Risk Management

Today, leaders in risk management are moving beyond an approach that measures and manages risk within isolated silos. These institutions see the interrelationships among risks, which are intertwined in ways that cannot be easily anticipated as risk events in one area find their way into others. These interrelationships make single-dimension management of risks outmoded. Expertise in each of the risk disciplines is critical; however, an enterprise perspective is needed to manage the overall risk of an institution.

These leading institutions are integrating risk management into day-to-day business line management. Many institutions are placing risk managers in business lines, developing risk-based tools, and pricing using risk-based measures. However, few are using risk-based measures to set overall performance targets and incentivize managers to achieve those targets. Fewer still, are feeding customer behavior information into risk measures to fine-tune pricing, asset / liability, liquidity, and other measures of risk.

For these institutions, top quality risk management is not an isolated appendage, but an integral part of the measurement and management process of all the activities of an institution. Effective enterprise risk management is defined by a philosophy and approach that is constantly looking for new ways of thinking about risk and integrating information on risks into all aspects of the decision process.

With these insights in mind, the risk practice at Novantas is dedicated to improving our clients’ quality of earnings. We do this by helping our clients integrate risk capabilities throughout their institution to enhance their governance and oversight, improve their measurement of risk / return choices, and increase the effectiveness of their operating model.