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 […]
Regulatory handbook review
Regulatory handbook review Overview In this very informative project, Aspect Advisory was tasked with reviewing a multi-national corporate bank’s regulatory framework aimed at informing its line managers on the bank’s code of conduct, latest governance trends in anti-money laundering, sanctions and anti-bribery and anti-corruption. The bank had complete compliance handbooks that needed Aspect Advisory’s assurance […]
Stress Testing Against Climate Risk – A key Emerging Exercise for Banks
Climate Risk Stress Testing Background Climate change is one of the most complex challenges that society faces today. The continued and growing emissions of greenhouse gases since the industrial revolution have led to increased GDP, but at the price of increasing temperatures creating risks to life, ecosystems, and economies. There is increasing consensus that risks […]
ON THE STATE OF CRYPTO ASSET REGULATION IN THE EU
Crypto Asset Regulation The Basel Committee’s public consultation on the prudential treatment of banks’ crypto asset exposures builds on the proposals in the first consultation issued in June 2021. Unbacked crypto assets and stable coins with ineffective stabilization mechanisms continue to be subject to a conservative prudential treatment, with a new limit proposed on gross […]
CRR 3 – Changes and Impact on Exposure Class “Real-Estate”
More granularity for a complex market The Economist recently reported that Real Estate is the largest asset class in the world, making up 68% of the world’s non-financial assets in 2020.[1] It naturally follows then that a large portion of European banks’ lending is dedicated to real estate. This is the latest asset class to […]
Explore a 10-year arc of market leaders across SA’s Banking Sector
“In God we trust, all others must bring Data. “ W. Edwards Deming, statistician Aspect Advisory uses leading edge technologies to surface interactive, customisable, dynamic, and strategy relevant information from big data into intuitive user-friendly cloud based platforms – giving Executives real time agility at their fingertips, enabling them to distil market trends […]
The COVID-19 Pandemic: did companies prepare for this?
As with every individual, companies too are exposed to risks. Therefore, once a year large companies carry out a risk inventory assessment, answering a simple question: What can go wrong? The primary risk of non-financial corporates is business risk, i.e. the risk that they can’t sell as many products/ services as they wanted and/ or […]