Our advisory team of highly trusted Consultants have worked with a large number of leading banks in the region, navigating them through challenges surrounding risk, compliance, governance and strategy. Our experts come with extensive business and industry knowledge, technical acumen, gap analysis skills and improvement strategies. Our team works with senior management at banks, across functional areas to develop - innovative, technology-driven solutions.
While business goals and strategies evolve, our advisory services support you wherever you are in your business cycle — whether you’re looking at a transformation to propel you forward, focusing on developing and implementing the right controls to mitigate risk, or advancing your company’s risk, finance and technology infrastructure to match your aspirations – We are changing the value game for our clients.
Key Benefits
AFS Advisory provides value-add across verticals in the areas of strategy, risk, finance, compliance and reporting. We help our clients create and sustain value by:
Our team of IFRS 9 experts cover the entire spectrum of this complex regulation and assist clients in managing their impairment framework including the following:
AFS Advisory offers a structured framework for retail scorecard development, deployment and maintenance delivered to our clients by our team of Credit Scoring experts with rich experience at many global banks.
Our expertise covers wide range retail portfolios, including credit card, home loan, personal loan, auto loan, and so on. We offer a comprehensive coverage of the entire process through a GUI based solution – AVRA Scorecard Manager – aimed at bringing the sophisticated methods and functionalities without having to learn and code in a statistical language like R/SAS/Python/MATLAB. We aim to achieve:
Our advisory team helps you improve the measurement and management of credit risk for Large Corporates, SMEs, Banks & Non-Bank Financial Institutions and Sovereign portfolios. In this regard, we can assist with:
With extensive experience in managing the risk infrastructure of various banks across the world, we have perfected a robust and comprehensive ICAAP framework including Stress Testing, Risk Quantification Models and Qualitative Assessment modules.
With ever increasing regulatory pressure and operational sophistications, Banks must periodically get their ICAAP reviewed and updated to benchmark their ICAAP process against the latest and best practices.
AFS Advisory tackles ICAAP development through a modular approach mapped into 6 key modules:
Our seasoned practitioners enable Banks to develop mechanism for determining the prices or rates at which funds must transfer between liabilities, central funding & assets units.
Our robust framework incorporates all the important factors such as base cost of funding, incentives for fund generating units (liabilities), liquidity and interest rate risk management charges and so on.
Having a sound FTP framework in place has enabled our clients with better product pricing, profitability assessment and performance measurement at their institutions.
In this regard, we assist our clients with:
Assets & Liabilities management (ALM) is a strategic management tool to manage interest rate and liquidity risk faced by banks/FIs. Our ALM related services include:
IRRBB has been one of the prime material risks for every bank and is now attracting significant regulatory attention as well.
At AFS Advisory, we enable banks to unfold this important risk type by delivering tools and methods to quantify, measure and remediate this risk.
The requirement of IRRBB expects banks to use a variety of techniques to measure and manage IRRBB such as Repricing gaps, Earnings approach, EVE approach & Complex simulations under range of Interest Rate Risk Scenarios. It is also an important element of ICAAP, Stress testing & Pillar III guidelines.
Regulators realize the significance of this risk and intend to make it part of Pillar 1 risks. We offer our clients an end to end IRRBB solution through a comprehensive program comprising of the following modules:
Diagnostic & Gap Assessment
Materiality Analysis & Data Preparation
Scenario & Shock Assessment
Simulation Parameters
Behavioral Modeling Parameters
Documentation, Reporting & Audit
The banks today are faced with multiple regulations and internal functions that demand statistical models to be built, updated and monitored on a regular basis.
This poses a unique challenge of managing the Model Risk as the skills and bandwidth requirements to address this issue are immense.
We have successfully provided a strategic solution of this problem to our clients through a dedicated model management platform – AVRA Default Statistics – which enables our clients to:
Recent advances in the banking practices like Basel, IFRS 9, IRRBB also demand equivalent enhancements in the Internal Audit methodologies.
We equip Internal Audit teams with the skills and toolkit designed to help them accomplish their objectives through a systematic and disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes in their bank.
We streamline the challenges of identifying gaps, quantifying the risks interpreting their consequences and reporting through our end to end software solution - Advanced Internal Audit Manager.
Non-performing Asset balance is one of the single most important metric that the banks want to monitor and keep under check.
Defaults are inevitable for any bank striving to grow, however management of defaults and ensuring minimum losses can always be achieved through our NPL Management Advisory where the focus is on optimization of collection activities so that the bank recovers as much as possible with lower costs and efforts. We deliver the program through the following key steps:
With the advent of the Principles for Effective Risk Data Aggregation and Reporting, issued by BCBS, entities need to address the underlying challenges of risk data aggregation and provide guidance for development of the reporting framework.
They are expected to standardise their current reporting infrastructure used by the Board or senior management to identify, monitor and manage risks.
The 14 principles prescribed by Basel encompass the 4 overarching principles namely:
AFS Advisory can assist the development of the new information framework to improvise the speed of reporting, enhance the ease of management of information and streamline the overall decision-making process throughout the organization.
We provide advisory services on:
Our approach focuses on leveraging the existing framework and resources to develop the data aggregation and reporting framework, considering additional tools and software only where necessary.
Our professionals can assess your overall program in place to manage third-party risk across your organisation.
We can address process ownership, project planning, control and oversight responsibilities, in addition to performing vendor site reviews.
Our consulting team has rich advisory experience in assisting client through large scale implementations of Credit Workflow, IFRS 9, ALM, Credit Rating systems. We can assist you with:
