Business Performance – Driving Value
We provide independent assurance to Board/CEO’s on inherent quality of portfolio credit risk, reinforced with an effective credit risk strategy to sustain and enhance performance capability.
- Financial institutions have experienced a rare deterioration in credit asset quality arising from the inevitable effects of pandemic-led economic downturn.
- Strategic objective is to enhance, preserve and restore portfolio credit quality and risk capacity → measure, restrict and scale back incremental credit risk → identify and implement opportunities for portfolio risk diversification to offset current and impending risks → recalibrate the institutional risk appetite.
- We blend evolving economic forecasts with learnings from current portfolio behaviour to construct competitive strategies, with road-maps that drive proactive mitigation of emerging risks and optimise portfolio diversification to enhance economic profit.
- Our portfolio credit risk diagnostics are clinically executed at account and sub-portfolio levels to identify factors that both, create and destroy a portfolio’s economic value
-
- We benchmark current portfolio credit quality and its performance history with reference to key strategy drivers and risk appetite.
- We analyse influential macro-economic variables to identify how their cascading impact emerges through industry correlations.
- Our evaluations highlight the adequacy and effectiveness of credit risk infrastructure and risk assessment methodology, being commensurate with scale and scope of risk governance.
- Strategy recommendations and solutions are adapted to interpretations of credit risk quality by internal as well as regulatory and accounting standard (IFRS9) and include :
- Credit default diagnostics – calibrating our experience with industry knowledge to structure solutions and remediation strategies to resolve non-performing portfolios (Stage 3).
- Performance turnaround strategy – restricting & scaling back incremental credit risk of under-performing portfolios for restoration of asset credit quality (Stage 2).
- Optimising lending structures – that proactively balance risk diversification to sustain and enhance risk capacity within performing portfolios (Stage 1).
- Early warning detection – institutionalising a robust framework of 200+ predictive early warning alerts on potential and impending risks, for effective preservation of portfolio credit quality.
