The assessment of credit risk of banks and other financial institutions requires an understanding not just of the company’s assets and liabilities, but also its franchise and earnings power, as well as the support that external agents, government or shareholders, might provide. An additional essential is a knowledge of the operating environment and the rapidly changing regulatory systems – in the countries where the company operates, and the global and international regulatory trends and initiatives.
Our practice offers two services:
Advisory – analysis, process and methodology, internal ratings systems
We advise companies, investors, government agencies, and other financial institutions on the appropriate techniques for their bank risk analysis. Our practice includes advising on risks in both developed and emerging markets. We examine internal credit risk assessment techniques, and propose changes and updates to analytical methodologies. We critique exposure limits and portfolio balancing and optimisation. We are also retained by our clients to advise on risk structuring, especially changes that are currently underway in the rankings of bank liabilities.
We advise on companies’ and banks’ internal risk rating systems and methodologies, and in the correct usage and understanding of the credit ratings and analysis products of the international rating agencies – Moody’s, Standard & Poor’s, Fitch &c.
Training and education in risk analytics
We provide training courses in risk analysis for risk professionals. Programmes of 2 to 4 days give analysts, beginners or experienced, a thorough understanding of financial statement evaluation, solvency and liquidity indicators, the importance of franchise value and future earnings, and regulatory issues. Analytical techniques of other important market participants, especially the international ratings agencies, are also explained.
Our courses are highly interactive, reviewing recent case studies relevant to our clients’ needs, and providing participants plenty of opportunities for real life analytical exercises in the class setting.