Economic capital covers many aspects of balance sheet management. The main areas include:

1. Assessing the overall capital requirements of the bank.
   

2. Assessing the buffer equity over regulatory capital, i.e. the Individual Capital Guidance (ICG) negotiated with the FSA as part of the Individual Capital Adequacy Assessment Process (ICAAP).
   

3. Risk based capital allocation in order to create appropriate incentives to make valuations and assess business unit and transaction performance.
   

4. Linking economic capital to risk adjusted performance measures. This links in directly with the performance measurement framework designed to maximise shareholder value in all business decisions and processes.
   

Risk Advisors can substantially speed up the time to consider alternatives for enhancement; their implications; and implement the agreed changes within the companies systems.

We are used to working with incomplete data, systems and process to make a reporting system that will satisfy the regulator.