Risk and regulations

• Olalekan Afomolafe
• 19 Feb, 2021
• 2 Comments

JFC's risk and regulation experts collaborate with clients to navigate the impact of new regulatory requirements and seize market opportunities arising from regulatory changes. In the financial services sector, regulatory changes have been rapid and complex, significantly affecting business models and competitive strategies. Our team of senior practitioners and former regulators possess a profound understanding of the regulatory landscape, informed by extensive client experience and global relationships with regulatory bodies.

We continually invest in knowledge initiatives to deepen our insights into risk and regulation, tracking industry responses to recent interpretations of frameworks like the Comprehensive Capital Assessment Review (CCAR) and the Fundamental Review of the Trading Book (FRTB). Our dedicated Risk Center of Competence employs experienced analysts worldwide to develop focused analyses on critical risk-management topics using extensive data pools. Our risk roundtables on key regulatory topics promote discussions and idea exchanges among senior executives from leading financial institutions globally. For example, we convene executives from most banks subject to CCAR in North America and stress testing and Supervisory Review and Evaluation Process (SREP) in Europe.

“Adapting to regulatory change is not just a compliance necessity, but a strategic opportunity to enhance competitive advantage.”

- Mary Schapiro, Former Chair of the U.S. Securities and Exchange Commission

How We Help Clients

Capital and Balance-Sheet Management

We assist banks in optimizing their approaches to risk-weighted assets and capital measurement (e.g., Basel Pillar 1, economic capital), enhancing capital management processes, allocation, hurdle rates, and governance. Our expertise has enabled leading institutions to improve their business models through strategic balance sheet optimization.

Funding, Liquidity, and Treasury Management

We help institutions optimize their asset-liability management (ALM) and treasury functions by redesigning governance and organization. We implement best practices in liquidity management, management information systems, and investor relations, achieving significant improvements in managing customer business, including funds transfer pricing, limit structure, and flow management.

Trading and Market Risk Management

Our teams assist financial institutions in analyzing, reviewing, and implementing market and counterparty risk methodologies and processes. We help them meet regulators' operational requirements for market risk management efficiently and ensure FRTB implementation. We offer diagnostic analyses, flash surveys on pressing regulatory topics, and support for regulatory engagements and mobilization programs.

CCAR, SREP, and Stress Testing

We establish comprehensive stress testing frameworks, including scenario analysis, loss and pre-provision net review models, and supervisory response preparation. We help institutions integrate enhancements into capital planning processes, strengthen governance, and ensure effective challenge and documentation. In difficult regulatory negotiations, we design and support project management offices to ensure implementation and identify improvement actions.

Model Risk Management

We support leading institutions throughout the end-to-end modeling cycle for risk management, including model strategy, development, validation, and usage.

Recovery and Resolution Planning

Our approach to recovery and resolution planning involves defining a playbook of actions and capabilities necessary for resolution, based on robust scenario simulations. We have helped banks articulate their resolution plans for regulators, identify and calibrate recovery plan triggers, and assess the impact of living wills on various business lines.

• finance
• risk management
• risk regulations
• resolution planning

Olalekan Akomolafe

JFC is a financial consultancy and investment firm. Founded by Mr Akomolafe Olalekan in the year 2005, we’re an employee-owned firm pursuing diverse ways to promote and support financial firms via high level professionalism.