Tramco Consulting provides risk management and investment consulting services to the following organizations:
- Credit Unions
We can help thrift and banking institutions deleverage and increase their liquidity using the Kelly system. Basel III measures are simply inadequate for predicting and managing bank liquidity.
The Kelly risk management method is a unique approach that is not taught in business schools or anywhere else. Tramco Consulting has pioneered the Kelly risk management method and can apply it to:
- Liquidity Risk – This is the highest priority and we can tailor an asset structure that will guarantee your bank survives a liquidity crisis.
- Credit Risk – Using industry standard and innovative approaches we can evaluate underwriting and actuarial standards to reduce the risk of catastrophic losses.
Value at Risk (VaR) is the most common risk measure used today. However, there are many weaknesses and limitations associated with this metric. The primary weaknesses of VaR are as follows:
- VaR does not measure worst case loss
- VaR is difficult to calculate with large portfolios
- VaR is only as good as its inputs and assumptions
- Different VaR methods lead to different results
- VaR does not measure event or fat-tailed distribution risk
Our proprietary risk management approach can complement VaR and help overcome its weaknesses, providing a big picture view of total liquidity risk.
Please check out the whitepaper, The Kelly Method: A Better Way to Assess Financial Risk.