Case Study: Leading Aluminum Manufacturer achieves improved loss prediction for risk scenarios with MetricStream ERM Solution

Leading Aluminum Manufacturer Strengthens Ability to Predict Losses for Risk Scenarios through Monte Carlo Simulations

A leading aluminum manufacturer in the Middle East with a global footprint sought to strengthen its Enterprise Risk Management amid a complex, volatile operating environment. A small ERM team needed better visibility into Value at Risk (VaR), more robust loss‑prediction tools for events like power outages, supply disruptions and price volatility, and a way to integrate empirical loss data with enterprise risk information.

The company implemented MetricStream’s ERM solution integrated with its analytics engine (built on R) to run data‑based and scenario‑based Monte Carlo simulations across multiple probability distributions. The centralized platform delivers VaR and loss‑distribution outputs for quarterly and ad‑hoc analyses, enabling more accurate loss forecasting, consistent risk monitoring, and data‑driven decisions that help proactively reduce potential losses and inform executives and the board.