Risk, Governance & Regulation

Identifying Risks

Under Risk Management, Governance and Regulation, we focus on the following key areas:

Credit Risk Management, including Policy Development
Rating & Scoring Development, including Behavioural Finance & Psychometric Scoring
Financial Risk Management & Capital Markets
Treasury & ALM (including Liquidity, FX, Interest Rate, Commodities)
Operational Risk Management, Audit & Control
Regulatory developments and prudential compliance (e.g. Basel 3, ICAAP, ILAAP, IFRS 9, IFRS 7)
Risk Sharing Mechanisms & Hedging

For more than two decades, Frankfurt School has successfully implemented risk management frameworks for banks, non-bank microfinance institutions (MFIs), leasing companies and financial cooperatives of various sizes and complexity in emerging and developing markets. As a business school focused on research, teaching and advisory in the field of finance, risk management is one of our core competencies. Each year, around 15.000 professionals enrol in trainings offered by Frankfurt School.

Among the most popular programmes offering risk management modules are:

The Frankfurt School Development Finance e-Campus has become a very successful e-learning tool for professionals interested in risk management and treasury topics.

Key advantages for your institution

Speedy response: we have a team of highly qualified risk management consultants who can be mobilized in a timely fashion.

International best practices: we have a solid track record in the implementation of Basel II & Basel III compliant risk management frameworks and with developing empirical provisioning approaches under IAS 39 and IFRS 9.

Data-driven approach: we deploy practice-tested data analytics when developing tailored solutions such as credit scoring and rating, ALM modelling, provisioning, funds transfer pricing, etc.

Pragmatic solutions: we provide practical advice and the necessary tools to accommodate the scope of your needs.

Sustainable knowledge transfer: our experts are available for post-project implementation to ensure long-term sustainability.

We advise banks, microfinance institutions, investment funds, multilateral agencies and others in the management of risk. Our methodology is based on direct customer support, which involves coaching staff how to understand and monitor the key concepts and parameters of identified risks. Based on previous experience and international best practices, the typical risk management needs can be categorized into a framework of four interdependent risk layers, also depicted in the graph below:

Central financial risk management themes: credit, market, operational and liquidity risks.
A transmission layer of reputation and behavioural risks (highlighted in green).
The top layers radiate out into the dimensions of compliance and regulatory, covenant and capital adequacy risks (highlighted in blue).
Finally, a strategy layer interacts with the other risk dimensions such as business risk, model risk and systemic risk.

Risk Management Research

Frankfurt School has the largest faculty of finance professors in Germany. Of our 49 full-time professors, 9 are focused purely on quantitative finance, (derivative) hedging strategies, capital markets and risk management. Many faculty members have published their research in highly ranked journals at the forefront of scientific discovery in the rapidly evolving topic of risk. Other faculty members have held positions as senior risk managers in financial institutions in Germany and abroad. This unique blend of academic rigor and leadership in banking enables our cutting edge research in Risk Management and Regulation, which is unparalleled by other business schools or consulting firms.