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Hundreds of financial services firms have turned to RiskLogix for more than 15 years, for help and support across a variety of different risk management challenges. RiskLogix brings deep expertise to every consultancy engagement, and works in partnership with firms to enable them to achieve their strategic goals. Below are several key areas where financial services firms work with RiskLogix.
Operational risk frameworks
Getting the operational risk framework right is vitally important for financial services firms – everything else develops from this. Whether a FinTech start-up needs to create a whole new operational risk framework, or a large multi-national has to enhance an existing one, RiskLogix Consultancy can provide support. Operational risk framework elements that RiskLogix Consultancy can help with include:
- Governance – Develop operational risk policies, processes, terms of reference, and timelines that support risk appetite, risk culture, and strategic goals.
- Risk and control self-assessments (RCSAs) – Identify and score risks at a gross and net risk level. Identify and score controls. Create qualitative risk appetite statements and metrics connected to that risk appetite.
- Loss events – Implement best practices in loss event capture and analysis, as well as loss causal analysis. Translate losses into quantitative risk appetite metrics.
- Key indicators – Identify, capture, and analyse metrics associated with key risks and controls. Use this data to validate RCSAs and track adherence to the firm’s risk appetite.
- Modelling – Apply RiskLogix’s own mathematical ICAAP models to operational risk data to create the intelligence needed to make fully-informed business decisions.
- Reporting – Create clear and concise operational risk reporting that enables business leaders to fully understand the firm’s risk exposure.
Scenario analysis
For most operational risk teams, scenario analysis can prove to be one of the more challenging aspects of the programme. Yet, done correctly, scenario analysis has the potential to help organisations better manage risks and also deliver important insights to the business. Ways in which RiskLogic Consultancy can support firms include:
- Developing scenarios – Take a practical, compliant approach to scenario creation and documentation. Ensure scenarios reflect the risk profile, while being both plausible and exceptional.
- Applying scenarios – Engage with aCCelerate GRC Risk Analytics to apply scenarios both deterministically and by modelling. Learn a methodology and process for building and using scenarios.
- Interpreting scenarios – Understand the firm’s risk profile, and the difference between single factor and multi-factor events. Apply best practice in analysing scenario outcomes.
ICAAPs and ILAAPs
ICAAPs and ILAAPs can be very challenging for financial services organisations to produce. However, they are a regulatory requirement, and so it’s essential that firms get them correct. RiskLogix Consultancy covers essential topics, including:
- ICAAP governance – Ownership structures and collaboration practices on ICAAPs can vary considerably between firms. Discover the approach that is right for the firm.
- Component interaction – Understand how the capital management plan and the Contingent Funding Plan should engage with the ICAAP, ILAAP, and the risk profile.
- Material risks – Learn how to make sure all material risks are included, and that there is a joined-up approach between ICAAPs and ILAAPs. Appraise your full portfolio of risks.
- Scenarios and stress testing – Develop scenarios and stress testing approaches and discover how they impact the ICAAP and ILAAP.
- ICAAP and ILAAP presentation – Extract greater value out of ICAAPs and ILAAPs by designing them as a communication document about the firm for the regulator.
- External model and data validation – RiskLogix can provide a brief, high-level review, or a full model validation required by the regulator, and points in between. Full model validation projects include model structure and methodology, model calibration and data, model implementation and results, and documentation.
Risk Appetite
Many firms continue to still struggle to engage correctly with their risk appetite, and to drive business benefit from it. While the quantitative aspects of a risk appetite – such as KRIs and losses – seem straight-forward, the qualitative side, such as RCSAs, can often prove challenging. RiskLogix Consulting helps financial firms to:
- Create a risk appetite framework that correctly supports governance practices
- Develop a risk appetite statement that implements the risk appetite across the organisation
- Set risk appetite limits, through allocating high-level risk appetites to business lines
Practical experience and best practice
RiskLogix Consultancy has supported a wide range of financial services organisations around the globe, for more than fifteen years, including:
- Asset managers
- Central banks
- Central counterparties
- Charities
- Commercial banks
- Commodity brokers
- Financial broker
- FinTech start-ups
- Insurers
- Insurance brokers
- Investment banks
- Multilateral development banks
- Regulators
- Retail banks
- Wealth managers
