Imrecon

Imrecon's strength in analysis is founded on long experience in financial modelling, going back over 20 years, and a specialism in translating and extending that experience to address policy issues in economic regulation.  One key area for these issues is financial risk.

• the periodic price cap resetting process alters the risk balance between regulated business and its users, 
• the regulatory regime can constrain a business's ability to respond to adverse (or benign) financial conditions, and
• uncertainty in regulatory decisions can introduce new dimensions of financial risk. 

Imrecon believes it is possible to go beyond the conventional focus on the threshold financial indicators associated with a benchmark credit rating and, in Imrecon's experience, credit rating agencies respond positively to more risk-aware approaches to regulatory analysis.  Imrecon's general approach is therefore to integrate financial and policy modelling, building on a strategic understanding of the main cost and revenue drivers over the regulatory cycle and beyond and exploring the principal sources of uncertainty in those drivers.  Where appropriate, Imrecon uses simulation modelling techniques or other simpler, quicker techniques.  Whatever methodologies are used, Imrecon's aim is to provide real world insights into the risk issues that can inform regulatory decisions and the dialogue between the regulator, investors and rating agencies.