Risk management
Client risk, product risk and mandate limits are checked on each account. The Firm, Account Monitor and Risk pages use the same AUM figure.
Checks
The client's risk rating is read from the signed client agreement. It cannot be typed in anywhere else.
Each product type takes its rating from one policy page. A bond is treated as high yield until a cited rating shows it is investment grade.
Limits come from the agreement, with manually set limits where the agreement has special terms. A breach shows the limit and the amount.
Loans and overdrafts are excluded from AUM. A losing accumulator reduces it.
Fixed coupon notes near knock-out and accumulator events are tracked, one line per event, with alerts.
Transfers between a client's own accounts do not count as new money. A flow above 10% goes to Operations before it counts.
The Firm page, the Account Monitor and the Risk page read the same AUM figure for the same date. None of them works out its own.
What you receive
Account Monitor: each account against its limits
Firm page: AUM, flows in and out, and in-house product value
Alert list for each relationship manager
TAC applies the ratings and limits and raises the alerts.
Our team works through the alert list.
Senior management sees the whole firm on one page.