Services | Financial Risk Group, Inc

When you turn to us, you are tapping into a suite of services ranging from risk technology to in-depth analytical modeling to business process advisory. Yet each and every element has grown organically around one core idea–fulfill clients’ needs while surpassing their expectations.

Risk Technology Services

Technology integration covering enterprise risk analytics, data management, derivative valuation technology and other areas
Dashboards and other user-friendly information delivery mechanisms optimized for business impact
Design of architecture based on multiple technology providers
Project plan design across multiple technology vendors and service providers
Selection of technology components tailored to meet client needs not vendor constraints
Development of customized technology solutions
Outsourcing of technology operations
Hosted solutions for risk technology needs
OpVaR and other SAS technology solutions

Risk Advisory Services

Design of methodologies for integrated measurement of market, credit and operational risks
Assessing methodological consistency of risk measurement policies
Design of metrics of enterprise risk tailored to the business
Model risk assessment in valuation and other analytical areas
Designing techniques and processes to keep pace with changing realities of credit risk
Risk analysis and valuation of credit derivatives and structured products
Business process review and recommendations geared towards strategic value, operational efficiency and regulatory compliance
Operational risk measurement and metrics geared to mesh with specific business processes at the client firm
Risk measurement techniques tailored to energy and commodity businesses
Regulatory risk measurement including Basel compliance

Risk Knowledge Services

Training on best practices in methodology and processes in enterprise risk
Analytical modeling for risk measurement in market, credit and operational risk
Training in SAS risk technology solutions: SAS® Risk Dimensions, SAS® Credit Risk and SAS® OpVaR

Risk Implementation Services

SAS Gold Partner
Implementation services for SAS® Risk Dimensions, SAS® Credit Risk, SAS
Implementation and integration services for derivatives valuation technology including FinCAD and FEA Unique risk solutions for hedge funds and other financial institutions

Data Assessments, Services and Operations

Data strategy, target state and roadmap aligned to business priorities
Data assessment of current state of data versus desired target state
Data organizational planning, including data oversight, roles and responsibilities, and reporting structure
Data governance and development of appropriate level of policies, standards, data definitions and business and metadata capture rules
Data operations, including data management workflow and implementation of data standards, definitions, data glossary and metadata capture and management
Data reconciliation, remediation, and data quality monitoring, metrics and reporting

Data Architecture, Implementation and Analytics

Target data architecture design covering conceptual, logical, and physical data models
Design and implementation of data services, including data acquisition, sourcing (vendor and internal), profiling, authoritative data stores (golden copies and sources of record), data access, distribution, monitoring and data quality management
Iterative physical implementation, vendor selection, automated data profiling, reporting, and quality checks, utilizing the cloud where appropriate
Data glossary implementation including definition, metadata, rules, and Wiki
Implementation of data analytics, machine learning and business intelligence tools utilizing structured and unstructured data
Sourcing, application and analysis of data for key business, support and regulatory functions

Solutions

FRG’s Business Analytics team ensures your company has the solutions it needs to manage its risk and analytics processes effectively. Solutions include:

Complex Model Development

Whether your company is new to risk management or would like to improve its modeling capabilities, we can guide you through the model development process. After development, we can implement the models, or hand them back to you.

Test Case Development and Execution

Our familiarity with the technical aspects of multiple risk platforms gives us the ability to design and implement complex testing scripts to ensure the risk or analytics solution is meeting your service level agreements.

Training

We tailor training materials and sessions to your preferred complexity level, so you know exactly what we are delivering. We cover a wide range of topics, ranging from details about the risk quantification system to modeling concepts to technical details.

Requirements Gathering and Documentation

Our consultants can participate in every step of the solution build from inception to production. As a result, we write clear and articulate Business Requirement and Testing Requirement documents, and Help documentation.

Data Governance

We can help you develop a data governance process that provides transparency to complex systems by allowing users to easily track the flow of information as it moves from source systems to reporting.

Guidance on Software Selection

We know that a solution that fits a small team won’t necessarily work for a large enterprise solution. We partner with your team to help you choose the best technology available to fit your unique business needs.

Models

Financial institutions turn to FRG’s Model Consultation Group to develop models for satisfying risk assessment and risk quantification. We offer services that meet modeling requirements for regulatory needs (such as IFRS 9, CCAR, Dodd-Frank Stress Testing, and Basel) as well as those outside regulatory restraints. This includes specialized capabilities and experience in the Energy sectors.

Probability of Default (PD) Models

FRG’s experience in the development and implementation of PD models includes models built at the both loan level and segment level, and also includes the development of models such as logistic regression and transition matrix estimation. Model experience includes:

Multinomial logistic regression
Credit Portfolio View process
Dual Time Dynamics
Hazard Models
Logistic Regression
Merton-Vasicek (i.e., single-factor Vasicek model)

Loss Given Default (LGD) Models

FRG has experience in quantifying historical LGD values as well as building models for predicative purposes. AS with PD models, this extends to loan level and segment level models.

Regression models: Logistic, Tobit, Beta, Censored Gamma
Frye-Jacobs

EAD Models

To augment the amortizing calculations typically used in estimated EAD, FRG has experience in developing prepayment and growth models in addition to estimating parameters used in Credit Conversion Factor (CCF) calculations.

Other Models

In addition to the modeling expertise FRG provides for credit risk assessment we also have experience in:

Developing IFRS 9 Stage Transfer Rules
Scorecards development (Origination and Behavioral)

Other Services

Testing

FRG’s Quality Management System includes an iterative and incremental testing approach leveraged from the Agile development methodology. FRG’s testing approach takes advantage of leading business, technology, and testing practices. It includes test planning, test case development, test execution, defect management, and metrics reporting. We work collaboratively with our clients and other teams to understand requirements and then validate that the product, whether a risk model or an entire risk platform, satisfies those requirements. Testing services provided by FRG include:

Test Planning / Test Planning Support
Test Case Development / Test Case Development Support
Unit Testing / Unit Testing Support
System Testing / System Testing Support
User Acceptance Testing / User Acceptance Testing Support
Test Reporting / Test Reporting Support

IFRS 9

Financial institutions required to report under International Financial Reporting Standards will have to meet new criteria under the latest iteration of improvements introduced by IFRS 9. These include a logical model for classification and measurement, a single, forward-looking “expected loss” impairment model and a new approach to hedge accounting (www.ifrs.org). FRG provides consultative and modeling expertise to ensure your team meets these new regulatory standards when they become effective in January 2018.

Trade Surveillance

The need for surveillance in all types of trading environments has been illustrated through a number of cases that have resulted in significant regulatory changes and business reputation issues globally. These issues require dynamic solutions tailored to specific environments. FRG’s skill in these areas stems from individuals with extensive industry experience in trading and risk management.

Functional experience with a variety of asset classes in commercial and proprietary trade management systems
Development of systems to address buy and sell side environments
Proprietary methodology that employs a notion of dynamic rules to address false postiives
Experience with trade desks in multiple locations (foreign and domestic)
Detailed understanding of regulatory regimes that may influence rules engines

Sales Practices

The Office of the Comptroller of the Currency has identified Sales Practices as a “Key Risk” issue, leading financial institutions to consider their ability to monitor and detect issues arising from faulty sales practices as a core competency. FRG has leveraged its deep practical experience, advisory work, and academic relationships to develop a quantitative solution for clients that need to improve their sales practices risk management program.

Our team:

Developed a methodology that uses quantitative measures for timely monitoring and detection
Provides a solution that accounts for the positive and negative incentives that affect behavior
Leverages the latest computing technology to adapt the methodology to unique client environments
Facilitates reporting that provides granularity on multiple levels, from top of house down to individuals