Risk management is the identification, quantification, and proactive management of risks—and it is a key factor for value creation in banking. Given today’s unstable two-speed economy, every bank needs to evaluate and improve its risk-management capabilities. Here are some of the most significant risks in financial services:

Given the effects of the financial crisis and today’s market and economic environment, financial institutions must answer some important questions:

  • How can an institution efficiently manage and employ its financial resources (funding and liquidity, capital)?
  • ow can the effectiveness of risk management be improved? What requirements does this imply for governance, systems, and infrastructure?
  • What is the impact of new regulatory requirements (such as Basel III, Solvency II)?
  • How can an institution identify the most important risks it faces—and how can they be made transparent and managed?

Our Risk Management practice has five main areas of focus:

  • Office of the Chief Risk Officer. Defining a conceptual framework and organization for the steering of funding and liquidity, capital management, definition of risk appetite, integrated management of risk and return, and risk disclosure and reporting
  • New regulation. Assessing the impact, and supporting the implementation, of new regulation on business models and products
  • Risk operations excellence. Defining and applying a target operating model and organization for a risk function
  • Risk mitigation. Defining portfolio optimization and portfolio management measures; creating transparency on critical portfolio risks; and implementing  portfolio restructuring strategies
  • Risk information technology. Assessing the functionality and performance of the risk IT infrastructure, and defining a strategic risk architecture

We advise banks to plan for – and stay on top of – their key risks and compliance areas to add benefit and counter major problems and threats.

Risk Advisory
Risk Management
BSA / AML Audits
Examination Assistance
Compliance Assessment
Community Bank Compliance
Vendor Management Assessment
Fraud Prevention Assessment
Independent Loan Review