Tools

Adequate, custom made tools will increase efficiency and significantly reduce costs, while keeping operational risk at the lowest level

IFRS 9 Alat

Given our significant experience in the implementation of IFRS 9 throughout the region, we have identified the biggest challenges that banks and financial institutions have faced during that process. In response to the identified challenges, our solution is covering the overall process of calculating provisions:

  • Portfolio distribution to Stage 1, Stage 2 and Stage 3 and adequate ECL calculation
  • Calculation of PD (including the implementation of macro variables and scenario analysis)
  • Calculation of LGD
  • The reporting module

 

The main advantages of our tool are practicality, flexibility and simplicity of use. The solution is tailored to the size and complexity of banks and financial institutions on the local and regional market. It allows simulations of different calculation methods (for example: PD by different matrices size: 3x3, 4x4, 5x5, different scenarios, changes to the staging criteria, etc.)

EWS Tool

Imajući u vidu globalna ekonomska kretanja, a posebno činjenicu da se značaja sredstva ulažu u povećanje efikasnosti poslovanja, odnosno na smanjenje troškova, efikasno upravljanje kreditnim rizikom, odnosno finansijskim ili komercijalnim potraživanjima predstavlja značajnu polugu za ostvarenje tog cilja. Ovo pre svega važi za finansijske institucije (banke i osiguranja), kao i za pružaoce usluga za veliki broj korisnika koji periodično tu uslugu plaćaju – komunalne usluge, prodaja električne energije, telekomunikacione usluge… Povećanje efikasnosti u naplati može značiti smanjenje nenaplativih potraživanja, odnosno smanjenje ispravki istih, što značajno može da unapredi profitabilnost institucije ako se zna da se radi o velikom broju dužnika odnosno značajnim iznosima potraživanja koja su svakog meseca u manjem ili većem kašnjenju.

Early warning system (EWS) represents a set of rules, procedures and models with adequate tools that identifies potentially problematic clients, based on the historical information and client’s specific characteristics. Risk Consulting's EWS Tool includes the following:

  • A statistical model developed on the information from historical database of clients
  • A tool for scoring (determining the level of risk for each client)
  • Client lists by risk categories
  • Portfolio-Level stock monitoring module
  • Reporting module

Considering the main characteristics of each client, the existing program changes according to the requirements of each particular client, enabling the tool and the entire system to be adjusted to the client, not vice versa.

EWS is developed separately for every individual significant type of portfolio. For example, a special set of indicators is developed for legal entities (partly based on financial statements), another set is developed for the portfolio of individuals (the data on indebtedness, income level, especially the behavioural data during the life of the financial asset). Accordingly, management processes of managing clients which are on “watch” or “prevention” lists are designed separately. watch ili prevention listama se dizajniraju posebno.

NPL Management Tool

The NPL Management Tool developed by Risk Consulting is intended for banks and other financial institutions that deal with the management of problematic loans (NPL). The tool is designed to follow end to end process and represents the application of many years of experience in that domain. The tool contains multiple modules:

  • Client module – Contains all relevant financial and non-financial information about the client and all its exposures and collateral
  • Monitoring procedure – In accordance with the chosen strategy, the procedure of restructuring, execution or bankruptcy is monitored
  • The reporting module – contains sets of reports for monitoring the procedures both at the individual level and the portfolio level
  • Administrator Module – Access Rights Management module