Market Risk Management

As a fully integrated risk practice, we have the size and capability to address all risk issues and deliver end-to-end solutions

Market Risk is generally defined as the risk of the mark to market value portfolio, instrument or investment increasing or decreasing as a result of volatility and unpredicted movement in market valuations.

Market Risk Management: Value

• Analyse and quantify market risk
• Develop a strategy to manage market risk including setting risk appetite
• Develop appropriate policies, processes, and organisation structures that links commodity/ energy pricing policy overall corporate objectives to support ongoing management of market risk.

Market Risk Management: Core Services

Enhanced Risk Strategies  Frameworks

Create the right risk strategies to achieve the enterprises strategic aims and implements the optimum frameworks to ensure risk is appropriately managed.

Work Undertaken

• Assessment, design and implementation of market risk strategies
• Assessment, design and implementation of monitoring and reporting processes
• Assessment, design and implementation of Commodity, Energy and Financial Instrument Trading Risk Management Frameworks
• Assessment, design and implementation of Market Risk models

Example

Assessed market risk policy to confirm 'fit for purpose' ahead of regulatory review.

Enhanced Risk Performance

Putting words into action – delivering risk performance within agreed tolerances at the sharp end – day after day.

Work Undertaken

• Market risk management performance reviews
• Commodity and Energy Risk Instrument Valuation services
• Commodity Marketing and Pricing Reviews
• VAR, Stressed VAR and worst case scenario test model performance reviews
• Mergers and acquisitions assistance
• Compliance and performance assessments carried out on behalf of a regulator.

Example

Assisting in the implementation of a market risk engine for a major bank.

Enhanced Risk Management Functions and Capabilities

Create the optimum organisational solutions and equips the enterprise with the right skills and capabilities to manage risk to achieve strategic aims.

Work Undertaken

• Assessment, design and implementation of market risk functions
• Interim management solutions: Market Risk Officers and other professionals
• Market Risk Management Training

Example

Presented a detailed report on debt markets and associated risk to the board members of not-for-profit housing funding organisation.