Specific experience in Compliance and Risk Management
Pushed by the terrorist attacks on the World Trade Centre in 2001 and the financial crises that started in 2007/2008 two developments have been significant to the financial industry:
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 | Compliance with (enhanced and increasingly enforced) Anti-Money-Laundering and Anti-Terrorist-Financing regulation |
| Increased focus on risk management and capital foundations in order to avoid or at least cover financial losses that may arise from the bank’s activities |
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Correspondingly G&C has built its expertise implementing system support on these areas, notably:
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| Anti-money-laundering systems (AML), dealing with data sourcing, transaction flow analy-sis, data transformation, detection logic customisation and configuration, roll-out to branches or regions |
| Fraud detection systems, including installation of non-intrusive monitoring systems, devel-oping and customising detection logic and user interfaces according to the client’s require-ments. |
| Trade surveillance system (TCM). Analysis of different trade flows involved equities and fixed income trading, such as proprietary trading, straight through processing, algorithmic trading, basket trading etc. builds the foundation for identifying the correct data in source sys-tems and setting up and customising detection logic for offending behaviour patterns such as front-running, marking the close, wash trading etc. |
| Credit risk management (CRM). Given the increasing requirements from regulators (and the bank’s management!) for timely and detailed information about risk positions in the banking book, related processes and reporting increasingly need up-to-date data and system support in order to comply with regulatory requirements and management’s information needs. This con-cerns e.g. country risk and wrong-way-risk reporting, concentration risk reporting, focus list management, crisis management, agency lending, stress testing, MIS, etc. |
| Profitability management systems: In a stressed situation like today banks are reviewing their portfolio of activities from a risk-return and capital allocation perspective. Questions around the profitability of distribution channels, individual products or customers/customer groups arise. Modern banking theories of profitability oriented bank management provides the theoretical basis for profitability analysis based on single transaction costing / funds transfer pricing. Additionally, the software industry has in the last years brought to market packaged systems that allow the efficient implementation of IT support for profitability analysis and risk-return analysis (RAROC, RORAC) in banks |
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