Financial institutions operate on a huge scale at the heart of the economy. As consumers, our insurance policies, life-time savings, bank accounts, mortgages and pensions are managed by these organisations. As corporates, they provide capital markets, financing, treasury and insurance services which support companies in executing their business strategies. Their financial stability is vitally important to all consumers and corporates and to the health of the wider economy.

At the heart of any financial institution, helping to protect its financial stability is risk and performance management. For example, the ability of a bank to understand the risk it exposes itself to in lending money to customers, whether they be individual customers or large corporates, enables it to price competitively and profitably. The ability of an insurer to understand the risks it underwrites is paramount to the viability of its business model. The ability of an investment manager to understand its own risk exposure versus the risks passed on to the customer is critical in establishing clear and transparent fund mandates.

The competitive and regulatory landscape which financial institutions face has dramatically changed:

• An increasingly principle and risk based regulatory framework is transforming the way that financial institutions measure regulatory capital (e.g. Basel II for banks and Solvency II for insurance companies) and comply with regulatory pronouncements (e.g. MIFID).
• The drive for better shareholder returns and improved capital management leads to the requirement for a better understanding of risk and return, which is driving the convergence of risk and finance.
• The increasing volumes and complexity of financial products traded is putting pressure on existing risk and finance processes and technologies to the point where they are becoming a break on the business.
• Escalating costs as a result of keeping pace with business growth are driving the need for a more risk based and efficient approach to risk management.
• Finance functions are driving through changes to their operating models and shared service centres and best shoring are becoming prevalent.
• The emergence of new asset classes, the increasing use of structured credit and the increased influence and role of hedge funds and private equity funds is creating new risk management challenges across all sectors of the financial services industry.

We have a strong track record of working with prominent financial services institutions to help them meet the finance, risk and regulation aspects of their business, and manage their regulatory, statutory and compliance challenges.

Furthermore, we are uniquely placed to support organisations with strategy development, design and execution by drawing from our broad range of consulting and assurance advisory capabilities to deliver this integrated service.