Risk Dynamics has years of experience & expertise in capital markets-related risk management

Our insights and proprietary tools and frameworks help clients manage capital markets-related risks such as market risk, counterparty credit risk, and liquidity risk.

What do we do?

Risk Dynamics develops risk management and pricing models and helps clients to improve:

  • Model development standards
    The efficiency and effectiveness of the model lifecycle (including model risk management)
  • Model validation frameworks (including automation)
  • The efficiency and accuracy of regulatory ratio calculations - such as liquidity coverage and net stable funding ratios - especially when financial resources for capital-markets businesses are constrained
04.Market and liquidity risk_01-1
04.Market and liquidity risk_02 (1)

Our Impact

We have helped banks put into place model risk management frameworks and significantly improve their capital accuracy. Our work has boosted the efficiency and effectiveness of the model validation approaches - including automation - at numerous leading banks.

Case studies

  • Providing review and advice on options for model validation

    Due to increased regulatory expectations and expanding business growth, a major bank sought to improve the efficiency of its validation efforts for a specific set of models in its trading business. The bank decided to explore alternative validation set-ups based on industry practices.

    Based on our experience and expertise, Risk Dynamics provided a perspective on these alternatives and drew conclusions. The client is now in the process of implementing the recommended actions.

  • Improving capital resource usage

    A leading bank sought to use its financial resources more efficiently. Together with capital-management experts from McKinsey & Company’s risk practice, we reviewed the bank’s capital accuracy.

    As a result of our efforts, the bank improved its resource accuracy and efficiency by 10 percent for capital markets-related capital.

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