Advice on Target Operating Model for Credit Valuation Adjustment Unit

Major UK Bank

Client Requirement:

The bank was in the early stages of developing a CVA unit for the active management of its counterparty risk, and the bank required advice on the appropriate Target Operating Model for the establishment of this function. 

Our Engagement:

InteDelta was engaged by the client to review the bank’s internal environment and to produce a target operating model that met the requirements of the bank. In defining the Target Operating Model, we considered:

  • The business benefits of establishing a CVA unit;
  • The deficiencies of the current approach within the bank;
  • The remit of the CVA desk;
  • The technology infrastructure;
  • An analysis of modelling issues.

Our Approach:

InteDelta provided CVA subject matter experts to deliver value-added expertise and best practice, working alongside the client’s internal staff.

We employed our industry-proven methodology, specifically tailored to CVA projects, to understand existing client processes and map these to industry best practice. These were used as the basis for our strategic design recommendations.

Business Benefits:

Through leveraging InteDelta’s expertise and proven analysis methodology, the client ensured that the business and functional design of its new group met best practice standards and were able to build a business case based upon this for senior management buy-in.

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