How to quantify risks for insurance purposes and save a lot of money – watch live at #RAW2022

Alex joined the fertilizer company just under 2 years ago and has since focused on proactive and effective risk management designed to reduce volatility in company performance, improve decision-making and strengthen corporate culture. Under Alex’s leadership the fertilizer company risk management has become integrated into the day-to- day management and operation of the business, risk management now guides corporate decision-making and forms an integral part of company culture.

The introduction of quantitative risk analysis changed how investment decisions are prepared and discussed at the Board (stochastic stress tests and NPV@risk), how insurance decision are made (loss exceedance curves, claims probability distributions), how performance is measures and businesses are remunerated (risk-adjusted net margins, risk capital charges), how large IT projects are implemented (cost and schedule quant risk analysis), how pricing and accounts receivables is managed (cVaR), how compliance issues are identified and managed (stochastic decision trees), limiting market risk exposure (VaR, limits, stop losses), how HSE risks are quantified and mitigated (stochastic risk models) and so on.

The fertilizer company has became home for some of the most advanced quant risk analysis in non financial companies. This risk maturity has contributed significantly to both company financial performance and the reduction in risk mitigation costs, for example the cost of insurance has been reduced by $10+ million year to year, without changes to deductibles or other changes in the quality of coverage, if anything the quality of insurance coverage has increased.

Alex’s work helped the company to recognize that making business decisions involves taking calculated risks, and correctly assessing these risks is fundamental to delivering long-term value to our shareholders and meeting our commitments to other stakeholders. Over the last 12 months Alex’s team has made significant progress in integrating quantitative risk analysis into decision making. Key business processes have been updated to make sure risks are identified and their effects assessed, mitigated and transparently communicated when making material decisions. This allowed the fertilizer company to proactively respond to COVID-19 and minimize potentially adverse effects on company personnel, supply chains, liquidity and customers.

Alex Sidorenko is an experienced executive across strategic, investment and operational risks and insurance working within multibillion dollar corporations in Australia, GCC and Europe. Successfully implemented changes to quantitative risk analysis, risk-based decision making and neuroscience.

Saved more than $13 million per year in premiums on cargo and PD/BI insurance through industry leading quantitative risk analysis without changing deductibles or limits. Successfully presenting corporate risk profile at the Ministry of finance and helping secure more than $1B in extra funding.

Author of the most popular free risk management book in the world, more than 150K downloads in 3 languages. Risk manager of the year, FERMA, 2021, Honourable mention 2021, RIMS. Risk manager of the year, RUSRISK, 2014, Best ERM Implementation, RUSRISK, 2014, Best risk management training, RUSRISK, 2013, 2014, 2015, finalist in risk management awards in 2018 and 2019.

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Alex Sidorenko is an expert with over 15 years of private equity, sovereign wealth fund risk management experience across Australia, Russia, Poland and Kazakhstan. In 2014 Alex was named the Risk Manager of the Year by the Russian Risk Management Association.

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Alex specializes on integrating risk management into strategic and investment planning and decision making at venture capital, private equity, investment authorities and sovereign funds across the world. Alex worked as a Head of Risk Management at RUSNANO, one of the largest private equity funds in Russia, specializing in technology investment. Alex won an award for best ERM implementation at RUSNANO in 2014.

As a VP at Institute for strategic risk analysis in decision making, Alex is responsible for risk management consulting, training and certification across Russia and CIS. Alex is the co-author of the global PwC risk management methodology, the author of the risk management guidelines for SME (Russian standardization organization), risk management textbook (Russian Ministry of Finance), risk management guide (Australian Stock Exchange) and the award-winning training course on risk management (best risk education program 2013, 2014 and 2015).

In 2012 Alex created RISK-ACADEMY <a href=""></a> a web portal dedicated to risk management training across Russia and CIS. Since then RISK-ACADEMY became a global brand providing risk management services to some of the largest organizations in the world.

Alex recently published his second risk management book called “Effective Risk Management 2.0”. Alex also regularly presents at risk management conferences in the Middle East, Russia and Europe. In November 2012 Alex short a TV series dedicated to risk management in start-ups. Alex teaches risk management at major Russian business schools as well as corporate universities.

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