Aligning strategic, risk and capital management
Traditionally, the risk management processes within financial institutions have tended to operate independently of its strategic and capital management processes. At QED we believe that in order to maximise their combined value, organisations need to ensure that these disciplines are aligned.
By incorporating risk management into the strategic and capital management processes, organisations are able to take both the risk and capital implications of their business decisions into account. Our ERCM specialists assist financial institutions to do just that. Our methodology also provides support to financial institutions in enabling them to manage their risk profiles in line with risk appetite and ensuring that capital is optimally deployed across the organisation.
RISK GOVERNANCE AND STRATEGY
We assist our clients with their risk governance and risk strategy requirements. This includes:
We assist you with all components of the risk management process used to manage your quantitative and qualitative risk exposures. This includes designing and enhancing top-down and bottom-up risk appetite processes to enable decision making, developing risk taxonomies and risk dictionaries to facilitate the identification of risk, as well as the design of risk registers and tools for measuring and monitoring risk exposures.
We provide you with support in developing a comprehensive capital management framework that covers all components of the capital management strategy and governance, capital management process and capital infrastructure requirements. This includes:
ASSET LIABILITY MANAGEMENT
We assist our clients by developing a range of ALM solutions that ranges from a basic ALM approach that focusses on using it as a risk mitigating tool to more advanced approaches where ALM is used as part of a decision-making framework that uses ALM to control risks and achieve strategic objectives.
ERM in a Box
We designed our ERM in a Box solution to assist new and smaller organisations with the design and implementation of a minimum compliant Risk Management Framework and Function that is proportionate to its size and complexity. By using a phased approach, we assist clients to gradually mature their ERM Functions and ensuring that resources are allocated in an efficient manner. During the implementation phase we establish the documented ERM framework and design and implement ERM processes within the organisation – we can also act as outsourced CRO during this phase.
ERM Health Check
We assist clients with various levels of ERM maturity by performing a health check of their current Risk Management Framework and Function. We have developed a solution that describes what the various levels of maturity for each Risk Management Framework component looks like. As part of the process we firstly identify the appropriate maturity level given the complexity and size of the organisation. As a next step, we identify the current state for each component, and in turn, identify the location and size of the gaps in the framework. As a final step, we provide the client with a roadmap with our recommendations on how to achieve its ideal state and close the existing short comings in the framework.
A Combined Assurance Framework provides a coordinated approach to ensuring that your key risks are being managed appropriately in your organisations. We assist clients in developing and enhancing their approach to combined assurance by ensuring the overlap between assurance activities are minimised and any gaps are identified and closed. As part of the process we will develop and enhance the three lines of defence governance model and ensure that the requisite tools such as the combined assurance maps are in place.
When it comes to regulatory requirements, we assist you in:
We have also developed several products to address needs relating to these solutions, including Risk Digitisation and Model Risk Management.