The recent global financial crisis demonstrated that institutions with good Enterprise-wide risk management (ERM) managed to survive. Conversely, weaknesses in ERM contributed to the downfall of others. A sound approach to ERM increases a firm’s resiliency to unexpected events and, if implemented effectively, is a source of comparative advantage. This has not gone unnoticed by the global regulatory community, which has responded with heightened regulatory scrutiny and expectations for ERM across the industry.
We work with clients to determine appropriate risk appetite strategies and to build the infrastructure to support and monitor risk appetite. This includes strong governance structures based on a “three lines of defence approach,” control frameworks, and reporting templates. Our team of former banking industry specialists includes subject matter experts on product risk, transaction execution risk, IT/system risk, compliance risk. We also have acquired in depth knowledge of the regulatory response to the recent financial crisis, including the Basel III, Capital Requirement Directive IV, EU Capital Requirements Regulation, and all the wealth management compliance directives.