JH2 Risk Advisors offers financial consulting services in 5 areas.  Within each, there are a range of value-added programs that can be implemented for you, depending on your specific needs.

JH2’s risk specialists have participated and contributed to the initial Enterprise-wide Risk Management (ERM) framework for financial institutions, which was adopted by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).  It is now “the standard for corporate governance” in improving the effectiveness and efficiency of business operations as well as the quality of risk and financial reporting. 

JH2 Risk Advisors offers a comprehensive risk management framework that addresses the critical challenges faced with regulatory changes, the increased complexity of financial services, increasing corporate risk factors, and inflexible finance and accounting operations.  JH2 Risk Advisors’ framework addresses the need for sound risk management and has been successfully applied and has delivered significant value to major Fortune 100 companies. 

JH2’s ERM and Corporate Governance services assist your company:

• Evaluate and enhance risk reporting, validation and reconciliation processes for gap analysis
• Perform risk management practices diagnostics and recommend high-level enhancements to streamline processes
• Implement framework and infrastructure to incorporate market, credit,  operational, and technology risks within the business units across the enterprise
• Design robust corporate governance structure
• Develop risk management policies and procedures
• Enhance risk measurement methodologies
• Refine overall organizational structure
• Improve management reporting
• Develop performance measurement systems for financial institutions

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Finance and Accounting Business Operations

JH2’s specialists can assist you in establishing a solid operational infrastructure that integrates the inter-related business and regulatory risk factors across the enterprise’s business units.  We leverage extensive experience resolving similar issues, apply expertise on best practices for accounting solutions, and identify strategic issues based on the enterprise’s underlying business drivers, operational risk management and business transactions.

JH2’s Finance and Accounting Business Operations services assist you:

• Establish a well-designed finance organizational structure that integrates the needs of the business units while meeting regulatory and market challenges
• Interpret complex accounting policies and develop responses appropriate to a company’s market and situation
• Identify and document business requirements
• Execute streamlined and focused processes and effective change management procedures
• Improve the clarity and transparency of financial reporting
• Link technology platform capabilities to support accounting and reporting requirements, including system selection given the company’s business requirements
• Detail the business requirements for and develop custom solutions or analytics 

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JH2 Risk Advisors has the expertise and resources to help clients respond to recent legislative and regulatory changes.  Compliance is now essential.   JH2 Risk Advisors identifies and recommends corrective actions to mitigate potential customer fraud and abuse, improve internal control over financial reporting, and make compliance efforts a sustainable process.  

JH2’s Regulatory Advisory and Compliance services assist you:

• Assist in regulatory investigations and review operation irregularities
• Perform internal control evaluation and design testing methodology
• Strengthen transaction monitoring and risk control
• Redesign processes to address the changing legislative and regulatory environment including
• OFHEO Risk-based Capital
• BASEL II Project and System Compliance
• FERC Transmission Regulatory Reporting and Compliance
• Execute comprehensive Sarbanes-Oxley compliance services including process documentation, risk identification, and controls assessment, testing, reporting, and remediation

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Risk–based Analysis for Mortgage and Asset-backed Securities

Quantitative financial risk management as a systematic and structured approach can be leveraged to help the CEO and CFO identify, understand, take, avoid, monitor and control business risks. JH2’s risk specialists can assist organizations to establish a function or set of standards to enforce the risk-based analysis that goes around the identification and commitment to a capital expenditure or other investment in capital market, an aspect of bringing success or causing business disaster.

JH2’s Risk–based Analysis for MBS / ABS Securities services assists you:

• Develop definitions, policies and procedures to assess BASEL II / Economic Capital banking institutional risks
• Implement valuation / risk measurement methodologies through standards and templates
• Document financial models for pricing/valuation, sensitivity/risk, hedging and credit exposure measurement
• Design or review risk-adjusted economic capital methodologies that incorporate stochastic risk measurement calculations for credit, market and operational risks
• Revise Economic Capital risk factors for capital allocation purposes
• Design or review credit risk models and underlying methodologies used to measure counterparty risk
• Refine and validate Value-at-Risk (“VaR”) and other risk measurement methodologies
• Develop counterparty and transaction risk ratings and methodologies based on quantitative and qualitative factors
• Assist in structural pricing model development and risk report
• Perform verification procedures for derivatives valuation models and review the capital reserve methodologies underlying the fair market valuation adjustments

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Optimization of Power Transmission Investments with TransRiskPricing and TransCostAllocator

JH2's experts will support your transmission investment service needs and optimize your returns.  JH2 Risk Advisors offers energy industry expertise, regulatory compliance leadership, and proprietary software applications that assist utilities and independent transmission investors both address compliance requirements and capture business opportunities in pricing, cashflow and cost allocation decisions created by recent regulatory actions. 

TransRiskPricing©

JH2 Risk Advisors offers a proprietary TransRiskPricing© tool that provides a comprehensive solution for transmission investment analysis by incorporating multiple risk factors beyond existing infrastructure costs into transmission pricing decisions. This innovative model applies cutting edge investment concepts to leverage the new Federal Energy Regulatory Commission Transmission Pricing Incentive Ruling, and it calculates both risk-based incentive components of pricing and the existing infrastructure cost. Thus, the resultant, end-to-end pricing mitigates regulatory and operational risks and increases financial returns.

In concert with JH2’s consultants, TransRiskPricing assists you:

• Incorporate and quantify key investment risk factors
• Calculate risk premium for incentive pricing
• Facilitate capital market ROE benchmarking across all industries
• Modify corporate investment and financial management strategies

TransCostAllocator

JH2 Risk Advisors has teamed up with Integ Enterprise Consulting in providing a transmission investment cost allocation tool that justifies the cost and benefit of building a new transmission line within ISO territories or across states.

In concert with JH2’s consultants, TransCostAllocator assists you:

• Assess the costs and risks of proposed line addition and ISO network enhancements
• Quantify potential benefits of line additions to ISO network  and rate payers
• Economies of scale given the line capacity and length
• Optimized solution given the LMP pricing tool that quantifies the line’s economic impact on underlying nodes in the power pool
• Benefits of less network congestion and increased network reliability 
• Evaluate alternate cost allocations among the involved state-specific rate payers and ISO customers

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