Elseware is a quantitative risk modelling firm.
For over 20 years, we’ve helped banks and insurers build structured and actionable assessments of operational risks.
A rigorous, exposure-based way to measure operational risk.
The XOI approach defines a risk as a productive resource (Exposure) that may be struck by an adverse event (Occurrence), leading to one or more consequences (Impact).
Using Bayesian networks to capture causal chains and dependencies, and Monte Carlo simulation to model uncertainty, XOI generates transparent, explainable loss distributions.
Built for capital, limits, and risk-appetite decisions — and to withstand audit and regulatory scrutiny.
Innovative XOI (Exposure, Occurrence,
Impact) method for data-driven operational risk assessment.
Trusted by leading financial institutions, MSTAR Desktop provides scenario design and simulation, and MSTAR Platform offers curated news, scenario libraries, and integration.
Expert support to design and quantify risk scenarios, build a robust risk appetite framework, and assess economic capital in line with regulatory expectations.
At Elseware, we offer unparalleled expertise and innovative solutions to help you navigate the complexities of risk management. Here’s why partnering with us is a smart choice:
With over 20 years of experience in risk assessment and modeling, Elseware’s highly qualified team offer unparalleled expertise and innovative solutions for risk mitigation and regulatory compliance
Our unique XOI methodology and advanced MSTAR tools provide cutting-edge solutions tailored to your needs.
We have successfully collaborated with major financial institutions worldwide, helping them achieve regulatory compliance and operational excellence.
We offer flexible consulting services and bespoke risk management tools designed to meet your specific requirements.
Our rigorous research and dedication to quality ensure that you receive the best possible support and insights
We believe that there is huge merit for the use of structured scenarios for operational risk management." Conclusion of the Exploring Risk Exposure Methodologies summary report, March 2021.
The XOI methodology provides a structured, robust, forward-looking, and easy-to-understand approach for modeling operational risk scenarios. This book offers practical guidance on how risk managers, risk modellers, and scenario owners can collaborate to model operational risk scenarios consistently
The key benefits of the XOI method are to provide an approach to understand, manage and quantify risks and, at the same time, to provide a robust framework for capital modeling. Thanks to this method, we have been able to demonstrate the business benefits of operational risk management.
The XOI approach measures operational risk by identifying and quantifying key loss drivers in business terms, not risk management jargon. It can be used for risk appetite setting and monitoring. I strongly believe the XOI approach has the potential to become an industry standard
The XOI method is the most comprehensive quantitative and analytical framework that I have encountered for the identification, assessment and management of Operational Risk. I have employed it for five years and found it both usable and effective. I recommend this book as essential reading for senior risk managers.
The XOI approach was a 'Eureka!' moment in my journey on operational risk. Coming from a market risk background, I had the impression that beyond the definition of operational risk, it was difficult to find a book that described a coherent framework for measuring and managing operational risk.
At Elseware, we offer unparalleled expertise and innovative solutions to help you navigate the complexities of risk management. Here’s why partnering with us is a smart choice:
At Elseware, we believe that operational risk is ready for a fundamental shift — one that mirrors the quantitative revolutions that transformed credit and market risk decades ago. This article is our manifesto. It defines how we see the future of operational risk management: grounded in exposure, driven by real scenarios, and directly linked to business value.
Elseware is sponsoring this year’s RiskMinds International 2025. As part of our commitment to advancing the field, we’re excited to host a round table discussion on the future of operational risk quantification, with a spotlight on a topic that’s close to our DNA: structured scenarios:
This month let's explore the quantification of this scenario through a wizard and what-if simulations, plus a sneak peek at the concept of the Exposure Table.
Contact us to learn more about how we can help you and your business.
