Risk Management may be slightly overlooked by authorities when compared to the other critical supervisory functions (Compliance, AML and Internal Audit), yet it remains a critical component of regulated operations and should be the focal point of every regulated company’s internal governance body. Improper risk oversight could translate to misidentification of critical risks, manifestation of unidentified risks, reduced ability or absolute inability to tackle such risks, that could lead to damaging effects on the company’s operations and financial standing.
Risks abound especially in regulated companies that are faced with credit risks, market risks, operational risks, as well as other risks that may manifest under various circumstances. An experienced Risk Manager (or a team of experienced Risk Managers) can actively monitor and implement measures that can either thwart potential threats or manage them effectively in the case of manifestation. Our team’s diverse financial industry experience, dealing with such risks, can support your risk management needs, tirelessly trying to monitor, prevent, and if not possible, effectively tackle any risk that may manifest, with no or as minimal as possible effect on the company and its stakeholders.
Our specialist risk management team covers investment firm, alternative investment fund manager, banking, electronic money, and payment service operations as well as a broad range of fund strategies which include hedge, private equity and real estate and fund of funds. Moreover, it can undertake:
- the design and ongoing implementation of a risk management policy for AIFM and each of the AIFs it manages according to their strategy and exposures
- the design, review, measure and monitoring of identified internal and external key risks for AIFM and each AIF
- the compilation of periodic risk reports for internal and external reporting purposes for AIFM and each AIF
- the design, conduct and reporting of periodic market, credit and liquidity stress testing for the AIFs
- the design and ongoing implementation and monitoring of delegations and third party providers for any type of financial institution
- the design and ongoing implementation of a risk management policy for investment firms according to their license, scope and complexity
- the preparation of the Internal Capital Adequacy Assessment Process (ICAAP) and the drafting of the report,
- the valuation of private equity AIF holdings
- the preparation of Capital Requirements Regulation (CRR) forms, and
- the completion of the various statistical reports that need to be submitted by investment firms, AIFM on behalf of AIF they manage, EMI, and PI.