Advisory Services for Boards, Management & Investors

  • Risk Advisory
    • Providing clients with a comprehensive picture of their risks (market, credit, counterparty, liquidity, investor, black swan, etc.).
    • Integrated risk, performance and attribution reporting across traditional and alternative assets.
    • Advice on risk management organizational structure, the role of the CRO, and committee charters.
    • Compensation linked to risk: best practices.
    • Independent reviews of valuations, risk models, and strategies that use complex instruments.
    • Risk Appetite Statements that permit boards to communicate to management a uniform view on acceptable risk.
    • Risk Budgeting to create optimal returns given an overall risk appetite.
    • Risk Governance assessments based on extensive benchmarking and surveys as well as on our experience as Trustees and Directors.
    • Reviews of risk management policies and procedures relative to best practices.
    • Risk Benchmarking
  • Investment and Private Equity Due Diligence
    • Business plan due diligence for private equity investors in financial services.
    • Assessments of risks at the fund, hedge fund and operating level.
    • Training in Risk Due Diligence
  • The Role of the Board in Risk Oversight
    • Risk Culture
    • Risk Reporting
    • Risk Education
  • Risk Appetite and Risk Attitude Statements
    • Risk Appetite Statements help boards communicate to management a uniform view of an acceptable risk profile. CMRA is a pioneer in expanding "Risk Appetite" statements to include "Risk Attitude" and is using interactive technology to assist both the Board and management in identifying areas of agreement and disagreement and creating a Risk Appetite Statement and creating a Risk Conscious Culture.
    • We have assisted Institutional Investors, banks/broker dealers, insurance companies, and asset managers in the creation of Risk Appetite and Attitude Statements
  • Risk Budgeting
  • Best Practices Assessment
    • CMRA helped create "Risk Practices for Mutual Fund Trustees (2010)" , "Risk Principles for Asset Managers (2009)", and "Risk Standards for Institutional Investors and Investment Managers (1996)."
    • Benchmarking policies and procedures against best practices and providing a gap analysis.
    • Annual Risk Governance Survey
  • Risk Due Diligence
    • CMRA conducts risk due diligence both at the request of funds seeking to benchmark and improve their practices, as well for Institutional Investors considering investing in or already invested in a fund.
    • Leslie Rahl is the author of Hedge Funds: Unraveling the Complex and Controversial Debate, Risk Books, (March 2003).
  • Risk Governance Assessments and Advisory
    • CMRA is uniquely suited to assist our clients on risk governance as a result of our own experience as directors and trustees, as well as our extensive risk governance benchmarking and advisory work.
    • CMRA has surveyed financial institutions on risk governance practice annually since 2009.
  • Linking Compensation to Risk
    • Defining the denominator-more than just VAR
    • Risk Adjusted Returns
    • Charges for limits as well as usage
  • Board and Trustee Education
    • Our perspective as Board members, risk experts, traders/structurers and business managers uniquely positions us to advice Boards on issues from Risk Governance to Risk adjusted compensation
    • Providing "translations" of risk reports that make them meaningful to Boards and CEOs.
  • Risk Measurement and Reporting
    • Designing Risk Reports that have "context"
    • Focus on trends and exceptions
    • Integration of stress testing and "nightmare" scenarios
  • Independent Model Reviews
    • Emphasis on input control and assumptions not just math
    • Is model appropriate for task or is a square peg being forced into a round hole
    • What are the model's Achilles Heels? Under what extreme moves does it break down?
  • New Product Reviews and Policies
    • What constitutes a "new" product vs a variation on an old product?
  • Valuations of Derivatives, Structured Products, RMBS, CDOs, CLOs
    • Review of valuation policies
    • Review of Valuation Committee role and charter
    • Independent review of valuations
  • Transaction Services
    • Independent evaluation of OTC derivative and Structured Finance pricing, structuring and documentation, collateral valuation, comprehensive transaction risk pricing.
    • Assistance in effective execution.