Robben & Forrester, LLC

Consultants to Financial Institutions

Home Up Table of Contents

Comprehensive Analysis
Basic Analysis Expanded Analysis Comprehensive Analysis    

 

                                            

This product builds on the tools and capabilities provided by the Basic Analysis and the Expanded Analysis.  These are:

        Reporting and analysis of the risk to earnings and equity due to changes in market rates,

        Comparison to prior forecast and an outline of significant changes,

        On demand what-if analysis and strategy testing, and

        Reporting and analysis of historical, forecasted, and budgeted performance.

The Comprehensive Analysis adds extensive portfolio managment information.  In the current investment market, it is important for management to understand the potential problems inherent in investment portfolios.  All securities and security classes are examined to determine the level of risk in each.  Monte Carlo simulations are performed to estimate the effective duration and option adjusted spread for all investments.

With the Comprehensive Analysis, prior to purchasing a security, the investment will be tested to determine:  the inherent risks, how the investment fits within the institution's current structure of assets and liabilities, and whether or not the investment is fairly priced.

This additional independent portfolio advice will directly benefit the bottom line by reducing portfolio losses and securities prices.

Key Benefits

Enhanced earnings by testing strategies before they are implemented
Thorough understanding by the board and management of interest rate risk to earnings and capital
Accurate and comprehensive presentation of interest rate risk for regulatory authorities
Effective budgeting and planning process
Efficient allocation of financial resources and personnel
Improved portfolio management information
Enhanced earnings through reduced portfolio losses and securities prices

 

 

[ Home ] [ Up ]

Send mail to webmaster@raterisk.com with questions or comments about this web site.