Consulting Practice Area
Market & Credit Risk
“In a world that is increasingly plagued by uncertainty and a global regulatory framework requiring a greater understanding of risk than ever before, firms can benefit from our proven experience of aiding clients in identifying, assessing and managing market and credit risk”.
Now more than ever, the spotlight is on how firms approach market and credit risk. Basel III has changed the regulatory landscape, requiring firms to review and document not only how they are effectively managing capital, but also more broadly how they are managing risk. Furthermore, with the implementation of the Fundamental Review of the Trading Book (‘FRTB’) due to go live in January 2022, firms must start preparations for the large-scale overhaul of operations that this will entail.
Failure to keep ahead of the curve, and comply with existing and emerging regulation could lead financial institutions suffering significantly from both financial and reputational damages. As a practitioner-led consultancy with experience in executing large-scale and complex change initiatives throughout the full programme life-cycle, New Link Consulting are a proven partner to implement best banking practices as well as to anticipate and react to any regulatory requirements.
What We Do
New Link Consulting’s Market & Credit Risk Practice is a practitioner-led service comprising of business consultants with a breadth of experience in risk management positions and risk management focused change engagements across the financial service industry.
We offer a breadth of services to Market & Credit Risk management functions that enables our clients to improve efficiency, comply with regulations, identify risks and improve risk management methodologies:
- Risk Identification: Comprehensive reviews of business activities to identify areas of excessive risk and propose mitigating activities and controls.
- Risk Methodology Assessment: Perform wholesale assessment of risk models used within banks (i.e. XVA, VaR, FTP, IMA) and advise on better practice models commensurate to the idiosyncrasies of the client.
- Development & Review of Internal Models/Frameworks: Review of current risk frameworks and suggestions of mitigating controls to ensure appropriate alignment with the three Lines of Defence best practice.
- Systems and Architecture Design: Review and design of technology architecture and constituent systems to improve risk management and operational efficiency, includes review of external vendor product offering where appropriate.
- Monitoring & Reporting: Assessment of credit and market risk governance frameworks, including design of key metrics to measure performance and identify emerging risks.
- Regulatory Services: Firms can draw on New Link Consulting’s in-depth expertise throughout the entirety of the regulatory lifecycle: from liaison with regulators at the consultation phase, definition of regulatory requirements as they continue to evolve, implementation and ongoing regulatory reporting.
- Subject Matter Expertise: Assist organisations with a range of activities requiring Subject Matter Expert support, including but not limited to:
- Market Risk specialists with expertise in risk factor modellability assessment, Non-Modellable Risk Factor capitalisation, default risk charge and risk residual add-on capital charges
- Front Office Quants to validate risk factors & pricing models
- Model Development & Validation specialists with expertise in ES, IMA and SA Capital charge calculation
- Programme & Project Management: New Link Consulting’s blend of practitioner expertise along with deliver and change management skills, enables us to tailor our deliveries to the explicit requirements of our client, enabling a collaborative approach to problem solving and the execution of complex change initiatives in the credit and market risk space.
- Operating Model: Design and implement strategic Target Operating Models (‘TOM’) for business functions and organisations, aligning to industry best practice. Identifying opportunities to create operating efficiencies by focusing on reducing risk, increasing control and optimising efficiency through people, process and technology.
Our Latest Thinking
Established in 2011, our practitioner-led service offering combines deep industry knowledge, gained through years of direct experience, with innovative change management skills.