Ernst &Young >Services>advisory financial-services-risk-management - Ernst & Young - Luxembourg

From enterprise risk management frameworks to credit risk, market risk, operational risk, regulatory compliance and treasury function programs, we can help.

Decision makers today, should plan to manage, mitigate, accept and capitalize on the risks they know of and respond to new risks as they emerge.
We assemble the appropriate multi-disciplinary teams and use consistent, proven global methodologies and tools to help you - wherever you are in the world. And because we understand that, to achieve your potential, you need a tailored service as much as a consistent methodology, we work to give you the benefit of our deep industry experience, our subject matter knowledge and the latest insights from our work worldwide. It’s how Ernst & Young makes a difference.

Working with the board, executives and line management, Ernst & Young help tackle the challenges faced in financial services in managing risk. Our dedicated team of risk management and regulatory professionals has deep industry knowledge of each aspect of risk that financial organizations need to manage. Throughout financial centers of the world, we provide a comprehensive range of services to help clients develop their risk management and broad strategies, in a cost effective, tailored and pragmatic way from strategic vision through to IT application advisory.

Our areas of focus include:

• Anti-Money Laundering
• Enterprise Risk Management and Governance
• Regulatory and Compliance Risk
• Market Risk and Quantitative Advisory Services
• Credit Risk
• Operational Risk
• Liquidity Risk
• Economic Capital and Risk-Adjusted Performance Management
• Corporate Treasury Services

Discover our services flyer  ( 4,127 kb).

Anti-Money Laundering
Financial institutions are expected to design and implement effective anti-money laundering programs that address organizational needs, policies and procedures, transaction monitoring, independent testing of controls, filing of suspicious activity reports, and ongoing training of employees. Technology plays an increasing role in addressing transaction monitoring, case management, and reporting needs. The increased emphasis by regulators in most countries, and changing rules, has catapulted anti-money laundering onto nearly every financial services organization’s strategic risk and control governance agenda.

For more information:
Download the global Anti-Money Laundering Advisory Services brochure (, 435kb)
or contact our Advisory Experts.

Enterprise Risk Management and Governance
High profile risk management failures, the increasing regulatory scrutiny and evolving complexity/diversity of organizations has brought enterprise risk management (ERM) and governance to the attention of the board and officers.

We help clients promote a culture of accountability from the top to the bottom and strengthen the effectiveness of risk oversight. We also help clients improve the communication of risk information to the board and other senior management, integrate risk management processes and offer practical ERM and governance structures that facilitate the deployment of ERM guidance into business strategy transformation measures.

For more information, contact our Advisory Experts. 

Regulatory and Compliance Risk
With increasing supervisory and shareholder scrutiny and the rising prominence of reputation and “brand” risk, it is critical that institutions and compliant with existing regulations and prepared for those to come. The principles-based approach to many of the new regulations requires a perceptive and practical understanding of what it means for business practices.

Our regulatory and compliance advisory capabilities cover a broad range of risk management, supervisory, and compliance issues, including the co-development of risk policies and procedures for the oversight and management of risk; the establishment of compliance risk assessment frameworks and the relation monitoring tools; regulatory initiative preparation; business case compliance; and internal and external regulatory reporting.

For more information, contact our Advisory Experts. 

Market Risk and Quantitative Advisory Services
Ever changing financial markets and the increasing importance of risk measurement within accounting standards, have forced dealers, investors and regulators to evolve their market risk measurement and management practices. Our global network of quantitative analysts and business professionals understand the processes and tools critical to the development of an effective market risk framework. We advise clients on their Value at Risk (VaR) analysis, risk measurement and stress testing, derivative pricing, and hedge effectiveness calculations.

For more information, contact our Advisory Experts. 

Credit Risk
The requirements of Basel II, Solvency II and recent market conditions have focused companies to look at their credit risk management practices and its contribution to economic capital. Innovations in risk management techniques – securitizations, collateral management and credit protection – now allow institutions to proactively manage their exposure.

Working with our clients, we can help institutions enhance their credit risk strategies and governance, define and validate their models and methodologies and optimize their risk-technology infrastructure. We can also help to refine internal and external reporting, determine economic capital and the overall capital management strategy.

For more information, contact our Advisory Experts. 

Operational Risk
Recent operational losses, coupled with the increased focus of regulators and the requirements of industry standards, have heightened the awareness of operational risk management (ORM) within many institutions. Companies are increasingly looking to converge their ORM initiatives with other related risk and control assessment activities, such as Sarbanes-Oxley, and other compliance requirements.

We have created an integrated ORM framework for organizations, which promotes a balance between quantitative and qualitative approaches to operational risk. This framework seeks to enable institutions to understand the crucial processes required for a sound ORM.

For more information, contact our Advisory Experts. 

Liquidity Risk
Treasury functions of financial institutions, corporations and government organizations all have to operate within an environment where liquidity, funding and capital management are increasingly scrutinized. With experience in bank and corporate treasury as practitioners and advisors we can help clients on cash flow forecasting, capital market funding structures, and treasury and risk systems. We can also assist clients develop and design their treasury organization, their internal controls and governance, their currency, interest rate and commodity risk management, as well as their global cash and bank relationship management.

For more information, contact our Advisory Experts. 

Economic Capital and Risk-Adjusted Performance Measurement
Advances in risk management and techniques now allow increased sophistication when considering risk in capital allocation and performance measurement. The emergence of these new techniques allows organizations to enhance shareholder value and meet regulatory expectations.

We help clients in the development of their economic capital and risk-adjusted performance measurement frameworks. These frameworks aggregate risk exposure and constantly measure performance across diverse products. Leveraging this framework, institutions can move beyond the traditional accounting, regulatory and rating agency methods of assessing capital and performance into improvements in capital allocation, performance measurement and budgeting.

For more information, contact our Advisory Experts. 

Corporate Treasury Services
Corporations, financial institutions, and government organizations need help managing the different types of risk to which their activities expose them. Our services include an analysis and review of an organization’s structure and related functions with a functional performance assessment against treasury market leading practices, improvement recommendations that articulate risk and opportunities resulting from change and future state blueprints.

For more information, contact our Advisory Experts.