Risk Management

e.stradis Risik Management Process Model
e.stradis Risk Management Process Model

e.stradis helps its clients to transfer their risk strategy into effective operational risk management processes. Our expertise focuses on the following types of risk

  • Credit risk in various forms (default risk, credit risk, settlement risk, supplier risk)
  • Project risk
  • Market Risk

Below you will find further information on selected aspects of risk management.

MaRisk Implementation

With "MaRisk" the german regulation authority BaFin defines the minimum requirements for risk management in financial institutions and insurance companies. Its basic principles are also to be applied to companies not underlying the formal supervision. 

e.stradis supports its clients in the design and implementation of MaRisk-compliant risk management processes, such as:

  • Group-wide management and controlling processes
  • Risk measurement and evaluation
  • Segregation of duties and competence arrangements
  • Limitations and voting
  • Collaterals Management
Process optimization in risk management

Risk management processes are subject to increasing efficiency requirements. e.stradis consultants help to optimize your risk management processes, e.g. by:

  • Automation of manual process steps
  • Integration of external data suppliers or rating procedures
  • Merging of data sets for better data quality and availability
  • Improved Reporting
  • Automated Alerting
Limit systems

Sophisticated limit systems with matching authority regulations form the basis of operational risk management. 

e.stradis helps its clients to develop multi-dimensional limit systems to allow for risk control, for example by sector, region, customer groups, etc. in all relevant business relationships, such as:

  • Lending, leasing and trading business
  • Proprietary trading in treasury 
  • Sourcing

Besides the peril of missing concentration risk due to ignoring the multiple economic relationships with business partners (risk compound), corporate groups have the additional risk to miss limit concentrations occurring at the group level (concentration risk) due to decentralized responsibilities and lack of integration of established risk management systems. 

e.stradis helps its clients to align their processes and related IT support properly for example by

  • implementing sophisticated concepts to take notice of risk compounds on all group levels 
  • group wide defined responsibilities and authority regulations
  • technical solutions for the automatic detection of limit concentrations and escalation of cognizance
Risk measurement

A risk model or risk measure may cause a false sense of security due to inappropriate model assumptions or faulty processing and interpretation of results. 

e.stradis offers conceptual support in developing a risk management performance measurement system. We take into account the particular objectives and conditions, including:

  • What assumptions stand behind the figures and do these assumptions result in limitations on their applicability?
  • Is the indicator system uniformly applicable to different business areas? 
  • Are the values comparable?
  • Are the different risk amounts summable ?
  • How easy can the results be interpreted by the management?
  • What data is required and is it available in sufficient quality?
  • What are the requirements on computing power and computing time?
Integrated revenue and risk management

In the area of asset management e.stradis helps its clients to transfer established concepts for integrated risk/return management to corporate risk management processes, for example with

  • methodically and consistently aggregated company-wide performance measurement systems
  • quantitative decision-support processes for the derivation of limit systems
  • scenario simulation and calculation of liquidity, income statement and balance sheet effects
  • integration of the limit systems with the operational systems

For this purpose, in addition to our methodological expertise, we bring in the implementation experience of many client projects and of the development of our own software products.

Risk Mitigation and Collateral Management

e.stradis supports its clients with the introduction of collateral management systems and their integration with the limit system. By this our clients will attain

  • auditable processes for examination, evaluation and authorization of collaterals
  • the reduction of capital requirements through optimized allocation of collaterals in credit operations
  • the data required for effective risk management at departmental or sub-portfolio level.
Validation of the rating systems

The regularly required validation of internal rating systems is a complex task in which we support our clients with methodological expertise and software tools. 

We also help to reduce manual expenditures substantially by establishing efficient access to the required data.