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Staying ahead of financial risk

Financial risk management

financial-risk-mgnt

We are a team of problem solvers dedicated to helping clients be more efficient in managing an array of risks, such as credit, market, operational, liquidity risk, and management of economic capital. This is enabled by an innovative financial risk management culture.  

Clients have access to our full cycle of solutions covering financial modelling, financial instruments valuation, treasury, funding and capital across all industries.

Our services

Our expertise includes the following services throughout the financial model lifecycle:

We can assist you with the following:

  • Design, implement and refine models for credit risk, market risk and operational risk; and financial modelling

  • Develop effective model risk governance on data and policies

  • Perform independent validation and benchmarking of risk modelling for credit risks, market risks and operational risks

  • Conduct workshops/training on technical details in financial risk modelling

We cover the following topics as well:

Credit

  • MFRS 9/IFRS 9 Expected Credit Loss model 

  • Customer credit application and behaviour scorecard 

  • Collection scorecard (C-score)

  • Customer Risk Profile (CRP) assessment

  • Product risk scorecard (PRS)

  • Stress test model 

  • Risk-based pricing

  • Basel II Internal Rating Based (IRB) model

  • Early warning signal assessment

  • Artificial intelligence / Machine learning model validation

Market

  • Value-at-Risk (VaR)

  • Credit/debit valuation adjustment (CVA/DVA) 

  • Basel IV internal model approach (IMA)

Operational

  • Operational risk management 

Financial

  • Financial modelling 

We can assist you with the following:
  • Perform gap analysis against leading international practices and regulatory standards, such as the Basel II & III Accord and Bank Negara Malaysia (BNM) requirements
  • Develop risk measurement models and comprehensive capital management tools for financial institutions
  • Assess the adequacy of internal procedures for monitoring, reporting and review of risk exposures and capital needs
  • Assess the reasonableness and validity of key assumptions and methodology for stress testing and capital management plan
  • Review, validate and/or implement:
    • Risk-Adjusted Return on Capital (RAROC) framework and methodology
    • Fund Transfer Pricing framework and methodology
    • Asset-Liability Committee (ALCO) reporting template
  • Develop, review and validate recovery plans required by regulators
  • Develop contingency funding plans and perform crisis simulation to assess their reliability

 

We can assist you with the following:

Treasury strategy and operating model transformation 

  • Develop the vision and target operating model best suited to your business

  • Enhance governance structure and organisational design, treasury policies, processes, and controls

  • Execute treasury and cash transformation

Cash and liquidity management  

  • Evaluate and select the right banking partners and services

  • Develop and implement a robust and dynamic cash forecasting programme

  • Design and implement in-house banking, payment factory, pooling and netting structures

  • Enhance the effectiveness of your performance reporting

Currency and other financial risk management

  • Identify risks and measurements in relation to foreign exchange (FX), interest rates and commodities

  • Develop good-fit risk management objectives and strategies, aligned with market changes and new developments

  • Design trading activities, including governance framework, policies, processes, controls, monitoring and reporting

  • Develop valuation techniques for hedging instruments

  • Provide training to management and employees

Treasury technology  

  • Develop technology vision and strategy

  • Define functional requirements and preferred systems

  • Implement and integrate systems across treasury and commodity risk activities and geographies

Treasury accounting and financial instrument valuation

  • Perform independent valuation for organisations

  • Provide hedge accounting advisory

  • Evaluate requirements and assist in developing solutions to help you comply with accounting standards

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Contact us

William Mah

William Mah

Partner, Risk Services, PwC Malaysia

Tel: +60 (12) 337 6681

Email
Chee Kong Chong

Chee Kong Chong

Director, Assurance and Risk Services, PwC Malaysia

Tel: +60 (3) 2173 3767

Email
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