Financial Risk Management

The banking business is continually in the process of change. As improved and cheaper technologies change the characteristics of financial intermediaries, the banking business suffers increased competition; this has been ongoing since the improvements in liberal arrangements since 1980. Hence both international and local financial institutions continually search for efficient ways to benefit from and survive in new business environments, to deflect the threats and sustain their achievements.

In order to achieve this objective, the value created per marginal capital and risk of the institution should be equilibrated at the right point. The Basel II Capital Requirements finalised in 2005, which will be applied from 2008 in Turkey, lie in the middle of the risk, yield and capital equilibrium. Within Basel II, best practices of the most efficient and active risk management have been revised and the industry standard has been redefined. Additionally, it has become obligatory for banks to keep up with these revisions.

With its experience and trust gained in banking and capital markets over 25 years, PricewaterhouseCoopers can provide you with specialised and professional consultancy during the preparation process for Basel II. PricewaterhouseCoopers was involved in the development and finalisation stages of Basel II and has been a market leader in the providing of services to banks and acting as supervisors in their preparation processes, for a long period of time.

According to the periodic banking questionnaires collated by the Banking Regulation and Supervisory Authority (BRSA), Basel II is a priority in Turkish banks’ agendas. The PricewaterhouseCoopers Risk Management department located in Istanbul, one of Turkey’s financial centers, provides assistance during the implementation of this new regime in the Turkish banking system. We can provide you with assistance in:

• Credit, operational risk management
• Developing methods creating strategic competitive power
• Designing risk management processes, bases and reporting systems
• Improving current systems
• Bringing risk management practices in line with legal arrangements

Our specialised Financial Risk Management team aims to develop practical and applicable solutions and values to design ‘best practices’, providing your firm with solutions that are compatible with your firm’s structure and corporate principles. PricewaterhouseCoopers can present you with both its global and local experience, with the vision of developing a long-term strategic relationship with you.