Ex-Bankers Trust Director Launches New Risk Management Consultancy

EUGENE Shanks, former president and director of Bankers Trust, has formed a new company specializing in financial risk management consultancy services.

Netrisk, based in Greenwich, Connecticut, hopes to provide a range of consulting and customized software solutions to financial institutions. The company will cover market, credit, liquidity, hazard and legal risk management issues.

Banking clients

Shanks' venture was officially launched this June. It is currently working with a "large Italian bank" and a few smaller banks, says James Lockhart, chief financial officer at the company. He declines to name these clients.

Lockhart adds that Europe is the largest market for enterprise-wide risk management services. This demand has been fuelled by recent regulatory rulings from the Bank for International Settlements in Basle, he says.

In the future, Netrisk plans to expand its services into other areas, including the insurance, pensions and energy trading industries, says Lockhart.

Shanks has gathered an ensemble of risk management professionals to staff his new consultancy service. Daniel Mudge, who heads Netrisk's risk management division, was previously a senior managing director at Bankers Trust and head of the bank's global risk management group (RMO, November 18, 1996).

Bonnie Loopesko, a risk methodology partner, came to Netrisk from JP Morgan, where she was a vice president at the bank's risk management consulting services division.

Another risk methodology partner, Cedomir Crnkovic, had been vice president and group leader for proprietary positioning at JP Morgan.

Carmine Manfredi also joins Netrisk from Bankers Trust. He had been managing director in charge of the bank's risk technology group. He will perform the same function for Netrisk.

Moving on

Industry observers note that Shanks isn't the only Bankers Trust risk management alumnus to move on to independent risk consultancy. Kelsey Biggers, formerly business manager for Bankers' Raroc 2020 service, joined New York-based Micro Modeling Associates (MMA) last year (RMO, November 18, 1996).

He was recently appointed chief operating officer of Measurisk, a joint venture between MMA and Derivatives Associates (RMO, May 19).