As companies continue to embrace the global marketplace, these firms are increasingly exposed to competitive economies, volatile markets and rapidly evolving regulatory mandates. Effective strategies and tools are needed to help them identify and manage new risks. Thus, Magnus Investment Services can help clients to identify their exposures, develop a risk management strategy that can maximize competitive advantage and drivers of business performance, and apply an in-depth risk management discipline, supported by leading tools and experienced specialist resources.

By taking into account a client’s appetite for risk and the need to enhance value, we develop appropriate tailor-made documentation for the implementation of a client’s risk strategy. Whether it is middle-office or back-office activities, we analyze the consistency of a client’s risk management framework with the defined risk strategy and offer a critical assessment of the implementation of risk strategy in a wide range of areas relating to a client’s business.

Our financial risk management team operates at the intersection of corporate finance and risk management to assist clients with financial risks that include equity, interest rate, commodity and other market risks as well as credit, regulatory and operational risks. Our consultants take a highly customized approach to each client, with solutions that are tailored to fit the specific risk and capital management objectives.  Our professionals are well versed in modeling, analyzing, and communicating the effects of combined risks to financial and non-financial institutions. Therefore, they assist clients in measuring individual risk exposures and aggregating these risks across risk factors and business units, taking into account correlations and diversification effects, to measure their combined effect on performance measures such as earnings-at-risk or cash-flow-at-risk. Clients benefit by having an improved quantification of the risks they face, a better assessment of the impact of their risk transfer activities — hedging and insurance — on their overall risk, more precise contingency planning, and more accurate budgeting and financial planning.

Effective risk management requires a specialist understanding of…

  • A company’s financial risk exposure across its enterprise portfolio;
  • Risk management & mitigation strategies to accommodate International standards & business cultures
  • Risk-adjusted performance measures;
  • Financial hedging tools; and,
  • An in-depth risk reporting regimes and associated accounting rules.

Our assistance in middle and back-office areas are in the following areas:

  • Quantitative measurement, evaluation, and management of portfolio risks
    • Operational; Credit; Market; Liquidity; Counterparty; Interest Rate; ALM risk measurement & management
  • Finance and treasury management strategies
    • Advising corporate treasuries on improving cash and capital structure management; funding and foreign exchange risk management
    • Securities and derivatives trading,
    • MM and repo transactions, and
    • Hedging activities
  • Regulatory, Compliance, and Governance
    • Basel II and Basel III upcoming transformation solutions
    • Capital adequacy
    • Regulatory capital solutions
  • Financial Risk Software Consulting
    • Advising on the selection and implementation of financial risk software solutions and appropriate risk vendors providing practical ways technology can intelligibly manage risk
  • Investment Risk Management
  • Advisory
    • Reviewing current risk management framework, and designing/implementing a prioritized plan to facilitate the required improvements
    • Policies, methodologies, and systems implementations

Management processes, methodologies and information systems provide the basis for implementing risk and management strategies. When properly designed, implemented and integrated these elements address an organization’s risk and performance management needs consistently and reliably. This result is a systematic and continuous ability to measure financial risk and performance, and undertake managerial decisions and actions to ensure tolerable risk and high performance. When these reviews relate to the financial risk management of an organization or other party, Magnus Investment Services can provide the risk management expertise needed for proper review and analysis of the issue.