Finbridge supports banks in current topics as well as scheduled and ad-hoc revision exercises on risk methodology, risk controlling, and risk management. Our expertise in both risk methodology and regulation allows us to provide our clients with a wholistic approach to internal and external risk measurement and risk reporting. This enables our clients' risk management units to react early to changes in regulatory requirements. Many of our consultants have ample project experience in the field and hold degrees in mathematics as well as industry relevant certificates (FRM, CFA, Frankfurt School Risk Managers).

 Recent projects with a focus on risk management include the following:

  1. Revision: Model validation of internal models for operational risk, fx risk and credit risk – Bank for small and medium-sized businesses
  2. Integration of participation risk into the existing credit risk model – Landesbank
  3. GAP analysis / validation of internal market risk model for pension funds – International corporate bank
  4. Optimisation of loss data aggregation – Landesbank

Overview over Finbridge's experience in risk management:

TRIM

  • Support to line functions during the ECB targeted review of internal models (TRIM)

 

Market price risk

  • Quantification and measurement of market price risk (general market price risk, specific credit spread risk)
  • Backtesting approaches and processes
  • Review of coverage ratios
  • Coaching and prioritisation in preparation for model approval
  • Implementation of service-oriented reporting to trade divisions
  • Definition and integration of corresponding processes

 

Credit portfolio management

  • Integration of credit portfolio models for economic risk measurement and risk management
  • Definition of credit portfolio management
  • Credit pricing
  • Securitisations (regulatory effects vs. economic effects)

 

Liquidity risk

  • Liquidity management according to LCR and NSFR
  • Intraday liquidity management according to BCBS 248

 

Operational risk

  • Model validation and preparation for internal and external revision

 

Overarching bank management

  • Definition of risk bearing capacity
  • Management of economic capital

 

Limit management

  • Introduction and implementation of limit systems and corresponding management processes