The recent financial turmoil highlights the importance of the risk management function and demonstrates that deficiencies in this area can make financial institutions vulnerable and severely impact profitability.

Effective risk management provides a broad outlook on future opportunities without losing sight of the possible risks at hand. In doing so, a robust risk management function effectively manages shareholder expectation and investor confidence while maintaining a sharp focus on risk.

With the scarcity of financial resources and the hardening and complexity of regulations (e.g., Dodd-Frank Wall Street Reform and Consumer Protection Act, FSA’s Liquidity Regulation, Basel II/III, Solvency II), risk management is quickly becoming a key area for investment and transformation among financial services leaders.

Financial institutions face many challenges, including:

  • Optimizing the use of capital
  • Turning regulatory constraints into opportunities
  • Integrating these new regulations into pricing
  • Ensuring more transparency in risk management and more independence in corporate governance

Kurt Salmon assists financial institutions in overcoming these challenges through:

  • Risk measurement and management (credit, operational, market and liquidity risks)
  • Economic capital management
  • Model validation and back-testing
  • Quantitative impact study services
  • Capital adequacy and regulatory services
  • Processes and systems reengineering
  • Corporate governance services

We have helped industry leaders optimize credit risk reporting, set up group risk departments and design profitability models, among other services.