Occupying increasing importance in banking – and becoming ever more poignant since the 2008 financial crisis – is the need for disciplined, effective risk management. Extensive new regulations (e.g. Basel III) challenge banks with continually tighter requirements and constraints. And because of the direct effects of such constraints on the P&L (e.g. through influencing refinancing costs), such measures have achieved a prominence far beyond their humble origins, contributing even to strategic discussions on market and price positioning.
BCBS 239, from the Basel Committee on Banking Supervision, identifies 14 principles to be observed by both global banks and local banks deemed to be critical to financial stability. These address governance, risk aggregation, and reporting.
Sound risk modeling is a cornerstone of all effective risk management, yet it cannot happen in a vacuum. Correct calculation and aggregation of risk require both superior data quality as well as consistent, theoretically sound quantitative models. Moreover, deliberate and goal-oriented risk strategies require efficient, highly responsive processes which can prove particularly challenging to long-established players with existing processes and application landscapes that are the result of organizational evolution.
At Finalix, we understand the challenges of modern risk management. We offer our clients outstanding, experience-based support in the areas of process optimization, risk controlling and reporting (with attendant data quality assurance), methodological standardization, as well as project management.
Assistance with managing organizational transformation at the interface between Business and IT in the areas of:
- Operational risk
- Market risk
- Credit risk
- Liquidity risk
- Risk reporting