Ensure adequate capability to manage risk

Context

  • FSI players seek to improve the level of confidence regarding completeness and accuracy of large exposures, both for on balance sheet and off balance sheet entities.
  • It is paramount that he risk governance model focuses more on systemic risk and economic capital. Significant valuation challenges arise from lack of access to reliable financial data and the rapidly
    deteriorating credit environment.

Risks and challenges

  • How can the collaboration between business line and risk management be improved?
  • How to assess the credit risk for unknown positions (reliance on external credit rating) and define the expose and loss in case of default?
  • How to define pricing for illiquid assets? Relevance of market data used as an input for proprietary valuation models and techniques?

How Deloitte can help

Deloitte services in the area of risk measurements range from the valuation of a complex derivative on a standalone basis, over hedge accounting advice or insurance ALM modeling, to a full Economic Capital process design and implementation.

Furthermore we implement full Enterprise Risk Management solutions, and support clients developing risk models and scenario-based and qualitative measurement techniques and set-up stress testing for financial risks as well as non-financial risk such as strategic risks, reputation risks and operational risks.

Deloitte helps implement risk remediation solutions such as Anti Money Laundring, FAC sactions, internal controls, and more.