From our long-standing, international experience we know that internal resources and expertise are frequently insufficient for an efficient restructuring and resolution of institutions whose existence is in jeopardy. This is why we are available to our clients to develop constructive solutions in close cooperation with them.
Success can be hampered by two factors: the limited availability of employees with the required skills and serious conflicts of interest on the part of the different parties involved. In addition, there is often the problem that an optimum restructuring and resolution is impeded by the fact that the team focuses simultaneously on economically viable units and units that need to be wound down. Consequently, the support provided by the highly efficient team of experts at Resolution Management can be crucial in dealing effectively with complex challenges in crisis situations.
Our range of skills falls into three main categories. The first category comprises steering, reporting and human resources management as all-embracing anchor functions. In the second category the focus is on the actual portfolios. This is where we bring our expertise to bear in detailed portfolio analysis, treasury and asset-liability management. Here we also take into account the specific problems affecting foreign legal entities and locations. Finally, the third category focuses on the platform, its transformation and the costs involved.
Below you will find some details of our expertise profile, which we are able to integrate into the successful restructuring and resolution of financial institutions.
Steering and Reporting
- Wind-Down Planning
Based on the individual transaction – and where possible for the total period – we develop a detailed wind-down planning, which is closely intertwined with the planning of the operative measures.
We use controlling instruments which are targeted to the specific resolution strategy.
We provide support in connection with the comprehensive reporting requirements to corporate bodies, investors, supervisory authorities, European Commission and rating agencies.
- Regulatory Issues
We offer help with the ongoing alignment of processes and risk measurement procedures. Close liaison with regulators is of crucial importance here.
We provide support in the field of internal and external communication, a key task in crisis situations and when major changes are planned.
- Restructuring Planning
Human resources planning is prepared across all periods of the restructuring and structured according to organisational units and function groups. It is carried out in accordance with the strategy and aligned with the respective financial planning.
- Redundancy Scheme/Reconciliation of Interests
The conception of a redundancy scheme and the design of a reconciliation of interests are made with the emphasis on their effectiveness. They incorporate appropriate instruments for releasing employees as well as suitable incentive systems. The focus remains on economic expediency.
- Employee Representation
We supply concepts for the integration of employee representatives, including the appropriate negotiation strategy
For the management level we recommend incentive systems to support the specified restructuring and wind-down objectives.
- Interim Manager
We clarify the need for interim managers and identify suitable candidates.
In the context of credit analysis we consider borrowers and sectors, the jurisdiction, collateralisation and other structural elements.
In the securities field our analysis covers the borrower, structuring (asset backed securities etc.), embedded derivatives, fungibility and repo eligibility.
With a view to derivatives, we analyse in particular market price risks, counterparty risks and collateral mechanisms.
- Valuation Aspects
Our analysis takes account of various valuation aspects such as financing costs, balance sheet approaches according to local GAP vs. IFRS or P&L / capital effects upon sale.
Treasury and Asset-Liability Management
Tactical and strategic liquidity planning is conducted in scenarios, taking into account the net stable funding ratio (NSFR).
- Interest Rate/Market Risk
The focus here is on risk transparency, “fat tail” risks and CVA management.
Refinancing not only includes all available instruments and markets, but also considers costs and collateralisation (cover pool etc.).
- Pension Commitments
An economic valuation is made which takes account of the nature of the commitments. We develop an appropriate investment strategy for reducing the costs and identify opportunities for out-financing.
Legal Entities and Locations
- Buildings and Office Equipment
We develop strategies for the ongoing reduction of floor space requirements and the optimum utilisation of floor space, properties and office equipment which are no longer needed.
With regard to the electronic and physical archiving of data and business documents, we bear in mind legal and business requirements as well as the minimisation of future costs.
We develop procurement strategies for necessary IT and non-IT services which cannot be provided or are no longer available in-house. For these we prepare a description of the services and provide support in connection with the selection of providers, drawing up of contracts and monitoring.
IT / Process Landscape
- Horizontal and vertical modifications
A modified business profile requires other systems, structural cost reductions and a dependable controllability of IT over time. We advise you on the required horizontal and vertical modifications.
- Portfolio migrations
We provide support if asset/liability portfolios need to be transferred to other legal entities with their own IT platforms.