In today's dynamic financial landscape, effectively managing risk challenges has become paramount for financial institutions. At DynaFin, we comprehend the unique hurdles faced by financial institutions and offer customized solutions to help you thrive in a risk-conscious environment.
Financial institutions grapple with several challenges in effectively managing risks. Here are some prevalent hurdles:
The ever-evolving regulatory landscape demands robust risk/model reporting, prioritizing compliance for financial institutions.
Balancing capital optimization with regulatory requirements is a complex act impacting profitability and competitiveness.
Managing vast volumes of data, ensuring accuracy, and facilitating easy accessibility significantly impact data services.
Achieving efficient risk management without inflating operational costs remains a continuous challenge requiring expertise and streamlined processes.
At DynaFin, we take pride in our deep expertise in Market Risk, Counterparty Risk, and Credit Risk management. Our comprehensive consultancy services address your institution's unique risk management needs, including:
We evaluate and enhance your risk management systems and models, ensuring alignment with the latest industry best practices and regulations.
Our team assists you in developing robust risk reporting frameworks, providing timely, accurate, and actionable insights for informed decision-making.
We offer ongoing maintenance and support for your risk models and systems, ensuring they remain accurate and up-to-date.
Navigating the complex regulatory landscape, we ensure compliance with the latest requirements while optimizing your risk management processes.
With DynaFin, access a team of seasoned risk management experts committed to effectively mitigating your institution's challenges. Our tailor-made solutions empower you to navigate regulatory pressures, reduce the cost of capital, enhance data management practices, and streamline operations.
Develop internal models to measure Market Risk
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DynaFin's Expertise in Financial Risk
A major international bank which provides investment, hedging and financial services on the global derivative markets needs to measure the counterparty credit risks for both regulatory capital computation and internal risk management purposes. To that end, the bank has chosen to not use the standardised approach but to develop its own internal models to better quantify the risks they face and better allocate economic capital.
The use of internal risk models is subject to an approval from the supervisor and requires regular re-assessments of their performance and efficiency through various back-testing exercises.
DynaFin assists the bank to optimize its resources and processes by offering solutions and supports about the back-testing exercises on various exposure metrics such as: the potential future exposure (aka PFE), effective expected positive exposure (aka EEPE) and Initial Margin (aka SIMM or other models). Its experience on this subject brings a high added value, both in the change-the-bank and the run-the-bank.
Project management
DynaFin works actively with the bank in its innovation and transformation plans by monitoring closely the timelines, coordinating the efforts and ensuring the collaboration between different teams. Any issue or concern is discussed with the different stakeholders of the project and escalate to management committee if needed.
Definition of the business requirements
By collaborating with the various stakeholders inside the bank (namely teams model designer, quantitative experts, IT developers), Dynafin defines the business logics, specifies the requirements and documents processes to perform an efficient back-testing on counterparty exposure metrics.
Testing and validation
Dynafin ensures the good implementation of the new requirements and validate the data integrity as well as the outcome results.
Monitoring of data quality
Dynafin proposes solutions to monitor the data quality of the systems through prototypes that will be implemented in the IT systems.
Reporting production and in-depth analysis
Thanks to its expertise in counterparty credit risk and internal processes, Dynafin takes responsibility for the regular back-testing reports’ production. The back-testing outcomes are analysed to conclude on the model performance. Thanks to a good understanding of market effects and risk factors, new axes of analysis are provided to give even more added values to these reports.
Thanks to DynaFin's intervention, the bank is able to perform efficient back-testing exercises on counterparty credit risk. Indeed, new data quality controls enable to have good and accurate data at each step of the dataflow. New models on various activities are now back-tested thanks to new processes put in place. The reporting and analyses are continuously improved to better understand the performance of the models in the market world which evolutes constantly.