Counterparty Risk Framework

Middle Eastern Bank

Client Requirement:

The client had identified a number of gaps in its approach to counterparty risk in comparison with industry best practice. The client’s long term goal was to implement a counterparty risk management system and Monte Carlo risk engine. In the shorter term the client wished to implement a series of “quick wins” to its methodologies and policies.

Our Engagement:

InteDelta was initially engaged to define a road map of enhancements the bank should implement and produce a counterparty risk management policy and methodology which specified the changes the bank should make in the short to medium term pending the implementation of the strategic system. This included a number of tactical enhancements to its existing counterparty risk methodologies.

Our Approach:

On commencement of the engagement we undertook a review of the client’s existing processes, organisational structure and supporting technology for counterparty risk. Considering the output of this review against market best practice we upgraded their policies to reflect this whilst also reflecting the uniqueness of their own internal environment. We also produced a roadmap for the implementation of any changes required to meet the newly defined policies.

Business Benefits:

Through leveraging InteDelta’s subject matter expertise, the client ensured that the developments made to their approach to managing counterparty risk were reflecting market best practice standards and delivered true business benefit.

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