Fitch Risk Management Acquires NetRisk, Inc. & OpVantage LLC.
NEW YORK--(BUSINESS WIRE)--July 24, 2002
Fitch Risk Management announced today that it has completed the acquisition of the business and assets of NetRisk, Inc. (NetRisk) and its subsidiary OpVantage, both privately held companies specializing in enterprise risk management and operational risk.
NetRisk was founded in 1997 by Gene Shanks, former President of Bankers Trust, to fill the need for an enterprise risk management solution. NetRisk's Advisory Services Group offers enterprise risk management consulting, as well as custom software solutions through its advanced technology platform. NetRisk's subsidiary, OpVantage, is the leading provider of Operational Risk solutions through a robust operational risk software suite - OpVar, an extensive operational loss database, and a highly experienced consulting services team. 'Fitch Risk Management's purchase of NetRisk is the latest in a series of business and technology initiatives furthering the goal of creating world-class risk management products that can meet the unique needs for risk management advice, software and analytics across all financial institutions,' said Stephen W. Joynt, President and CEO of Fitch. 'The addition of NetRisk and OpVantage to Fitch Risk Management creates a dynamic group, with extensive risk management experience.'
Daniel Mudge, President and CEO of OpVantage, said: 'The integration of Fitch Risk Management's leading credit analytics with NetRisk's and OpVantage's advisory services and OpVar tools to facilitate the quantification of Operational Risk and Capital at Risk will allow Fitch Risk Management to be able to better serve the global market needs for central risk management solutions. All of our clients will benefit from the growth in opportunities and resources available to them as a result of the deal.'
NetRisk's Advisory business helps clients take a more proactive approach to managing their business through a suite of enterprise risk advisory and technology solutions. Their experiences include developing and evaluating enterprise risk practices, as well as managing and modeling more complex risks in a practical manner. For a number of clients, their innovative approaches have been applied to emerging market credit and political risks, insurance products and portfolio risks, and balance sheet risk capital.
Operational risk is the risk of loss from inadequate or failed internal processes, people and systems or from external events. 'Operational risk could account for as much as 20% of a financial service company's capital,' said Gloria Aviotti, Group Managing Director of Fitch Risk Management. 'Financial institutions have had sophisticated tools to manage market and credit risk for a number of years. Operational risk has been less understood, but OpVantage's products and services help to close this gap. The NetRisk and OpVantage teams led by Dan Mudge, former Head of Global Risk Management at Bankers Trust who has over 20 years of experience in risk management and advisory services, adds a new depth to Fitch Risk Management, and most importantly a greater and deeper understanding of risk for all financial institutions.'
About Fitch Risk Management:
Fitch Risk Management (FRM) is a leading risk management company providing products and services to help financial institutions and other companies manage both credit and operational risk. Its commitment to customized solutions utilizing cutting edge methodologies and technology has enabled it to establish a client base that includes many of the world's largest and most sophisticated financial institutions. Fitch Risk Management has offices in New York, London and Greenwich, Connecticut and is an affiliate of Fitch Ratings. For further information, visit its web site, www.fitchrisk.com.
NetRisk was formed in 1997 by Gene Shanks, formerly the President and Director of Bankers Trust Company. NetRisk offers enterprise risk advisory services through its Advisory group. NetRisk's Enterprise Risk Advisory Group specializes in providing enterprise risk management services and solutions to financial institutions, insurance companies, asset managers, and energy firms at both the strategic and tactical level. The Enterprise Risk Advisory team brings considerable experience in the development of customized strategic risk and capital solutions, including risk benchmarking, infrastructure development, risk measurement and balance sheet modeling. Additional information about NetRisk is available at 'www.netrisk.com'.
OpVantage was formed by combining the industry-leading quantitative operational risk management businesses from NetRisk, Inc and PricewaterhouseCoopers. OpVantage is the operational risk quantification leader, providing financial and other institutions with the OpVar software and database (formerly called RiskOps), operational risk quantification methodologies and specialized consulting services. OpVar is used by over 20 banks, insurance companies, regulatory agencies and stock exchanges. Disclosed clients of OpVar include: Banco Sabadell, Bank of America, Deutsche Bank, ING, IntesaBCI, JPMorganChase, National Australia Bank, Sanwa/UFJ Holdings, Societe Generale, and Swiss Re. Additional information on OpVantage is available at 'www.opvantage.com'.