As the business and regulatory landscape continues to evolve, global concerns about financial risk have been increasing. In this climate, firms of all kinds and sizes are looking to develop robust financial risk management frameworks that satisfy compliance demands, contribute to better decision-making and enhance performance.
Consisted with multi-disciplinary team of professionals, KPMG’s Financial Risk Management offers right methodology, credentials, attitude, and team to help companies stay on track and deal with risks that could unhinge their business survival. We help international banks, insurance companies, asset managers, corporate, and public clients to identify, assess, manage, report, and limit the risks they face.
An overview of each major services within KPMG Financial Risk Management is outlined below:
- Risk-as-a-Services (RaaS)
KPMG cloud based managed service for IFRS 9, trading book risk, stress testing and regulatory reporting which turnkey solution addressing challenges facing financial institution, offering cost effective, end – to – end service that will deliver KPMG’s customized insights on a system that supported by state – of – the art software applications.
- IFRS 17 Implementation
KPMG can assist clients by performing financial impact assessment using tools developed by KMPG, preparing position papers in accordance to the standard, reviewing current reserving methodology, accounting treatment, and IT system process to identify the gap. In addition, KPMG can provide services supporting IFRS 17 such as expenses study to determine expenses allocation in actuarial insurance liability assessment.
- IFRS 9 Audit and Validation
KPMG has developed a comprehensive methodology to undertake model validations. Our framework assesses against common modelling themes and criteria across various models and tailored to fit each model type.
- Audit Support, including derivative valuation and actuarial audit support
Our valuation approach is consistent with accounting standard guideline on fair value measurement that are appropriate in the circumstances and maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
- Early Warning System
Powered by breakthrough credit analytical technologies, our Early Warning System enables risk managers and portfolio managers with more effective risk monitoring and smarter credit decisions to reduce NPLs and stay clear from loss, aiming to solve the most inherent questions in credit risk management i.e. “who are risky”, “when are they risky”, “how risky”, and “why risky.
- Basel III Reform
Basel III framework would be implemented with emphasis on national interest in mind, and banks were expected to play optimal roles in promoting economic growth. The banks will begin to plan for their implementation effort ahead of the expected effective deadline of 2022. The areas that KPMG can help, including:
- Revision/update of QIS results for key rule/methodology changes (assess initial business line viability)
- Gap analysis – Current State to TOM
- Planning & Budget Submissions (taking into account parallel runs)
- Establishing links into core ongoing programs/BAU processes (e.g. CCAR, Stress Testing)
- Review booking model and legal entity scope (alignment with other initatives)
- Assessment of key data differences (Risk Vs Product Control)
- Enhancement of key processes (e.g. NPA, Structured Large Trades)
- Communication strategies/Senior management education
- Basel IV tool – KPMG Peer Bank (benchmarking tool)
Click here to view the Basel III Reform Chart.
- Other Services:
- Reserve Valuation
- Employee Benefit
- Economic Capital
- Machine Learning Analytics for Credit Scoring
- Credit Memo Automation
- Corporate Finance and Hedging Strategy
- Post-Merger Integration
- Training Center
- Risk, Governance and Culture
- Fund Transfer Pricing
- Risk Technology Business Analysis
KPMG’s Financial Risk Management professionals aim to provide consistent, cost-effective and high-quality service through:
- over 1600 Financial Risk Management professionals strategically positioned around the world
- a global network with offices in over 145 countries
- access to the resources of one of the world’s leading professional advisory organizations.
We are trusted risk management advisers to the boards and executive teams of some of the world’s leading enterprises. Our member firms operate in key financial centers and developed markets. We have a dynamic presence in the emerging economies of Central and Eastern Europe, Russia, Latin America, India, China and elsewhere in Asia.