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Credit Risk Management

Briefing Note

New Trends In Credit Risk Management: Real-Time Analysis And Data Teams

In Credit Risk management, it is common practice for banks to use financials for assessing the creditworthiness of large and mid-corporates, with the drawback of being outdated by the time the credit review takes place. This paper proposes the use of real-time transactional data to circumvent this issue. This process can be further improved by setting in place teams dedicated to data management and preparation with the benefit of centralising the information used for other purposes, e.g. modelling, loss collection, monitoring, validation.

22.12.2020 / Risk Management Magazine

Press Article

Blockchain securitization: an innovative technology to boost asset liquidity

The main aim of this paper is to show the potential benefits for the Securitisation process, both in terms of the setup of operations and in the entire product life cycle, derived from the adoption of the Blockchain Technology.

Operational Risk

Briefing Note

Operational Risk - Mitigating Disruption

Banks have now submitted their feedback on the Consultative Document on the Revisions to the Principles for the Sound Management of Operational Risk (PSMOR) published by the BCBS in August. In this briefing note, we contextualise the key proposed revisions to the PSMOR against the regulatory direction of travel over the last decade.

Climate Change

White Paper

Beyond Green Banking, Climate Change is changing Prudential Supervisory Expectations for Banks

Climate change is an important and growing trend for the financial sector. The rapidly developing supervisory, investor and customer expectations are presenting new challenges to the financial services sector. As a consequence of the changing risk profile, supervisors in the EU and UK are setting new expectations to ensure banks pro-actively manage their climate-related financial risk.

Case Study

ILAAP Design and implementation

In order to improve institutions’ ILAAP framework, the client has requested Avantage Reply to reshape and reinforce their ILAAP report with the focus on improving the governance, completing the report with the part of risk identification and initiating an internal liquidity stress testing framework.

16.03.2020

Blog

It's all anyone is talking about...

It’s all anyone is talking about and, whilst I really wanted to write about something lighter, I was dragged back to the Reply Risk & Regulatory Academy, which has had the honour to run courses in Cambridge for many years. This led me to an incredible report published by the University there...

Case Study

Capital Management Action Plan

Avantage Reply was engaged to assist the client implement required actions to integrate the ICAAP process into strategic-decision making processes.

Case Study

Warehouse and risk management framework - Gap analysis roadmap

Avantage Reply designed and implemented a risk managment framework for monitoring warehousing and distribution risks to comply with the client’s group minimum standards.

07.02.2020

Blog

ECB SREP 2019 - Key Challenges for Eurozone Banks

On 28 January 2020, the European Central Bank (“ECB”) held a press conference in Frankfurt on the Supervisory Review and Evaluation Process 2019 (“SREP 2019”). It highlighted a number of interesting developments in the Eurozone. Allow me to share with you my key take-aways regarding the first three based on his remarks and the Question and Answer session that ensued.

Case Study

IFRS 9 Impairment Model

A Tier 1 UK financial institution requested the support of Avantage Reply on the development of an in-house credit impairment model that would produce more accurate expected credit loss estimates and comply with the requirements of the IFRS 9 standard. Read the full case study here.

Case Study

Brexit Project Management Support and Risk Management Expertise

A US-headquartered G-SIB was looking to build a presence in the Eurozone (“Brexit Entity”) within a short period of time, amongst a great deal of Brexit uncertainty. Avantage Reply provided project management services to support the build-out of the Bank’s risk function enabling it to successfully deliver a highly-complex Brexit programme ready for the original Brexit date of March 2019.

Case Study

Wind-Down Plan

Avantage Reply assisted a multi-asset broker, who primarily provides execution, clearing and prime brokerage services, with development of the Wind-Down Plan (WDP), required by the FCA. With a limited amount of time available, a detailed and extensive Wind-Down Plan was developed, following the FCA guidelines and industry best practices.

17.01.2020

Blog

Click here to kill everybody - especially if you work in financial services

The number one mistake people make regarding technology is they don’t realise that, with smart devices, the internet can kill people. This is a real and relevant risk to the financial services industry, too.

Case Study

Reverse Stress Test

A multi-asset bank, who primarily provides execution, clearing and prime brokerage services, requested Avantage Reply's assistance with the development of the reverse stress. Avantage Reply provided an expert team to revise and enhance the overall reverse stress testing methodology in time to submit the ICAAP before the regulatory deadline.

Case Study

Recovery Plan Test

Avantage Reply was requested by an international bank to design the crisis scenario, prepare the communication materials and to coordinate the execution of the recovery plan “fire drill”. Avantage Reply proposed an idiosyncratic and system-wide scenario that enabled them to test the formation of the bank's Crisis Management Committee (CMC) and provide concrete suggestions to improve the recovery plan.

Case Study

Data Lineage Roadmap Definition for the Brexit Entity of a Global Investment Bank

Avantage Reply assisted a leading global investment bank in putting together an end-to-end project plan and roadmap covering data lineage for market, credit and liquidity risk to satisfy the BCBS 239 requirements. This allowed the client to quickly mobilise the required stakeholders to ensure compliance.

Case Study

Electronic trading global policy and Governance framework

A major global investment bank requested Avantage Reply to assist in the delivery of a governance framework and global policy for electronic trading. Find out how Avantage Reply aided the client in developing, agreeing upon and embedding a tailored electronic trading governance framework in line with regulatory expectations.

Case Study

IMM, IMA and IRB: Roadmap Delivery for the Brexit Entity of a Global Investment Bank

Avantage Reply used their expertise to help the new Brexit entity of a global investment bank meet the requirements of the Capital Requirements Regulation (CRR). Learn about the challenges faced in developing and embedding the roadmap and the solutions provided.

05.11.2019 - 06.11.2019 / London

Event

PRMIA ANNUAL RISK LEADER SUMMIT 2019

Avantage Reply is partnering for the second year with PRMIA for its annual Risk Leader Summit. This is an invitation-only gathering for risk practitioners of CRO/MD level seniority in a Financial Institution, with over 150 eligible risk practitioners attending.

RISK MANAGEMENT

White Paper

Empowering your people to manage risk

Managing risk is central to any business, no matter the sector. It has always been crucially important in the financial sector, but more so now than ever before due to increased regulation and media scrutiny. Managing risk effectively helps you protect customers, shareholders, your employees and ultimately, a business’ reputation.

Inter-Bank Offered Rates

Briefing Note

Preparing for the end of IBOR

Inter-Bank Offered Rates (IBOR, of which LIBOR is one example) are being forced out due to regulatory pressure following a series of scandals. This transition will have significant ramifications as these rates are used as references in many wholesale transactions and some retail transactions. Following industry and regulatory consultations, new Risk-Free Rates (RFR) are replacing IBORs. In this publication, Avantage Reply will explore the impacts of this transition on banks.

SREP 2019

Briefing Note

SREP 2019: what can be learned regarding SREP 2018 outcomes?

This briefing note aims to present and analyse the key facts and main outcomes of the Supervisory Review and Evaluation Process 2018, as applicable in 2019.

Case Study

Risk Management - Strengthening the Legal Entity Risk Function

Avantage Reply was engaged to strengthen the risk management function across several legal entities of the client. Our client is a global financial services company with a strong presence in the banking sector, including brokerage, custody, fund management and asset servicing businesses.

Liquidity Stress Test

Briefing Note

Liquidity Stress Tests: are you ready?

This briefing note aims to present first the forthcoming ECB's supervisory stress tests, highlighting areas that banks should anticipate by the summer of 2019, especially concerning operational issues. Secondly, this paper shares a number of market practices surrounding liquidity stress test frameworks for internal management and strategic steering purposes.