FINANCIAL RISK MANAGEMENT
The ability to anticipate and prioritize work to be undertaken as a competitive advantage
Defining risk and mechanisms for transmitting this to the entire organization
Advice on the management and control of risks under Basel II and Basel III .
Risk mapping identifying those most relevant risks (credit , market, operational , structural balance and risks Pillar II ) , associated controls , key indicators for monitoring and action plans to mitigate its possible realization
Development of methodologies for estimating Economic Capital and Risk Adjusted Return – RAROC
Preparation of Plans for adaptation to regulatory changes , establishing a gap analysis based on the rules and an action plan for adaptation of the organization to compliance with those rules
Setting Benchmark for adaptation to best practices in risk management
Development capital adequacy assessment reports for senior management
Support in the process of adopting advanced risk management approaches for calculating capital for credit risk , market risk and operational
Definition of policies and procedures for the management and control of credit risk at all levels of the organization: admission and granting, monitoring and control, recovery and internal validation.
Identification and quantification of the various credit risk parameters: PD, LGD and EAD and development allocation models for Business credit quality – Rating and Individuals – Scoring.
Development of “behavior” models pre-allocation of limits on credit operations. Advice on the definition of the organizational structure of the credit risk function.
Establishing control mechanisms necessary to ensure proper compliance with policies, through the design and construction of models alerts and indicators for monitoring customers and their credit operations. Analysis of the evolution of credit risk indicators, followed by irregular recovery process.
Design and construction of models of reporting: setting the internal communication channels, content reporting information (information recipients, axes, frequency) and fixation of responsibilities for internal and external reporting.
Datamart definition of credit risk and collateral datamart Identification of methodological and operational reduction measures expected loss.
Stress testing and backtesting on the variables of the internal models approved by the regulator.
Definition of policies and procedures for managing market risk and counterparty activity treasury and capital markets.
Review and development of methodologies for valuation of financial products, inputs and calculation of risk factors and quantification of market risk and counterparty.
Definition of Stress Test Testing for market risk and Contingency Plans (identification, communication and action plan) before market crisis.
Review and proposed organizational structure for risk management and control, defining roles and responsibilities at various levels of the organization.
Review and proposal technology platform that supports systems management process and risk control: repositories of information, assessment tools, etc., in the areas of Front, Middle and Back Office.
Defining the structure of both internal and external reporting, identified the key variables for decision making, and incorporating these in the daily management of the business.
Definition of policies and procedures for control and operational risk management.
Definition of operational risk categorization and event capture methodology.
Definition of qualitative methodologies (process mapping and risk self-assessment exercises and risk controls, key risk indicators, etc.) and quantitative (loss databases, advanced models of quantification, etc.)
Review and proposal organizational structure for risk management and control by defining the roles of the various agencies, departments and units involved in operational risk management.
Review and proposed applications to perform self-assessments, establish key risk indicators and databases of losses, quantify the economic and regulatory capital, etc.
Definition of dashboards to facilitate communication of exposure to operational risk and management.
Definition of action plans to mitigate operational risk Development of business continuity plans.