Author: Alastair Brown, Chief Executive at Lombard Risk Management
2016 was an immense year for the markets as Brexit and the US election created shock waves across the globe. However, despite the turmoil, it is business as usual now – and as it has been for Lombard Risk’s clients and the banks, who have grappled to maintain a similar agenda since 2007/08. The truth is – that change is the new normal.
From a socio political perspective, we live in incredibly turbulent times, and yet that changes little in the marketplace at the moment. We can talk about the tide of regulation, the incoming Trump administration and we can wonder whether or not they going to be pro-banks or pro-legislation or pro free market? In reality no one knows. Brexit is still an unknown quantity and the jury is out as to whether Trump’s election rhetoric will translate into real-world policies. This means that our clients, along with the rest of the globe’s institutions and industries are trying to service their clients and run their core business in an incredibly unpredictable, complicated and confusing time.
The only way to be successful is by insulating the core of the business from those shocks. Lombard Risk specialises in maintaining the banks’ licences to operate, allowing them to stay in business and to focus on what is important and necessary for their client-facing franchise. Lombard Risk is about being a constant partner and supporting our clients in very volatile times. It’s about getting the basics absolutely right and making compliance less of a headache.
One core concern around volatility is the macroeconomic uncertainty – banks remain under immense pressure from a cost perspective. Lombard Risk thoroughly understands the pressures facing our clients and consequently represents a quick, efficient and cost effective alternative to other courses of action which banks may be considering.
We understand what fundamentally affects our clients and how quickly banks in particular need to adapt to a change in environment– for example the potential for regulatory change in the US, or the economic turbulence that lead to tougher trading conditions for banks. We work to reduce the cost of their internal technology teams and the need to build in-house solutions. It is our expertise and what we do. It is the new normal.
2016 was a year of positive change for the company – what about 2017?
From Lombard Risk’s perspective, 2016 was a year of tremendous progress. We set out a plan for what we wanted to do, we raised significant funds for investments to take the business to the next stage in its growth and we appointed a number of new members to our management team. We will do more of the same in 2017; making products as scalable as possible to meet the needs of large and smaller financial institutions and companies, and flexing to the changing requirements of our organisation. The first half of 2017 is continuing to complete the job we started – making sure Lombard Risk delivers on its promises.
We want to continue focusing on our two core areas, regulatory reporting and collateral management – we add value to our clients in volatile times, controlling their operational risk, controlling their cost base, meeting their regulatory requirements. We want to continue doing just that. We have done fantastic things with our products, and we want to welcome great new clients and to continue to build on those strengths.
It is difficult to say what 2017 will really look like. The truth is that uncertainty is the new normal. Here at Lombard Risk we are well placed to support and help our clients to adjust to what is now – the new normal. We are upbeat and confident for this year.
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