The demands on risk management are steadily on the increase.
When it comes to recognizing and measuring financial risks, banks and savings banks like to play safe. But the demands made of modern risk management have grown. It is not only the many regulatory innovations – amongst others through Basel III – that are increasing the pressure on risk management. In times of low interest rates and high costs, a value-oriented risk management is more important than ever.
The precondition for optimal monitoring and control of risks is an appropriate analytical capability and a coordinated efficient process based on this. Only in this way can risks be reduced and yet at the same time optimal business results be obtained and, additionally, market opportunities to be grasped that continue to be attractive notwithstanding risk aspects. This corresponds to our understanding of effective risk management, i.e. management that not only meets external constraints, but also contributes to value within the bank.
The correct modelling of risks is gaining more and more in importance. Correspondingly, high demands are being made of standard approaches mandated by the regulator. But in internal control, too – whether in trading or in the risk area – it is becoming more and more important to identify the correct risk drivers and to model these as precisely as possible. Only in this way can models supply real added value for the avoidance or else the conscious assumption of risk.
Often, efficient processes mean greater use of digital instruments, with the aim of remaining cost-efficient in an environment of higher reporting requirements and more complex analysis processes, the aim of avoiding operational risks, and the aim, above all, of keeping the internal processes slim – this way more time is available for the decisive analyses and appraisals.
Here at LPA you will find an independent consultant and expert in matters of risk management. We know the new challenges and changes that are important for you and your conduct in the capital market, and we know how to master these. We support you via a reliable risk management in optimizing processes and systems of your organization. Thus, there are no unpleasant surprises.
Overview of the selected focal subjects:
- Focus: market and counterparty risks
- Counterparty limits
- Implementation of the regulatory agenda: In particular, Fundamental Review of the Trading Book (FRTB) and Interest Rate Risk in the Banking Book (IRRBB)
- Quantitative questions, model implementation and validation