Financial Services Risk Management
Our Financial Services Risk Management (FSRM) India practice is a dedicated group of risk professionals in the banking and capital markets, asset management and insurance industry segments.
From enterprise risk management frameworks to Credit, Market and Operational Risk; regulatory and compliance programs, who do you turn to for insight? Ernst & Young.
The group is skilled in risk management in financial services, such as measurement and management of Credit, Market and Operational and Compliance risk related to Basel II and Indian regulatory requirements.
FSRM India possesses a combination of qualitative, quantitative, regulatory and risk technology skills, and broad industry knowledge to provide financial service firms with risk measurement and risk management services.
FSRM India’s services include:
Basel II
- Basel II Gap Analysis and development of Roadmap and Target Operating Model
- Data gap analysis vis-à-vis requirements of basic and advanced approaches of Basel II for all the three pillars
Credit Risk
- Credit Risk policies and governance framework
- Validation of capital charge computation process as per Standardized Approach of Pillar I of Basel II
- Borrower and facility risk rating models
- Behavioral and collections scorecards for Retail portfolio
- Retail portfolio pooling
- Development of Probability of Default (PD), Loss Given Default ( LGD) and Exposure at Default (EAD) models for Wholesale and Retail portfolios
- Validation of PD, LGD and EAD models
Financial Services Treasury Advisory
- Market risk management
- Liquidity risk management
- Treasury process re-engineering
- Setting up new product desks
- Retirement funds advisory
- Investment management
Quantitative Advisory
- Derivative valuation
- Development of financial risk models
- Validation of financial risk models
- Stress testing and back testing frameworks
Operational Risk
- Operational Risk policies and governance framework
- Standardized Approach
- Risk & Control assessents
- Loss event management
- Key Risk Indicators
- Development and validation of for Advanced Measurement Approach (Loss Data, Scenario, BEICF and Scaling)
- Integration of Operational Risk with Internal Audit and Performance Management
Enterprise Risk Management & Economic Capital
- Development and validation of Internal Capital Adequacy Assessment Process (ICAAP) under Pillar II of Basel II
- Methodology for stress testing of Credit, Market, Credit Concentration, Liquidity and Interest Rate Risk in the Banking Book (IRRBB)
- Development of framework for Economic Capital
Regulatory and Compliance Risk
- Compliance policies and manuals
- Compliance function structure / design
- Inventorization of regulatory compliance requirements and review of corresponding controls
- Compliance risk assessment
- Compliance risk monitoring and testing
- Regulatory reporting review
Anti-Money Laundering
- Perform detailed testing of KYC procedures and/or AML internal transaction monitoring and reporting
- Independent assessment of AML controls and compliance with regulatory requirements
- Evaluate or assist with the following:
| | - | Development of customer risk assessment framework |
| | - | Development of AML policies and procedures |
| | - | Rule based/behavior based transaction monitoring |
| | - | Development of ongoing executive & employee training modules |
| | - | Functional specifications of AML software tools and techniques |
Corporate Treasury Advisory
- Currency risk management
- Commodity price risk management
- Investment management
- Financial supply chain
- Hedge Accounting
- Cash and liquidity management
- Integrating global treasury operations
- Development of VaR based hedging models
Risk Technology
- Evaluation and selection of vendors for software solutions for Basel II
- User Acceptance Testing (UAT)
Financial Services Risk Management tools
FSRM India possesses indigenously developed tools and assets to enable superior service delivery. Some of these tools are for areas such as:
- Qualitative and data gap analysis based on Basel II, global and Indian regulator guidelines
- Repository of rating models for retail and wholesale portfolios
- Model Validation tools for analyzing the discriminatory power, calibration and stability of rating models
- Operational Risk Assessment tool, including – RCSA library for various businesses
- KRI Library for various business
- Scenario library for various lines of businesses
- AMA model using Development of Operational Risk Loss Distribution and Scenario Approach models
- Various ICAAP and Pillar II models on Stress Testing for Retail and Corporate Portfolios
