity risk in an effective and sustainable manner.”

AI, ML For Risk Management

There are new technologies being deployed for improving LRM. Goel explains: “AI and ML are improving liquidity risk management by providing more accurate cash flow forecasting and real-time monitoring of liquidity positions. They are also automating various aspects of liquidity management, such as stress testing and contingency planning. Raghnall has a deep-rooted expertise in insurance and risk management, with a strong focus on innovation and digitalization.”

Expert Team’s Cyber Shield

Raghnall Insurance Broking’s latest offering is Business Cyber Shield, a new-edge solution, designed to provide comprehensive cyber security solutions for businesses of all sizes. The Shield is Raghnall’s commitment to provide the latest digital offerings that help its clients identify, mitigate, and manage the risks associated with the growing threat of cyber-attacks. The Shield is an end-to-end solution that helps businesses identify potential cyber threats, assess the risk, and implement comprehensive security measures. This comprehensive offering includes a range of services, including vulnerability assessment, continuous monitoring, and incident response.

Goel underlines: “The product is designed to be scalable, so it can be customized to meet the needs of SMEs to large corporations. Our highly experienced team of experts has been at the forefront of protecting businesses against the ever-evolving cyber threats. With this Shield, we are bringing our expertise and technology-driven approach to the next level, ensuring comprehensive protection for businesses of all sizes in India.”

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