Expected Credit Loss (ECL)
Automation of the Expected Credit loss (ECL) and Pricing tools for a Development Finance institution (DFI) Overview Aspect Advisory was engaged to enhance the Expected Credit Loss (ECL) models, Risk-based pricing capability, and IFRS9 reporting for a development finance institution. The primary objective was to transform the existing ECL calculation and Risk-Based pricing models into […]
Enhancing Asset and Liability Management
Enhancing Asset and Liability Management Overview A micro financial institution had been facing inflationary pressures due to the region’s severe economic crisis . The economic volatility in the country affected the institution causing a maturity mismatch in their asset and liability management. Solution Aspect Advisory assessed the risks faced by the institution and the effectiveness […]
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
Interest and Liquidity Risk management Overview A German bank, part of French-based multinational financial services company was required to implement the group-wide used software for interest and liquidity risk monitoring and management. Aspect Advisory’s overall objective was to conduct the project, starting from the technical implementation to the final liquidity and interest rate scenario modelling. […]
Interest and Liquidity Risk management
Interest and Liquidity Risk management Overview A German bank, part of French-based multinational financial services company was required to implement the group-wide used software for interest and liquidity risk monitoring and management. Aspect Advisory’s overall objective was to conduct the project, starting from the technical implementation to the final liquidity and interest rate scenario modelling. […]
Strategic partnership with Agricultural Cooperative
Strategic partnership with Agricultural Cooperative Overview An exciting partnership that allowed Aspect advisory to offer strategic and technical assistance to a South African agricultural cooperative on the premise of expansion. The cooperative landed a lucrative facility with an international DFI that warranted that it revamps its existing infrastructure, in particular, it’s credit and risk management […]
ECL Rating and Pricing tool Validation
ECL Rating and Pricing tool Validation Overview A project that can only be described as a demanding quantitative project that required ingenious approaches; a South African-based Developmental funding institution tasked Aspect Advisory with validating its existing risk-based pricing tool and expected credit loss (ECL) rating tool and methodologies as deployed within the risk management framework; […]
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 […]