our services
Advisory
RiskTopics creates and advises on risk models. We cover amongst others Basel and Solvency II. In relation to the models, we provide advice on the following areas:
Modeling Strategies
Data Acquisition and Structure
Model Construction
Model Implementation and Calibration
Model Validation
Model Governance
Model Maintenance
Experience
We are experienced in risk and finance reporting in every aspect and IAS19 calculations. Plus, we are experienced in creating, calibrating and validating:
Credit Risk and Market Risk Models
Risk-Adjusted Return On Capital (RAROC)
Asset and Liability Management (ALM)
Vaulation Models
IFRS9 Models
Economic Capital and Solvency II Models
Risk Aggregation
Pricing
Validation
For validation we use the data-documentation-code paradigm. We ensure that the data used for modeling is fit for purpose up to date, representative and of pre-agreed quality. We can help set-up your Model governance framework and support it with our experts.
Documentation will be clear and concise to ensure method-implementation clarity for both in- and external validation and support for reproducibility. Code is open well documented and transparent for audit. In this way it is easy to verify the model results’ conceptual correctness, as well as compliance with regulatory and business requirements.
Risk Modeling
We see the risk modeling process as one consisting of a number of steps each with its own challenges where RiskTopics, due to multiple years of combined experience, can support your risk modeling in each of the steps. RiskTopics modelers are experienced in numerous aspects of financial risk (strong theoretical background, practical implementation experience, familiarity with the banking / insurance industry).
If needed, additional resources from our network can be utilized to ensure delivery of a state-of-the-art solution, tailored to the clients’ needs. Based on our experience, we can provide a comprehensive solution, comprising some or all of the following stages of the modeling procedure.
Governance
Numerous forms of governance come into play in risk modeling. Of course the model governance framework plays a vital role in the creation and validation of the model. For all data and implemented software we focus on a comprehensive IT governance. This means that among other aspects, we take into account a proper balance between required flexibility form the risk side and the often strict IT-governance around production systems.
During implementation RiskTopics takes care of enforcement and evidencing of policies existing in business. Therefore we choose an implementation method that adheres to the current governance standards known in the company. At the same time we test whether the existing governance is sufficient to cater for all facets and aspects of the implemented models and modeling process itself. Next to adhering to standards from named Governance Frameworks we also make sure the model will end-up in the existing audit framework.
Data Acquisition and Structure
It should not come as a surprise that the acquisition of data, its structuring and cleansing is taking up the largest part of the overall risk modeling process. Multiple sources that are far from integrated, each with its owners, own reference data-set and data problems giving rise to problems far beyond the scope of the normally involved departments like (Group) Risk and IT.
The characteristics of this part of modeling are much like the activities performed in a Data warehouse (DWH) implementation but differ in at least one aspect: time! Creation of DWH’s is often measured in years rather than the required and needed weeks or months. RiskTopics has demonstrable experience in acquiring, analyzing, structuring and cleansing of data.
Model Implementation and Calibration
The next step would be to code the proposed model, in this process we ensure integration with the existing infrastructure. Due to our experience with methodologies both architectural and for development we can support most of the clients choices.
We offer flexibility in the use of methodological preferences for platform design, data acquisition and results storage. By incorporating the code into the existing code base we leverage existing knowledge and create and ideal background for a steep learning curve. Adhering to state-of-the art governance standards including proper version control and documentation is our priority to facilitate smooth transitioning and validation of your models.
Model Construction
In the model construction the first step would be to propose a theoretical risk / pricing model, leveraging industry best practices and state-of-the-art academic developments. Subsequently the proposal will be validated in dialogue with business users. By doing so the model is sure to have incorporated the opinion from the business side ensuring the practical requirements are addressed in full.
ORGANIZATION
RiskTopics is a risk management and compliance consulting organization. We offer a range of services that are interesting for banks, insurance companies and pension funds. RiskTopics is unique in its approach as our philosophy is based on entrepreneurship, continuous improvement and innovation. The people of RiskTopics carry out this philosophy and put it into practice. The HR policy of RiskTopics is designed to reflect this and is unique in the financial sector. Our people and expertise are continuously ‘under development’ to tune our advice to the dynamic financial markets. We work with the prevailing risk and reporting systems and take the lead with implementation.
RiskTopics maintains lasting relationship with many regulators to ensure that clients are informed about new developments that may have a significance to their organization or objectives.
A strong point is that RiskTopics also assists with improving existing risk systems. If needed, we can supply experienced risk managers who will take control after we have fulfilled our assignments.
RiskTopics activities are mainly focussed on Credit Risk partnerring to provide Modeling and related services for Market Risks as well. is wide, but divided into different sectors. Our services are tailored to the characteristics and current events that are relevant to a specific sector.
RiskTopics focuses on the following disciplines:
> Modeling Credit and Market Risks
> Governance, Change, and Compliance especially focussed on the above risks
> Risk IT Solutions
