Cedar Capital Consulting Group

In The Spotlight

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Spotlighting a few of our stories.

Developing and Assessing Policy

- Anti-Money Laundering Compliance and Remediation

- Regulator Compliant Global Business Line Supervision Policy

Creating and Executing Business and IT Strategy

     - Residential Loan Portfolio Strategy

      - IT Application Portfolio and Platform review

Designing, Re-engineering, and Implementing Financial Service Processes

- Early Warning Misconduct System

- Regulatory Inspector Training Architecture

Gathering and Defining Requirements

- Major Federal Agency Revolving Fund Process Design and Integration

Architecting Emergency Management Plans

- Post 9/11 Emergency Management Planning

Providing QA and Operational Oversight

- Risk Based Inspection Program

- Tarp



Developing and Assessing Policy


Anti-Money Laundering Compliance and Remediation

Defined a policy for new client ID (Anti-Money Laundering review of new clients) based upon UK regulator guidelines.  Ensured that policy was "commercial" as well as meeting regulator rules and guidelines.  Remediated all existing clients, requesting documentation as necessary.  Extensive salesperson and client education was required, as rules were not widely known or understood by non-UK jurisdiction clients.


Project was performed under strict deadlines, interacting closely with regulators to discuss policy issues raised during the implementation.  Completion of the project ensured that the Firm was in compliance with Regulator guidelines, understood clients and risks, and obtained complete client documentation.  This project enabled an easier implementation of the post 9/11 US Patriot Act anti-money laundering changes.


Regulator Compliant Global Business Line Supervision Policy

Defined division management supervision policy to comply with new Regulator supervisory guidelines.  Process involved defining points of risk, defining controls and metrics, designing MIS reports, and defining and implementing a management sign off process. 


Project kept Firm in compliance with Regulator guidelines, as well as outlined points of risk for other projects, namely Basel II Operational Risk measurement and Sarbanes Oxley control requirements.


Creating and Executing Business and IT Strategy


Residential Loan Portfolio Strategy

Developed a residential loan portfolio strategy including assessment of holding or selling into Secondary markets.  The analysis included the impacts of retaining or releasing selling servicing, service rights impairment, competitive market pricing execution, best effort basis selling, mandatory basis selling, hedging requirements, available hedging expertise, outsourced hedging options, and counter party risk.  Held loan analysis factors included sale of asset fee revenue loss, balance sheet risk, loan liquidity, Secondary Market securitization options, and management awareness of adverse underwriting charge selection. Additional considerations included origination unit P & L impacts, origination unit alternative Secondary Market asset values, and origination unit fairness measurements.


IT Application Portfolio and Platform Review

Reviewed the application portfolio and platforms of a large regulator. Elements of review included a survey of data and process gaps, legacy application costs, and current application portfolio customer satisfaction. Technology platform review included cost and feature gaps. Improvement opportunities identified ranged from application tweaks, consolidation of technology platforms, and an improved application management process. The review designed a 5 and 10 year technology prioritization roadmap identifying applications and data base replacement or redevelopment efforts constrained by available funding.


Designing, Re-engineering, & Implementing Financial Processes


Early Warning Misconduct System

Developed a regulator’s early-warning misconduct system. Extensive interviews and information gathering conducted with inspection and enforcement staff identified factors associated with high-risk firms or sales persons. Extensive data analysis highlighted the most predictive risk variables. Appropriate statistical techniques were identified for each variable based on analyzed behaviors. The statistical techniques identified normal and abnormal variable ranges. The system produces alerts when a variable strays outside the normal range.


Regulatory Inspector Training Architecture

Designed a training architecture for regulatory inspectors of a large geographically dispersed regulator. Surveyed key stakeholders and operational staff to frame architecture elements. Instructional designers and subject matter experts co-developed paper-based and interactive training content supplementing in-person training. Created and executed a regional level mentoring program. Developed a secure on-line certification application.



Gathering and Defining Requirements


Revolving Fund Process Design and Integration

Developed IT Strategy and gathered requirements for a $1 Billion Federal Government Service and Supply fund offering over 60 cost center products.  Gathered, defined and prioritized over 1,000 process requirements and data models for the Budget Formulation, Budget Execution, Rate Setting, Billing, Costing, Performance Management, Online Customer Reporting and Financial Reporting processes.  Performed fit-gap analysis, gap closure analysis, and alternatives analysis against Oracle Projects capabilities.  Integrated new cost center product lines into the existing system leveraging a standard interface structure.  Integrated existing system, processes, and interfaces into the world’s largest Oracle Financial System and the US Treasury.  Redesigned customer data structures to accommodate new GL requirements.  Post implementation review included gap closure recommendations for the 30,000 transactions processed per month.


Architecting Emergency Management Plans


Post 9/11 Emergency Management Planning

Thread lead for a large and geographically dispersed organization rectifying disaster response deficiencies. Built broadcast notification infrastructure, a post impact staff check-in capability, and an alternative work location network. Designed and implemented industry and regulator communication protocols for senior executives. Designed and implemented mobility policy to reduce operational risk.   Implemented policy requiring staff to carry laptops off-site daily. Developed and implemented laptop mobility security including data encryption.



Providing QA and Operational Oversight


Risk Based Inspection Program

An NGO sponsored project for an emerging markets securities regulator required a comprehensive set of Basel II compliant policies and procedures for a risk-based inspection program. The client required increased inspection staff performance while reducing annual inspection cycle-time. The regulator required extremely detailed procedures compensating for a non-existent local inspection training staff. A key deliverable included a quantitative risk model identifying high-risk firms. The project analyzed in detail the financial market structure of the client, contrasting sharply with the United States structure. In addition, the client country’s securities laws and regulations were reviewed. A Basel II analysis was conducted contrasting to the UK and several other countries. The project identified gaps and redundancies in the existing examination processes and procedures. The project balanced the political dimensions of the client country and the NGO funding source.  The project was enthusiastically received by the client country and was subsequently leveraged into emerging market projects in multiple countries.



Assisted US Treasury Office of Financial Stability in evaluation of the TARP program’s financial reporting, management reporting, and internal controls.


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Cedar Capital Consulting Group 
1600 Tysons Boulevard, 8th Floor
McLean, VA 22102
(703) 622-1490
Cedar Capital Consulting Group is a Management Consulting Group and not a CPA firm, and does not provide attest services, audits, or other engagements in accordance with the AICPA's Statements on Auditing Standards.