Quant & Risk Management

In the Risk Management & Quantitative Finance Division, we work with top-level experts from the field of financial markets, mathematical finance, financial engineering, and financial risk management.

Our goal is to offer value-added expertise in banks (front or middle office), insurance companies, or firms specializing in financial analysis.

Our consultants are brought to develop mathematical and statistical models for calculating the value of financial products.

Through this division, Lunalogic is actively involved in financial innovation on constantly evolving markets.

Missions

The series of internal or financial crises have highlighted the need in financial institutions for a vision of associated risks and a streamlining of products and processes to strengthen invested portfolio.

  • Coordinating and rationalizing quantitative research for all asset classes (equities, interest rates, exchange rates, credit, commodities)
  • Providing strategic guidance and taking the lead in the assessment of financial products and risk modelling for all asset classes
  • Developing synergies between market and financial activities, as well as management
  • Advising the management team for the development of new products and involved risks
  • Monitoring technology in order to stay close to best practices.
 

The Challenges

Aligning the risk appetite with the strategy of the organization

Management takes risk appetite into consideration when assessing different strategic options. It then determines the related goals and develops devices for managing the associated risks.

Reducing operational setbacks and losses

The organizations improve their ability to identify and address potential events, allowing them to mitigate the imponderables and reduce any related costs.

 

 

Developing new activities

Developing the consultancy organization and SI, AMOA and IT services by selling expert missions to the Insurance sector.

Developing procedures for handling risk

The risk management device provides a way to rigorously choose from various risk handling options: the avoidance, reduction, sharing, or acceptance of risk.

Identifying and managing multiple and cross-sectional risks

Every entity faces a myriad of risks affecting different levels of the organization.
The risk management device improves the efficiency of tackling ripple effects and proposes integrated solutions for risks with a multitude of outcomes.

Improving the use of capital

It is by having a clear understanding of the positioning risks that management can effectively assess the capital needs and improve allocation.

Having a transparent and simplified view of financial contracts

Organizations wish to have a transparent of products they produce. Thus they need a independence valuation of these contracts, reliable validated models and an identification of the models’ limits.

Goals

  • Guarantee regulatory compliance
  • Optimize and standardize contract set-ups
  • Validate the valuation libraries and their implementation
  • Assess the impact of any abnormalities on the result
  • Ensure that management conforms to client pledge
  • Estimate liabilities and amounts to issue
  • Put risk metrics and stress tests in place
  • Have the right alert level
  • Renegotiate certain contracts
  • Manage the impact of fixing and events on timeframes

What Lunalogic Can do for you

Our service is based on segment expertise, each backed by solid references and operational experience.

  • Strategy and transformation

    Designing, drafting, and implementing risk policies and stress testing
    Preparing a programme of activities
    Setting up indicators and dashboards
    Conducting due diligence of management processes
    Complete audit for the law side toward the provisioning

  • Regulatory compliance

    Regulatory reporting
    Design assistance and internal model validation (Basel – solvency)
    Optimization audit of internal monitoring devices and complexe financials assets
    Setting up methods of counter valorization and production of risk metrics

  • Business expertise

    Transition management
    Recruitment
    Training
    Making tested risk management and valorisation resources available

  • Financial engineering

    Launching and safeguarding processes
    Model validation
    Valuing structured products and credit derivatives
    Assistance in managing and renegotiating “toxic” contracts
    Setting up and designing mathematical models (Equity, Fixed Income, Credit, Hybrid, Exotic, Commodity, Energy)
    Assistance in setting up a liability-driven investment strategy, variable annuities, overlay, etc.

  • Agility

    Organization assistance and optimization of the risk function
    Implementation and choice of tools dedicated to risks

Ours partnerships with Paris Dauphine, Paris VI and Paris VII universities enable us to team with the best specialists on the field.