Hilltop’s Risk Management practice can evaluate your company’s enterprise risks as noted below. Most often, our client engagements involve one or two related risk areas. While we can assess an individual risk, we would always recommend that our clients be aware of the other overlapping/related risks that may also be of concern (i.e. mitigating one risk may increase another). We recommend that an approach which identifies, assesses, prioritizes and mitigates various related risks is the best way for our clients to address “enterprise risk”.
Hilltop’s professionals (including risk managers, auditors, fraud investigators, litigation Experts, etc.) have extensive risk management experience, whether servicing our clients or having performed risk management duties at previous employers. Our depth of risk knowledge and management policy/techniques is heavily concentrated in the financial services, real estate and the Federal financial sector agencies.
Hilltop’s Risk Management Assessment methodology can be applied to any risk type. A summary of the steps used in our risk methodology includes:
- Assess the Company’s financial, operational and technology risks and compare to the risks that the Company has identified.
- Assess the Company’s policy for completeness of risk coverage, clarity and consistency related to all identified risks,
- Identify those risk(s) that do not have a related Company policy, set of control procedures, monitoring capability, etc.
- Identify event(s) that have occurred which have a risk that was not previously identified or is a larger risk than previously anticipated.
- Assist in creating/revising Company’s risk policy as needed to achieve leading practices:
- Policy to cover all aspects of the identified risk,
- Specific controls are designed and implemented to prevent, detect and mitigate risks and ensure that the policy is adhered to,
- Monitoring process is designed and implemented to regularly assess policy compliance,
- Test procedures designed and implemented to test compliance with risk policy.
- Test the risk monitoring and detection procedures to evaluate the controls’ effectiveness and compliance,
- Assess Internal Audit and/or other risk teams’ activities in identifying, monitoring, quantifying and reporting risks to Management,
- Evaluate Management’s risk oversight:
- Completeness, accuracy and integrity of data contained in the risk reporting,
- Definition of the risks that Management has defined,
- Comprehensiveness of the measurement process and the risk levels (acceptable, requiring a warning, and requiring significant attention/action), and
- Actions taken and their effectiveness in mitigating identified risks.
- Assess the technology applications that support the risk management process (risk analysis tools used by the company),
- Evaluate management’s response to identified high risk areas, non-compliance with risk management or compliance controls, handling of risk concerns raised by regulatory examiners, external auditors, etc. and assessing the reaction time, mitigating steps taken and effectiveness in reducing the risk level and mitigating the risk impact.
Overall, risk management relies heavily on financial, operational and technology controls. Hilltop’s Risk Management Assessment methodology addresses other important questions such as:
- defining various risks and how they impact the Company,
- identifying what key risk elements are and how Management detects such,
- assessing the probability of a significant risk occurring,
- assessing the frequency of the risk occurring,
- determining how big the risk could become,
- determining the financial or operational impact to the Company if the risk grows to certain levels,
- identifying different actions, involvement, sensitivity and/or response times as risks increase, and
- reporting increasing risk levels and Company response to the Board, Regulators, etc.
Hilltop is particularly qualified to address the above questions as we understand the financial services, real estate and Federal agency risks. Our risk management team has the experience and knowledge for your business.
Click on the title of any risk management category to read more about Hilltop’s services in the risk area of interest:
- Credit,
- Counterparty,
- Regulatory,
- Fraud,
- Interest rate and Hedge,
- Operational,
- Finance and Accounting,
- Liquidity, Debt and Capital,
- Market, Economic, and Political, and
- Reputational.