Risk Advisory

At Botsford, we specialize in assisting capital markets firms in managing trading risk across various areas. Our expertise lies in providing tailored solutions to address market risk, credit risk, liquidity risk, operational risk, model risk, and regulatory and compliance risk.  We partner with our clients to develop robust end-to-end risk management solutions to fit their specific trading strategies and risk tolerance. 

We understand the unique challenges faced by capital markets firms in managing trading risk and are skilled in interpreting and implementing regulatory requirements, developing compliance programs, and establishing regulatory reporting frameworks.  We help you optimize your trading operations through our risk management capabilities, so you can be assured your firm is resilient to the ever-changing market while achieving sustainable growth and profitability.  

  • Market Risk: We help clients implement advanced risk measurement techniques, such as value-at-risk (VaR) models and stress testing methodologies to assess and manage exposure to market fluctuations, interest rate movements, and volatility. We assist in establishing risk limits, implementing hedging strategies, and enhancing market risk monitoring capabilities.

    Credit Risk: We support clients in evaluating and enhancing their counterparty risk assessment processes. We assist in establishing credit risk policies, evaluating counterparties' creditworthiness, and implementing robust credit risk mitigation measures such as collateral requirements and credit limits.

    Liquidity Risk: We provide guidance on liquidity risk management by helping clients develop liquidity risk frameworks, stress testing methodologies, and contingency plans. We assess liquidity needs, optimize funding strategies, and design liquidity risk monitoring mechanisms to ensure adequate liquidity to meet trading obligations.

    Operational Risk: We work with clients to identify potential areas of vulnerability, streamline trade processing workflows, and enhance operational controls. Our team assists in establishing operational risk management procedures, implementing technology solutions, and developing comprehensive incident response plans.

  • We offer validation services across a wide range of valuation and risk models, including regulatory validation reports. We provide market intelligence and insights to mitigate models’ weaknesses and limitations, assess model accuracy, conduct scenario analysis, and manage validation processes to enhance the reliability and effectiveness of trading models.

    Our team helps in the creation and re-engineering of complex data models to improve efficiencies in an organization's data flows. We enhance processing capabilities to manage highly complicated trade, market, and risk data information. Through our expertise, we’ve developed various derivatives valuation models for trading, risk management, liquidity, and capital computations.

  • The regulatory landscape around trading activities is constantly changing and it can be a challenge to stay on top of the regulatory and legal risks poised by these new developments. We stay at the forefront of these industry changes so we can advise you on the risks and impact of these changes to your business. We conduct impact assessments of the regulatory changes and help you find cost effective solutions to ensure you have the confidence to grow your business while navigating the complex regulatory and legal landscape.