Risk Identification, Control and Management

XMI offers a unique risk-reduction and reputation assurance service focused specifically at the Treasury environment.

Against the backdrop of well-publicised failures in Treasury control and the ever-changing regulatory environment, senior executives are faced with escalating personal accountability. Today’s environment requires a proactive and practical approach to operational risk assessment complemented by solid risk-reduction policies and procedures.

XMI fills this gap by reviewing the effectiveness of controls over key risks that exist between Treasury front, middle and back offices, and other parts of the organisation. In particular, we focus on the interface between the people in these areas and work to develop their levels of knowledge and understanding – recommending ways in which the key risk controls may be improved and/or implemented.

The XMI Approach

The unique methodology for the XMI Risk Control Programme was developed from extensive, hands-on experience within Treasury and Capital Markets, and looks in-depth at the following:

Treasury Strategy and Business Planning – examining Treasury’s links to corporate strategy, levels of ’buy-in’ and inter-departmental communication.

Market Risk – analysing the risk profile and its consistency with both internal Treasury trading and sales objectives and the wider business strategy.

Control of Dealers – checking reporting lines, management responsibilities, segregation of duties, the potential for trade manipulation, limit and mandate control.

Pricing – reviewing appropriateness of client and internal pricing policies (this may be conducted in conjunction with a wider review of Funds Transfer Pricing policies).

Management Information – examining the quality of data produced, its distribution, interpretation and effectiveness as a strategic tool.

Human Factor Risk