Capital Edge believe that the increase in regulatory oversight will continue to occupy a significant proportion of the Financials services sector investment portfolio for years to come. This means that wherever possible the significant investments in regulatory controls or operational improvement that are required should also provide more effective capabilities at a lower cost or provide competitive advantage. We believe this is possible in two key areas in particular, Risk and Compliance.
The diversity of risk methodologies and market practices across asset classes means it’s difficult to find a single system with consistent implementations of risk.
This is because Vendor systems and internal systems often lack a consistent framework for validating the risk models across asset classes. Capital Edge consultants have spent many years building a deep understanding in FX, Treasury, Fixed Income and Derivatives products across emerging and developed markets.
We have an expert understanding of the application of Risk modelling techniques – OIS, CVA, Libor etc, encompassing the Front office, Product control, Credit risk and Accounting.
At a leading international Bank, we applied this experience to create an accurate assessment of firm wide risk in a single IT platform, thereby optimising capital requirements and saving the Bank money.
Over the past decade the amount of regulatory oversight and the associated costs of complying with the regulatory requirements of various jurisdictions has grown significantly.
At the same time, trading opportunities in some of these regions and markets have meant that Banks have actively sought to extend their reach.
Capital Edge’s consultants have played a lead role in understanding this complex and fast moving operating environment, and have been able to work with the business to understand not only how to report compliance, but also to understand how it should be applied across the global markets trading environment to minimise business risk.