Office of the Chief Risk Officer Brochure
February 02, 2022
Office of the Chief Risk Officer BrochureDownloads
The ever-evolving complexity of today’s global corporate risk landscape requires holistic solutions for Chief Risk Officers and the corporations they serve.
Our solutions are flexible, dynamic, and customizable – allowing our clients to focus on the areas of risk that matter most. FTI Consulting’s multidisciplinary Office of the Chief Risk Officer (OCRO) solution is designed to identify, assess, evaluate, and respond to key risks across the enterprise, business lines, and geographies, helping organizations:
- Achieve strategic objectives
- Strengthen competitive advantage
- Promote sustainability, diversity, and corporate citizenship
- Make efficient and effective operational decisions
- Preserve and enhance reputation
- Detect and defend the company from threats
- Avoid revenue losing events
- Decrease business disruption
- Address government inquiries
According to FTI Consulting’s 2021 Resilience Barometer survey, the following areas are top concerns for the C-suite:
- Shortage in workforce and skills
- Sustainability / Environmental, Social, and Governance (ESG) practices
- Supply chain disruptions
- Data privacy issues or use of third-party data
- Cyber attacks and threats
- Technology integration and innovation
- Regulatory or political scrutiny
- Business conduct and treatment of customers
Our Competitive Advantage
We provide our clients full-scale or targeted risk assessments, proactive process and control environment improvement capabilities, subject matter support, and investigative services for risk and compliance programs.
Extensive Experience. FTI Consulting's OCRO solution is comprised of former chief risk officers, chief compliance officers, policy makers, executives, regulators, cybersecurity experts, data scientists, actuaries, forensic specialists, strategy and crisis communications professionals, law enforcement and intelligence officials, insurance experts, and other critical subject matter experts with first-hand experience designing, assessing, and implementing leading risk management programs on a global scale.
Global Platform. FTI Consulting has nearly four decades of experience in impacting some of the world’s largest and most complex challenges, many of which have dominated global business, financial, and public policy discourse. With offices in every major financial center and across the globe, we successfully serve our clients wherever challenges and opportunities arise.
Integrated & Comprehensive. Individually, each practice is a leader in its specific field, staffed with experts recognized for the depth of their knowledge and a track record of making an impact. Collectively, FTI Consulting offers a comprehensive suite of services designed to assist clients across the business cycle – from proactive risk management to rapid response abilities regarding unexpected events and dynamic environments.
Industry Experience. No two industries are the same. FTI Consulting provides the knowledge, focus, and skill to help clients compete in a global economy where success relies on crossing industries and borders. We offer deep, practical industry expertise to ensure that we deliver solutions that work.
Business & Strategic Risk
Enterprises are making strategic choices and business decisions in the face of complex and dynamic macro-economic, competitive, and regulatory landscapes, posing challenges and risks to the successful execution of an organization’s strategy.
FTI Consulting provides an integrated approach to strategic planning and risk management that emphasizes understanding, evaluating, and mitigating potential adverse scenarios to improve the effectiveness of strategic decision making.
- Enterprise risk management
- ESG, reputational, and strategic risk assessments, including: Customer behaviors, emerging technologies, competition, new products, political changes
- Technology, digital, and cybersecurity transformations
- Blockchain program development, implementation, and assessments
- Comprehensive M&A due diligence
- Audit and special committee investigations
- Intellectual property protection
- Risk retention and risk transfer modeling and analysis
- Selection of appropriate risk treatment vehicles: Insurance, self-insurance, alternative risk mechanisms
- Strategic insurance program right-sizing
- Supply chain risk assessment and mitigation
A large distributor of natural gas retains FTI Consulting annually to evaluate the economic impacts of its investments and operations. In 2021, the company evaluated its Scope-1, Scope-2, and Scope-3 emissions for the first time, and we validated the findings using our Carbon and Regional Analysis Tool (CARAT).
Using our proprietary CARAT model, we calculated Scope-1, -2, and -3 emissions from the company, which included its direct operational emissions, emissions from associated power generation, and emissions from suppliers.
We offered strategic recommendations to reduce the company’s greenhouse gas footprint and showed the economic contribution of the company to the local regional economies. The company uses this data annually in its ESG reporting on its environmental and economic impact.
Organizations recognize the consequences of failing to maintain resilient processes and infrastructure to support their critical business services and protect their proprietary and third-party assets
FTI Consulting helps businesses evaluate and strengthen their current environments, holistically respond to incidents, and sustainably recover their operations and reputation after an incident has occurred.
- People and change management
- Operational resiliency and business continuity assessments, testing, and roadmaps
- Third-party / vendor risk management
- Master data management, information governance, and data privacy
- Cybersecurity readiness, incident response, and investigation services
- Technology risk management and IT disaster recovery support
- Artificial intelligence (AI) enablement and model reviews
- AI / machine learning bias and fairness review
- Fraud risk management
- Business and operational transformation
- Product and transaction liability
- Directors and Officers liability
- Broker advisory and evaluation processes
- Insurance renewal and risk advisory
- Interim and outsourced risk management support
- Business interruption and other coverage reviews and disputes
A ransomware attack impacted eight of the company’s locations, requiring disparate IT teams to work in concert to restore business operations. Additionally, the client had legacy hardware connected to the network, which posed remediation risks.
Our team was onsite at impacted locations within 24 hours. We focused on identifying the malware, performing forensic review, and liaising with law enforcement. We identified the manufacturing machines with vulnerabilities connected to the corporate network and isolated those machines and legacy equipment.
Due to the complexity of the existing infrastructure, reinfection was almost certain had we not isolated legacy workstations. Our remediation efforts significantly reduced the overall downtime, and we worked with the company to improve cybersecurity practices across the enterprise.
Understanding, modeling, and predicting a company’s financial exposures has become an increasingly sophisticated practice.
FTI Consulting works with clients to identify risk drivers, define and model scenarios, and report and mitigate risks that they may face now or in the future.
- Credit risk
- Market risk (e.g., FX, interest rates, inflation)
- Liquidity risk management
- Asset and liability management
- Capital management
- Models and algorithms
- SEC accounting advisory
- Accounting and restatements advisory
- Insurable and risk finance
- M&A due diligence, integration, and carveout stand-up
- Actuarial reserve analyses
- Collateral and escrow analyses and right-sizing
- Loss portfolio transfers
- Securing excess of loss recoveries
- Asset tracing and cryptocurrency investigations
- Casualty claims modeling and analysis
An investment manager was considering an investment in a large futures commission merchant and broker-dealer based in the United States, subject to an independent due diligence of the business.
We reviewed the risk taking and the risk management of the various desks; analyzed the firm’s market, credit, liquidity, and operational risk frameworks, its systems, and its risk measures and reports; assessed the compliance framework; reviewed staff management; and evaluated the information technology infrastructure, systems and trade flows, business continuity planning, and cybersecurity posture.
The investment manager valued our deep industry expertise and trading/investment experience with high volatility environments that gave us a strong ability to understand key risk exposures.
Regulatory Compliance Risk
Organizations continue to face a more complex and rapidly evolving regulatory environment where the consequences of non-compliance can have severe financial and reputational impacts.
FTI Consulting identifies an organization’s regulatory obligations, anticipates future changes, implements robust compliance frameworks and infrastructure, and investigates and remediates deficiencies.
- Compliance program assessment, development, remediation, and enforcement advisory
- Bank Secrecy Act (BSA) / Anti-money Laundering (AML)
- Anti-bribery and corruption / Foreign Corrupt Practices Act (FCPA)
- Export controls and sanctions
- Consumer regulation
- Regulatory remediation (e.g., matter requiring attention, consent orders, enforcement actions, monitorships)
- Cybersecurity compliance
- Data privacy compliance
- Ethics and integrity program development and training
- Conflicts of interest
- Taxation services
- Economic sanctions analytics
A U.S.-based drilling company with a significant international footprint engaged FTI Consulting to conduct a readiness assessment and provide a roadmap of additional steps needed to bring the company into full compliance under Europe’s General Data Protection Regulation (GDPR).
In partnership with the client’s legal and compliance teams, our data privacy and information governance experts set out to understand the company’s U.S. and European systems and assess business activities against GDPR requirements.
We developed a detailed three-year roadmap with actionable steps for the client to reduce data privacy risk and ensure compliance for its European operations. Despite their initial belief that the company was minimally exposed under GDPR, the company was issued a data subject access request on the day its engagement with FTI Consulting concluded. The data map, action plan, and recommendations we provided were critical in arming the client with the information needed to respond.
Additional Case Studies
FTI Consulting was engaged by a Singapore-based private equity fund to investigate the reputation and background of an Australian IT company, its owners, and managers prior to an acquisition.
Our research identified prior litigation relating to breaches of intellectual property, and our inquiries identified several product performance issues leading to the loss of key customers.
We provided a detailed overview of the current directors’ diverse business interests and reputations, which guided our client to formulate a sound post-acquisition strategy.
FTI Consulting assisted a global financial institution to digitalize risk management in its global securities, finance, and collateral management solutions business.
We helped the client use machine learning (ML) to identify strategies providing stronger returns from lending patterns and to manage their risk. Our expert helped the client to write ML algorithms to analyze very large amounts of position and transaction data over time, thereby determining stocks with instantaneously higher lending rates compared to their lending histories.
The result: optimal delta hedges for the portfolio, forecast by ML, and algorithmic execution of the risk management strategies.
A European airline was facing a liquidity crisis in 2020 due to a decline in travel and losses incurred on its jet fuel hedge book from sharply lower fuel prices. FTI Consulting was retained to evaluate multiple proposals by its various counterparties for the hedge book restructuring and to negotiate new terms.
We integrated the restructured hedge book as proposed by each counterparty into our proprietary analytics and risk management system, FTI Quantum, and provided real time valuation and risk analysis. We analyzed each of the proposals and valued the previous hedge positions which they replaced.
Our analysis helped the airline evaluate the different proposals to find the best fit for the company’s strategy and cash requirements. We helped negotiate with counterparties to limit costs and achieve more favorable terms, thereby reducing the financial risk of the hedge portfolio and making it more capital efficient. The client conveyed their appreciation, stating, “Your analysis has helped illuminate the black box for us and has been critical in understanding the business and assessing the key risks.”
One of the world’s leading retailers sought a strategic global partner to assist with investigating numerous allegations of wrongdoing and/or non-compliance with its ethical sourcing policies and compliance program. The retailer wanted to identify and assess potential wrongdoing in operations in Mexico, Brazil, India, Pakistan, Bangladesh, China, Malaysia, and Cambodia.
We assembled a team of seasoned investigators from around the globe to conduct sensitive investigations, including local public records research, confidential inquiries with in-country human sources, employee and third-party interviews, and document and communications analysis.
Based on our findings, we assessed the allegations relating to numerous possible violations of the retailer’s ethics policies and ethical sourcing guidelines, including employment of underage labor, health and safety violations, human rights abuses, falsification of documentation, non-payment of wages, and criminal or illicit operations. The retailer was also able to identify and assess numerous other instances of wrongdoing in its global operations.
February 02, 2022
Senior Managing Director, Leader of Technology Transformation
Senior Managing Director, Leader of Securities, Commodities and Derivatives
Senior Managing Director, Global Head of Cybersecurity
Senior Managing Director, Leader of Financial Services
Senior Managing Director, Head of Information Governance, Privacy & Security