Balance Sheet Management white paper The content of this document is the intellectual property of MavenBlue BV. No part of this document may be used, copied, distributed, changed or made public without the prior written
Contents 1. Introduction 3 1.1 General 3 1.2 Features 5 1.3 Secure cloud 7 2 Input data 8 2.1 Zero Swap Curve 8 2.2 Capital requirements 8 2.3 Fund groups 8 2.4 Balance groups 8 2.5 Balance sheets 10 2.6 Scenarios 15 2.7 Strategies 19 3 Calculations 23 3.1 Calculation instructions 23 3.2 Calculation results 24 3.2.1 Analysis of change 24 3.2.2 Details of calculations 26 3.2.3 Comparison of calculations 31 3.2.4 Free Capital Generation 38 4. Wrap Up 39 5. Contact 40 Page 2 of 40
1. Introduction This document provides an introduction to MavenBlue s Balance Sheet Management (BSM) software (www.mavenblue.com). This software fulfils the increasing need for insurance companies to gain insight into the current level and composition of the solvency ratio, as well as value creating capital into the future. With this white paper we would like to introduce the reader to this versatile software for managing the balance sheet of the insurance company. The main features of the software are described, the required input data are discussed and different types of calculation results are shown. The white paper ends with a wrap up. It is not possible to show all aspects of the software in this document, this is merely a first impression. Data displayed in the examples relate to fictional insurance companies. 1.1 General BSM offers a wide range of possibilities to project the balance sheet of an insurance company into the future. The software can be used to run: Risk analysis (ORSA) Capital management Asset allocation studies Product development Dividend policy Mergers and acquisitions Verify policies such as the interest hedge and risk appetite Also, the 'free capital generation' can be defined. Free capital generation is seen as the new benchmark for insurance companies to determine dividend payments and the value of insurance companies. The state of the balance sheet at t = 0 is used as input by the BSM software. The required data is collected from existing reporting processes for Solvency II and IFRS reporting. Page 3 of 40
After the data from existing reporting tools has been transferred to the BSM software, the balance sheet is projected into the future by using user-defined scenarios and strategies. This can be done deterministically or stochastically or by a combination thereof. The projections are carried out on a monthly basis. In the case of stochastic projections, tens of thousands of projections can be calculated in a matter of minutes. This is possible because the BSM software uses Graphics Processing Units (GPUs) to calculate all projections concurrently. The calculation results of the BSM software are constantly and extensively monitored. An automated testing process verifies the accuracy of calculations in the software on a daily basis. The software is fully documented and scripts have been written to support users in using the features of the software based on practical test cases. In addition, MavenBlue takes responsibility for aligning the software with existing and future laws and regulations. Thanks to the user-friendly interface, the high flexibility in making projections, the clear presentation of results and very high computing speeds, the insurance company can save substantial time and money by using the BSM software. Page 4 of 40
1.2 Features The BSM software is developed by professionals for professionals. The developers involved have decades of experience, both in risk management at multiple insurance companies and in the IT sector. This experience has led to the proficient modelling of all the necessary functionalities for managing the balance sheet from a risk and value (creation) perspective. Key features of BSM are: Balance modelling; o Modelling of the Solvency II curve and a user-specific alternative curve o Modelling of the Solvency II balance, the alternative balance and tax balance sheet o Modelling of required capital and solvency ratios based on the Solvency II curve and based on the alternative curve o Modelling of specific metrics such as the risk margin and deferred tax o New Business based on a user-specific pricing curve o Unlimited number of balance sheets o Consolidation of balance sheets at group level Stochastic and deterministic projection of balance sheet items based on risk drivers; o Future projection of hundreds of balance sheet items and risk drivers o Long horizon (15 years or more) o Projection on a monthly basis rather than on an annual basis o Multiple stochastic risk drivers 3 interest rate factor model (American Association of Actuaries) 10 + floats for investment funds 40 risk floats for swap spread and VA risk per rating and sector 10 + floats for underwriting risk o Projection of market and underwriting risk trackers can also be entered deterministically o Analysis of Change is constructed by sequentially adding projections from risk trackers Validation of strategic policies; o Dynamic interest rate hedge policy o Asset allocation policy o New business policy (pricing and product mix) o Capital and dividend policy o Mergers and acquisitions Page 5 of 40
Holistic presentation of results o Results are presented in cohesion o Analysis of probabilities of underrun o Comparison of different projections, strategies and scenarios o Standard and user-defined reports Lightning fast calculations o Parallel calculations using specialized hardware (GPU's) o Number of projections can be set by user (for example: 10,000) o Just a few minutes computing time Modern infrastructure and technology o Secure cloud environment o Web-based o Multi-device GPU computing enables the execution of thousands of calculations concurrently and reduces calculation times significantly. It is even possible to execute nested simulations concurrently. Page 6 of 40
1.3 Secure cloud BSM is available in a secure cloud environment at a hosting provider that is ISO9001, ISO27001, ISO 14001 and NEN7510 certified and is ISAE 3402 Type II compliant. The system uses authentication tokens, SSL and strict rules for strong encryption of passwords. The system works with users, roles and authorizations (rights by role and rights to data). Changes and actions in the system are logged in an audit trail. All users and data in the system are kept anonymous. Because the user interface is completely browser based, all relevant departments and employees can gain access to the system. In addition to the secure shared cloud environment a customer can choose for a secure private cloud environment or for an on-premise installation. The BSM software uses a subscription model with an annual fee. The fee entitles you to new releases of the software (up to four times a year) and support through an online helpdesk. Page 7 of 40
2 Input data The BSM software encompasses an input section in which the required data is entered and a separate section in which the calculations are performed and results are displayed. In the input section the following information is entered: 1. Balance sheets 2. Scenarios 3. Strategies 4. Balance groups 5. Fund groups 6. Capital requirements 7. Zero swap curves The most commonly used data are at the top of this list. The configuration of the system, however, starts at the bottom. Therefore, we will discuss the components from bottom to top 2.1 Zero Swap Curve The zero swap curve at the start of the projection is made outside the system and then entered into the system. 2.2 Capital requirements The capital requirements concern the charges for equity and real estate risk, spread risk and interest rate risk. For these risks, the BSM software calculates the required capital. Also correlations between all risks are entered here. The Solvency II capital requirements, as specified by the supervisor, are set as default, but custom settings can also be entered. 2.3 Fund groups Within a fund group investment funds are defined which can be used within a balance group, scenario and strategy. Funds are classified in equity funds, real estate funds and funds for fixed income securities. Each fund refers to a specific SCR category. 2.4 Balance groups Balance groups refer to a specific zero swap curve and the fund group. Balance sheets that refer to the same balance group, can be consolidated in a new balance on a higher level. Within a balance group the Solvency II curve is defined. Given the zero swap curve, the Solvency II curve is automatically calculated using the settings for the CRA, VA, UFR and last liquid point. In addition to the Solvency II curve, an alternative curve can also be calculated for comparison, for example a curve without UFR. Page 8 of 40
As far as the settings for the UFR, it is an option to calculate these automatically in the projections in accordance with the methodology published recently by EIOPA d.d. March 2017. For 2018, the UFR is set at 3.65%, with the change not being more than 15 basis points, i.e. effectively 4.05%. Page 9 of 40
2.5 Balance sheets A balance sheet is entered for a particular month. In the software, more than 150 balance sheet items are pre-defined. The balance items are grouped as follows: Example: input bonds with fixed interest rate For each group, the underlying balance sheet items and related cash flows can be entered as input. For example, a distinction is made for fixed-rate bonds to the various Solvency II sectors (no charge, corporate, ABS type 1 and 2, and covered bonds) and to the various rating categories (credit quality steps). Per balance sheet item, cash flows and the value can be entered manually or imported from CSV files. The system automatically calculates per balance sheet item the implied spread, duration, SCR interest down, SCR interest up and SCR spread. Manual entry or adjustment of a bond with rating AAA (credit quality step 0) and no charge for spread risk, looks like this (only the first 6 years are shown here): Page 10 of 40
Example: input swaptions For swaptions the entered data looks like this: This data is read via a CSV file. Based on the characteristics of the swaptions, the software calculates the total market value and the SCR interest down and interest rates up. Page 11 of 40
Example: input risk margin The risk margin has been modelled in conjunction with the underlying capital requirements. This has been achieved by entering (in addition to the SCR capitals) the corresponding durations (interest sensitivities) as input as well. Based on this information, it can be assured that the risk margin is both sensitive to interest rate movements in the denominator (discounting SCR projections) and in the numerator (interest rate sensitivity of the capital requirements itself). For each product the various SCR capitals (needed for the calculation of the risk margin) and associated durations are entered. Per SCR, the run off of the SCR can optionally be entered. If this is not the case, then the run off is modelled based on the SCR capitals, durations and available liability cash flows. Page 12 of 40
Example: enter LacDt An important parameter is the loss absorbing capacity of deferred tax (LacDt). This is defined in the application as a percentage. At 100%, all losses can be compensated by, among other things, future profits. The LacDt can be set in dependence on the Solvency II ratio. As the Solvency II ratio is higher, it is plausible that the LacDt is also higher. Example: other input For the insurance reserves it is possible to split the cash flows in cash flows for benefits, premiums, fee income, commissions, costs and other. For the Unit-Linked products, the exposure of the fee income to underlying funds can be specified. Mortgages are divided into mortgage loans and mortgage-linked loans while making a distinction between fixed rate and floating rate. Loans are divided into tier 1, tier 2 and funding loans while making a distinction between fixed rate and floating rate. Page 13 of 40
Example: calculation of capital at risk After each change of a balance sheet item the SCR capitals of the balance sheet are automatically recalculated: It is possible to overwrite some SCR values manually in order to obtain an exact reconciliation with the internal reporting. Any differences are reduced gradually over time in the projections. Page 14 of 40
2.6 Scenarios A scenario describes what happens in the external world. The insurance company has no influence on these. Scenarios concern developments of yield curves, credit spreads (by rating category), insurance risks and changes in mutual funds (stocks, real estate and fixed-rate). The input can be deterministic, stochastic or a combination of both. In the case of deterministic projections, it can be configured which individual events will take place at what time in the future. Example: interest rate deterministic For yield curves, one can select a development according to the forward interest rates or according to specific mutations of the 1 and 20 year interest in any year. In the latter case, the remainder of the yield curve is interpolated and extrapolated based on this short and long-term interest rates. Page 15 of 40
Example: interest rate stochastic In the case of stochastic projections, the parameters of the stochastic interest model must be entered. The interest rate model of the American Academy of Actuaries and the Society of Actuaries is used. They bundled their forces to develop this economic scenario generator. Documentation on this subject is available on request. It is, in principle, also possible to model other scenario generators, or to import the output of external interest models. Page 16 of 40
Example: underwriting risks stochastic It can be determined how different underwriting risks will manifest themselves in the future. MavenBlue has developed its own stochastic model, based on the volume of imported SCR capitals and associated durations. The model has been extensively tested and documented. Page 17 of 40
Also the development of underwriting risks can be determined deterministically. For each risk it can be specified in what year the risk occurs and the extent to which that risk will happen. At realization of the underwriting risks cash flows in accordance with the relevant insurance underwriting risks are adapted, which therefore also indirectly has impact on interest rate risk. In addition, in a scenario also the development of credit spreads and the development of the mutual funds can be entered stochastically and deterministically. Example: credit spreads stochastic Credit spreads are modelled by sector and per rating with a correlation between the sectors and the ratings. The correlation between two spread series is hence a multiplication of the correlation between the relevant ratings and sectors. Page 18 of 40
2.7 Strategies A strategy describes what policy the insurance company wants to follow. In a strategy, the interest rate policy, the asset allocation policy, the policy on the new production (including pricing) and the dividend policy can be specified. Example: interest hedge For the interest rate risk policy, it can be specified how the interest rate needs to be hedged. In addition to the option not to hedge, it is possible to hedge the duration of the equity or to hedge the solvency ratio. The latter can be done based on the Solvency II curve, an alternative curve, or a combination of both. Page 19 of 40
In the example it is configured that if the Solvency II ratio moves between the 180% and 160% and if the ratio with respect to the alternative rate curve is greater than 100%, then 75% of the interest rate sensitivity of the Solvency II ratio is hedged (and 25% of the alternative ratio). Example: target mix Figure below shows an example for entering a target mix within a certain strategy: In addition to the target percentages, the target durations can also be entered. With respect to fixed and floating bonds, it can be specified accordingly what the allocation is to sector and rating (credit quality step). Per asset category, it can be indicated what the transaction limits are. Via the transaction limit settings, a distinction can be made in the projections between mutations in more and less liquid instruments. Page 20 of 40
Example: new business Figure below shows an example for entering new business within a certain strategy: It can be configured to what extent declining business will be replaced by new business. In addition, for each product a cash flow for the new business can be entered (broken down by income benefits, premiums, fees, commissions, costs and other) as well as the future development of those cash flows. Per product it is possible to define your own pricing curve: Page 21 of 40
Example: dividend policy For the dividend policy it is possible to opt for a percentage of the P&L, or a percentage of the Solvency II available capital: Also a specified cash flow can be selected (shown is the first five years): Page 22 of 40
3 Calculations For calculations the following two components are of interest: Calculation instructions and Calculation results. 3.1 Calculation instructions Commands to perform specific calculations can also be entered in the BSM Software. In a command, a link is made between a balance sheet, a strategy and a scenario. For example, by calculating different interest rate hedges or asset allocation strategies for the same balance and scenario, insights can be gained as to the impact of a particular investment policy. Example: calculation instruction In this calculation instruction, four combinations are calculated, whereby for every combination the same balance sheet and the same scenario are used, but a modified strategy for the interest hedge is entered. Page 23 of 40
Forward curve Yield curve Spreads Funds Insurance risks Rente hedge Target asset mix New business Dividends Version 1.3 3.2 Calculation results In the section Calculation results, all output of the BSM tool can be viewed. This section shows the development in the future for each individual balance sheet item, each individual risk driver and each SCR variable. The results can be shown in various formats: Analysis of change Details of deterministically or stochastically calculated results Comparison of deterministically or stochastically calculated results 3.2.1 Analysis of change At data entry stage, several scenarios (development of interest rates, credit spreads, insurance risks and funds) and strategies (policy for the hedging of interest rate risk, desired asset mix, new production and dividends) are defined. All of these factors have impact on the development of the solvency ratio, as well as the underlying value of the various balance sheet items and risks. An AoC reveals how big the impact of these factors has been at any point in time. An AoC is only available for deterministic scenarios, and not for stochastic. The calculation of the AoC in the BSM Software consists of the following steps. Scenario s Strategieën AoC stap 0 Value in month 0 1 Forward curve 2 Yield curve 3 Spreads 4 Funds 5 Insurance risks 6 New business 7 Dividends 8 Value in month T Page 24 of 40
Note that the strategies for the interest hedge and the target asset mix are used for all steps. The impact of these strategies can be reviewed and results compared by defining separate strategies with and without interest rate hedge and likewise, with and without target asset mix. Example: analysis of change The analysis of change output for the available capital appears as in the representation below. This information is also available for each balance sheet item and each SCR variable. This representation shows the total effects of different factors between month 0 and month 180. The following representation shows the same information, however now as a development per month. Page 25 of 40
3.2.2 Details of calculations For a calculated combination (of balance, scenario and strategy), the results can be analysed in detail. This can be done for both deterministic and stochastic calculations. For each balance sheet item, risk driver and SCR variable, a deterministic or stochastic projection is made. The use of parallel GPU technology makes it possible to display stochastic calculation results in a matter of minutes. Example: stochastic projections in detail Below a representation of the underlying projections for the Solvency II ratio, risk margin and unit linked portfolio is shown. These include 10,000 scenarios for 15 years on a monthly basis. In this case, the total computation time was 2.5 minutes. The dark, smoother line in the middle shows the average over all paths. The slightly more volatile line shows the median. The white area around both sides of the median contains 25% of all paths, followed by 15% in each light green band, 8% in the darker band and 2% in the outer and darkest cloud of paths. Page 26 of 40
In the case of the unit linked portfolio the outliers in the lower left corner represent the results of a bank run. Once in a while, customers withdraw in large numbers their means, for example in the event of a financial crisis. Page 27 of 40
Example: stochastic projections displayed abstractly For the purpose of increased visibility and to aid in comparison and interpretation, the results can also be shown in a more abstract format, whereby the average and variance are emphasized. Page 28 of 40
Example: coherence between different metrics In order to better understand movements of (for example) the Solvency II ratio, it is possible to analyse the coherence with the development of balance sheet items, risk capital and risk drivers. The following representation shows that the configured interest hedge policy makes the Solvency II ratio relatively insensitive for interest mutations. The extreme increase in long-term interest rates around the year 10 (month 120) has hardly any impact on the ratio. Page 29 of 40
Example: underrun probabilities The probability that the Solvency II ratio breaches a certain limit can be seen below. This probability is calculated for each month over the horizon. The bottom blue line shows the probability that the Solvency II ratio breaches the level of 100% over the course of time. After 10 years (120 months) that probability is 9%. Page 30 of 40
3.2.3 Comparison of calculations The BSM software is perfect for comparing the results of different combinations of balance sheets, scenarios and strategies on various aspects. This is possible for both deterministic and stochastic calculations. The following examples show the effects for different strategies for a particular balance sheet and a particular scenario. Example: different strategies for the interest rate hedge Below the effect of different strategies for the interest rate hedge on the Solvency II ratio is shown. The scenarios for the interest development are set stochastically, and for the other risk drivers deterministically. Hedging interest rate risk based on the SII ratio results in the lowest volatility of this ratio (red line). Page 31 of 40
For Solvency II capital the option for hedging (the target duration of) the Solvency II capital results in the lowest volatility, see the figure above (yellow line). It can also be concluded that this strategy does not lead to the highest expected level of the Solvency II capital over time. The highest expected level is achieved by hedging the alternative ratio. As for the interest rate risk, the figure below shows that hedging the alternative ratio results in the worst case scenario for the upward interest rate shock (SCR interest rate up). The Solvency II ratio starts at 160% in this example. Below the probabilities that the ratio will go below 160% for the different strategies are shown: Page 32 of 40
The hedging of interest rate risk to the extent that the Solvency II ratio becomes insensitive to interest rate fluctuations proves effective. The chance that the red scenario goes under 160% is virtually 0 over time. The representations above not only make clear that the hedging of interest rate risk actually leads to less volatility of Solvency II ratio and of the Solvency II capital, but also that the hedge choice has impact on the development of these metrics. For example, the more that is hedged, the more the average development of capital increases over time. Such observations are the direct result of the settings of the stochastic interest model. A more detailed explanation on the different outcomes in the various hedge strategies is given in the box below. Of course other settings of the interest rate model result in other outcomes. Explanation of the results of hedge strategies In this case the generated interest rate scenarios concern a cloud of interest paths, where long-term interest rates on term remain at the current level and where the interest rate curve is a rising curve on average. The applied 3 factor interest rate model allows for the long-term interest rates only to have positive values. For the shortterm both negative and positive interest rates are allowed. The minimum (negative) interest rate can be specified in the input. These settings of the stochastic interest model mean that closing receiver swaps will on average generate money in the longer term. Page 33 of 40
Explanation of the results of hedge strategies (cont d) Development Solvency II capital at different hedge strategies The hedging of the Solvency II capital means that the investments should have the same interest rate sensitivity as the Solvency II liabilities. For covering the Solvency II ratio, the investments need to be longer, because the interest sensitivity of the required capital should be covered as well. Covering the alternative ratio requires still more receiver swaps, because the interest rate sensitivity of the liabilities without UFR extrapolation is larger. This explains why the average Solvency II capital on average grows faster when hedging the alternative ratio (green line) instead of hedging the Solvency II ratio (red line), and why it grows faster when hedging the Solvency II ratio instead of hedging the Solvency II capital (yellow line), and why it grows faster when hedging the Solvency II capital instead of not applying a hedge (blue line). Development of SCR interest up at different hedge strategies The impact of the hedge is also visible in the development of the required capital for the interest rate risk. The liabilities are initially longer than the investments and there is no new production. With the expiry of the investments the available capital increases when interest rates increase, because the liability costs remain on the same level and there should be reinvestments at higher interest rates (blue line). The hedge of the Solvency II capital implies a required capital of practically zero and remains zero (yellow line). This may not be evident because hedging the interest rate sensitivity of the Solvency II capital is not the same as hedging the SCR interest up scenario. The SCR interest up scenario assumes that the UFR also rises, while this is not assumed when hedging the Solvency II capital. In order to hedge the SCR interest up risk a hedge with longer duration should be applied than would be necessary for hedging the Solvency II capital. At the same time, when calculating the Solvency II required capital, no account is taken of the interest rate sensitivity of the risk margin. However, in hedging the interest rate risk of the Solvency II capital, this interest rate sensitivity is accounted for. From this perspective, hedging the SCR interest up risk, would imply investing in shorter durations than would be necessary for hedging the Solvency II capital. On balance, the above two scenario appear to offset each other. Development of Solvency II ratio at different hedge strategies In this example, while hedging the Solvency II ratio, the SCR interest up and down are most in balance and as a result, the required capital for interest rate risk is at its lowest. This explains why the Solvency II ratio on average is highest when this hedging strategy is pursued Example: different strategies for the dividend policy Below the effect of different strategies for the dividend policy will be shown on the available capital. A strategy without dividend is compared to a strategy in which 100% of the result on accrual income and expenses will be paid and a strategy in which 5% of the Solvency II available capital will be paid. In both scenarios, it also configured that only dividend will be paid when the Solvency II ratio is not below the level of 140%. Page 34 of 40
Example: different strategies for new business Below the projection of the provision for funeral insurance is shown. The interest rate risk is hedged and two strategies for new business are compared: no new business and new business replacing fully expiring business. Page 35 of 40
Example: different strategies for target mix Below the Solvency II available capital is shown where two simple strategies for the target mix are compared: less shares and more shares. The strategy with more risk shows a greater volatility and a higher average return. The Solvency II ratio shows a different picture. The selling of shares results in lower required capital and buying additional shares results in more required capital. Overall, the strategy with less shares shows a higher ratio. Page 36 of 40
Example: bubble chart With the so-called bubble charts, the dependency between risk, return and/or value can easily be made insightful. The horizontal axis represents a metric for risk and the vertical axis represents a metric for return of value. Both axes can be configured optionally including the month(s) the calculations relate to. The bubbles represent the outcome of the different calculated combinations as part of an instruction. In the charts below different asset mixes are calculated in steps of 5%, starting with the blue bubble (0% shares), then the yellow bubble (5% shares), etc. Page 37 of 40
3.2.4 Free Capital Generation Free capital is defined as that part of the equity that is freely available, for example for dividend payments, above the capital required to meet the capital policy. Free capital generation refers to the growth of this freely available capital and hence to the increase in Solvency II available capital and Solvency II required capital. With the BSM software one can provide insight into the projection of the free capital with respect to: Swap return Spread/premium and VA and CRA to the liabilities side Time value options and profit sharing UFR effect Release of risk margin Value new business (including risk margin) Finance costs and of the required capital to: Run off SCR New business impact on SCR Impact transitional measures Free capital generation is seen as the new benchmark for insurance companies to determine dividend payments and the value of insurance companies. Page 38 of 40
4. Wrap Up The BSM software is perfectly suitable for managing the balance sheet of insurance companies from a risk and value (creation) perspective. BSM provides continuous insight in the total risk and return profile of the company both in the present and into the future. The software is versatile for carrying out risk analysis (ORSA), capital management, asset allocation studies, product development, dividend policy, mergers and acquisitions, and validation of policy features such as the interest risk hedge and risk appetite. All the necessary functionalities are accurately modelled and are in line with existing and future regulations. Examples include the modelling of the market value and fiscal balance sheet, risk margin, required capital, future projection of hundreds of balance sheet items and risk drives, new business, target asset mix and hedge policies. BSM is available in a secure cloud environment at a hosting provider that is certified ISO9001 and ISO27001. The software meets all IT requirements. Because the user interface is completely browser based, this increases the efficiency and productivity. All relevant departments and employees can access the system and at the same time work together. The implementation period is short because BSM uses data that is already available from existing Solvency II and IFRS reporting processes. The interface is intuitively designed. By combining different balance sheets, scenarios and strategies calculation instructions can easily be made. Analysing and comparing different combinations can be done in an instant. Results are shown transparently. Analysis of change, projections on a monthly basis, underrun probabilities and coherence between different metrics are displayed graphically. Underlying data is of course also available. Projections can be done deterministically and/or stochastically. Only a few minutes are needed to calculate tens of thousands of scenarios on a monthly basis for the coming 15 years. This is possible because the software uses GPU's to calculate projections in parallel. Thanks to the many applications, user friendly interface, the high flexibility in making projections, the transparent presentation of results and the very high processing speed insurance companies can achieve substantial savings in time and money with the use of the BSM software. Page 39 of 40
5. Contact To learn more about the possibilities of the Balance Sheet Management software please contact us or one of our partners. We will gladly organise a demonstration at your location. A logical next step is a pilot project, lasting six to eight weeks on average. In such a pilot project we will import your balance sheet, define deterministic and stochastic scenarios and project your balance sheet to the future using different strategies. MavenBlue www.mavenblue.com info@mavenblue.com +31 30 227 16 30 Our partners For the implementation of the software, we work with trusted partners. They have the necessary expertise and experience to implement the Balance Sheet Management software securely and efficiently in your organization. www.riskquest.com info@riskquest.com +31 20 693 29 48 Page 40 of 40