With improved model accuracy, portfolio managers can take more proactive actions to rebalance their risk-return profile. Volume limits and capital limits are traditionally used to avoid over-concentration of portfolio risks in small segments. However, the recent global financial crisis revealed the limitations of the previous regulatory mandated compliance measures. Along with Basel III and Dodd-Frank compliance, many new risk management concepts have now been adopted by some of the world’s largest financial institutions. Timely monitoring of the risk exposure of a portfolio is one of the highest priorities faced by the government supervisory bodies as well as the shareholders of these institutions. Specifically, IFE Group closely follows the newest developments in the market and provides the following advisory services to our clients:
- Develop and enhance risk management policies, including risk-based capital allocation and managing market and credit risks of portfolios
- Automate measurement and reporting necessary to support active portfolio management strategies
- Conduct comprehensive analysis of risk-return composition and time profile of existing portfolios at the firm-wide and product levels
- Analyze existing processes and systems for monitoring, management, and reporting of portfolio performance and risk exposure
- Review operational management and risk control process and benchmark to industry best practices