Advisory from Actual Practitioners
We realize that not every management team has a background in risk management. And even the ones that do oftentimes don’t have the time to meaningfully contribute to the modeling process and/or examine every report and analyze every change in a ratio or metric. However, effective risk management and balance sheet strategy should be rooted in the modeling and scenario analysis inherent in ALM. Having a seasoned risk practitioner on staff who can ensure model soundness, interpret results, filter out items of importance, facilitate discussion on their impacts, help craft strategy and communicate with regulators shouldn’t be a luxury, it’s essential.
Empyrean doesn’t stop with the delivery of a report package, as we can bring our seasoned risk practitioners with decades of balance sheet management experience to your table to participate in the process:
- Working with you to more appropriately define the assumptions used in your modeling process.
- Interpreting your simulation results and reports and curating a tailored, executive presentation focused on changes and trends in your balance sheet and risk profile as well as potential warning signs for the future
- Presenting to ALCO on a quarterly basis on your interest rate and liquidity risk exposure and its impact on capital.
- Advising on ALCO policy, limits and process and recommending changes where necessary
- Providing general strategy recommendations to manage, limit and mitigate risk
- Assisting in regulatory examination preparation
- Educating senior management and board members on risk and risk mitigation