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Business, Reporting and Risk Optimisation

Transforming risk reporting and performance

Beyond compliance with complex accounting standards and supervisory requirements, financial services institutions and corporate treasury functions thrive when provided with the right advice and tools. Financial Services Advisory is your partner in transforming your financial and regulatory reporting and risk management approach to unlock higher levels of financial performance.

Unlocking value through enhanced performance and risk management

We elevate our clients’ reporting and risk management infrastructure to a level beyond the mitigation of downside risk and towards the creation of significant economic value. We develop and implement financial risk reporting and management frameworks based on proven practices of governance, controls and processes. This includes establishing ESG strategies and embedding its risk factors into the ERM framework.

Our aim is to enhance companies’ decision-making. We drive clients towards an operating model of sophisticated balance sheet management, efficient allocation of capital and effective liquidity deployment. With regard to credit risk, we offer quantitative and qualitative solutions across all stages of the credit lifecycle, enabling lenders to accurately measure risk and improve return within their risk appetite.

Our FinTech specialists develop digital solutions for financial risk management infrastructure using technologies such as blockchain, artificial intelligence and cloud hosting.

For the corporate treasury function, we leverage off our global expertise to provide you with industry leading methods and tools for the optimal management of liquidity and foreign exchange exposures, thereby managing volatility in your financial performance. We upgrade treasury operating models to better mitigate risks of fraud and financial loss.

Business, Reporting and Risk Optimisation Offerings

FS Advisory advises clients on how to transform their credit risk management frameworks and processes in order to unlock greater economic value across the credit lifecycle. We develop origination models (scorecards, pricing and retention models) and frameworks which target an optimal balance of risk and return.

Credit providers seeking strong risk management capabilities can benefit from our portfolio monitoring offerings. These include behavioural or financial scorecards, early warning signals, risk-based portfolio forecasting and credit risk appetite statements. At the collections level, we develop risk-based collections models, methodologies and policies.

FS Advisory works with the global Deloitte network to provide clients with a strong value proposition on model risk management (MRM). Access to trusted, quality models is essential to using enterprise data effectively. A clearly defined MRM framework with strong management insight on model and risk monitoring allows institutions to improve decision-making, drive growth and bolster profitability. 

Regulators have intensified their focus on capital adequacy, with an emphasis on stress testing and capital planning. We assist organisations to develop, assess, and implement capital management processes, driven by both regulatory and business needs. We develop multi-year capital planning and budgeting models, policies and frameworks as well as economic capital models.

Liquidity risk stems from the core business of a bank which is maturity transformation. We assist our clients to implement sound liquidity management practices through exercises such as the ILAAP and liquidity stress simulations. Further, we devise optimal funding strategies, fund transfer pricing (FTP) policies and liquidity risk appetite statements.

There has been an increased focus on Balance Sheet Management (BSM) in financial institutions globally. FS Advisory’s BSM offering specialises in the intersection of risk, finance, treasury and strategic planning as well as management and reporting capabilities across an organisation. We support our clients with portfolio optimization, risk appetite and strategy, risk identification and assessment as well as integrated risk and finance budgets.

The Asset and Liability Management (ALM) function plays a critical role in ensuring the resilience of an organisation’s balance sheet by managing the mismatches between the assets and liabilities and how these react to changing market conditions. ALM operating models are also evolving within the finance industry as a result of increased regulatory requirements, improved technology and higher stakeholder expectations regarding risk management and capital optimisation. FS Advisory assists clients with enhancing the ALM function including advice on capital optimisation, ALM risk monitoring and establishing effective governance frameworks. 

Treasury has evolved from being a transactional function to becoming more strategic, managing market risks and supporting commercial decisioning. FS Advisory provides a range of solutions to attain a more efficient and effective treasury function. We help design and implement treasury management systems which meet your entity’s specific needs. We assist you in achieving cost savings through improved cash management, risk aggregation and the optimisation of working capital. We advise management on all aspects of the governance and control environment for the Treasury function.

We elevate your financial risk management capabilities by identifying and quantifying our clients’ level of exposure to liquidity and FX risks and determine appropriate risk management strategies and policies.

Climate change poses risks and presents opportunities for organisations across all industries. It is essential to understand the physical, transition and liability risks to which your organisation is exposed. FS Advisory can help your organisation identify and integrate climate risk into your risk management framework, including climate risk modelling, climate scenario analysis, stress testing and setting up a data infrastructure.

We also support you in navigating the increasing demands for greater climate risk transparency through disclosure requirements such as TCFD (Taskforce of Climate-related Financial Disclosures) benchmarking. 

The Financial Innovation and Technology (FinTech) team within FS Advisory has strong expertise in the financial technology space and can help your firm get a head start in this fast-paced digital world. We have a range of innovative apps available which provide access to the technologies of tomorrow. Bespoke apps can also be developed for your firm to address specific needs.

The Deloitte App Suite is a cloud-hosted ecosystem of innovative applications engineered by Deloitte to service the modern needs of clients across the financial services industry and beyond. The Deloitte App Suite is already being used by clients across the globe to access these innovative applications which provide greater levels of efficiency, robustness, automation and insight.

FS Advisory works with financial institutions to improve their market risk management frameworks, from the impact of price fluctuations on the trading book to the effect of interest rates movements on the banking book. We provide our clients support on FRTB (fundamental review of the trading book), SA-CCR (standardised approach to counterparty credit risk) and governance and controls related to market and liquidity risks. 

Disruption in financial markets and operating environments has forced many companies to reassess how they incorporate risk into decision-making. It has become a top priority to build a balanced approach to risk and return. FS Advisory possesses quantitative expertise in financial and risk forecasting, economic capital modelling as well as stress testing.

Deloitte understands that risk-adjusted forecasting and planning capabilities should be a key component in the strategic toolkit for CFOs and CROs. Further, a fully embedded stress testing framework enables a firm to better understand its true risk profile and make informed strategic decisions that bolster its long-term sustainability.