These are critical functions that anyone operating in a financial institution expects to be undertaken and completed to a high standard. They are the bedrock, along with counterparty credit and collateral risk quality, of any asset backed or collateralised lending business.
Done well, they add certainty to the risk management and trading process, done poorly they can and will cripple a business.
Crypto platforms are more and more illustrating they have been moving way too fast without a clear view on the fundamental risks within the business. We are believer’s in the technology, there is a place for it, however the guardrails just are not yet in place fully and need to be. Here is a great example of how it can, and does, go wrong from time to time.
If you want to discuss how we can help your organisation put those guard rails in place, enhance your risk management capabilities and reduce your operation risks, then reach out.