Solventis

Solventis offers a global Risk Control service based on the following aspects:

• Collaboration in the design and implementation of policies, procedures and Market Risk control measures.
• Analysis of an institution's Financial Risks (Credit Risk, Interest Rate Risk, Operational Risk, etc.).
• Advice on Basil II which analyses how the regulation of the new Basil Capital Accord (Basil II) affects the entity's operations.
• Support in developing and elaborating Resource Reports and Procedure Manuals.
• Analysis and interpretation of legislation regarding Risk Control issued by the Spanish financial market regulators (Banco de España and CNMV).
• Advice regarding the choice of Risk Control I.T. resources.

The asset management decisions are undertaken based on an investment philosophy that must be adhered to with discipline in order to achieve the established profitability objectives.

Therefore, management control allows to identify, evaluate and anticipate any possible risks affecting an investment portfolio causing such portfolio to stray from the established objectives.

Solventis offers an independent management audit service based on the following aspects:

• Definition of the profitability-risk profile required by the client and an analysis of the level of management adaptation.
• Analysis of the risk assumed.
• Asset valuation.
• Analysis of the diversification level.
• Tracking Error
• Calculation and presentation of the results based on international standards (according to GIPS standards).

The use of instruments listed on OTC markets has become a standard investment product for most entities around the world. Using them, however, requires strict control over their performance owing to the risks this kind of investment represents and the need to register them under the accounts at their "fair value".

Solventis offers the following services in respect with the above:

• Having undertaken a prior study on the structure or the derivate instrument, it is then valued and its sensitivity towards modifications of the parameters that influence its valuation is analysed (sensitivity, Greek matrixes, etc.)
• We provide the inputs and market parameters used for all our valuation processes.  
• We jointly and individually analyse and measure the Financial Risks for each structured product or derivative instrument (VaR).  
• Preparation of Valuation Procedure Manuals

Addressed to CII Management entities, we offer the following services:  

• Calculate the amount receivable by the CII as guarantee.  
• Calculate the value of the underlying on each valuation date for the assumptions of interruption, discontinuity or modification thereof.  
• Calculate the option's value at expiry. 
• Verify the structure or derivative instrument valuations reported by the counterparties.

IAS39 establishes the need to periodically assess the effectiveness of the hedges performed (whether these are hedges at fair value or cash flow hedges) by using the so called Hedge Effectiveness Test. The importance of this test lies in that if the hedge performed is not efficient, one will not be able to apply the so called hedge accounting process, hence increasing the volatility of the operating account.

Solventis offers a Hedge Effectiveness Test calculation service which includes the following aspects:  

• Retrospective Tests.  
• Prospective Tests.  
• The use of compensation methods, regression analyses or variable reduction analyses.

We offer a top level service with the following characteristics:

• Definition and design of Structured Products adapted to the profitability-risk profile of our clients.
• Hedge design.
• Support for the definition process of appropriate commercial policies.
• Optimization of package models and the issuance of structured products.

Addressed to entity Financial Area departments or company financial departments:

• Analysis of the costs inherent to the financial activities performed by the client (intermediation, settlement, administration, depository, etc.)  
• Preparation of specific proposals for the purpose of optimizing processes and reducing costs. 
• Advice on selecting I.T. resources that optimize such processes. 

The Solventis team of professionals has extensive teaching experience. We therefore offer the following services:

• We design bespoke training courses: valuation of non-fixed income assets, fixed income assets, derivative products, etc. 
• We provide "in-house" courses for clients.