SOURCES OF RISK
- Most Models do not account for evolving Risks.
- Market Risk trumps all other forms Investment Risk.
- Market Risk is often spurred by a major Credit Event.
We help you price probability and impact of Market Risk
- Hedging (Grossing up) often augments Expected loss.
- Effective Risk limits are breached 3-5x more than P&L limits.
- As liquidity drops the cost of missteps increases exponentially.
Our Integrated approach augments risk-adjusted returns.
- Collateral is an exposure that requires active trade management.
- CVA is only a portion of Counterparty Credit Risk Management.
- Your COO manages the largest, least liquid portfolio at the firm.
Our Counterparty Risk process is relevant to all department heads.
- A comprehensive approach to Risk Management differentiates your firm with Investors.
- Cross-department communication via simple daily risk “dashboards” is core to longevity.