Protiviti’s professionals partner with financial institutions to address financial, operational, technology and regulatory risk throughout their organizations, drive operational excellence and overcome the challenges of today’s markets. 

The financial crisis continues to affect global markets. Few banking institutions have been immune and most will be addressing the fallout for years to come. The most significant issues facing the banking industry are related to their business models, risk management strategies, management and board arrangements, regulatory compliance and market consolidation.  
 
Business models - Some institutions will require significant changes to their business models, whether because of market pressure or regulatory demands. These changes will have an impact on a range of issues including organizational structure, degree of leverage and/or reliance on wholesale funding of certain types of institutions, and customer and product mix, all operating within the regulatory frameworks.

Risk management - Banking risk management frameworks, functions and activities inevitably will come under intense scrutiny as the financial crisis continues to unfold and governments, regulators, boards of directors and management seek to establish measures designed to manage the inherent credit, market and operational risk within the business.

Management and boards of directors - Governance arrangements themselves will be challenged, including a focus on the depth of understanding at the board and senior management level of the risks and implications of institutions’ traditional lending, investment and deposit operations, capital markets activities, and the structuring, sales and trading activities in complex instruments.  Furthermore, reform of governance arrangements over the setting of compensation and other incentives, related risk profiles and the behaviors they drive also will be areas to address.

Regulatory compliance - The scope of regulatory frameworks will come under intense review, with particular focus on: the regulation of the credit markets, securitization and the “originate to distribute” model, capital and liquidity, leverage, governance and reward systems.

Market consolidation - There likely will be a major, albeit not yet fully understood, impact on the market related to the acquisitions, mergers and exits already seen and that are expected to occur. In particular, these actions will affect competition and efficient market operations.

Our global team of experienced professionals is well positioned to help banking industry clients address these challenges and strengthen their businesses for the future. To assist companies through these uncertain times, we formed the Protiviti Financial Crisis Team. This cross-disciplinary team provides organizations with advice about market and regulatory changes and works to help companies react and respond effectively to the unfolding global economic crisis.

Our consultants have expertise to assist your institution in credit, market and operational risk areas, including Basel II and enterprise risk management (ERM). We have capabilities to help you assess and manage your core operations, technology and financial and accounting areas, as well as regulatory matters ranging from money laundering and predatory lending to security and privacy compliance. Our people have conducted internal audit and Sarbanes-Oxley engagements for dozens of banks of all sizes in and outside of the United States. 

Our services include: