Audit and Risk Validation

Our clients are relying on our expertise on the Basel 2 and 3 modelling approaches they have adopted for PD, LGD and EAD; model validation and performance assessment against past and current business; our health check on their approach to Basel model development and Basel methodology.

Need of ERMC expertise:

  • New legislation, regulation and market dynamics are accelerating the need of using more sophisticated and strict Risk management.
  • Supervisors and new market conditions require diligent and transparent governance process and control of retail banking decisions.
  • Rapid expansions and entrance of multinational banks increase market competition and further promote market efficiency and reliability.
  • Unprecedented growth of consumer lending increases the need robust and validated credit risk practices.

Our approach :

  • What has been done;
  • Misattribution - product, price and asset quality;
  • Misclassification;
  • Arrears/Performance misalignments.

Delivery:

  • Affordability Model;
  • Application Scoring and Cascading;
  • Behavioral Scoring;
  • Collections Scoring.