Every organization’s risk management requirements are unique. As Principal, Steve Lindo employs an individualized approach to deliver a set of methods and practices to each client based on proven techniques, custom-tailored and right-sized to the organization’s requirements. Risk advisory services are provided to both financial and non-financial sectors in the areas described below.
Risk management framework
An organization’s health and longevity depend on its infrastructure, of which Risk Management is a critical component. The foundation of a high-functioning risk management program is its framework of standards, policies and committees governing the risks inherent in the business, right-sized to match each organization’s risk culture and appetite. SRL Advisory Services provides:
▪ Risk framework design and implementation, tailored to the organization’s risk profile
▪ Risk appetite setting tailored to the organization’s culture, market position and economic cycle
▪ Risk committee effectiveness - charters, competencies and membership
▪ Risk framework maintenance - periodic checks for alignment, completeness and effectiveness
▪ Risk framework design and implementation, tailored to the organization’s risk profile
▪ Risk appetite setting tailored to the organization’s culture, market position and economic cycle
▪ Risk committee effectiveness - charters, competencies and membership
▪ Risk framework maintenance - periodic checks for alignment, completeness and effectiveness
Risk management strategy
Assessment of risks in business strategies with high financial impact and long-term implications requires breadth of experience and seasoned judgment. For such high-stakes decisions, where complexity and uncertainty are prevalent, SRL Advisory Services provides independent risk assessment, which can be a critical success factor for::
▪ New Products and Markets
▪ Partnerships and Acquisitions
▪ Divestitures and Workouts
▪ Portfolio Diversificatio
▪ New Products and Markets
▪ Partnerships and Acquisitions
▪ Divestitures and Workouts
▪ Portfolio Diversificatio
Risk management culture
Sustained risk management performance requires an organizational culture which actively funnels internal and external risk information up to executive management and actively implements management guidance on risk standards, policy, appetite and strategy. Organizational risk culture does not develop spontaneously, it has to be cultivated by risk leadership, talent development and practice-based training. SRL Advisory Services provides:
▪ Risk Education
- Risk oversight and leadership development, using interactive methods, for Board Directors, trustees and executive managers
- Risk leadership training using interactive methods, for risk professionals and business managers
▪ Risk Talent Development
- Executive risk recruitment, talent management and competency definitions
▪ Risk Education
- Risk oversight and leadership development, using interactive methods, for Board Directors, trustees and executive managers
- Risk leadership training using interactive methods, for risk professionals and business managers
▪ Risk Talent Development
- Executive risk recruitment, talent management and competency definitions
Risk data management
The quality of an organization’s risk measurement and reporting is only as strong as the weakest link in its data supply chain. Accurate and timely risk measurement and reporting depend on the integrity, completeness, consistency and accessibility of internal and external data. Achieving these standards presents huge challenges to organizations operating with legacy data processing and archiving systems, and/or with siloed or federated corporate data governance. To overcome these challenges, SRL Advisory Services provides:
- Diagnostics of existing risk data processing and archiving systems and their governance
- Identification of weak links, solutions to strengthen them, and implementation of chosen solutions
- Advanced methods of risk data aggregation
Risk identification and analysis
Understanding an organization's business is the first prerogative for identifying its intrinsic and extrinsic risks. Analyzing these risks requires proven techniques. Additional experience and judgment are required to establish risk identification and analysis processes for new, unusual or large business concentrations. The expertise provided by SRL Advisory Services includes:
- Creating a business risk taxonomy
- Designing, selecting and implementing appropriate risk analysis methods
- Establishing risk protocols for new business and/or market initiatives
- Employing advanced risk analysis methods, such as scenario analysis and stress testing
Risk measurement and mitigation
Risk measurement is a complex activity which combines data management, mathematics, business understanding, expert judgment and communication. Paradoxically, many organizations treat risk measurement as a mechanical exercise. Without reliable risk measurement, hedging strategies and risk-adjusted performance analysis can go seriously awry. SRL Advisory provides:
- Selection of and implementation of appropriate risk models
- Calibration of risk model settings and assumptions
- Risk model validation
- Design and execution of risk mitigation strategies
Cyber risk management
In recent years, the scale and sophistication of cyber-attacks have vastly accelerated, outpacing the development of cyber risk management practices. SRL Advisory Services provides remedies for this which include:
- Cyber vulnerability checks
- Cyber risk management maturity assessments
- Design and execution of cyber risk mitigation strategies
- Establishing the appropriate level of cyber security engagement by risk managers
- Employee cyber defense training
Risk talent management
The demand for seasoned risk management professionals with appropriate quantitative and behavioral skills has outpaced supply. Locating, hiring, retaining and developing professionals with the skills to be effective in risk management roles is a challenge for companies across a wide range of industries. SRL Advisory Services has the well-established experience, insights and connections to:
- Map the technical and behavioral skills needed for risk management roles across the job spectrum
- Craft job descriptions which are precise and attractive to top candidates
- Locate and assist with recruitment of senior risk management professionals
Additional Financial Sector Services:
FINANCIAL TECHNOLOGY: Financial services companies are beginning to explore the power and potential pitfalls of the advanced data management and analytical techniques pioneered in other industries. At stake are game-changing increases in risk segmentation, speed of analysis and decision-making, using unstructured data and innovative mathematical models, as well as huge cost savings obtained by migrating from manual to automated processes. SRL Advisory Services provides expert guidance to companies seeking to:
- Introduce advanced technology to risk management practices
- Adapt risk management practices to new risks created by Fintech products and services
- Design and manage Fintech proof-of-concept and pilot projects
- Capital and liquidity regulations
- National and global
- BCBS, Dodd-Frank, Solvency III
- Regulatory compliance program management
- Model design
- Data management
- Selection of appropriate model drivers
- Stress scenario selection
- Model calibration
- Results aggregation
- Use of advanced analytics
- Use for business decisions
- Economic capital
- EC model design
- Data and model output aggregation
- Risk-adjusted performance measurement
- KYC and transaction screening tool selection
- Transaction filter calibration
- Process optimization
- Automation
- Credit analysis criteria
- Variable exposure calculation
- Credit limit framework design
- Exposure reporting
- CVA measurement
- Independent testimony on industry practices
- Expert explanation of complex financial instruments and practices
- Criminal trial experience
- Expert knowledge of industry practices
- Design and implementation of tailored risk management framework and practices