MASTER CRISIS MANAGEMENT TO ENSURE SURVIVAL

In crises situations time-to-ruin can elapse very fast. The focus turns to liquidity and capital base. To cover these areas, Maravon developed two programmes – the Cost Unravel & Trim (CUT) programme and the RE-capitaliSation CUE (RESCUE) pogramme.

The CUT programme is a comprehensive cost structure review. This review is based on a cost component database that Maravon developed and evolved for investment banking (including such as Sales & Trading, Corporate Finance, M&A and Research), asset management, wealth management, commercial banking, transaction banking, security and trust services as well as corporate centre functions. During the CUT programme Maravon works with a designated COO-team with a view to cutting cost down to a pre-defined threshold.

The RESCUE programme identifies shortfalls for operational, tactical and strategic liquidity, defines accessible funding sources, develops a sound Basel II-compliant capital management strategy and provides a roadmap for its implementation. RESCUE is carried out by a joint team consisting of Maravon consultants and members of the bank’s Treasury/Asset Liability Management department.



STRENGTHEN RISK MANAGEMENT TO AVOID CRISIS MANAGEMENT IN THE FUTURE

Maravon is uniquely positioned to support banks in interpreting the new regulatory environment and in deriving resilient risk management frameworks. Starting with a methodological resilience check of the current risk management set-up, Maravon helps improve banks’ Early Warning Systems, embedding ‘time-to-ruin’-metrics and risk factor chain effects that were neglected by many banks before and during the financial market crisis. For risk management to become most efficient it has to be firmly embedded into a bank’s organisation. In working closely with the CEO and the CRO Maravon therefore additionally develops an all-weather bank’s risk management agenda.



RE-ALIGN BUSINESS MODELS TO REBUILD PROFITABILITY

Even more so than pure play commercial banks, investment banks are facing the challenge of rapidly changing markets and investors’ behaviour. A thorough understanding of current and future clients’ needs is essential for a successful organisational, regional coverage and product suite re-alignment. Maravon assists COOs, division heads and strategic business managers in carrying out comprehensive market research focussing on economic, demographic and regulatory change, client preferences as well as competition in order to provide a sound basis for strategic business model decisions.



For more details, please contact advisory@maravon.com.