With credit markets undergoing rapid growth, but also facing changes and threats, and Basel III framework putting a heightened focus on regulatory capital, the need for financial institutions to identify, measure, monitor, and control credit risk – over the entire portfolio, as well as on individual transactions – is greater than ever.
Risk governance framework
KPMG can help financial institutions build a tailored risk governance, risk management and risk reporting framework, using the various tools, models and processes available.
Grading systems and credit scoring
KPMG uses sophisticated statistical and other techniques to develop and validate credit scoring models and grading systems for a wide range of customer segments.
Expected Credit Loss
KPMG has a comprehensive approach to expected loss modelling in line with IFRS 9 requirements, embracing estimates of probability of default, exposure at default, realizable collateral values and loss given default.
Portfolio modeling and economic capital
KPMG can help clients determine economic capital utilization. Additionally, risk adjusted performance measurement tools, stress tests tools and framework as well as advice on the selection and implementation of portfolio management models can be provided.
Credit reviews and process re-engineering
KPMG can review an organization’s credit processes to help ensure that these are aligned with the organization’s overall risk objectives. Furthermore, KPMG can provide recommendations on the appropriate reporting structure and provide assurance on the accuracy and robustness of the internal risk measurement systems.