The Challenge
EG Business Metrics, a Financial start-up interested providing predictive analytics to understand risks associated with investment
EG Business Metrics, a finance industry start-up, aimed to provide predictive analytics to identify operational risks associated with investment firms. The challenge was the vast and complex nature of these risks, requiring manual effort to sort through data and identify key information. The existing process lacked confidence and needed a solution to automate risk assessment and provide actionable insights.
The Action
Working with Calligo’s data scientists to develop several powerful methodologies
To address the customer’s problem, EG Business Metrics partnered with Calligo’s data scientists to develop several models and methodologies. They sought answers to various questions such as indicator correlations, outcome correlations, dimension reduction, complex correlations, candidate indicator importance, and handling contradictory signals in the data. These models were used to derive metrics and custom exploration tools, enabling a confident evaluation of investment firms.
Data Science Methodologies employed:
- Data Science by Design: Applying data science principles to solve the specific challenge.
- Principle Component Analysis: Reducing the dimensionality of the indicator set.
- Multiple Correspondence Analysis: Analyzing categorical data and correlations.
- Correlations and Canonical Correlations: Assessing relationships between indicators.
- Clustering: Grouping investment firms based on similarities.
- Custom Mathematics: Developing algorithms tailored to EG Business Metrics’ needs.
- R-Shiny: Creating interactive exploration tools for customized evaluation.
The Impact
Calligo’s Data Science team had a significant impact on EG Business Metrics’ business.
The implementation of predictive analytics and custom exploration tools had a significant impact on EG Business Metrics’ business. The outcomes achieved were as follows:
- Viability assessment: The algorithms and tools became the central element of EG Business Metrics’ business, enabling them to confidently assess the viability of investment firms. They automated the process of identifying and flagging operational risks, saving time and improving accuracy.
The solution empowered EG Business Metrics’ clients, providing them with insights to select and monitor investment firms effectively. By leveraging predictive analytics and data science methodologies, EG Business Metrics transformed their business, offering a management toolkit that combined data, analytics, and practical experience to measure, monitor, and modify controls programs.
Overall, Calligo’s solution for EG Business Metrics’ not only addressed their customer’s challenge of operational risk assessment but also established them as a trusted partner in the finance industry, empowering their clients to make better-informed decisions and mitigate risks effectively.
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