Financial risk management services

Organizations worldwide are facing growing risks triggered by deepening forces of change, such as volatile markets, emerging technology and an evolving regulatory landscape, that have only heightened the need for strong financial risk management. Further complicating this dynamic environment are challenges related to credit and liquidity risk, market risk management, treasury functions and the need to ensure seamless integration of risk management frameworks to govern new technologies like cloud and generative artificial intelligence (GenAI). In the meantime, organizations also have to navigate new accounting standards, as well as environmental, social and governance (ESG) matters and regulatory mandates, that add even more layers of complexity.

The good news is there are ways to reduce your operational burden and elevate your financial risk management frameworks to thrive in this challenging landscape. Our comprehensive set of services offers tailored, integrated solutions designed to meet your unique needs. We can help you navigate today’s complex financial risk environment, enhance economic resilience, improve margins through a range of economic conditions and foster efficiency and sustainability in your operations.

Our approach

Our financial risk management team offers a range of integrated solutions to enhance risk management and treasury functions. We combine qualitative and quantitative expertise with our deep knowledge of leading industry practices and regulatory requirements to help your organization navigate today’s complexities. We bring a human-led, technology-powered approach that brings together both local and global perspectives and tools such as SAS, Python, SQL, R, MATLAB, and C++ to deliver actionable insights that lead to better and more informed decision making.

How we can help

Quantitative Modelling Services
Financial Risk Management
Financial Instrument, Hedge Accounting and Valuation
Cloud Migration Services
AI/Machine Learning Modelling Services
ESG and Climate Risk Modelling Services

Quantitative Modelling Services

Our services cover all types of financial risk models, such as credit, liquidity, market and climate risk. In the current dynamic market landscape, understanding, managing, and quantifying the complexities associated with risk management requires sophisticated models. From model development, validation and life-cycle management to cloud migration, our experienced team of financial engineers and data scientists use advanced techniques and analytics aligned with industry-leading practices to deliver the right outcomes for your organization. Our services include:

Cloud migration and code conversion services, such as model-related infrastructure migration to cloud computing
GenAI application in quantitative model development and validation
Model development (credit risk models, market risk/pricing models, liquidity risk models)
Credit portfolio optimization
Climate risk modelling
Model validation
Stress testing
Model risk management services
Model-related regulatory compliance advisory services
Model-related internal audit co-sourcing and outsourcing services
Managed services

Financial Risk Management

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 Instrument, Hedge Accounting and Valuation

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)

Cloud Migration Services

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.

AI/Machine Learning Modelling Services

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

ESG and Climate Risk Modelling Services

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.