# Toward Business Integrity Modeling and Analysis Framework for Risk Measurement and Analysis
## 4 Discussion: Benefits and Services Offered by the BIMA Framework
### The Heston Model with Visualization and Analytics  
As presented in Section 3, the Heston model is a specialized type of stochastic model that can use the market volatility as an input rather than the theoretical input for BSM, which tends to be used in predicting the outcomes after a period of expiry time [33; 42]. This means that the Heston model can be used in real-time trading, since the market volatility can be changed daily. Blended with visualization and analytics, the Heston model can be further integrated with cloud computing to offer \"Business Intelligence as a Service\" (BlaaS) to offer high-frequency trading and the monitoring of risk and prices. While furthering the development of the Heston model, a machine learning algorithm is added to intelligently detect any 'abnormal' trading activities and report to the investors that they should think twice. Once abnormal events are identified, the chasm will be shown on the analytics. Figure 9 shows the trading activities for Google stock. The upper section shows the prices over some time, and the lower section shows the trading volume and the R-squared values (one type of risk tracking index) for the market movement. There are two points of abnormal activities identified by a chasm. Each point suggests there is more than $100 per stock rise over the next following trading day. It means that  
Figure 8: Accuracy of LIBOR simulations by comparing our predicted values and actual values. Figure 7: Performance evaluation of large-scale by LIBOR simulations. either the investors have been well-informed about the positive earning and strategies set by Google, or investors have decided to join forces to make profits altogether instead of fighting with one another for better financial gains. Chasm approaches can identify if there is speculation made by humans. In other words, misconduct and mispricing may also play an important role, and thus analytics can be presented as a caveat. This can allow investors to receive a useful warning before making an investment, so that the potential risk or financial loss can be prevented. With our financialization approach, we can analyze all this abnormal trading under the remit of legal acceptance to provide transparent and fair proposals for investment and governance. The Real-World Black-Scholes Model (BSM) and Monte Carlo Simulations (MCS) for Bankruptcy and Risk Analysis  
The proposed system was used for the production of an insurance product that could be used by companies to protect themselves from supplier bankruptcy. The probability of bankruptcy for a sample of 100 companies was calculated by using the BSM module of the proposed system. As [PERSON] and [PERSON] [62] introduced, the system was used to create pooling arrangements by using the BSM bankruptcy probabilities among suppliers to reduce the risk due to supplier bankruptcy. The pooling arrangement can be used by an insurance company to minimize risk and estimate an average loss that can be used to determine insurance premiums. A risk pool is one of the forms of risk management practice in insurance. Pooling arrangements do not change a company's expected loss but reduce the uncertainty (standard deviation) of a loss. Risk pooling arrangements make each participant's loss more predictable [57; 62; 63]. With the proposed system, we used pooling arrangements of 5, 10, 25, and 50 companies to see the effect of the number of companies in terms of risk reduction and to estimate an average loss that can be used to evaluate insurance premiums. For each pooling arrangement, a probability table of  
Figure 9: Heston model with analytics for speculation detection for Google stock. bankruptcies was calculated by using MCS. An MCS for the bankruptcy of companies for multiple periods with the probabilities was calculated with the BSM model with the help of the proposed system. The objective of the simulation is to calculate losses for the bankruptcy of suppliers.