Credit Risk Management

As a fully integrated risk practice, we have the size and capability to address all risk issues and deliver end-to-end solutions

Credit Risk is generally defined as the risk of default of an obligor to fully meet their commitments in a timely manner. The management of this risk covers:

• Origination
• Loan or debt management
• Collection and recovery.

Credit Risk Management: Value

• Effective and efficient structures to govern and oversee the organisation and achieve the strategy creating synergies between different risk management activities.
• Increased risk awareness which facilitates better operational and strategic decision-making.
• Ensuring that risk-taking decisions across the organisation are within and aligned to the nature and level of risk that stakeholders in the organisation are willing to take.

Credit Risk Management: Core Services

Enhanced Risk Strategies  Frameworks

Create the right risk strategies to achieve the enterprises strategic aims and implements the optimum frameworks to ensure risk is appropriately managed.

Work Undertaken

• Assessment, design and implementation of credit risk strategies
• Assessment, design and implementation of credit risk frameworks
• Assessment, design and implementation of credit risk frameworks for the purpose of regulatory capital management; e.g. Basel 3
• Assessment, design and implementation of Credit Risk Appetite Statements
• Basel II and III Credit Risk: Model Development
• Economic capital modelling in relation to credit risk
• Assessment, design and implementation of monitoring and reporting processes.

Example

Assessed a 2nd tier bank's Credit Risk Framework by benchmarking current practice versus industry best practice.

Enhanced Risk Performance

Putting words into action – delivering risk performance within agreed tolerances at the sharp end – day after day.

Work Undertaken

• Collective provisioning services
• Risk Weighted Asset (RWA) optimisation
• Credit portfolio Analytics
• Credit Risk stress testing
• Collection and recovery performance effectiveness enhancement
• Mergers – Acquisitions assistance
• Credit risk system implementation: user requirement, system /vendor selection, implementation, user acceptance tracking
• Variance analysis and implementation of remedial actions

Example

Assisted a 'Big 4' bank in developing risk adjusted performance metrics, so that incentive and compensation arrangements reflect the underlying risk profile.

Enhanced Risk Management Functions  Capabilities

Create the optimum organisational solutions and equips the enterprise with the right skills and capabilities to manage risk to achieve strategic aims.

Work Undertaken

• Assessment, design and implementation of credit risk functions and collection and recovery units
• Interim management solutions: Credit Risk Officers and other professionals
• Credit Risk Management Training

Example

Supplied interim Program Director to lead enhancement of Operational Risk Framework.