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Risk Capital Analytics

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We help businesses and financial institutions navigate the evolving landscape of risks. Organisations across all industries need to develop a deeper understanding of the risks they face. They also need to understand their interrelationships, as well as quantify risk. Our solutions are based on:

  • Applied risk expertise.
  • Financial engineering.
  • Programming skills.
  • Data sciences.

We advise clients in three main areas, as well as provide bespoke quantification for complex emerging or business risks and deliver risk model validation.

Non-Financial Risk Quantification (NFRQ)

We advise financial institutions in the development, enhancement, and validation of in-house economic or regulatory operational risk models. We help calculate operational risk capital to address internal and external reporting requirements. We do this by using a scenario-based risk quantification framework and capital analysis tool.

We help clients with an outside-in review of the risk landscape. We design and develop models to quantify non-financial risks. We analyse the cascading impacts of risks through scenario analysis and help devise effective business resilience strategies.

In addition, we can explore insurance, where possible, and alternative risk transfer strategies to de-risk short-term and emerging operational exposures across business units and portfolios.

Credit Portfolio Quantification (CPQ)

Risk sharing with credit investors is an integral part of growth for lending institutions. This is partly due to volatile credit market conditions and macroeconomic outlook, as well as rising sustainability standards and digital investments. Synthetic balance sheet transactions, such as SRTs (Significant Risk Transfer), are expected to expand as a risk mitigation tool. We help lenders structure their credit risk transfer transactions. We do this by state-of-the-art multi-period credit portfolio analytics over different economic cycles. Then we conduct scenario analysis and stress testing across potential structuring solutions. The solution informs:

  • Capital relief and capacity building.
  • Credit risk rating enhancement.
  • Balance sheet optimisation.

Integrated Risk Quantification (IRQ)

Organisations need to identify and address vulnerabilities in a structured manner. This is due to the emerging and evolving nature of current challenges. Utilising IRQ enables comprehensive analysis of risk factors as a drivers behind performance across firm’s value chain. The solution applies quantitative risk assessment to the integration of strategic, operational, and financial planning approaches. Risk modelling with IRQ helps determine the adequacy of financial buffers and prioritise capital allocation. This ensures sufficient resources to mitigate risks effectively, especially if insurance as a risk transfer mechanism is unavailable.

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