We offer a pluggable toolbox of services or Process-as-a-Service (PaaS) to help financial institutions execute on their business models more efficiently by outsourcing non-core computational aspects of their risk management processes.
The services implement best-in-class turn-key solutions to a number of common risk management challenges and run on the world's most secure cloud infrastructure. Also, they are immediately available without the presence any of the usual build-your-own project risks, or key-person risks associated with ongoing in-house model development and maintenance.
Client Case Study
A retail bank required a model management process to be put in place for their wealth management platform.
We offered a set of services covering the needs from a business as well as regulatory perspective:
- Validation of scenario-sets updated on a monthly basis mitigating the risk of providing the entire customer base with faulty savings goal information through the client's widely used mobile banking app
- A yearly model validation ensuring that the scenario-sets provided by a third-party vendor continued to adhere to pre-defined statistical characteristics
- Mapping of investment products to the risk factors of the underlying risk model
The validation process was up and running in a fraction of the time and about a fourth of the cost it would have taken to build the necessary team and IT infrastructure internally. We helped our client achieve this by:
- Offering a highly flexible and affordable toolbox of Process-as-a-Service components
- Enabling our client to share the development costs through our client base of non-core, but required tools and processes
- Removing the burden of recruiting, training and retaining highly specialised members of staff in an in which a substantial risk of key person dependence develops over time
We provide managed services covering key aspects of the additional maintenance workload that comes into play when providing financial advice derived from a realistic simulation-based risk model. The additional maintenance work can be categorised as follows:
Investment Product Management - Our solution will enhance the value of the financial advice provided to your customers and offer an easy way to start harvesting the benefits of cost-efficient cloud-based SaaS. The first components available offer investment product mapping, review and ranking functionality.
Model Calibration - Calibration of bespoke risk factors or in-house views differing from the calibration provided by an external third-party vendor; but also monitoring services for detecting when the views of your own asset managers differ enough from the external calibration to warrant an adjustment
Model Validation - These services involve monitoring and control of model performance, both daily and prior to model parameter updates; but also more infrequent validation of the statistical characteristics of the model.