Credit Risk Management
While financial institutions have always recognized the importance of credit risk management, the recent downturn in the credit cycle has changed the environment significantly.
Today, there is an urgent need to hold credit risk management to a higher standard and implement a more comprehensive strategy and framework to protect the institution from unacceptable levels of losses.
Institutions must develop a formal, effective and transparent risk management approach, which begins with a defined risk appetite and strategy for the institution that flows through all business lines and influences all elements of the underwriting, approval, monitoring and administration of credit.
Our experienced risk management professionals – quantitative specialists, former bankers and regulators, technology architects – means we bring a highly skilled team to projects. Our breadth of skills cover credit risk management and compliance strategies, detailed assessments, remediation plans, process re-engineering and model review and validations.
Navigant’s areas of expertise include:
- Corporate or product risk management strategies
- Risk governance, monitoring processes, limits and controls and reports
- Capital planning
- Operations reviews
- Correcting regulatory compliance deficiencies
- Installing or enhancing commercial and retail risk rating systems
- Risk reporting and management information systems
- Design and review of Allowance for Loan Losses and supporting analysis
- Review of Troubled Debt Restructuring
- Quantitative model review and independent validation
- Portfolio and loan valuations
- Basel II and III regulatory compliance
- Risk and application systems business requirements definition, vendor selection and implementation
- Building and review of forecast and stress test models