InteDelta's Nick Newport discusses current trends in managing CVA.
InteDelta launches Risk Integration Services
Gaining from your own default, InteDelta releases paper on Counterparty credit risk and DVA
InteDelta launches Credit Valuation Adjustment Target Operating Model Review
InteDelta survey on Economic Capital for Market Risk
InteDelta announces an expansion of its services. In addition to our core service of deliverables based consulting a new risk resourcing product has been launched which enables institutions to supplement their internal resources from InteDelta’s pool of consultants. Consultants’ specialisms range from quants to project managers and business analysts across market, credit and operational risk.
Over the coming months InteDelta will be launching additional product lines including market intelligence, training and outsourced risk services, signifying a step change in our continued expansion. Many of the new services are already currently provided under the consultancy banner, but the creation of these new product streams will allow a more focussed approach.
InteDelta has launched a service which will benchmark an institution’s counterparty risk management approach against the recently released report “Containing System Risk: The Road to Reform,” produced by the highly influential Counterparty Risk Management Policy Group. This will include all relevant areas such as governance, risk measurement, systems, trading practices and risk policies.
Please click here for further detailsInteDelta is happy to announce that we will be sponsoring Risk Magazine's 2010 Risk Europe event. The event will be taking place in Frankfurt from the 25th-28th May.
Risk Europe brings together risk management experts from banks and investment firms, academics, regulators and think-tank advisors from leading institutions to lead over 40 sessions covering the complete spectrum of risk management, giving attendees the opportunity to discuss the practical challenges of a range of topics including stress testing, systemic risk, counterparty risk, effective portfolio management and much more.
Click here for further information about Risk Europe 2010InteDelta, the risk management consultancy, has launched the InteDelta Collateral Operating Model Review. The review is a structured and proven method for assessing controls and efficiency within the collateral management operations of financial institutions.
Click here for more informationFollowing the success of last year's event, InteDelta is happy to announce that we will once again be sponsoring the Jacob Fleming Collateral Management conference. The event will be taking place in Amsterdam on the 21st and 22nd October.
The event will bring together collateral experts from many leading financial institutions and will cover the hot topics in the ever changing collateral space.
To receive a copy of the event brochure and to learn how to register please click the link below.
3rd Collateral Management Forum brochureInteDelta's Credit Valuation Adjustment (CVA) Target Operating Model offering is a structured and proven method for designing a process for active counterparty risk management and credit charging within financial institutions.
Click here for further informationInteDelta’s Risk Integration Services offering is aimed at helping financial institutions going through post merger integration to bring together the respective risk management areas of the merging entities.
Click here for further informationInteDelta – Risk Management Consultants
InteDelta helps financial institutions better manage their risk.
Through our range of consulting and associated products we provide assistance in areas such as advising on policies and methodologies, systems implementations and conducting market intelligence.
Our areas of expertise cover the major risks faced by institutions: credit, market and operational risk, and we also have a number of more niche specialisms.
Our clients range from some of the world's largest banks and asset managers to medium sized banks in developing markets, hedge funds, risk software vendors and other consultancies.
Client
Financial markets division of major retail and commercial bank
Region
UK
Client need
The client wished to upgrade its credit risk management system for its dealing room business. The client needed advice in respect of the required functionality and whether it should buy a vendor solution or build in-house.
Our deliverables
We initially produced a high level functional requirements document and a roadmap for how this would be delivered over the coming years. This involved helping the client to clarify its policy and methodology in a number of areas.
We produced a business case for the system which included an analysis of the build or buy options.
We identified a shortlist of potential vendors that would meet the client’s requirements and, in conjunction with the client, produced the questionnaire for the Request for Proposal and scored the responses submitted by the vendor.
We performed business analysis in relation to the implementation of the first phase of the system and wrote the functional requirements specification.
We also provided systems development and business analysis for a number of tactical systems initiatives.
Client
Pension fund manager
Region
Benelux
Client need
The client had decided to upgrade its risk management capabilities and was in the process of building a risk management department. The client had produced a draft risk management policy but wished to have this reviewed to ensure compliance with best market practice.
Our deliverables
Having held a series of meetings with senior client employees to ensure we fully understood the business, we reviewed the policy to identify areas of policy and procedures which could be improved and where the client fell short of best market practice. The scope included all areas of the fund manager’s risk practices including market risk, liquidity risk, tracking error and compliance with investment mandates.
Our findings were detailed in a report which was presented to management.
Client
Retail and commercial bank
Region
Middle East
Client need
The client wanted to improve its operational risk capabilities, in respect of governance, product approval process, control self-assessment and Key Performance Indicators.
Our role
We assisted in the identification of gaps and the development of processes and controls to improve the operational risk environment.
Client
Major hedge fund manager
Region
UK
Client need
The client needed to develop a methodology for the measurement of credit exposure for certain products (credit and equity related) which could not be handled by its current risk management system. This was required both for limit control purposes and for the measurement of economic capital.
Our deliverables
We developed a methodology for the measurement of potential future exposure and documented this in a methodology paper. We developed a model for the calculation of exposure which the client now uses on an ongoing basis in its business.
Client
US Investment bank
Region
UK
Client need
The client aimed to re-engineer its collateral management infrastructure to meet (and ultimately exceed) market best practice. The scope of this initiative covered all of the bank’s collateralised product lines (OTC derivatives, repo, securities lending, futures & options, prime brokerage) and the end-to-end collateral process – from margin management to inventory management and the pledging of collateral.
Our role
We provided:
- Advice on market best practice across all areas of the collateral management process
- Analysis of existing environment and identification of system, process and organisational shortcomings
- Advice on the strengths/weaknesses of collateral management software vendors
- Strategic advice on functional and architectural design and future state operating model.