Risk Management Case Study
One of the functional areas where we lend significant support to our financial institutions is in the area of risk management. In order to ensure that financial institutions are run prudently and within acceptable and defined risk norms, we provide leadership and guidance.
Developing the risk architecture and models
We work closely with senior management and risk professionals in our institutions, sharing with them our proprietary seven pillar approach to managing risk. These pillars start with putting in place good corporate governance, the right risk architecture for the institution, best in class business risk models, and a robust portfolio management process all of which are supported by world class technology allowing the institution to originate, measure, monitor and manage credit risk effectively. In addition, we bring expertise in the managing of market and liquidity risk, which are also very significant risks in financial institutions. With our assistance the institution is able to manage risk in a predictable manner and earn returns that are commensurate with the risks taken.
Sharing expertise and experience
Risk management staff within the financial institutions can gain from the experience and knowledge of other FFH institutions who have already established similar business. Our risk professionals are encouraged to visit our "centres of excellence" to learn from each other. We also organize regional risk meetings to share ideas and experiences.
In terms of human capital, we help provide assistance with both staffing and training people in the area of risk management. We believe it is imperative to have the right people in order to create a prudent risk taking culture.