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Enterprise Risk Management Experts
- Has your bank been encouraged by the board or regulators to enhance ERM practices?
- Is your bank trying to create a Risk Management Committee?
- Do you have to create a risk appetite statement?
- Does your bank have a risk inventory of top risks?
- Are you being encouraged to stress test to determine capital adequacy?
- Are you required to develop a capital plan?
- Do you have to validate or backtest one of your models under the new model risk governance guidance?
Second Pillar Consulting is helping banks better own their risk by assisting banks with their Enterprise Risk Management programs. Risk ownership is key in today's operating environment and Second Pillar Consulting has the experts experience in helping banks own their risk. Whether it be assistance with education, use of one of our unique online risk surveys, or our customized stress testing models; Second Pillar has the experience and tools to help your organization.
Our ERM programs include:
- Complete ERM programs including using our unique web based internal risk surveys and risk inventory software
- ERM gap analysis that compares your banks current practice to best practices
- Working with you and your board to create a risk appetite statement and supporting governance process
- Developing a Risk Management Committee including assistance with charters, structure, agenda and attendees
- Policies and procedures related to Enterprise Risk Management
- Balance Sheet strategy and risk adjusted performance measurement
- Model validation that meets regulatory guidelines
- Select from a number of our in house education programs from director education on ERM to full day ERM educational programs with breakout sessions designed to kick start your ERM program
Interest Rate Risk Management, Liquidity and Funds Transfer Pricing
- Have you seen the new guidance banks are facing from regulators relating to interest rate risk management?
- Are you aware that all banks, not just large banks, are subject to the same regulations regarding interest rate risk?
- Can independent certifications/ validations commissioned by model vendors satisfy supervisory expectations for model validations?
- Are you being encouraged by your regulator to conduct a deposit study?
Regulators have recently released guidance on IRR management that requires banks to have their IRR models validated. Banks must complete their own independent validation of the models and not rely solely on the validations completed by the vendors. Full text of the IRR guidance can be found here. The joint agency guidance on liquidity can be found here. Second Pillar has years of experience in Interest Rate Risk and Liquidity Management and offers the following services:
- Providing monthly and quarterly ALCO services for smaller financial institutions including modeling your interest rate risk
- Model validation of in-house models and vendor models
- Model implementations
- Deposit studies
- Redesigning your banks ALCO process and reporting
- Policies and procedures related to managing Interest Rate Risk and Liquidity
- Establishing limits and ensuring those limits are consistent with the bank’s risk appetite
- Validation of Funds Transfer Pricing models and methodologies
- Validation of liquidity models
- Construction of liquidity models or liquidity scenarios
- Prepayment studies
- Liquidity stress testing
- Board Education on Interest Rate Risk and Liquidity Management
The Second Pillar Difference
- Exclusive focus. We do one thing and we do it well, ensuring the highest quality and lowest cost.
- Low overhead. We do not carry–and you do not pay for–the bloated partnership and support structure of traditional consulting firms.
- No sales people. You work directly with compliance experts that want to help solve problems, not sell more business.
You want to win the regulatory compliance game. We can help get you there efficiently
Contact us for a free report to determine the potential Standardized Basel II capital savings for your bank or to discuss our ERM solutions.
Second Pillar experts have years of experience in building and validating stress testing models. In fact, we wrote the book on stress testing! Second Pillar developed the stress testing workbook for the RMA. Click here to order a copy. From creating a customized model for your bank to helping you select the "right" level of stress for an adverse or severe event to creating a reverse stress test, we do it all. Some of our services include:
- Customized model construction for RMA level, portfolio level, or bank stress level
- Validating your existing model
- Creating stress scenarios specific to your bank