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Identifying Risks

We recognize that each financial institution is different, as is the environment in which it operates. Therefore, for each project, we identify the individual needs and propose a customised solution to integrate or quantify the risk management system according to the client’s expectations.

Nevertheless, based on previous experience and international best practices, the typical risk management needs can be categorized into a framework of four interdependent risk layers, as depicted in the graph below:

  • Financial risk management of Credit, Liquidity, Market, & Operational Risks  
  • A transmission layer of Reputation and Behavioural risks follow in red;
  • The top layers radiate out into the dimensions of compliance & regulatory, covenant and capital adequacy risks;
  • Finally, a strategy risk layer interacts with all other risk dimensions such as business risk, model risk & systemic risk.

We advise banks, microfinance institutions, investment funds, multilateral agencies and others in the management of risks.

Our work methodology is based on direct customer support, coaching staff how to understand and monitor the key concepts and parameters of identified risks.

Key advantages for your institution

Speedy response

IAS has a team of highly qualified risk management consultants who can be mobilized in a timely fashion.

International best practice

We have a solid track record implementing Basel 2 & Basel 3 compliant risk management frameworks in accordance with the International Financial Reporting Standards (IFRS).

Data driven approach

IAS has a unique data driven approach to risk management when developing tailored solutions such as Credit Scoring & Ratings, Assets Liability Management tools, Fund Transfer Pricing etc.

Pragmatic solutions

We will assist you with practical advice and tools necessary to accommodate the scope of your needs.

Sustainable know-how transfer

Our experts will be available for post-project implementation to ensure  long-term sustainability

Trainings & internal capacity building

IAS will provide you with outstanding, tailor-made training and development programmes in the area of risk management.

Flagship Projects

Dominican Republic

Business Continuity Plan Development for Banco de Ahorro y Credito ADEMI

In the Dominican Republic, the development of a Business Continuance Plan (BCP) has recently become a legal requirement for all financial institutions operating in the country. In this project, IAS has directly been approached by ADEMI to provide advisory services in the design of the BCP.

The development of this plan is part of ADEMI´s policy for managing operational risks, so our risk management expert carefully analyzed all work previously performed by the bank in the field of operational risk management, and took it into account for the design of the Business Continuity Plan.

Furthermore, in order to guarantee that the plan can be implemented in an optimal way by the personnel of ADEMI, trainings and workshops for key staff were carried out, designating responsibilities and projecting different scenarios of the plans outcome.

Ghana

Diagnosis of Treasury and Risk Management at Fidelity Bank Limited

This project was carried out on behalf of Fidelity Bank to enhance and strengthen its risk management practices. In particular, it aimed at the capacity building of members of the Directorship of Treasury Services and of the risk management department of the Bank.

An intensive evaluation and diagnosis of the Banks’ ALM and Risk Management framework was carried out, including:

  • Evaluation of the ALM structure and policies & procedures
  • Evaluation of an integrated Risk Management System
  • Risk Management of Liquidity, Market and FX Risks (including liquidity risk, interest rate and FX)

This tailor-made training was designed on the specific needs that were identified in the course of the first part of the project and included:

  • General aspects of Risk Management: The concept of expected & unexpected losses, the process of risk management integration of losses, pricing & risk/return relationship equity
  • Risk- Return interaction: Fund transfer pricing, identification of profitability per business line, the connection risk-return in banks
  • Liquidity Risk Management: Analysis of liquidity GAPs, liquid assets and volatility, concept of contractual and expected liquidity
  • Market risk management: Calculation of Market Risk exposure: VaR

Worldwide

Optimal Capital Structure and Cash Managment Toolkits for Women's World Banking Network (WBB)

WWB mandated IAS to develop two toolkits: one determining an optimal capital structure, and the other determining an adequate and efficient cash management.

Both toolkits were key pieces for its associates in order to improve financial management that allows them to increase the value of the company through an appropriate liability and equity mix structure, appropriate financial instruments, risk management and minimization of the cost of capital. Additionally, the toolkit on cash management allowed an adequate scope for the WWB network to establish a high-quality management of vault and optimize the use of cash.

Our experts also taught a series of trainings for members of WWB in Latin America and Africa, to empower its partners in knowledge and practice of the concepts developed.
 

For more information contact