Independent Risk Review of a Privately Held Firm

The Situation

According to a recent survey, 90 percent of CFOs and chief risk officers believe their risk metrics fail to inform boards and shareholders adequately. NERA’s risk management teams specialize in assessing exposure, analyzing risks and providing strategic recommendations based on our knowledge of markets and alternative approaches to risk transfer and risk finance.

NERA's Role

A privately held, billion-dollar firm recently asked NERA to conduct a comprehensive risk assessment following a sharp decline in the value of the company’s assets. The NERA team executed a rigorous assessment of the firm’s global, multidisciplinary operations, spanning all of the market and operational risks that impacted the firm’s many businesses.

The Result

NERA's findings revealed a far greater magnitude of both known risks and potential threats from additional risks than management and the board had anticipated. By identifying, quantifying and prioritizing all market and operational risk, NERA gave the firm a complete, objective picture of risk exposure across all business units. NERA also uncovered previously unknown structural flaws in the firm's operational processes, thereby improving the efficiencies of its capital structure. Armed with NERA's recommended financial strategies and real-world solutions, the firm is now far more confident in its compliance efforts, as well as its assessment of the firm’s financial welfare.