Risk Management

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OFFERS & EXPERTISES

RISK MANAGEMENT

BUSINESS ISSUES

Quantitative risk modelling & model risk management

Risk data management

Collateral management

Regulatory capital optimisation

Credit, market & liquidity risk management

Risk function transformation

Context

The continuous pressure on risk management functions shows no sign on abatement.

Whether it is:
– new technology shifting customer risk profiles;
– new fraud and cybercrime risks;
– coping with regulatory compliance complexity;
– maintaining appropriate governance and control;
– managing the risks associated with development of new produces, markets and business models;
– Risk Managers must always be at the forefront of the latest developments and be able to count on the best data, models and people.

Issues

Effective risk management (market, credit, liquidity, operational, etc.) requires a complete and transversal view of the regulatory impacts and the business transformation they require. It is essential to develop global solutions that facilitate effective governance around decision-making. In this evolving context, our clients’ risk departments are transforming their organisations to better measure, monitor risk and to make the end-to-end risk management process reliable. This transformation involves importantly the alignment of Risk and Finance functions.

HARWELL MANAGEMENT IS YOUR PARTNER

 

Our risk team is made up of experts with 2 to 25 years of experience, with specialist expertise in both prudential and conduct regulation.  The team manages largescale risk transformation projects as well as technical risk modelling and compliance projects, which deliver high value add for our C-Suite stakeholders.

1

Scoping: Regulatory anticipation

  • Regulatory Interpretation (FRTB, Basel 3, SA CCR, CVA, BCBS 239, IFRS 9, IRRBB …).
  • Impact analysis in respect of changes in governance, organization, processes and IT.
  • Realisation of quantitative impact studies and assistance in the realisation of QIS and stress testing.

2

Delivery: Assistance in the implementation of projects related to risk management and regulation

  • Support in regulatory projects (FRTB, EBA Stress Tests, IFRS 9 Phase 2, Basel 3, BCBS 239 …)
  • Review and optimisation of production processes of regulatory risk metrics and risk management processes within the bank
  • Diagnosis of the tools in place, Gap Analysis and definition of target architecture and selection of IT solution
  • Benchmark of the provisioning systems
  • Deploying expert credit ratings or recovery system
  • Coordination of the implementation of a static and dynamic ALM calculation tool
  • Support in scope extension projects (new entities, new products)

3

Quantitative modelling

  • Establishment of an impairment model
  • Construction of rating models and LGD models in different segments: Retail, SMEs, Large Companies, Local Authorities, Sovereigns.
  • Support in the modelling of risk indicators on market operation (VAR/Expected Shortfall, DRC, EEPE, regulatory CVA, xVA)
  • Pricing model design
  • Definition of stress tests
  • Liquidity management

4

Audit and risk control

  • Audit and diagnosis of organisations, processes, tools and methods (regulatory models and provisions)
  • Review of the implementation of the regulator’s recommendations or internal audit
  • Regulatory support, as part of the preparation for an on-site inspection by the Supervisor
  • Support for the validation of market models (valuation models, risk measurement, xVA, ALM), credit models (PD, LGD, CCF, EAD), Pillar II models (ICAAP / ILAAP)

Our added value

We at, Harwell Management rely on its network of experts and its experience in many successfully completed projects concerning risk management (market, credit, liquidity, operational risk…) to deliver value to our clients. We leverage our experience and capability to better understand and respond to your issues.

Combined with a transversal market vision, we support our customers and in particular the Risk Departments in their major projects of evolution and transformation in relation with their ecosystems, specificities and regulatory constraints of the moment.