PwC | India

Financial Risk and Regulations (FRR)

Our approach helps business leaders embed a proactive and dynamic risk management capability and mindset into corporate business practices, right from strategic planning to implementation. We could also help you to deal with upcoming financial regulatory impacts. This would enable you to embrace risk and regulatory management as dynamic tools and ensure that you are well-equipped and secure in the face of changing markets, technologies and competition.

Today, risk is dynamic, spread across the globe and has greater, more far-reaching impact.

Managing financial risk, optimising capital and enhancing your yields means more than simply balancing the books. Companies are exposed to an increasingly complex set of financial risks through geopolitical instability, exchange rate volatility, international and local regulations, relationships with customers and other stakeholders and variations in the capital markets. At the same time, investors demand that companies deploy capital efficiently, drive improvements in cash flow, manage risk to establish financial stability and maximise value for stakeholders.

Please get in touch if you have challenges in regulatory compliances/ implementation of leading practices, to aid business benefits, around financial risks, treasury, financial supply chains and capital management and planning. We can assist to resolve the issues, and take your organisation to the next level.

We are a team that includes subject matter experts with deep industry experience and from varied backgrounds including banking, risk management, treasury, rating analyst, information technology, and consulting. This enables us to address a variety of client issues.

The team’s skill sets and competencies span multiple fields that demand an in-depth knowledge of quantitative methods across derivatives and risk analytics, predictive and decision modeling, and scorecard development and quantification of business risk
Pricing, valuations and financial risk management across various asset classes including fixed income, equities, currency, rates, commodities and credit markets
Banks and corporate treasuries
Financial modeling
Regulatory remediation

Our sector and regulatory professionals around the world proactively track and monitor trends and emerging risks and regulations globally. We bring you this insight so that you can strengthen your strategic planning with activities such as impact analysis, contingency planning and opportunity identification.

Risk Strategy and Capital Management	Regulations and Compliance	Treasury
Risk strategy and risk appetite formulations Capital planning and capital review framework Economic capital estimation Development of ICAAP, strategic risks and stress testing framework Capital allocation, and performance management at the bank	Impact assessment of changing regulation – Basel, IFRS9, FRTB, IRRBB, SA-CCR Regulation remediation / target operating models for regulatory bodies Regulatory compliance registers / obligations register Regulatory framework review	End to end treasury transformation/set-up across front office, mid office, back office Treasury strategy Development/review of TOM and SOPs Development of reporting and limit monitoring frameworks MIS and Regulatory Reporting
Credit Risk and Analytics	Valuation and Pricing	Market Risk
Credit risk governance, policy and framework Statistical model development on credit risk analytics (PD, LGD, EAD) Model development/ validation of corporate, SL and retail portfolios Assistance with IRB, IFRS9 Economic Capital framework and stress testing the credit book	Independent valuations of derivatives and financial instruments covering foreign exchange, equity, rates and commodity-linked products Development of model validation technique and documentation Model risk management X-VA methodology/framework development ( CVA DVA/FVA)	Market risk policy, governance, processes, risk models, valuation, analytics and reporting framework for integral part of IMA. Development and validation of capital charge computation Transformation to advanced models, VaR models, and expected shortfall (ES) models
Liquidity and ALM	Operational Risk	Risk and Treasury IT
Development of ALM/FTP policy, behavioural analysis, NII, MVE Models and framework LCR and NSFR reporting frameworks Diagnostic analysis of bank’s liquidity risk framework, measurement and thorough documentation Developing stress testing framework	RCSA, KPI/KRI frameworks Loss data capture framework Risk identification and assessment activities: Shift from faith-based to evidence-based risk and control assessments Development of risk-based business process optimisation Risk indicators and calibration, and reporting packages	Assistance right from vendor evaluation to testing Proposal drafting(RFP), BRD, UAT testing Customisable tools to make reports that fit your needs Automation of the reporting framework