United Kingdom

Financial Risk Management 

Risk management across financial services continues to change rapidly in response to shareholder, regulatory, political and other pressures arising from the global financial crisis. We work with clients to help them build outstanding risk management capabilities and to embed them in their business as a driver of success.

 

We offer technical expertise around methodologies, tools, capital management, governance and structures as well as risk transformation programmes and sector specific expertise such as asset management or energy and commodities derivatives.

What's on your Mind?

 

  • Managing risk effectively on an enterprise wide basis, creating a robust structure which joins up the teams and processes dealing with risk with the wider business.
  • Rebuilding both internal and external stakeholder trust and confidence in risk management, identifying areas of weakness and enhancing systems and controls to facilitate growth.
  • Operating efficiently in a capital and liquidity constrained environment.
  • Responding to increasing demands from regulators and new requirements in areas such as capital, solvency, liquidity, transactions and managing customer funds.
  • Improving the assessment of portfolio credit risk and enhancing the portfolio's performance.

 

Bringing you Peace of Mind

 

We can help add value by providing in ustry understanding, regulatory insight and technical advice across a range of risk issues including:

 

  • Effective and integrated governance, transformation and target operating models around risk.
  • Efficient liquidity and capital management, including stress testing and scaling.
  • Enterprise risk management, methodologies, tools and approaches (including advanced credit portfolio management) for banks, insurers and investment managers.
  • Sector specific risk management and valuations related to Energy, Commodity and Derivative products.
  • Guidance and independent reviews on regulatory reporting criteria and methods.


Our aim is to help financial services firms use risk as a strategic and commercial platform for growth, while reassuring internal and external stakeholders, regulators and the wider capital markets that their approach to risk management works both now and in the future.

 

What's in it for you?

 

  • Improved confidence in risk management as a platform for growth. 
  • An independent design, review and assessment of risk identification, measurement and management with knowledge transfer to staff. 
  • Meet the demands of a changing regulatory landscape, including Solvency II for insurers, bank liquidity standards, bank capital plans (ICAAP and Basel 3 (PDF 313 KB)) and other professional guidance, including the Alternative Investment Management Association (AIMA). 
  • Build a well-managed relationship with regulators, resulting in less intensive scrutiny, intervention and consequent commercial or reputational damage. 
  • Effective capital and portfolio management, creating value from limited resources.

 

 

Why KPMG

 

  • We integrate our financial and regulatory risk specialists with capital management experts, actuaries, forensic and technology specialists to cover a very wide range of different risk types (e.g. credit, operational, fraud, market, group, regulatory, IT). 
  • Our training and secondment experience within regulators gives us unparalleled insight into their expectations and perspective. 
  • We have worked with many of the largest financial sector firms, which has included secondments within client risk, compliance and regulatory teams.

 

Case Study

 

  • As part of a high-level balance sheet analysis for the global investment banking units of a UK bank, we reviewed the risk management and valuation processes for trading and banking-book assets.
  • Our work helped the client to understand risks and valuation uncertainties on their balance sheet and to gain insight into the level of understanding around risk governance, balance sheet risk, valuation and liquidity management  - including pressing funding requirements.
  • The heat map of issues successfully directed senior management to the areas of critical concern.