- Banks
- Enterprise-wide Risk Management
- Bank Strategy und Profitability Management
- Treasury and Asset Liability Management
- Liquidity Risk Management
- Credit Risk Management
- Market Risk Management
- Applied Financial Engineering
- Basel II and Regulatory Compliance
- Compliance, Regulatory and Statutory Reporting
- Systems Integration
- Training and seminars
- Asset Manager
- Insurance Companies
- Corporates
Optimising market risk processes
Operational processes are a major success factor for your individual approach to market risk measurement. Optimised processes ensure efficiency in day-to-day work and enable you to focus on your true responsibility - controlling and managing risks. Transparent processes also reduce operational risk.
Market risk processes
d-fine supports you in all areas of process optimization. Our experience in the introduction, documentation and optimisation of processes comprises the entire process chain from workflows within an internal risk model to cross-functional specialised processes through to technical processes.
Prominent examples include:
- quality assurance of risk positions, for example, the reconciliation of master data and the appropriate treatment of internal transactions, mirrored trades, late transactions and revisions
- market data management such as establishing and introducing central market data platforms, obtaining and distributing calculated derived valuation data (e.g. local volatilities or SABR parameters), and automated validation of market data and time series
- regulatory sound internal and external risk reporting
- risk management processes such as the determination of limits, monitoring of intraday risks and violation of limits
- creation and coordinated introduction of new products or markets
- introduction of new risk factors
- backtesting and validation of internal market risk models
- change management processes for models and systems (model change policy)
We do not limit ourselves to purely market risk processes only. Integrating them into risk control, trading, settlement, accounting and reporting processes is essential to success.
Design
Your market risk measurement has to be available on a daily basis. The time frames are tightly scheduled. All processes must be optimally geared to each other. This requires already keeping an eye on the whole process chain when introducing new risk architecture. Technical processes only fulfil their purpose when they harmonise with the workflows of day-to-day business operation. By the same token, the workflows also have to fit into the technical framework.
In a variety of different implementation projects, d-fine has shown how processes can be successfully implemented, balancing line requirements and the technical framework.
Optimisation
Your financial institution undergoes changes. Regulatory requirements also change. Processes must be regularly modified to reflect these changes and need to be optimised. Are you sure that your processes still follow market best practices and that they are adequate for the complexity and the volume of your trading? A review of the entire process chain can give you an idea. In such a review we analyse your processes regarding the following:
- efficiency
- regulatory requirements
- operational risks associated with the processes
- support of trading and risk strategy of your company
We make concrete suggestions on improving your processes and help you to implement the work package necessary for improvement.
