Credit Risk
Credit risk is a fast changing discipline at the leading edge of risk management practice. The financial crisis brought into focus the need for effective risk management control and highlighted many deficiencies of banks’ approaches to measuring credit risk. This has resulted in financial institutions reviewing their approach to the management of credit risk from a process, organisational and systems perspective. At the same time many institutions are continuing to develop more sophisticated methods of risk management, such as measuring and hedging Credit Valuation Adjustment (CVA). Credit risk is also an area in which there are many existing and forthcoming regulations impacting financial institutions such as Basel III (see also Regulatory Risk Management).
We can help clients redesign their entire credit risk framework or focus on specific areas such as:
- Credit Risk Policy
- Methodology and Modelling (e.g. modelling counterparty risk, economic capital, rating models)
- Credit Risk Systems – selection, design or implementation
- Basel Regulations
- Credit Valuation Adjustment
- Collateral Management
- Counterparty Due Diligence
- Organisational Structure and Processes
In certain key areas within credit risk, we have devised a structured approach to delivering change. These are: the InteDelta Delivery Lifecycle for Counterparty Risk and the InteDelta Delivery Lifecycle for CVA. These encompass a series of specific services and tools tailored respectively to counterparty risk and CVA.
