The challenge now is to harness risk management techniques to improve capital allocation and increase shareholder value.
During the 1990s financial services companies led the way in the development of risk management practices with the development of sophisticated risk quantification measures for market, credit and operational risks. While these methodologies have proven useful from a compliance and regulatory viewpoint, the challenge now is to harness these risk management techniques, to improve capital allocation and increase shareholder value in increasingly complex and volatile markets.
Our Managing Complexity solution has been developed to assist financial services organisations in creating a framework which fully integrates shareholder value and risk management across an organisation.
PricewaterhouseCoopers has undertaken Managing Complexity assignments for a number of major global insurance and banking clients.
The key results include:
A rigorous evaluation of business risks and their influence on performance
Connection of risk and return performance measures on a firm-wide basis
Using transformational, rather than historical, information design for strategic planning
Consideration of ‘complexity factors’ on business performance and shareholder value.
Key specialist: Jason Slade
Relevant experience:
Wealth management background
Specialist in enterprise risk and shareholder value management
Expertise in the connections between risk, capital and profitability
Chairman of the Institute of Actuaries of Australia Risk Management Practice Committee
