>> Manzanita Advisors, Inc. assesses, designs, and implements solutions for our clients.  We can provide these services independently or perform them in conjunction with our clients' resources.

>>  Risk Governance

• Risk Assessment:  Conduct comprehensive risk assessments, including identification of inter-connected risks and control gaps, and design corrective actions.

• Risk Appetite and Limit Structure:  Develop risk management policies, procedures, and management action triggers to ensure that a quantifiable linkage exists between  risk appetite, risk exposures, and stated financial performance objectives.

• Risk Disclosure:  Identify and develop appropriate risk information to support internal and external reporting requirements.

• Model Validation:  Perform independent model validations to provide positive assurance that models are reasonable and accurate for their intended use, including models used for risk measurements, hedging, valuations, performance measurements, income estimation, forecasting, and strategic decision-making.

• Credit Risk Mitigation: Provide guidance on the effective use of collateral, margining, and recouponing, and incorporate business cycle behavior into credit migration models.

>>  Risk Metrics

• Hedging:  Provide methodologies to enhance hedging strategies through the incorporation of low probability/high impact events into risk off-set and risk diversification frameworks.

• Risk Measurement Models: Provide methodologies for risk measurement, including market risks, counterparty contingent credit exposure, credit risk, interest rate risk, operational risk, and risk-adjusted business unit performance measurement.

• Stress Testing and Scenario Analysis: Design and conduct stress tests and scenario analyses, including Macroeconomic scenarios, market-specific historical repeats, and the identification of “Achilles Heel” scenarios.

• Economic Capital and Coherent Risk Aggregation: Provide methodologies for the consistent aggregation of measurements of different risk types.

• System Adequacy & Requirements Gathering:  Assess our client’s existing risk systems effectiveness, prepare RFPs, provide project management and testing.

• Model Specifications: Describe in “plain English” methodologies and underlying assumptions for our client’s existing models, and identify circumstances under which their model results may be invalid.

>> Pricing and Valuation

• Valuation Models:  Provide methodologies for valuation of illiquid securities and financial derivatives, and price decomposition and attribution.

• Nonperformance Risk:  Provide methodologies for the incorporation of credit risk in valuing financial derivatives assets and liabilities, as required by SFAS 157.

• Valuation Adjustments:  Provide methodologies for valuation adjustments based on potential future hedging costs, credit risk, illiquidity, model uncertainty.

• Independent Price Verification:  Perform independent verification to check prices sourced by clients.

>>  Management Solutions

• Strategic Targeting:  Assist clients in assessing potential future performance and risks of new business initiatives and investment opportunities.

• Business Restructuring:  Assist clients with the integration of new acquisitions or restructuring of existing businesses.

>>  Training Programs

• Executive Management and Board of Directors:  Provide comprehensive training using concise and non-technical descriptions covering risk governance, risk metrics, pricing and valuation, and management solutions.

• Staff functions: Provide detailed technical instruction to staff functions on risk-related topics relevant to Risk Management, Compliance, Finance, Internal Audit, and Business units.