FIT-FOR-PURPOSE RISK MANAGEMENT
FIT-FOR-PURPOSE
RISK MANAGEMENT
A boutique risk management consultancy specialising in:
Traded and non-traded market risk
Risk management strategy
Risk management frameworks and operational effectiveness
Risk culture and conduct
Risk training, coaching and mentoring for executives and board directors
Other core competencies include:
Strategic advice on the identification, modelling, measurement, valuation, monitoring and management of market risks.
Assessment of risk strategy, risk appetite and risk tolerances/limits.
Treasury specialist; balance sheet risk management, advice and testing of frameworks, policies and models for measuring and reporting liquidity risk, interest rate risk management and funds transfer pricing.
Advice around conduct risk management.
Guidance with trader surveillance.
Design and delivery of training for banks' ASIC Enforceable Undertakings.
Company Directors / Board Members
McKinsey recently published a paper in May 2018 titled, ‘Corporate boards need a facelift': It includes:
“Knowledge gap: Our 2013 survey of 772 directors revealed a shocking lack of comprehension of their companies. Only 16% said directors strongly understood the dynamics of their industries, just 22% said directors were aware of how their firms created value, and a mere 34% said directors fully comprehended their companies’ strategies. Our latest survey indicates these findings haven’t changed much since 2013. Frankly, these flaws limit the effectiveness in the board and often lead management to limit interactions with their board by trying to manage through meetings, rather than viewing the board as a helpful source of new ideas and expertise and a sanity check on strategy.”
Do you as a Company Director or Board Member really understand your company's risk profile/risk management strategy/ framework/effectiveness/etc.?
Do you need an independent and discrete advisor to, for example, to help you:
Assess how your board has or is establishing the right ‘tone at the top’ to reinforce and promote a risk aware culture?
Identify the manifestations of Conduct Risk in product design, pricing,
Navigate the risk management jargon, methodology and process?
Review whether material risks being identified and being appropriately managed?
Assess early warning systems to alert of emerging risks?
Educate you to ask the right and insightful risk management questions?
Better understand the residual risks of your company?
Australian Regulatory Perspective
APRA's Prudential Inquiry into the Commonwealth Bank of Australia indicated how a Board (and Board Directors) demonstrably failed to understand its non-financial risks - operational, compliance and conduct risks.
"These risks were neither clearly understood nor owned, the frameworks for managing them were cumbersome and incomplete, and senior leadership was slow to recognise, and address, emerging threats to CBA’s reputation."
IMHO most FIs' risk culture and management framework/process would be hard pressed to stand up to the Inquiry's level of scrutiny, analysis and expectation of their efficacy.
How confident are you of your understanding and effectiveness of your institution's risk management framework.
For a discrete discussion on how we can be of assistence, please make contact on: michael@adroitrisk.com
ABOUT ME
An innovative and seasoned risk management professional, successful in executive positions in first line risk acquisition and second line risk management roles (policy development, implementation, risk origination/execution, etc.).
Extensive and deep experience in enterprise risk and financial and non-financial risk management, with positions including (in alphabetical order):
- Bank of Tokyo Mitsubishi UFJ - regional Chief Risk Officer
- Citibank - Global Head of Precious Metals Market Risk, Financial Markets Head and Country Treasurer roles in Asian, including Australia
- KPMG - Risk Advisory Partner
- Goldman Sachs - Group Treasurer: Australia & NZ
- Westpac - Global Head of Traded and Non-traded Risk Analysis