Financial Risk Management | KPMG | CA

Financial Risk Management

Financial Risk Management

Learn more about our services and how we can help you.

1000

Related content

Office skysraper sun

Credit Risk Management

KPMG in Canada's Credit Risk professionals provide clients with a full range of wholesale and retail credit risk management and operational improvement services. Applying leading risk practices, our team helps companies align their credit risk policies, processes and tools; develop and validate credit risk measurement methodologies; and achieve and maintain compliance with regulatory requirements.

As a practical example, our team developed and validated several credit risk models, including borrower risk rating systems (BRRs), scorecards and behavioral models for the banking industry. Additionally, our teams can help clients migrate to the expected loss models proposed under IFRS 9, and provide advice in loan, receivables and credit card securitization structuring services.

Market and Treasury Risk

KPMG's FRM team can effectively support financial and non-financial institutions in the processes of identification, measurement, management and mitigation of market, treasury and investment management risks. Our wide-ranging Market & Treasury Risk services address topics such as financial risk management, derivative risk management, capital markets operations, treasury and liquidity management, asset and liability management, financial products evaluation, energy management and commodity risk. Our approach includes risk strategy and governance, models and methodologies, policies and processes, operating models and architectures and software solutions.

Our team is keenly focused on helping companies make strategic asset allocation decisions for the company's investment portfolio, leveraging our actuarial team to help meet objectives of enhancing yield and maintaining liquidity. Moreover, our professionals help companies navigate changing financial reporting and regulatory standards, such as the new Fundamental Review of Trading Book (FRTB) rule published by the Basel Committee of Banking Supervision (BCBS) on January 14, 2016.

Specific services include:

  • Financial Market Risk/Treasury Risk (including hedging with derivative instruments)
  • Liquidity and Collateral Management
  • Balance Sheet Management and Balance Sheet Optimization
  • Financial Instrument and Risk Model Development and Validation
  • Risk appetite, market risk limits, exceptions and breaches
  • Value-at-risk, capital, stress testing methodology, models, effectiveness
  • Market risk data management, aggregation, lineage and reporting
  • Model Governance and Validation
  • Commodity and Energy Market Risk Management
  • Investment Advisory
  • Management Governance and Oversight

Liquidity Risk Management

KPMG has a track record of helping clients understand how to comply with evolving requirements, and assist them in leveraging enhancements and improvements to expand their efforts in liquidity risk management. Our Liquidity Risk services include the development of analytic tools to help provide improved visibility of intraday liquidity and early warning indicators, assisting client with defining liquidity risk governance and risk appetite framework, reviewing and enhancing contingency funding plans, as well as helping to provide subject matter knowledge across broad aspects of liquidity regulatory requirements.

Operational Risk Management

KPMG in Canada's Operational Risk professionals help companies identify operational risks and control enhancement opportunities, including addressing issues around the integration of key processes and systems. Our team possesses a wide range of skills and experience in areas such as portfolio management, trading and order management, compliance and control, middle- and back-office functions, clearance and settlement, portfolio accounting, performance measurement and attribution. A variety of industries are covered, including banking, insurance, investment dealers/brokers, hedge funds, asset managers and alternative investments.

The team works with clients to develop a goal- and risk-aligned target operating model for both their local and global operations. To strengthen middle- and back-office operations, our professionals help design the risk-related strategies, policies, processes, procedures, controls, organizational structures and technology applications necessary. KPMG can also help manage operational due diligence over external investment managers and mitigate the risks associated with investing in emerging markets.

Regulatory Advisory

It is becoming increasingly difficult for companies to anticipate and navigate regulatory requirements and risks. KPMG offers both strategic and technical regulatory and compliance solutions for a range of regulatory challenges and issues.

Our team works to help clients strengthen their enterprise-wide compliance programs, implementing effective governance and risk management frameworks, enhancing internal controls and helping to create a culture of risk management and compliance. Our services include helping clients understand the regulatory environment and requirements involved in starting a bank, supporting the preparation and execution of OSFI and other regulatory governance reviews, developing enterprise-wide compliance programs and frameworks, and improving modeling and management of regulatory and economic capital. As part of the remediation process for any identified compliance gaps, our team works with clients to build enhanced governance and controls that will satisfy regulator expectations.

Our professionals are deeply versed in the full range of capital management regulations, credit requirements and operational standards and work hard to help clients enhance their long- term capital management planning, risk data aggregation and risk assessment efforts.

Connect with us

 

Request for proposal

 

Submit