Aon has introduced its new Directors and Officers (D&O) Risk Analyzer, a cutting-edge digital tool aimed at assisting risk managers of US-listed public companies in making informed, data-driven decisions to manage executive risks.
The D&O Risk Analyzer is part of Aon’s comprehensive suite of solutions that leverage data and analytics to offer clients valuable insights into navigating a complex risk landscape.
This innovative tool provides real-time analytics, enabling clients to evaluate potential D&O losses and make strategic decisions regarding risk retention, risk transfer, and insurance optimization. The tool’s adaptive models can be updated in real time with new client data, refining risk assessments as situations evolve.
One of the key features of the D&O Risk Analyzer is its risk exposure and loss models, which help clients and brokers gauge the potential impact of adverse events, ranging from minor issues to catastrophic failures. These models allow users to analyze factors affecting D&O litigation and exposure, including stock volatility, liquidity problems, contentious mergers and acquisitions, and regulatory concerns.
The D&O Risk Analyzer also features a stock price drop analysis that examines how different levels of stock price declines could lead to theoretical D&O losses, drawing on historical settlement data.
Furthermore, the tool provides total cost of risk (TCOR) visualizations, which enable clients to explore various insurance options, optimize coverage limits, and design insurance programs tailored to their needs. This functionality aids clients in making well-informed decisions and effectively communicating these choices to stakeholders.
Additionally, the D&O Risk Analyzer supports real-time loss forecasting, allowing risk managers to assess D&O risk exposures and engage in discussions with brokers about potential scenarios. This feature emphasizes proactive risk management strategies and enhances the ability of risk managers to communicate risk retention and transfer options to senior executives.
