Enterprise Risk Management Framework
Automation of Enterprise Risk Management Framework (ETR) – A news event triggered dashboard Overview In today’s rapidly evolving financial landscape, external events such as social, economic, and political developments can have profound impacts on financial institutions. To proactively mitigate risks, a large Development Finance Institution (DFI) sought to enhance its Enterprise Risk Management (ERM) Framework […]
Expected Credit Loss (ECL)
Automation of the Expected Credit loss (ECL) and Pricing tools for a Development Finance institution (DFI) Overview A leading Development Finance Institution (DFI) engaged Aspect Advisory to enhance its Expected Credit Loss (ECL) models, risk-based pricing capabilities, and IFRS 9 reporting. The institution required a modernised, automated approach to ECL calculations and risk-based pricing, moving […]
Enhancing Asset and Liability Management
Enhancing Asset and Liability Management Overview A microfinance institution (MFI) faced severe inflationary pressures due to an ongoing economic crisis in its region. The resulting economic volatility led to a maturity mismatch in its asset and liability management (ALM), creating financial instability and increasing liquidity risks. To restore financial stability and align its ALM practices […]
Data-driven vs. Data-information
Data-driven vs. data-informed decision making is a critical topic for business leaders in the digital era. Understanding the distinction between these two approaches empowers organisations to leverage their data effectively and gain a competitive edge. While both methodologies rely on data analysis to drive decision-making, there is a fundamental difference in their underlying principles. The […]
Model Validation
Financial institutions, such as Banks, use various models to make important decisions, such as credit risk assessment, capital allocation, and pricing of financial products. These models are designed to analyse large amounts of data, identify patterns, and provide insights that can help banks make informed decisions. However, as with any analytical tool, these models are […]
UNDERSTANDING EXPOSURE AT DEFAULT
Forecasting what exposure to a client might be at the moment they default In the dynamic world of banking, understanding and managing risk is the linchpin of sustainable success. A shining beacon in this endeavor is the concept of Exposure at Default (EAD), an integral element of robust credit risk management. This article delves into […]
Budgeting Capital and Liquidity Planning
Budgeting Capital and Liquidity Planning Overview Overview A German bank, part of a French-based multinational financial services company, was required to implement group-wide software for interest rate and liquidity risk monitoring and management. The objective was to ensure regulatory compliance, risk-informed decision-making, and alignment with group-wide financial planning processes. Aspect Advisory was engaged to lead […]
Interest and Liquidity Risk management
Interest and Liquidity Risk management Overview Overview A German bank, part of a French-based multinational financial services company, was required to implement group-wide software for interest and liquidity risk monitoring and management. This initiative aimed to enhance regulatory compliance, ensure consistency across group entities, and improve financial performance through risk-informed decision-making. Aspect Advisory was engaged […]
Strategic partnership with Agricultural Cooperative
Strategic partnership with Agricultural Cooperative Overview Overview Aspect Advisory formed a strategic and technical partnership with a South African agricultural cooperative as part of its expansion initiative. The cooperative had secured a lucrative facility from an international Development Finance Institution (DFI), requiring it to enhance its credit and risk management infrastructure. The engagement focused on […]
ECL Rating and Pricing tool Validation
ECL Rating and Pricing tool Validation Overview Overview Aspect Advisory was engaged by a South African Development Finance Institution (DFI) to conduct a rigorous validation of its risk-based pricing tool and Expected Loss (EL) rating tool. This demanding quantitative project required advanced statistical methodologies and innovative validation techniques to ensure the models’ accuracy and effectiveness […]