Risk management
Challenges
The risk management team relies on the strong experience of its members in various areas related to risk management. The core mission of the team is accompanying clients in the growth of their businesses and helping them to find pragmatic and scientific solutions to manage their risks and anticipate market trends (regulatory aspects and market best practices).
The team’s interventions are focused on the assessment, measurement, hedging and management of risks with an approach promoting a co-integrated management of risks, a constant involvement in research & development to maintain a high level of competencies and to deliver our clients with accurate yet pragmatic solutions, as well as a high commitment for creating a risk-awareness culture for our clients,, with a view to embed risk management within all business decisions.
Indeed, we consider that all businesses – irrespective of the industry – involve risks and stochastic variables, which have to be taken into account. In this purpose, we propose to our clients qualitative and quantitative analysis, in line with the philosophy of the team, whose members share the following values:
- Scientific approach:
We base our assistance on the proper, accurate understanding of your needs and of the specific features of your business. This requires an important preliminary step, consisting in modelling your situations: to do this, we use quantitative techniques, estimate orders of magnitude, from an initial assessment of risk drivers. Therefore, we are rapidly efficient and come straight-to-the-point. - Pragmatic solutions:
We tailor client-oriented, customised solutions. As a result, the outputs of our work can be easily understood and used by management to make the relevant decisions. We are fundamentally driven by a quest to scalability and proportionality, so that our knowledge and expertise is declined into efficient and pragmatic ways into solutions that will move your business forward. - Transparency:
We systematically disclose work assumptions and methodologies with clients, a process which we deem all the more important that risk management lies somewhere between art and science, leaving thus space for discussion of assumptions and hypothesis.
Deloitte services offering in risk management
- Outsourcing of risk reporting (measurement and production) in compliance with CSSF Circular 07/308 and forthcoming UCITS IV regulation (e.g. translation into national regulation of CESR’s recommendations) or market best practice (including state-of-the art models)
- Assistance of solutions for risk qualitative assessment, modelling and mitigation for investment funds, in particular for market-related risks (market risk, liquidity risk, currency risk, commodity risk, credit risk)
- Assistance regarding value-at-risk methodologies and accurate review of internal models (including stress-testing and back-testing methodologies)
- Assistance in the implementation of a risk management process, especially in the implementation of the rules related to market risk, counterparty risk and concentration risk exposures in order to assure the compliance with the CSSF Circular 07/308
- Internal risk model review
- Gap analysis regarding the compliance with the CSSF Circular 07/308 and UCITS IV framework
- Assistance in the calculation and implementation processes for solvency ratios under Basel II regulation (Standardised Approach or Foundation Internal Ratings Based Approach), as well as large exposures reporting
- Assistance in the calculation and implementation or reporting processes within the scope of Solvency II for investment funds (including VAG reporting)
- Solutions in collateral management and haircut modeling
- Assistance of various forms (out-sourcing, in.sourcing, awareness…) in relation with the computation and content management within KII, in particular regarding the Synthetic Risk and Reward Indicator
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