Risk Management Consulting

risk-management-consultingCapMarket Consulting provides a range of Risk Management Consulting services that draw upon a deep understanding of the financial markets to provide creative solutions to challenges faced by the participants in these markets.

Our professionals combine risk management industry experience with proven consulting and project management skills.

When working with leading financial institutions we identify and measure risks, benchmark risk-management procedures, develop risk-monitoring processes, and implement consolidated risk reporting.  Our work improves management oversight and control infrastructures for financial market activities. In addition, we have successfully spearheaded forensic investigations requiring independent financial markets expertise.

Risk Management Consulting Services

Risk Management – Credit Risk, Market Risk, and Operations Risk

CapMarket Consulting has a successful history of working with financial institutions to assess, measure, and advise on a wide range of financial risks including credit risk, market risk and operations risk.  Providing customized risk management solutions responsive to client needs typically includes:

  • Risk Assessment – Identification and Evaluation
  • Risk Measurement – Quantification, Modeling, and Mitigation
  • Risk Advisory – Transactions, Infrastructure, and Hedging

Management Oversight and Controls

CapMarket Consulting has extensive experience in assisting financial institutions with evaluating and improving management oversight and internal control processes used to ensure that financial institutions avoid unnecessary risk.  Effective management oversight involves identifying, assessing, monitoring, and controlling risks associated with a financial institution’s activities. CapMarket Consulting services include:

  • Control Assessment
  • Benchmarking
  • Policies and Procedures
  • Performance Measurement

Forensic Investigations of Financial Market Activities

CapMarket Consulting has extensive experience with forensic investigations at large financial institutions and provides forensic investigation services in the financial markets that include:

  • Detecting Improper or Fraudulent Activities
  • Evaluating Alleged Misconduct
  • Whistle-Blower Investigations
  • Questionable Valuations

Selected Engagement Descriptions – Risk Management Consulting

Assessment of a Bank’s Risk Management Procedures

Bank senior management retained CapMarket Consulting to perform a comprehensive risk assessment that included the identification and evaluation of the credit, market and operations risk management procedures at the bank.  The assessment benchmarked the risk management procedures at the bank to best practices in the industry.  CapMarket Consulting findings highlighted the gap between the bank procedures and best practices as well as identifying operational improvements that were accepted and implemented by management.

Assessment of a Bank’s Client Valuation Control Infrastructure

A bank was concerned that the valuations provided to its clients represented significant risk.  The number and complexity of valuations provided to bank clients had significantly increased, without corresponding changes to the governance and control infrastructure associated with the client valuations.  CapMarket Consulting performed an assessment of the bank’s client valuation governance and control infrastructure of global trading activities with an emphasis on client valuations for complex structured transactions.  The assessment mapped the existing client valuation process for a range of financial products and multiple global trading locations. The project resulted in creating a multi-phased implementation plan to enhance the client valuation governance and control infrastructure.

Whistle Blower Investigation Focused on Structured Products

An employee claim was made questioning the accuracy of the internal valuations used for structured transactions.  CapMarket Consulting was retained to independently investigate the merits of the claim. As part of the inquiry, the investigation required the review of the bank’s internal controls and valuation processes of structured transactions.  CapMarket Consulting conclusions and recommendations were provided to and adopted by senior management.

Valuation Assessment of Structured Transactions Portfolio

Senior management at a bank wanted an independent valuation assessment of a portfolio of structured transactions.  CapMarket Consulting performed a valuation assessment of the portfolio.  The project entailed modeling the transactions to generate valuations and analyzing the differences between the bank’s valuations.  The results highlighted significant valuation risk to the bank.

Forensic Investigation of Fraudulent Trading Activity

Senior management uncovered suspicious trading activity on an options trading desk at a bank. CapMarket Consulting investigated four years of trading history, including mining the systems and examining the trades from this period. The project uncovered a systematic pattern of fraud.