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Credit Risk Management
Despite increasingly sophisticated risk transfer techniques and the drive toward developing
non-interest income, credit continues to be the primary source of both risk and reward for the
vast majority of financial institutions.
Yet credit risk management in some banks is more art than science, resisting the development of
proven quantitative methodologies, capable as ever of delivering financial and reputation shocks
to those institutions which do not employ best practice across the whole of the credit risk
management spectrum.
We apply the best of both quantitative and qualitative credit risk management tools and techniques. Our approach incorporates the following fundamental elements of credit risk management:
- The Business Strategy
- The Enterprise Risk Framework
- Credit risk appetite
- Group credit risk management structures
- Credit policy architecture
- Quantitative methodologies
- Pricing for credit risk
- Regulatory and economic capital allocation
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