International regulation and guidelines emphasize the need for suitable investment solutions and close monitoring of the investments over time. Clients expect clear information on risk, return, costs and the achievability of their financial goals at any moment. To meet the demands of clients and regulators, banks and investment companies need to have consistent firm-wide risk management and monitoring processes in place.
These processes are built around four consecutive steps. The process starts with the assessment of goals and risk attitude. The second step involves the identification of risk on a company, client and product level. Stage three, measuring risk, concerns the alignment of the client’s risk attitude and risk of the investment portfolio. The achievability of various goals on different horizons is also addressed in this third stage. The final step in the process is the actual monitoring of risk and goals and the necessary adjustments in a changing business and personal environment.
Ortec Finance designs and implements the risk management processes. OPAL platform provides the necessary backbone for a consistent framework. It ensures a uniform economic view, consistent advice, monitoring of implementation risk and the risk of not reaching goals, irrespective of service channel and/or client segment.