Consulting
Clients engage us on a consulting basis where they have a specific issue that needs to be addressed and we work towards specific deliverables to address the problem.
Our consulting engagements usually contain one or more of the following elements:
Consulting work is, by definition, customised to clients’ particular requirements. There are, however, a number of common areas in which we frequently perform engagements, and in which we have developed a specific approach:
Client
Investment bank and prime broker
Location
UK and US
Client need
The client had embarked upon a major project to reorganise its collateral management function to create a central collateral utility to provide cross product reporting, netting and margining. This project had major systems, process, business and risk management implications. The project also involved the upgrade of the client’s collateral management system.
The client required subject matter expertise to work alongside more generalist project managers to assess the impact of the change on the business and assist in the management of the project. Project management and business analysis resources were also required for the upgrade of the collateral management system.
Our role
We provided a senior project manager and business analysts with expertise in collateral management.
Client
Financial markets division of major retail and commercial bank
Region
UK
Client need
The client wished to upgrade its credit risk management system for its dealing room business. The client needed advice in respect of the required functionality and whether it should buy a vendor solution or build in-house.
Our deliverables
We initially produced a high level functional requirements document and a roadmap for how this would be delivered over the coming years. This involved helping the client to clarify its policy and methodology in a number of areas.
We produced a business case for the system which included an analysis of the build or buy options.
We identified a shortlist of potential vendors that would meet the client’s requirements and, in conjunction with the client, produced the questionnaire for the Request for Proposal and scored the responses submitted by the vendor.
We performed business analysis in relation to the implementation of the first phase of the system and wrote the functional requirements specification.
We also provided systems development and business analysis for a number of tactical systems initiatives.
Client
Pension fund manager
Region
Benelux
Client need
The client had decided to upgrade its risk management capabilities and was in the process of building a risk management department. The client had produced a draft risk management policy but wished to have this reviewed to ensure compliance with best market practice.
Our deliverables
Having held a series of meetings with senior client employees to ensure we fully understood the business, we reviewed the policy to identify areas of policy and procedures which could be improved and where the client fell short of best market practice. The scope included all areas of the fund manager’s risk practices including market risk, liquidity risk, tracking error and compliance with investment mandates.
Our findings were detailed in a report which was presented to management.
Client
Wholesale bank
Region
UK and Benelux
Client need
The client was embarking on improvements to its credit risk measurement and country risk policies. For credit risk measurement, the policy needed to be updated to take account of the move to more advanced methodologies for the measurement of potential future exposure such as Monte Carlo simulation. For country risk, the policy needed to better measure the likely effect on the bank’s trading exposures of a country event.
Our deliverables
We drafted the policies, working in close collaboration with client staff.
Client
Hedge fund manager
Location
UK
Client need
The client had recently expanded its trading volumes and had started to enter into more complex products. The client wanted to upgrade its risk management practices to take account of the additional risks being undertaken and to ensure compliance with best practice.
Our deliverables
We reviewed the fund manager’s risk practices and identified areas of weakness. We advised the fund manager on the appropriate risk governance and policies that should be put in place. We then worked with the fund manager to develop a suite of reports and stress tests to be delivered from its recently implemented portfolio and risk management system.
Client type
Private bank/asset manager
Region
Asia
Client need
The client wanted to be able to perform stress tests on its security portfolios to ascertain areas of excessive concentration.
Our deliverables
We developed a stress testing model which took into account asset correlations and liquidity. We also calculated appropriate stress parameters to be input into the model.