| Financial Sector
Since 2004, banks in developed countries have been moving to adopt Internal Rating Based (“IRB”) methodology that was prescribed by BASEL II. IRB seeks to align regulatory capital requirements more closely to the underlying risks that banks face. Thus not only IRB is a key component of BASEL II framework for regulatory compliance, but also it could enable banks to lower their capital reserve - which leads to higher utilization of its capital, provided they have established themselves a reliable risk management system to measure and control their risk exposure and loss. In addition, IRB is also the foundation for banks to improve their profitability by understanding their portfolios credit quality then further reducing their risk exposure and loss. Therefore, IRB, supported with a comprehensive and effective set of risk rating & scoring tools and systems, is the key for banks' regulatory compliance, higher capital utility and enhancement of profitability.
To fulfill its commitment to WTO, China has been gradually opening its financial services market. This leads to – one, Chinese banks are under pressure to align their capital adequacy level with BASEL II standard, as the result China's banking authority is urging Chinese banks to adopt IRB; two, Chinese banks are no longer shielded from foreign banks' competition, thus drastically improving profitability is their imminent task. On the other hand, China 's banks have been notorious for their large amount of non-performing loans and credit loss. Besides weak risk management culture and sloppy operational system, lack of sophistic credit rating & scoring tools, management systems and experience is the main cause. It is paramount for Chinese banks to quickly adopt and implement effective credit risk rating & scoring tools and management systems to reduce credit loss, better asset quality and improve profitability.
In financial sector, RiskRaiders' team has in-depth exp ertise and practical experience in credit risk management. Its core offering includes developing and deploying credit risk tools (such as scorecards and expert rating systems), credit risk management models & systems (such as risk-based pricing model, reserve model, portfolio management system, stress-testing model, etc.) and providing analytics-based consulting services. Meanwhile, RiskRaiders' strength lies in its rich practical experience with various financial products (commercial particularly Small-Medium Enterprise lending; consumer lending such as credit card, mortgage, personal loan, auto loan, sales finance), different stages of credit markets (mature markets such as US and Western Europe; developing markets such as China, Southeast Asia, India, Eastern & Central Europe) , and the full credit management lifecycle (underwriting and acquisition, account management, and collection/recovery). Therefore, RiskRaiders is well-positioned to provide its financial sector clients a comprehensive and proven effective set of credit rating & scoring tools, credit risk management models and systems, and analytics-based consulting services. |
