OUR APPROACH
crossi@criskadvisors.com
Risk is ever-present regardless of the industry. As conditions to your business and markets change, having the right risk governance, controls and analytics to successfully steer away from extranormal risk is an essential ingredient to effective risk management. At Chesapeake Risk Advisors, LLC we focus on maintaining a balance between risk and return providing clients with a range of strategic and analytical risk solutions to address various risk management problems. Based on decades of direct senior executive experience at Fortune 500 companies, Chesapeake Risk Advisors, LLC is a risk management advisory practice with a long track record in elevating risk management practices across financial services, pharma, insurance and other sectors.
UNPARALLELED RISK MANAGEMENT EXPERTISE
Spanning a 25-year industry career, Dr. Rossi has worked at the highest levels of risk management at major corporations and had extensive experience in managing risk at companies under all business conditions and is an expert in managing risk in times of crisis. His technical and risk leadership skills provide a well-rounded experience that are unique to risk management. Following his industry career, Cliff entered academia as Professor-of-the-Practice in the Finance Department at the Robert H. Smith School of Business, University of Maryland as well as Director of the Smith Enterprise Risk Consortium and an Executive-in-Residence. He is a sought after speaker at conferences and industry events and authored the practitioner and graduate textbook, A Risk Professional’s Survival Guide – Applied Best Practices in Risk Management. He received his MS and PhD degrees from Cornell University.
OUR CLIENTS
Chesapeake Risk Advisors, LLC has been engaged by a wide variety of clients including some of the largest commercial banks, federal regulatory agencies, pharma companies, mortgage insurance companies, community banks, credit unions, Federal Home Loan Banks, asset management companies and private equity firms, among others.
​
Example engagements include advising on development of ERM frameworks and risk appetite statements, advising boards on risk management practices and governance issues, expert witness testimony, validating complex statistical models used for loan loss reserving and loss forecasting, evaluation and recommendation of portfolio management tools and development of statistically-based credit underwriting, valuation and interest rate risk models
New Lender Choice Best Execution Pricing Analysis
Implications of "Lender Choice" for Mortgage Credit Allocation and Risk: A Best Execution Pricing Analysis is the latest analysis conducted by Dr. Clifford Rossi. The announcement of “lender choice” by the Federal Housing Finance Agency (FHFA) leaves many unanswered questions regarding the impact this policy will have on the GSEs, lenders and borrowers once it is fully implemented. This analysis applies an industry standard best execution pricing framework to assess the effects of lender choice on credit allocation and risk across credit investors. The analysis demonstrates that should the GSEs respond to potential lender adverse selection by raising LLPAs, it would potentially reduce the allocation of loans to these companies. FHA could see a materially higher allocation, particularly for loans with credit scores below 740, with bank portfolios seeing modest increases in that score range. Private label security (PLS) investors could enjoy significant increases for loans with credit scores over 740. Credit risk may rise more for FHA while remaining relatively stable for GSEs, depositories and private investors. The analysis reinforces the need for a comprehensive analysis of lender choice prior to implementation given the potential effects on credit investors and borrowers.