The Paradigmix Model

PARADIGMIX is a risk and performance management model for industrial assets under Digital Asset Servitization designed for the management of the integrity, performance, competitiveness and environmental sustainability of Service Contracts. 

The model is based on a sophisticated and innovative integration of classes of information aimed at the creation of control and performance indicators (as per the granting of the relevant national patent on a “system for the management and control of the life cycle and risk assessment of production facilities” – Italian Patent No. 102018000004013 – dated 03/27/2018). 

Objectives are achieved by correlating and weighting heterogeneous information sets, which enable the monitoring of the four main areas of risk: Credit, Asset Usage, Market Value and Reputational, through a sophisticated integration of information classes aimed at creating scoring as indicators of control and performance (as per the relevant national patent on the “system for the management and control of the life cycle and for the risk assessment of production plants”). 

This trend scoring, time by time, enables the following opportunities: 

  • Monitoring of Risk Management and Service Contract Performance. 
  • Certification of asset performance: the cash flow generated by Digital Servitization, supported by the trend scoring, can be used as the underlying for a new class of Asset-Backed Securities and allows the producer to access a NEW SOURCE OF SELF-FINANCING 

Virtuous “servitized companies” will disclose in the notes to the financial statements both the cash flow forecast and the risk-weighted valuation of the servitized portfolio for the purpose of transparency to the credit system.