Risk Measurement & Monitoring

Risk Measurement & Monitoring

Effective financial risk management will need identification, measurement, and monitoring of market, credit, and liquidity risk. For effective financial risk management we need:

  • Identification of all financial risks in the portfolio and across institutions
  • Accurate measurement of different financial risks
  • Timely monitoring and communication of financial risk
  • Timely communication of risk undertaken in portfolio so potential problems can be mitigated

Knowledge Through Measurement and Monitoring

The accurate identification and measurement of financial risk requires knowledgeable financial risk managers with experience in identifying the amount of risk and the required risk models that are appropriate to measure the risks present in a portfolio. Gateway Partners has significant experience in these fields and has numerous models available to assist clients. We have spent significant amounts of time selecting appropriate models for the measurement of various risks as no single system can handle the diversity of an institutional portfolio.

An Effective Financial Risk System is a Must

Another issue that hampers the accurate and timely measurement of financial risk is the cost of putting together a financial risk system and a team that will undertake such a massive effort. Gateway Partners provides a more affordable alternative as we are able to share the cost of risk systems personnel between many different institutions.

To affect the timely monitoring and communication of the financial risk requires that operational procedures within the institutions are robust and followed.