Consulting

Risk-Management

CBL Asia provides consulting services throughout the APAC region. Clients are generally financial institutions, government departments or regulators.

Projects tend to be staged, so methodology development and proto-typing are undertaken by CBL Asia prior to any final system development or system acquisition. CBL Asia is not an IT business but does work closely with its technology partners (or those of its clients) to ensure efficient delivery of any technology solution that may be required as part of the project.

Projects can cover a variety of issues, a selection of which are summarised below:

1. Unexpected Loss Risk Metrics

Issue: Assist financial institution to better understand portfolio risk adjusted returns, related pricing issues and portfolio optimisation options.
Solution: Use Unexpected Loss as a performance risk metric and as a means of understanding competitive position in market place, all as a first step towards more comprehensive economic capital modelling.

2. Market Risk management and reporting

Issue: Address compliance issue in financial institution due to over-reliance on spreadsheets as market risk monitoring, management and reporting tools and improve reporting and analytical processes.
Solution: Data warehouse solution developed as ‘one source of truth’ with appropriate reporting tools.

3. Liquidity Risk analysis

Issue: Assist financial institution to improve liquidity risk analytics and management practices.
Solution: Develop Liquidity Management and reporting tool for front office and risk group across multiple units and incorporating 15 months forward Balance Sheet and Profit and Loss, as well as related stress test and going concern scenarios in accordance with Basel II/III requirements.

4. Risk and Finance Data integration

Issue: Assist financial institution to align risk reporting with finance reporting (eg as per BCBS 239 requirement).
Solution: Develop data warehouse solution mapping risk reporting to financial (GL) data, enabling drilling from consolidate Balance Sheet to cash flow within transaction as per risk systems.

5. Credit Risk Portfolio Analytics

Issue: Assist financial institution to improve portfolio credit risk analytical capabilities to improve risk management and communication with regulator.
Solution: Data warehouse solution developed using Basel II methodologies, also including loan origination, risk-adjusted pricing and pipeline tracking functionality.

6. Project Finance

A number of CBL Asia staff have also been involved in project finance, mostly in major projects in infrastructure and energy sectors (PPPs etc), and from both credit analytical as well as structuring and funding perspectives. The cross-over is perhaps that risk analysis and management is paramount, and closely integrated into the related financial analyses.