complexity need not be complex

Integrated Capital

ALM Review

Asset Liability Management lies at the heart of risk. The complexities of developing a replicating model to asses various scenarios is a difficult affair. In addiiton to the risks assumed the organisational structure of the business impacts performance at each decision made and strategy they impact. This is the source of a causal-framework that need to be developed within the issuer.

System Structure Review

ALM is not the only risk review as Basle-II still requires institutions to supply operational risk capital. The problem is Basle-II has not yet defined, or provides inadequate guidance on, what a system is.The institution is deeply embedded within a complex network we call the Economy so the dynamics of that network need review. This network couples with the internal management framework.

What Price Confidence?

The Credit Crisis has shown that similar rules apply to Nations as Institutions; confidence in the ability to repay or perform to expectations dictates price and availability of capital. The price is somewhere between use of the innitial liquidity and the probability to call in emergences. Equity pricing needs to encompass the causal-framework to which the issuer responds, it is not a simple discounted pricing model.

Our Approach?