Risk Management & Regulatory Risk

In the continuing wake of the global credit crisis, never has the effective management of risk in financial services firms been more critical than it is now.

In addition, the continuous waves of new regulations and directives predicted in recent years have come to pass, and the industry is now awash with new initiatives that are proving to be complex, time consuming and expensive for regulated firms to implement. Amongst many others, these include Basel 3/CRD 4, Solvency II and the European Market Infrastructure Regulation (EMIR). Many of the current initiatives have been drafted in the wake of the global credit crisis, in order to enhance capital and liquidity buffers, and also to reduce the amount of risk associated with some of the higher risk instruments used by financial services firms, such as OTC derivatives.

Our Risk Management & Regulatory Risk Practice operates across several sectors of the financial services industry, including: Retail & Investment Banking, General Insurance, Life & Pensions and Asset/Investment Management, and we offer consulting services in the following categories of risk management:

• Operational;
• Credit;
• Market;
• Strategic; and
• Regulatory risk.

In the current challenging economic conditions, with some of the banks, in particular, operating in a low interest rate environment, part nationalisation, damaged reputations and a pressure to reduce staffing costs, the implementation of effective risk management practices is likely to become an increasingly important source of competitive advantage for firms.

We look forward to working with our existing and new clients in this critical area of their businesses.