Managing market risks

A risk culture is a worthy investment for all business areas involved. It provides help in conscious risk-taking and exploiting opportunities. We accompany you to your goal in three steps: 

Risk measurement

is the fundamental basis of all risk management. d-fine will help you to set up a top-quality risk measurement system, including:

• providing the necessary data basis (instrument, trade and market data)  
• creating a measurement and risk methodology based on sound theory, and stable in practice 
• establishing structured and clearly defined technical and organisational processes

Risk control 

means limiting and monitoring risks according to risk-bearing capacity. This includes an efficient value-at-risk limit system, sufficiently enhanced with comprehensive stress tests and worst-case scenarios. In order to achieve this goal, we provide you with support in the following key areas:  

• establishing a limit structure in line with the trading department's portfolio structure    
• reviewing the limit system and stress tests with a view to regulatory requirements  
• determining escalation and control processes   
• establishing further control processes separately from actual risk measurement

Risk management

is the shared responsibility of the trading units and risk control functions. We provide support with the following tasks to ensure you meet this requirement efficiently:   

• developing a recipient oriented reporting        
• creating transparency and acceptance of risk figures in the trading department 
• limiting risk-taking of the trading department in accordance with your bank's risk appetite for the relevant portfolio    
• including market risk in the calculation of economic capital