Quick Check

Our experience on a wide range of projects means that we boast extensive expertise in the fields of enterprise-wide risk management, general risk management and systems integration. We are familiar with all major methods and systems on the market and have a good understanding of their strengths and weaknesses.

Based on our experience, we can analyze your interest-rate risk management system in just 1-2 weeks. Taking into consideration your lending and treasury portfolio, and the methods and systems currently deployed by your company, the analysis aims to answer the following questions:

• What is your specific risk profile?
   
• Are your methods and procedures appropriate for this risk profile?
   
• How good is the performance of your existing bank-wide risk management systems?
   
• Which additional accounting and regulatory requirements can (and should) be met on the basis of your existing risk management systems?

Using this analysis, we will:

• Benchmark your interest-rate risk management system against the industry standard
   
• Identify weaknesses in your bank-wide risk management systems and processes
   
• Prepare an action plan to suitably enhance your systems taking into account cost/benefit aspects

The solution will be tailored to your unique circumstances. In our experience, even simple improvements can have a significant business impact.

Take advantage of our wealth of experience spanning hundreds of projects. We are happy to arrange non-committal on-site visits to discuss your requirements. This will give our experts the opportunity to discuss your current situation and plans with you, and give you an overview of the solutions we offer.

 How much will the "QuickCheck" cost?

The clear structure of the QuickCheck program guarantees comprehensive results at a manageable cost.

It takes between five and ten working days and is performed by one of d-fine's specialist teams on your premises.

Total costs range from £ 6,000 to £ 12,000 (plus VAT; travel expenses may apply) and will be agreed with you in advance.

 What do you have to do?

The aim of our analysis is to develop possible ways of optimizing your bank-wide risk management system. You should prepare descriptions of your business structure, processes and systems in advance, so that we can hit the ground running. Your own experts will be involved throughout the analysis process thus ensuring the transfer of know-how at every stage.

 Which types of bank are best suited to the QuickCheck?

The QuickCheck is designed for any bank asking the following questions:

• Are existing enterprise-wide risk management methods still adequate in view of current and future business activities?
   
• Which business risks are currently either not controlled or only insufficiently controlled?
   
• Can we identify areas requiring urgent action? What kinds of immediate measures are available?
   
• What are the recommended steps for the implemention of an adequate enterprise-wide risk management approach in the medium and in the long term?

Your requirements for enterprise-wide risk management depend on the complexity and scope of your business. The QuickCheck process is undertaken with this in mind.

 How does it work?

The QuickCheck essentially consists of four stages:

Stage 1 - Fact finding
The first stage of the QuickCheck involves the collection of information on the existing situation and current plans. This involves the investigation of a number of areas, including:

• Current and future strategies for your lending business
   
• Scope of lending business with regard to risk appetite
   
• Current and future treasury strategies
   
• Scope of risk management and trading activities
   
• Current methods for managing lending and treasury business
   
• Scope of systems support
   
• Issue risk and collateral

Stage 2 - Requirements analysis
We identify and prioritize requirements for enterprise-wide risk management using information gathered in stage 1 together with our own professional experience. We aim to answer the following questions:

• Which bank-wide risk management methods are necessary and useful given your current business activities?
   
• To what extent and to what level of detail must you consider treasury transactions (securities, money market transactions and derivatives)?
   
• How accurately do you have to consider optionality embedded in loans and treasury transactions?
   
• Do additional requirements (such as those potentially arising from IFRS) require data on the level of individual transactions?
   
• To what extent must operational processes be mapped in your systems?
   

Business requirements raised by your internal specialist will be included in this stage.

Stage 3 - Gap analysis and identification of weaknesses
Target requirements (stage 2) are compared with the current situation (stage 1). Weaknesses will be identified.

Stage 4 - Action planning
Based on gaps and weaknesses (stage 3), an action plan will be agreed, taking into account the available methodological and technical infrastructure. Planned action tasks will be prioritized.

The plan may also suggest alternative approaches, and recommend immediate measures ("quick wins") as appropriate.

The results of each stage will be documented in a final report which we will discuss with you in detail.

 Who performs the QuickCheck?

The QuickCheck specialist team comprises 2-3 experienced d-fine employees. Their expertise is based on the successful implementation of numerous projects in this area.

 How much notice do we require?

The date for the QuickCheck is normally agreed a few weeks in advance.

 What do you need to provide?

In order to allow the QuickCheck to be performed quickly and effectively, you must make key contact personnel available from:

• Treasury/trading 
  
• Risk management 
  
• IT/operations 
  
• Middle and back office

We also require access to your existing documentation of methods, workflows and systems.

 What is the next step?

If you have further questions on the QuickCheck or would like more detailed information on our procedures and expertise, please contact:

Markus von Rothkirch
Tel: +49 (0)69 9073 7301