Overview

Specialised risk measurement and management

The spate of high-profile business failures and the emergence of tougher regulations have increased the pressure on banks and building societies to manage risks more effectively. This includes managing credit, market, liquidity, operational and other business risks, as well as maintaining sufficient levels of economic capital to support the risks facing them.

Risk management is becoming increasingly complex, with risks often interrelated, and requiring tools and techniques constantly increasing in sophistication. Our solutions, designed to develop, implement and embed effective risk management into an organisation include:

Supporting data quality management initiatives – regarding both internal and external data;
Supporting the analysis and definition of the risk appetite and related strategies for effective management, and transfer of risk to give an optimal rate of return;
Developing, documenting and rolling-out of standards and methodologies by which risk exposures are measured or quantified and managed in all businesses;
Supporting the building, calibrating and independent validation of the risk model;
Designing and, more importantly, implementing risk models within an organisation’s infrastructure (people, process, data and technology);
Developing adequate monitoring framework of the portfolios of assets and related risk exposures, as well as designing and producing regular management information reports e.g. ensuring that there are adequate checks in place to identify any area where front line systems are circumnavigated either via external threats or by collusion between criminals and staff;
Working with an organisation to ensure that a disciplined and harmonised approach to the management of risk is supported by adequate governance and operating model for risk modelling and validation;
Acting as an interface with an organisation’s regulator(s) on specific risk modelling-related issues, and providing advice to businesses on regulatory requirement and best practice approaches.

Our specialist risk modelling team help organisations improve their ability to identify, measure and manage risk. We use a variety of techniques relying on historical data where available, probabilistic simulation, extreme value theory and expert panelling techniques to determine likely losses (severity and frequency) incurred across a variety of risks inherent to a transaction, portfolio, business unit or organisation.

We provide specialist risk measurement and management services in the following areas:

Find out more about specialist risks by clicking on any or all of the above areas.