Risk

Governance, mission, and risk appetite; the dialogue counts

Governance, mission, and risk appetite: the dialogue counts: We believe that engaging in the dialogue about the real risks involved lies at the heart of good risk management. We encourage and support dialogue between the risk management team, the executives, supervisory boards and the rest of the business. In collaboration, we evaluate the connection between your mission and your risk appetite, risk governance and business governance, where we focus on the ratio between your risk appetite profile and the actual risks taken. In our services, we make use of what is well-established within your organization, and we deliver advice and practically applicable solutions that are appropriate for your organization.

Processes

When we answer the following questions, we know what information we need and which processes are required to deliver that information you need to measure, monitor, and report on your risks. Which models are suitable? How is the connection between the available data and the risk models that are used? At Probability & Partners, we have consultants specializing in data access, IT for risk management, model building and validation, and performance attribution.

Outside world

The outside world is constantly evolving, which means the (financial) risks for an organization are as well. Following trends is therefore crucial for up-to-date risk management. Thinks like deglobalization, COVID-19, changing market bahavior and new regulations such as the new pension system, IORP II, IFRS 9 are of great importance.

Risk culture, behaviour and skills

Risk culture and behaviour are essential to risk management. Is the organization sufficiently diverse? Is the quality of decision-making adequate to handle risks and insecurities? Are the technical, communicational and collaborational skills of the teams within the organization satisfactory? An important challenge is a change in the outside world, the regulations, and the behaviour of people and markets. These behavioural and cultural changes can be accelerated with training and guidance.