Equity Risk Sciences Launches as First Independent Stock Risk Rating Agency in America
On July 14, 2025, a groundbreaking development in the financial services industry was announced with the launch of Equity Risk Sciences (ERS), the first independent Stock Risk Rating Agency in the United States. This innovative agency aims to revolutionize how investors assess the risks associated with stocks by providing quantitative, evidence-based ratings that evaluate the probability and magnitude of stock price changes.
Equity Risk Sciences utilizes a comprehensive set of proprietary models that are grounded in rigorous statistical analysis, relying exclusively on SEC-filed financial data and an extensive history of 35 years of stock price movements. This data-driven approach ensures that investors and fiduciaries can make informed decisions based on robust evidence rather than mere speculation. ERS’s unique methodology combines numerous financial attributes and trends to forecast price movements, making it an invaluable resource for institutional investors and professionals who require unbiased, conflict-free analysis.
One of the cornerstone ratings from ERS is the Fiduciary Stock Navigator™ (FSN™). This rating provides a thorough composite assessment of a stock's suitability for fiduciary oversight, indicating the likelihood of experiencing significant losses. Stocks rated “A+” under the FSN™ have been historically linked to superior performance and less exposure to major losses. This track record is backed by a 25-year analysis involving over 400,000 stock ratings from the end of 1999 to the end of 2024, showcasing the effectiveness of this innovative rating system.
In tandem with the FSN™, ERS offers the Loss Indicator™ (LI™), a focused rating that highlights the level of financial risk within a company’s structure. This rating takes into account crucial factors such as liquidity, solvency, capital burn rate, operational history, and profitability. Reflected through the LI™, companies with a rating of “-3” have consistently shown poor performance, generating negative average returns over one- and two-year periods compared to the rising broader market. These results underscore the value of the LI™ as an early warning mechanism for financial vulnerability.
As investment professionals face increasing regulatory and legal pressures, the analytical tools provided by ERS are timely and essential. "We're not in the prediction business; we're in the probability business," explains Raymond Mullaney, the Founder and CEO of ERS. His vision is clear: to equip fiduciaries with the necessary tools to avert preventable financial losses. He emphasizes the importance of data analytics and the objective evidence that ERS ratings deliver.
The establishment of ERS challenges the notion that severe declines in stock prices must be accepted as part of long-term investing. Instead, the agency advocates that most significant losses are avoidable through proper risk management and timely intervention. This insight is crucial for fiduciaries, who are legally bound to evaluate investment risks prudently. In a landscape where preserving asset value is paramount, having access to the FSN™ and LI™ ratings can significantly aid in fulfilling their duty to investors.
Potential clients and stakeholders can access detailed studies and results upon request, further enhancing the available resources for fiduciaries striving for excellence in risk management. To learn more or to arrange discussions with Mr. Mullaney, interested parties should connect with ERS’s communications manager, Francesca Okleasky.
In a rapidly evolving financial environment, the introduction of Equity Risk Sciences represents a pivotal moment for investors and fiduciaries alike. By harnessing scientific approaches and economic realities, ERS is set to transform the investment landscape, ensuring that financial evaluations are more systematic and grounded in solid data. As more fiduciaries adopt these innovative ratings, the industry may witness a shift towards more strategic risk management, ultimately benefiting investors looking for stability in their portfolios.
Equity Risk Sciences utilizes a comprehensive set of proprietary models that are grounded in rigorous statistical analysis, relying exclusively on SEC-filed financial data and an extensive history of 35 years of stock price movements. This data-driven approach ensures that investors and fiduciaries can make informed decisions based on robust evidence rather than mere speculation. ERS’s unique methodology combines numerous financial attributes and trends to forecast price movements, making it an invaluable resource for institutional investors and professionals who require unbiased, conflict-free analysis.
One of the cornerstone ratings from ERS is the Fiduciary Stock Navigator™ (FSN™). This rating provides a thorough composite assessment of a stock's suitability for fiduciary oversight, indicating the likelihood of experiencing significant losses. Stocks rated “A+” under the FSN™ have been historically linked to superior performance and less exposure to major losses. This track record is backed by a 25-year analysis involving over 400,000 stock ratings from the end of 1999 to the end of 2024, showcasing the effectiveness of this innovative rating system.
In tandem with the FSN™, ERS offers the Loss Indicator™ (LI™), a focused rating that highlights the level of financial risk within a company’s structure. This rating takes into account crucial factors such as liquidity, solvency, capital burn rate, operational history, and profitability. Reflected through the LI™, companies with a rating of “-3” have consistently shown poor performance, generating negative average returns over one- and two-year periods compared to the rising broader market. These results underscore the value of the LI™ as an early warning mechanism for financial vulnerability.
As investment professionals face increasing regulatory and legal pressures, the analytical tools provided by ERS are timely and essential. "We're not in the prediction business; we're in the probability business," explains Raymond Mullaney, the Founder and CEO of ERS. His vision is clear: to equip fiduciaries with the necessary tools to avert preventable financial losses. He emphasizes the importance of data analytics and the objective evidence that ERS ratings deliver.
The establishment of ERS challenges the notion that severe declines in stock prices must be accepted as part of long-term investing. Instead, the agency advocates that most significant losses are avoidable through proper risk management and timely intervention. This insight is crucial for fiduciaries, who are legally bound to evaluate investment risks prudently. In a landscape where preserving asset value is paramount, having access to the FSN™ and LI™ ratings can significantly aid in fulfilling their duty to investors.
Potential clients and stakeholders can access detailed studies and results upon request, further enhancing the available resources for fiduciaries striving for excellence in risk management. To learn more or to arrange discussions with Mr. Mullaney, interested parties should connect with ERS’s communications manager, Francesca Okleasky.
In a rapidly evolving financial environment, the introduction of Equity Risk Sciences represents a pivotal moment for investors and fiduciaries alike. By harnessing scientific approaches and economic realities, ERS is set to transform the investment landscape, ensuring that financial evaluations are more systematic and grounded in solid data. As more fiduciaries adopt these innovative ratings, the industry may witness a shift towards more strategic risk management, ultimately benefiting investors looking for stability in their portfolios.
Topics Financial Services & Investing）
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