Credit Risk

The key challenge for many credit risk management teams is both making the new credit risk management rules work and also to add value. The internal ratings based approach in particular provides many new opportunities for a bank to develop their credit function to provide greater analysis and confidence.

Our consultants have experience of implementing innovative retail and corporate credit risk management solutions in a broad range of international institutions. We can:

• Undertake a gap analysis to establish the extent to which your firm's existing processes and procedures need to be enhanced to meet the demands of the new regulations.
• Train your teams to ensure that they are fully aware of these new rules and how to meet these obligations.
• Develop solutions to ensure that your firm complies with such obligations.
• Design reporting suites to ensure that the business uses the information both within the business lines, and at Board level.

The Changing Demands on Corporate Credit Risk

Credit risk needs to become more forward looking; yet corporate credit risk in particular has focused on the use of historic data. This may require a change to the approach that has been used for many years.

Risk Reward can help your firm achieve this transition by:

• Developing your credit policies and procedures
• Designing new approaches to the assessment of credit risk
• Implement effective stress testing and scenario modelling
• Implement forward looking portfolio measures