Financial risk management services

In the current environment, efforts to strengthen balance sheets, improve liquidity and enhance margins have become a complex challenge for treasury and risk management teams. We deliver comprehensive advisory services to support your teams, bringing deep industry knowledge and making fit-for-size recommendations to help you improve financial risk management. We can help you enhance regulatory compliance and strengthen treasury function to improve compatibility with leading practices.

Our services include: 

• Risk management, including asset and liability management (ALM), liquidity risk management (LRM), capital adequacy ratio (CAR) and, internal capital adequacy assessment process (ICAAP)

• Regulatory compliance and treasury-related advisory services

• Internal audit co-sourcing and outsourcing services in areas such as ALM, interest rate risk in the banking book (IRRBB), ICAAP and liquidity risk management

• Liquidity risk advisory services, such as contingent funding and recovery plans and collateral management

Financial instruments and hedging strategies have grown increasingly complex, posing challenges related to accounting, valuation and reporting. In this dynamic environment, assessing the value and accounting treatment associated with financial instruments and risk strategies requires sophisticated modelling and a deep understanding of accounting standards. The introduction of new accounting standards and regulatory mandates only adds to the complexity. We can help with accounting of financial instruments and hedge strategies under all accounting standards, such as IFRS 9/IAS 39, US GAAP and ASPE.

Using our deep expertise and knowledge of accounting standards, capital markets and valuation techniques, we can help you with:

• Valuation and accounting assessment of complex financial instruments, such as:
  • Compound debt instruments and preferred shares with embedded features
  • Commodity-linked notes
  • Stream and offtake agreements with exotic features
  • Performance share units
  • Employee stock options
  • Warrants
  • Virtual power purchase agreements (VPPA)
• Hedge accounting and valuation managed services:
  • Hedge documentation
  • Hedge effectiveness
  • Derivative valuation
  • Resolving accounting/valuation issues
  • Addressing inquiries from your auditors and stakeholders

• Advisory on transition to and implementation of new accounting standards

• Internal audit co-sourcing and outsourcing of valuation and capital market-related operational controls

• Derivative and capital market regulatory and market protocols, including the International Swaps and Derivatives Association (ISDA)

Our team of cloud engineers, data scientists and model developers bring extensive experience to help organizations navigate every phase of the cloud migration journey. Our services include the following steps and components:

• Assess migration readiness and estimate migration effort 
• Design of an integrated migration plan
• Data mapping and validation
• Model assessment and code design
• Code conversion and optimization
• Output comparison and documentation 
• Model change validation
• Model promotion
• Focused training and employee upskilling

Our services are available for migration to all major cloud platforms, including Amazon Web Services (AWS), Google Cloud Platform (GCP) and Microsoft Azure.

With the significant attention on GenAI, we’re proud to support organizations in this area. Our GenAI engineers develop solutions tailored to the specific use cases in demand for financial institutions and corporate clients. Through the use of cutting-edge techniques, we bring efficiency and quality to every solution.

Our services include supporting organizations with AI and machine learning model development and validation. We can also help you with model governance along the life cycle of AI and machine learning models and the development of GenAI solutions for modelling use cases.

Our modelling teams have developed a deep understanding of the specific risks that can arise with AI and machine learning models. They also bring extensive experience with assessing, monitoring and mitigating these specific model risks in line with regulatory guidelines and industry best practices.

Our AI/machine learning services include:

• AI/machine learning model development, validation and audit

• GenAI use case and solution development

• Advisory support related to AI/machine learning model governance along the model life cycle and in the context of the Office of the Superintendent of Financial Institutions’ (OSFI) E-23 guidelines

Our team takes a comprehensive approach to integrating climate risk implications into financial risk management. Our services include:

• Climate risk modelling and analytics: benchmarking and gap analysis of current capabilities, review of modelling approaches and integrating climate considerations into other types of risk, such as credit and market risks.

• Meeting regulatory expectations: navigating key aspects of OSFI’s B-15 guideline on climate risk management, including standardized climate scenario exercises (SCSE) and ICAAP requirements.

• Climate scenario analysis: helping institutions perform climate scenario analysis and stress testing by evaluating models and scenarios across different time horizons to identify potential climate-related risks. Our expertise covers and considers the interactions between both physical and transition risks and helps institutions understand the methodologies, data limitations and assumptions involved.