Credit Risk Credit risk is a fast changing discipline at the leading edge of risk management practice. The recent credit crisis brought into focus the need for effective risk management control and highlighted many of the deficiencies of the banks’ approach to measuring credit risk. This has resulted in many financial institutions reviewing their existing approach to the management of credit risk from a process, organizational and systems perspective. At the same time, many institutions are also continuing to develop more sophisticated methods of risk management, such as measuring and hedging Credit Valuation Adjustments (CVA) and modeling economic capital and incremental risk. Market Risk Market risk is perhaps a more evolved environment than credit risk, but techniques continue to develop and institutions need to be able to price ever more complex products. Whilst the management of market risk has been at the forefront of banks’ thinking for many years, institutions such as hedge funds and traditional fund managers are increasingly paying more attention to developing their market risk practices. Operational Risk Major operational risk failures within financial institutions are headline news. Whereas losses stemming from credit or market risk are often accepted as a cost of doing business, stakeholders and the wider community may be less tolerant of operational losses, particularly where they derive from high profile fraud or perceived incompetence. In recent years operational risk management has risen up the agenda of financial institutions, both as a means of protecting against becoming the next Barings, and as a result of increased sophistication in modeling techniques such as those under BASEL II The core protection against operational risk in any institution is a rigorous system of internal control. This has been recognized for many years, along with the need for review by an independent audit function. More recent innovations have attempted to quantify operational risk, using methods such as control self assessment, key performance indicators and modeling loses and capital Outsourced Risk Services Risk management and quantitative finance are increasingly complex areas, and high quality staff can be difficult to find and very expensive. By outsourcing part of your risk management processes to Sachi Investments PLC, you may be able to improve both the quality and cost effectiveness of your risk operations. We currently offer outsourced risk services in areas below. If the service you are looking for is not listed, we will be happy to construct a bespoke service to meet your requirements.
Risk Audits Counterparty due diligence and transactional analysis Potential Future Exposure review Model Validation