Regulatory & Compliance Reports
The know your customer or know your client guidelines in financial services requires that professionals make an effort to verify the identity, suitability, and risks involved with maintaining a business relationship.
The know your customer or know your client guidelines in financial services requires that professionals make an effort to verify the identity, suitability, and risks involved with maintaining a business relationship.
The procedures fit within the broader scope of a bank’s Anti-Money Laundering policy. Credit risk and different types of liquidity risks are closely linked in the financial system. Credit risk analysis is primarily concerned with pricing and quantifying the risk of corporate bonds and loan portfolios. Liquidity risk—in the context of understanding the functioning of financial markets—can broadly be divided into two types of risk: Funding liquidity, which addresses the risk that the borrowing, with or without collateral, of financial institutions and investors suddenly becomes more restricted, and market liquidity which deals with apparent breakdowns in the agents’ ability to liquidate positions, i.e. to sell assets.
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