Our insights and proprietary tools and frameworks help clients manage capital markets-related risks such as market risk, counterparty credit risk, and liquidity risk.
Risk Dynamics develops risk management and pricing models and helps clients to improve:
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.
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.
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.