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Understanding Financial Interconnections
The financial crisis highlighted the lack of transparency in financial markets and exposed previously unseen vulnerabilities stemming from complex chains of risk and financial interconnections.
Across the financial world – in compliance and due diligence, financial supervision, risk management and securities analysis – a premium is now placed on deconstructing complex interconnections between companies, securities and people in the financial world. Banks, investors and regulators all need to understand relationships between issuers, investors, lenders and guarantors in order to:
 | Get a complete picture of counterparties including offshore vehicles and related entities. |
| Determine who is really behind companies by tracking minority shareholders and following control chains. |
| Analyze credit risk more effectively by analyzing intra-group guarantors and contingent liabilities. |
| Extend visibility regarding risk exposure by integrating financial exposures across multiple entities. |
Understanding these relationships quickly and at an early stage can make a critical difference in avoiding unforeseen risks and capitalizing on opportunities.
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