Risk Measurement

Risk measurement is a key concern for any financial institution. The pressure of maximizing shareholder value, of managing and protecting economic capital, and remaining competitive in tightening markets requires an institution to understand where risk is coming from and how it might change in the future. We develop models and methods for measurement of credit risk, interest rate risk, and operational risk that help planners know what risks they have in their portfolio. We work with institutions to go beyond regulatory compliance to think about where long-term value is and how risk measurement can become a tool for discerning long-term value in customers.

The AF Team has been involved in both the design and implementation of risk management systems. Our experts have evaluated risk management programs, assisted in the development of policies and procedures, provided litigation support in the evaluation of hedging strategies, and provided independent reviews of third party risk software.