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Advisory for Financial Services

Financial Services: Bringing the broader perspective

The financial services industry deserves an integrated approach to managing its uncertainties and opportunities.

Our reputation is built on assembling multi-disciplinary teams from around the world to deliver a global perspective. Aligned to key industry groups including asset management, banking and capital markets, insurance and private equity, we provide integrated advisory, assurancetax, and transaction services.

We provide all of our Advisory services in the areas of Performance ImprovementRisk and IT to financial services organizations, and in addition we also have some specialist services:

Financial Services Risk Management

Enterprise Risk Management (ERM)

Our team helps clients promote a culture of accountability across levels, reinforces the effectiveness of risk oversight, improve the communication of risk information, and integrate risk management processes across risk categories and asset classes.

Services include:

Credit risk

We assist clients to facilitate frameworks, enhance credit risk strategy and governance, define and validate models and methodologies, optimize risk-technology infrastructure, refine internal and external reporting, and determine economic capital and overall capital management strategies. We also aid our clients in developing predictive analytics based early warning systems, NPA management solutions, development of various scorecards like Application scorecards, Behavioral scorecards, Collection scorecards, Recovery scorecards, cross-sell/up-sell scorecards etc.

Market risk

We advise clients on Value at Risk (VaR) analysis, risk measurement and stress testing, derivative pricing, and hedge effectiveness calculations. The team consists of quantitative analysts and business professionals who understand the processes and tools critical to the development of an effective market risk framework.

Operational risk

We assist financial institutions with an understanding of crucial processes required for effective operational risk management thereby allowing them  to be integrated into regulatory frameworks. Our integrated Operational risk management framework advocates a balance between quantitative and qualitative approaches to measuring and managing operational risk.

Quantitative Advisory Services

Our QAS team is skilled in quantitative knowledge, skills, proprietary and other models and risk technology. This can help chief risk officers (CROs), risk managers, heads of product control, trading desk managers, front and middle-office personnel and internal auditors to better measure their financial risks and improve their risk management strategies. Our quantitative analysts regularly share the most up to date intellectual capital on sophisticated financial models and mathematically advanced business and product structures.

Services include:

  • Risk modeling and stress testing
  • Model review and improvement
  • Valuation support
  • Valuation policy review
  • Transaction process and control review and support
  • Hedge effectiveness measurement and assessment
  • Employee share option pricing
  • Risk system assessment and enhancements

Regulatory Services

We assist clients with issues arising from prudential regulation across all sectors of the financial services industry. The team offers practical solutions based on firsthand experience of reporting issues and dealing with the regulators.

Our services include:

Technical support

This service offers technical support around Basel 2, including the regulatory capital, liquidity, concentration risk and group consolidation issues arising from complex and structured transactions.

Regulatory assurance

Reviewing firm's "end-to-end" regulatory computations and processes, in order to support senior management to attest to the completeness and accuracy of regulatory reporting.

Regulatory reporting

Assisting firms to reengineer their regulatory infrastructure, including the implementation of external regulatory software packages.

Capital optimization

Identifying capital optimization opportunities and efficiencies, leading to the transfer or repayment of surplus capital within groups.

Liquidity management

Assisting firms with all aspects of liquidity management including reporting, governance, stress testing and contingency funding plans.

Pillar 2 / ICAAP

Supporting the creation of firm's ICAAP documents and / or providing document review, especially around risk assessment, scenario selection, stress testing and risk mitigation.

Pillar 3 disclosures

Assisting firms to create their Pillar 3 policy and draft their initial disclosures for Board approval.

Model support

Supporting all aspects of regulatory model creation and approval, including governance, validation, review and associated regulatory waiver applications around IRB, IMA & AMA.

Risk Technology and Infrastructure Services

We help our clients design, buy and implement technology solutions to support their enterprise-wide risk and regulatory compliance functions. Our offerings range from structured definition of adequate management of information requirements, to the design of an effective information architecture, as well as systems selection advice and implementation of third party software solution components.

Services include:

  • Risk architecture design
  • Advice on data governance (maturity assessment and industry wide best practices)
  • Data profiling and analytics - risk sensitivities and scenario modeling
  • Requirements definition for management information and reporting (market, credit and operational risk; capital requirements; compliance reporting)
  • Functional and technical specification
  • Vendor market analysis
  • Systems selection and implementation support
  • Managing the implementation of complex risk & regulatory technology programs

Actuarial Services

With radical changes in the insurance market, insurance companies must identify and assess new options for value creation while continuing to manage risks and meet emerging regulatory requirements.

Our dedicated actuarial and risk professionals, in close co-ordination with related practices across EY provides truly integrated services across all disciplines in the insurance industry.

Our aim is to bring to you highest standards of independent actuarial advice to best suit your needs. Our expertise envelops and enables success at every stage of your company’s life-cycle. Our experience means we can customize our approach towards your evolving needs, your current scale and industry situation.

Our areas of focus include the following services:

Actuarial transformation

The driver for insurance companies to improve their actuarial functions may be due to a variety of reasons - cutting costs, improving controls, reducing reporting times, understanding results better, or improving forecasting and budgeting. We can assess the changes required of the actuarial functions by benchmarking existing practices against leading practice, in addition to helping to improve functionality or re-engineering the actuarial systems and financial models

Actuarial modeling

We have the largest actuarial modeling team in Asia and have assisted numerous global and local insurers with their model implementation and review including but not limited to Solvency II, USGAAP, and IFRS, EV / MCEV and local statutory basis

Financial reporting and shareholder reporting

Financial reporting is very complex for insurance companies due to the significant regulatory issues involved. Our actuaries are uniquely positioned to assist you in implementing and enhancing financial reporting tools.

Product development and pricing support

We support clients to become more innovative, to bring ideas to market quickly, to effectively optimize the economics of individual products and the overall portfolio and to combine products into aligned customer propositions.

Transaction support

Our experienced actuarial team has extensive experience assisting insurance companies with actuarial due diligence in terms of assessing the adequacy of reserves, capital requirements, embedded value, appraisal value and other cash flows.

Enterprise Risk Management

We develop comprehensive ERM framework and policy including organization structure, roles and responsibilities, risk mitigating strategies, KPIs and periodic monitoring mechanisms for insurance companies.

Actuarial reserving review and audit

We conduct actuarial reviews involving review of actuarial calculations performed by insurance companies' in-house actuarial departments or advisors. Areas of review include data, actuarial reserves, required capital, embedded value, cash flow projections, premium rates, or product profitability.

Contact us

Rohan Sachdev 
Advisory Partner and Leader - Financial Services
+91 22 6192 0470

 

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