Catastrophe Modeling Expert Karen Clark Launches Independent Firm to Help Companies Better Utilize Risk Assessment Tools
Boston, August 13, 2007
Karen Clark today announced the formation of a new independent firm—Karen Clark & Company—to help companies better use catastrophe models as sophisticated tools for making important risk management decisions. In her new company, Ms. Clark will be working closely with senior executives and boards of directors to make sure their companies have in place effective risk management processes that conform to best practices. Karen Clark & Company will offer consulting services, independent reviews of company internal processes, and executive briefings to provide senior management and their boards with specific information they need to know about catastrophe risk, catastrophe models, and using model results to manage the risk.
"While the catastrophe models and applications will continue to evolve and improve over time, the bigger challenges now are in helping companies get full value from these tools" said Ms. Clark, president and CEO of Karen Clark & Company. "Senior executives and directors of companies exposed to catastrophes realize they need independent information about catastrophe risk and best practices for managing that risk because every year the financial exposure to catastrophe loss increases. Companies have asked me for more insight so I am very excited to be taking on these new challenges and working with industry leaders to develop more effective and holistic risk management processes."
In 1987, Ms. Clark founded the catastrophe modeling industry after identifying a need for probabilistic modeling techniques and better catastrophe risk assessment tools for the insurance industry. This important discovery led to the development of several innovative technologies that are now industry standard systems for insurance pricing, underwriting, and risk transfer decision-making. That same year she founded AIR, the premier catastrophe modeling firm which today serves more than 400 client companies worldwide.
"It's become clear the industry needs an independent company with the expertise to inform CEOs and their boards on what they need to know about catastrophe risk and catastrophe models and to help them ensure the integrity of their internal risk assessment and management processes," continued Clark. "As rating agencies, regulators and other stakeholders take an increasingly active interest in how companies are assessing and managing risk, independent information and reviews of those processes are becoming much more important."