Enterprise Risk Management
We assist our clients in managing their business risks. Every business decision entails risk and by definition risk cannot be eliminated. It can be managed, mitigated, controlled or protected against. Our risk management framework typically considers the risk appetite of the management and suggests clear strategies so as to reduce the probability of breaching downside limits as far as possible.
Typical steps in an enterprise risk management exercise involves the following:
We will handhold the client in the implementation of the recommendations and put in place a mechanism to monitor, control and manage risks.
The first step is to identify all the risks – internal and external. Measure the impact of the risks on the objectives and desired outcomes. Assess the severity and frequency of the risk event and classify them accordingly
Once the risk are identified and measured, the next step is to formulate strategies to address them. These could be strategies avoid the risk, transfer, mitigate or assume the risk
Assess the control structure and review mechanism and strengthen them. Ensure a proper information system to escalate the exceptions
Risk Modelling
Risk modelling brings together our expertise in understanding risks particularly in the counterparty risk and credit risk domains and using robust statistical methods and data to build models to facilitate meaningful insights. Our modelling tools seek to facilitate better credit profiling, customer selection, superior monitoring and providing early warning signals.
Develop, Update, Validate credit risk scoring models for various borrower segments
Build models to assess counterparty risk in commercial transactions and assess the quantum and period of credit that can be extended
Basel Compliance
We assist banks in ensuring compliance with Basel norms (Basel 2 and 3). Our focus is not only mere compliance but also ensuring that the compliance processes facilitate better business decisions.
Review the existing risk management systems and identify the gaps in policy, process and tools as compared to the Basel guidelines and applicable regulatory standards
Assist in addressing the gaps by way of enhancements to policies and processes and developing tools for better compliance
Design analytical tools for faster and better decision making and align the business planning and risk management functions in a manner that one facilitates the other