Credit risk is at the heart of risk management for all lending institutions. FS Advisory has extensive experience in credit risk modelling. We provide our expertise to banks and other lending institutions towards the development, validation and implementation of expected credit loss (ECL) models including the assessment of significant increase in credit risk (SICR) and the incorporation of forward-looking information (FLI) using macroeconomic forecasting models.

We also provide vendor and buy-side due diligence services where the transfer of significant loans or debtors portfolios is at stake. Our clients gain greater assurance on the credit quality, IFRS 9 reporting and the appropriate levels of capital and impairments of target portfolios.

We provide services relating to the valuations of share-based payments including, but not limited to, Long-term Incentive Plans (LTIP), Conditional Share Plans (CSP), Share-option Schemes (SOS) and Share Appreciation Rights (SAR) by carefully following the guidance outlined in IFRS 2, along with market-accepted pricing principles and valuation methodologies. Our services extend to calculating the relevant IFRS 2 expenses relating to BEE and B-BBEE transactions.

Furthermore, we perform fair valuations of financial instruments and derivatives held for investment or hedging purposes, including valuation adjustments (xVAs) to the fair values as required by IFRS 13.

Business entities are exposed to multiple economic risks such as interest rate, currency, equity and commodity risks. These risks can impact the financial state of a business entity. We consult and advise on how these risks can be neutralised or reduced through the use of financial instruments and derivatives.

Further, we provide end-to-end services assisting entities adopt and apply the hedge accounting requirements of IFRS 9. Our team of specialists supports clients in the eligibility assessment of hedge accounting adoption, meeting the pre-requisites stipulated by the relevant accounting standards and in the practical implementation of hedge accounting in the financial reporting
process.   

IFRS 17 is considered the most significant regulatory change in the history of the insurance industry. FS Advisory’s subject matter experts support clients on their journey to implement this new standard, transform their financial reporting process, and ensure that appropriate governance processes and controls are in place.

We help insurers stay ahead of governance standards with our comprehensive financial reporting solutions. We identify your inherent risks and redesign your finance function using cutting-edge technologies thereby providing a transformative advantage. By leveraging our expertise, insurers can rapidly evolve their finance capabilities, adapting strategically to the fast-paced global business landscape.