DFRC RISK MANAGEMENT PHILOSOPHY
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RISK MANAGEMENT PHILOSOPHY

DFRC believes that risk management should reflect the corporate culture of the organisation, provide insight into the business decision process and clarity of management effectiveness.

To be effective the risk management organization should be independent of the business organization and provide:

  • Increased clarity to business decisions,
  • Improved communication on Business Economic and Financial risks
  • Independent Oversight of Business Strategy
  • Corporate Governance

 

DFRC RISK MANAGEMENT APPROACH

DFRC employs a Client Team Approach rather than the more usual outside consulting team. Clients assemble a project team of professionals who would work jointly with a DFRC Team. The team jointly develops the recommended approach by analyzing the risk management infrastructure, implementing a comprehensive methodology, and proposing suitable controls to address the total risk profile of the client.

This approach is not only more cost effective for the Client, but it also provides the best motivation and involvement for the Client's resources. We also actively involve the Senior Management and the Board in all stages of the project. This approach has excellent educational benefits, and we believe fosters the long term success of the project.

This approach is suitable for those firms that are committed to a major review and restructuring of their risk management process and have the resources available but lack the expertise internally to ensure the timely implementation of the project.

 

DFRC’s PRACTICE WITH FINANCIAL INSTITUTIONS

Avalanche of financial institutions lack the appropriate Independent Risk Oversight at the Board level. This is not only a significant legal burden but Independent Risk Oversight is necessary to ensure that correct monitoring and communication of key risk issues is being provided to the board and to shareholders.

DFRC specializes in providing independent risk management oversight for financial institutions, and has the capability to perform extensive Independent Management Reviews for Clients and Financial Institutions and assists in the implementation of best practice.

Risk Reviews or 'Audits' cover all aspects of financial risk and have resulted in Senior Management recommendations that improve Corporate Governance, the Risk Organization and provide Performance Evaluation insights for the Organization and its Divisions.

Recommendations also improve Credit Analysis, provide key Exposure Insights, establish the basics for the design and implementation of 'Value at Risk' Systems and assist the Board with the Institution's Reserve Management.

When Partners are appointed as Independent Board members, we have a key role in establishing, participating in and / or chairing risk oriented Board Committees (i.e. Risk Management Committees, Strategic Planning, and New Business Committees) and ensuring that the Board is correctly informed not only on the risk profile of the Institution but also key business risks that are inherent in the organization