Riskpro capital markets industry 2013


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Riskpro capital markets industry 2013

  1. 1. Risk Management Advisory & Consulting Capital Markets Industry Riskpro, India 1
  2. 2. 2
  3. 3. Riskpro’s Network Presence New Delhi Agra Jaipur Ahmedabad Kolkata Mumbai Pune Hyderabad Bangalore Chennai Salem 3
  4. 4. Who is Riskpro… Why us? ABOUT US MISSION Riskpro is an organisation of member firms around India devoted to client service  Provide integrated risk management excellence. Member firms offer wide range consulting services to mid-large sized of services in the field of risk management. corporate /financial institutions in India Currently it has offices in three major cities  Be the preferred service provider for Mumbai, Delhi and Bangalore and alliances complete Governance, Risk and Compliance in other cities. (GRC) solutions. Managed by experienced professionals with experiences spanning various industries. VALUE PROPOSITION DIFFERENTIATORS You get quality advisory, normally delivered by large consulting firms, at fee levels  Risk Management is our main focus charged by independent & small firms  Over 200 years of cumulative experience High quality deliverables  Hybrid Delivery model Multi-skilled & multi-disciplined organisation.  Ability to take on large and complex projects Timely completion of any task due to delivery capabilities Affordable alternative to large firms  We Hold hands, not shake hands. 4
  5. 5. Governance, Risk and Compliance Offering Our GRC Approach Company level •Define Risk Appetite • Reputation Risk Scorecards • Scan of Emerging Risks •Risk Scorecard • IT Governance •Risk Heap maps • New Product Approval Policy Governance Risk management Compliance• Align Corporate Governance to • Risk assessment • Compliance Risk Policy & global practices • Process and Control Review Framework• Board Committee reviews • Insurance & Loss Alignment • Regulatory reviews and audits• Review and enhance Risk • Incident Reporting Process & • Global regulation compliance Governance Tool • Compliance Reporting• Policy and Process Framework • Implementation of 20-30 top • Contractual Risk• IT Governance Key Risk Indicators (KRI) • 3rd party audits of units• Whistle Blowing Framework • Fraud Risk Management • Internal Control testing Tools Services Support Processes• GRC Technology Implementation – Provide recommendations and select vendor for GRC Tool•HR Policies and Processes to minimize people risk, frauds and strengthen succession planning•Training and Awareness build up – Targeted and Ongoing training in areas of concern.•E Learning Courses in Risk Management, Fraud Risk Management, Governance etc 5
  6. 6. Process Walkthrough – Stock Broker Environment Broking Industry Operations Regulations Banking and Demat Account Sales Opening/Modification/Closing Order Entry and Trade Order Management and modification Risk Management Trade processing and Investor Grievance Handling Contract Note Generation Settlement of Funds and Management of Securities Branches/Sub-Brokers 6
  7. 7. Unique Services Offering for Stock Broker Companies Comprehensive review of risks relating to Broker Dealer industry Enhanced Account Opening processes and stronger KYC processes Reduced regulatory risks relating to Anti Money Laundering Operational Risk Management frameworks for improved settlement process with minimal process lapses and settlement errors Customer exposure management and margining process Franchise buildup risk and reputation risk Analyzing credit risk for reduced unsecured debtors and margin shortfall Regulatory risk management framework and compliance risk management Technology Risk Management Fraud detection and prevention programs People risk and staff training programs Minimizing settlement risks. Improving the settlement cycle process Development of Risk Management systems and policies to comply with Exchange regulations, SEBI and other regulatory requirements 7
  8. 8. Examples of Risk Management SolutionsRisk Factor Risk Details Our solutionsAccount opening and •Accounts opened for potentially  Review of account opening processKYC risks fraudulent clients  Design of effective KYC checklist and review of Client •Client financial info not captured ID/Address proof  Design of exception approval processMoney Laundering Risks •Non compliance with regulatory  Implementation of AML reviews on customer fund requirements flows (in and out), suspicious transactions •Suspicious transactions not  Effective process to monitor client fund flows that meet reported regulatory requirementsTrade risks and insider •Trade entry errors  Data and Risk Analytics/ Reports designed to identifytrading risks •Unauthorized trading insider trading, front running risks •Trading in client accounts  Training and awareness to employees of the risks of •Insider trading / Front running insider trading risks  Limit and escalation process reviews to minimize unauthorized trading.Client Exposure risks •Client over exposure  Design of credit and risk management policy •Delayed margin calls  Practical margining process that considers client •Close- out of client trades exposures and types of clientsSettlement Risk •Failure to settle in time  Improved settlement process •Technology Failure  Back up / BCM / BCP / DR plans •Reconciliation items not  Design of BOD/EOD process checklists that comply reviewed and accounted with regulatory &exchange requirements 8
  9. 9. Risks and their indicators Nature of Risk Risk IndicatorsRegulatory Risk Non compliances of directions, rules & regulations of Exchanges & SEBITrading Risk Over Exposure by clients Erroneous computation of client exposure limits Dealing errors Unauthorised Trading Disowning of tradesCredit Risk Debtors Collection period Margin Shortfall in Derivative SegmentSettlement Risk Failure in settlement of Funds/Securities Third party Pay-in/Pay-outPeople Risk Improperly trained staff Misfit between capability & job scopeTechnology & System Risk Misfit & Complicated systems Technology failure Possibility of unauthorized access Lack of audit trails Backup failureProcess Risk Policy / Process not documented Process documented but not clear Process not followed or limits breached 9
  10. 10. Key Compliance requirements - Examples Area RequirementsClient Registration KYC form must contain all the required information as KYC Procedure prescribed In Person verificationContract notes Serially numbered for exchange / segment annually Prescribed format Must contain required information such as PAN no of the Contract notes should be dispatched to the firm, brokerage, settlement number, order number etc clients with 24 hours of trade executionMargin statements Must be in the prescribed format. Daily submissionReceipt of funds from customers Receipt from designated customer’s bank account only No cash transactionsPayment to customers Payout Cheque to be in the name of the customer or funds Restriction of utilisation of client funds to be transferred to the customers bank accountDelivery of shares to the customers Shares to be released to designated customers demat Restriction of utilisation of client shares account within 24 hours from the receipt of the pay-in chequeF&O Trade Upfront collection of margins from the customers Daily MG-13 Report to be uploaded in the ExchangeAnti Money Laundering Detailed study of suspicious transactions Risk Categorization of Clients 10
  11. 11. Governance, Risk and Compliance (GRC) Our GRC ApproachRisk management software implementation • Riskpro helps organisations adapt to change, manage risk, and effectively comply with the risks Govern risk & and regulations which effect their businesses. compliance with • Helps in successfully managing risk and achieving business benefits compliance in an ever-changing environment while reducing costs and improving corporate performance every day. • Riskpro has several partnerships with world leaders in implementation of GRC software solutions. • (BPS Resolver, Methodware, Bwise, Odondo, Rocsys) Riskpro Partnerships • Riskpro is also actively interacting with other Leading with GRC Vendors vendors for GRC Technology rollout (Bwise, Oracle) • Riskpro can review the company’s circumstances and provide an unbiased opinion n the best product for the circumstances. 11
  12. 12. Our Delivery Methodology FREE USP “No Cost – Know Risk” Diagnostic Assessment (To determine your pain points, industry benchmarking etc) GAP ANALYSIS & PROJECT DEFINITION (Riskpro and clients brainstorm define project) USP PROJECT TEAM DEFINITION Client gets to select Riskpro team members, subject matter experts. Riskpro uses a mix of client staff / own staff for maximum value add PROJECT EXECUTION Constant project updates, timely project completion and project outcomes that are practical and easy to maintain 12
  13. 13. Riskpro Clients Our ClientsBanking/InsuranceCorporateMNCBankingIntlConsultingIT / Others *Any trademarks or logos used throughout this presentation are the property of their respective owners 13
  14. 14. Team Experiences Our Experiences Our team members have worked at world class Companies *Any trademarks or logos used throughout this presentation are the property of their respective owners 14
  15. 15. RESUMES – Our team Credentials  Co-Founder - Riskpro  CA, CPA, MBA-Finance (USA), FRM (GARP) Manoj Jain  Over 10 years international experience – 6 years in Bahrain and 4 years USA  15 years exp in risk management consulting and internal audits, Specialization in Operational Risk, Basel II, Sox and Control design  Worked for Ernst & Young (Bahrain), Arab Investment Company (Bahrain), Navigant Consulting(USA), Kotak Mahindra Bank (India) and Credit Suisse(India)  Sox Compliance project for Fannie Mae, USA ( $900+ Billion Mortgage Company)  Co- Founder - Riskpro  CA (India), MBA (Netherlands), CIA (USA) Rahul Bhan  Over 15 years of extensive internal and external audit experience in India and abroad.  Worked with KPMG United Arab Emirates, PKF South Africa, Ernst and Young Kuwait, Deloitte Netherlands and KPMG India.  Worked with clients in a wide variety of industries and countries including trading, retail and consumer goods, NGO, manufacturing and banking and finance. Major clients include banks, investment companies, manufacturing organizations, aviation etc. 15
  16. 16. RESUMES - Our team Credentials  Co-Founder - Riskpro Casper Abraham  PGD (Electrical & Electronics & Computer Programming)  30 years of experience in Information & Communications Technology (ICT) Solutions for Retail, Garments, Manufacturing, Services Industries.  Has created Companies, Divisions, Products, Brands, Teams & Markets.  Consulting in Business, Technology, Marketing & Sales & Strategic Planning.  Advisory, Training, Workshops & Implementation in Systems Thinking, Systems Modeling & Balanced Scorecard  Worked with TIFR, Mahindra, Ambience, Communico-Graphique & Ionidea Inc, USA,  Sr Vice President – Risk Management MBA, PDFM,NSE-NCFM, PMP, CSSGB,ISO 9001:2000 I.A,GARP-FBR, ITILV3,CPP-BPM Hemant Seigell   Professional with 17 years of rich experience into diverse Consumer finance/ Lending operations ,Risk Management,BPMS, Consumer Banking, NBFC, Management Consulting & Housing finance in BFSI industry having successfully led key business strategic engagements across multi-product environment in APAC, Australia and US regions.  Worked with GE, ABN AMRO Bank, Citigroup, Accenture, Deutsche Postbank  Highly skilled and expert Trainer in Risk areas across Credit, Fraud, Operational, Corporate Risk management.  Specializes in Fraud Control, AML/KYC Compliance ,QA ,ERM and Regulatory governance. 16
  17. 17. RESUMES - Our team Credentials  Head - Insurance Risk Advisory services  B.sc, Associate of Indian Institute of Insurance Licensed Category A Insurance surveyor R. Gupta   26 years of experience in Insurance advisory services, Loss adjusting for large corporates,Claims management.  Has assessed more than 4500 high value insurance claims across various industry sectors.  Risk management inspection  Valuations of fixed assets for insurance purpose.  Head - Human Capital Management Nilesh Bhatia  Chartered Accountant, Lead Assessor ISO 9000, Six Sigma Trained, Trained on Situational Leadership, Trained on interviewing skills and Whole Message Model.  Over two decades of international, multi-cultural experience in finance and human resources viz. internal audit, accounting operations, accounting process review & re-designing, risk management, business solutioning, six sigma projects, talent acquisition, talent retention, organization design/redesigning, compensation and appraisal processing, employee and customer satisfaction surveys, knowledge management and finance services.  Worked with Citicorp/MGF, India Glycol, Delphi, American Express India, American Express USA, Fidelity International and Macquarie Global Finance Services India. 17
  18. 18. RESUMES - Our team Credentials  Head – Taxation Risk Advisory Rajesh Jhalani  B.Com, FCA  Senior Partner with 48 year old Delhi based Chartered Accountant firm, Mehrotra and Mehrotra  Over 19 years of experience in the field of Audit, Taxation, Company law matters.  Major clients served are NTPC, BHEL, Bank of India, PNB, Airport Authority of India etc. President – Banking & Financial Services  A senior researcher in Applied Mathematics leading to Ph.D after MSc (Mathematics), Sivaramakrishnan CWA, CAIIB  Combined experience of 25+ years in corporate banking, risk management, international trade finance, development of risk rating models, project finance, credit monitoring and NPA management  Since 2006 conducting open / in-house training on the above domains to all Top public/ new and old private sector banks, top MNC banks (India and abroad), leading NBFCs and corporates in manufacturing and financial services space; Worked on IFC (World Bank) funded projects for MSMEs in India and abroad  Worked for Bank of Baroda and ICICI Bank – bestowed Top Performer Award continuously two years during his tenure; widely travelled abroad for business relations, seminars, offering training, investor meetings, NYSE listing and for processes involving establishment of representative Office in USA 18
  19. 19. RESUMES - Our team Credentials Executive Vice President – Risk Management ( Banking & Financial Services)  A hands-on banking professional {BSc (Mathematics), CAIIB} with considerable domestic and international experience Kashi Banerjee  An aggregate experience of 24+ years across industry, mainly BFSI in several functional areas including Retail and Commercial Banking, Corporate Lending, team member of the Business Process Re-Engineering project (BPR); conceptualizing and setting up shared services centres for centralized operations for the Bank in India.  Management through ERM framework overseeing all key areas of the business through various Operational Risk tools like KRI / RCSA matrices. Managing of major project implementation of Basel II and Compliance risk framework  Directing, reviewing and advising Board of Directors on various compliance issues and representing the bank to the Central Bank regulatory offices.  Worked for ANZ Grindlays Bank, Standard Chartered, Bahraini Saudi Bank and Dubai Holdings ( subsidiary) Consultant – Information Security & IT Governance Anjay Agarwal  LLB, CA, CISA, CWA, CS, CFE and others  Over 15 years of experience in the field of Audit, Taxation, Investigations.  Specializing in the field of Systems Audit, Cybrex Audit, Computer Crime Investigations, IS Forensics  International Committee Member of Governmental and Regulatory Agencies Board and Academic Relations Committee of ISACA, USA 19
  20. 20. RESUMES - Our team Credentials Executive Vice President – Risk Management ( Banking & Financial Services) Vijayan Govindarajan  Professional Risk Manager with considerable domestic and international experience  An aggregate experience of 30 + years across industry, mainly Banking in several functional areas including Wholesale Credit Risk, Operational Risk, Trade Finance , Retail Banking and Islamic Financial Services.  Track record of setting up of excellence in the set-up, and management of credit and operational risk, compliance and credit administration functions in retail, commercial , Islamic Banking and offshore banking entities in the Middle East.  Key strength includes Corporate Credits, Risk Management in IT, implementation of Risk Management module in core banking Bank’s Policies, procedures, Country Risk. Played an active role in 3 core banking software implementations  Worked for a Private Sector Bank in India, ABN AMRO Bank, Bahrain, Bank Muscat Bahrain and BMI Bank Bahrain as AGM Risk Management.  Specialist Risk Consultant – ERP & IT Compliance Gourav Ladha  SAP Certified, MBA (Finance), SAP Security trained (from SAP India), SAP GRC Access Controls trained (from SAP India)  Over 7 years of experience working in the area of ERP/IT Risk advisory, primarily focusing on SAP, for ‘Fortune 500’ clients in around 8 countries including US, UK, UAE, Hong Kong, etc  Specializes in SAP Risk & Controls Advisory, SAP Business Process Controls Audit, SAP Security & Segregation of Duties Control Audit, ERP Trainings,  Strong Industry experiences ranging from Beverages, Insurance, Energy, FMCG, Pharmaceutical, Retail, Telecommunication to IT Services  Worked for risk advisory teams of reputed organizations like Ernst & Young, EXL Services 20
  21. 21. RESUMES - Our team Credentials  Vice President & Head – IT Risk Advisory Ravikiran Bhandari  Over 14+ Years of Experience in Information Security and Risk Management & CISM certified  Headed the Global Information Security team of Daimler (Mercedes-Benz) Worldwide at Bangalore for 9 years, previously worked at organization like Wipro, Bangalore Labs  Multi-sector experience including Banking, Insurance, Finance, Energy, Manufacturing, Retail, Hi-Tech & Telecom, and Automobile  Well known Ethical hacker: Was featured in BusinessWorld Magazine in an article about leading ethical hackers in India and published several articles in Print and Online Media  Rich experience in Information Security Audits across Corporations, 3rd Party Suppliers, Joint Ventures across several countries in the world including US, UK, China, Germany Vice President – Legal Risk Advisory Aashish Shrivastav   B.B.A. LL.B. (Hons.)  About half a decade experience in legal services to client’s with respect to Contract and Commercial Laws, Joint Ventures, Inbound & Outbound Investments, Private Equity Investment Transactions, Real Estate & Infrastructure, Energy and General Corporate.  Have advised various social enterprises and start ups in setting up business in India.  Worked for the leading law firms of India such as FoxMandal Little. 21
  22. 22. RESUMES - Our team Credentials  Vice President – Riskpro India Phanindra Prakash  FCA [India], ACMA [India], CFE [USA], CertIFRS [UK]  Over 16 years of extensive consulting experience which includes financial & systems audit, process transformation, implementation of internal controls, SOX compliance, fraud audits & due diligence, US-India taxation  Engaged in consulting roles as trusted advisor to finance, internal audit and information technology executives of multiple Fortune 1000 companies with project sites in US, Canada, Europe & Asia  Worked with E&Y and Deloitte Consulting in USA  Some of the major clients served internationally are GE Capital, UBS, McKesson, Eaton, Imation, Albertsons,  EVP and Head – Telecom Risk Advisory  M.Tech, IIT Kharagpur, India; IES; Doctoral study, research and teaching in Linkoping University/Sweden; Lead Auditor (BVQI). Asok Sit  Over 30 years on International experience in networks and mobile Handsets from top global companies /institutes like ISRO, Ericsson, Nokia, Nokia Siemens Networks and based mostly in its head quarter locations in India, EU, USA.  Expertise: Setting up capability, behaviour, culture in turning Risk, Quality, Innovation for competitive advantage, customer delight and sustainability; key skill sets are Engagement, Handholding, Coaching, Mentoring and lot of best practices, benchmarking/standards like CMMI, TL9000, Six Sigma, ISO, SAS 70 etc. 22
  23. 23. RESUMES - Our team Credentials  Executive Vice President – Riskpro India Siddhartha Ghosh  CPA (USA), ACA, ACS, Grad CWA (India), MBA (USA), Associate ICPAS (Singapore)  Over 25 years of extensive audit and industry experience which includes 19 years with Rolls-Royce India Pvt Ltd at New Delhi and its associate and parent companies of Rolls- Royce in UK, USA and Singapore in all aspects of Finance, Taxation, Audit, Banking, Legal, Company Secretarial, Statutory compliances and due diligence, Internal Control, ESOP, Budgets, Cashflows, Forecasts, MIS Reporting, HR, Expatriate & Office Administration, Payroll, IT, Retirement Funds Administration, Shared Services, Project Accounts, etc.  Worked with Price Waterhouse Coopers for 4 years with reputed MNCs, banks, Indian corporate houses  Worked with McNally Bharat Engineering Company Ltd for 4 years 23
  24. 24. RESUMES - PARTNERSHIPS  Specialist Risk Consultant – Business ContinuityAndrew Hiles  Founder and 15-year Chairman of Survive, the first international user group for Business Continuity professionals  Founding director and first Fellow of the Business Continuity Institute  Over 25 years international consulting expertise in Risk, Crisis, Emergency, Incident, and Business Continuity and ICT Disaster Recovery Management  Multi-sector experience including Banking, Insurance, Finance, Oil, Gas, Energy, Manufacturing, Retail, Hi-Tech & Telecom  Western Press Award for services to business, 1994; BCI/CIR nomination for lifetime achievement in BC, 1999, London; inducted into BC Hall of Fame by CPM magazine, 2004, Washington DC.  Specialist Risk Consultant – Enterprise Risk ManagementChris E. Mandel  Highly skilled risk and insurance professional with 25 years of experience designing, developing and implementing large, global corporate risk management programs for Fortune 500 firms.  Principal Consultant and Founder - Excellence in Risk Management, LLC. (Texas, USA) Co- founder and EVP, Professional Services, rPM3 Solutions, LLC (Maryland, USA).  Past experiences include Head of Global Risk Management for USAA, PepsiCo/Tricon Global and American National Red Cross  Additional risk and insurance experience at Verizon Corp,. Marsh USA and Liberty Mutual Insurance Co.  2004 Risk Manager of the Year – 2007 recipient of the Alexander Hamilton Award for “Excellence in ERM” (at USAA) – former President, Risk and Insurance Management Society, Inc. 24
  25. 25. RESUMES - Advisors Credentials  Founder partner of Mehrotra and Mehrotra, a 48 year old CA firm in India Mr. MP Mehrorta  B.Com, FCA, LLB  Over 48 years of experience in audits, taxation, legal matters, loan syndication etc.  Trustee of Cochin Port Trust, Member of Task Force for MOUs, Ministry of Heavy Industries & Public Enterprises, Govt. of India, Ex- Member of Central Board of Trustees, Employees’ Provident Fund Organisation (EPFO), Ministry of Labour, Govt. of India, New Delhi.  Ex - Director, Canara Bank  Practicing chartered accountant in Delhi  CA, ICWA Mr. PK Gupta  Over 35 years of professional experience.  Trustee, Kargil Shaheed Smarak Samiti  Hon. Treasurer, World Academy of Spiritual Sciences (WASS).  Panel Arbitrator, International Centre for Alternative Dispute Resolution  Arbitrator, Cement Corporation of India  Arbitrator, Bombay Stock Exchange Limited  Arbitrator, Central Depository Services (India) Limited  Arbitrator’s Panel of Indian Council of Arbitration 25
  26. 26. Key ContactsCorporate Mumbai Delhi Bangalore Riskpro India Ventures (P) Manoj Jain Rahul Bhan Casper Abraham Limited Director Director Director M- 98337 67114 M- 99680 05042 M- 98450 61870 info@riskpro.in manoj.jain@riskpro.in rahul.bhan@riskpro.in casper.abraham@riskpro.in www.riskpro.in Shriram Gokte Hemant Seigell Vijayan Govindarajan EVP - Risk Management SVP – Risk Management EVP – Risk Management C 561, Defence colony M- 99536 97905 M- 99166 63652 M- 98209 94063 New Delhi 110024 shriram.gokte@riskpro.in hemant.seigell@riskpro.in vijayan.govindarajan@riskpro.in Sivaramakrishnan Ravikiran Bhandari VP – IT President – Banking & FS Risk Advisory M- 98690 19311 M- 99001 69562 smaran.iyer@riskpro.in ravikiran.bhandari@riskpro.inGhaziabad / Noida Chennai Kolkata GurgaonSiddhartha Ghosh R. Muralidharan Kashi Banerjee Nilesh BhatiaEVP - Finance EVP – Risk Management EVP – Risk Management Head – Human Capital Mgt.M- 9810058072 M- 95660 77326 M- 98304 75375 M- 98182 93434Siddhartha.Ghosh@riskpro.in murali@riskpro.in kashi.banerjee@riskpro.in nilesh.bhatia@riskpro.inR Gupta - Insurance Risk Asok SitM- 98101 07387 EVP – Telecom Risk Advisory M- 98105 03463 asok.sit@riskpro.inPune Salem Ahmedabad Hyderabad / AgraM.L. Jain Chandrasekeran Maulik Manakiwala Phanindra Prakash (Hyderabad)Principal – Strategy Risk Recruitment franchisee Member Firm Member FirmM- 98220 11987 M – 94435 99132 M – 98256 40046 M- 95500 61616mljain@riskpro.in Gourav Ladha Alok Kumar Agarwal (Agra) Sap 26 Risk Advisory Member Firm M- 97129 52955 M- 99971 65253