Financial Risk Management

Staying ahead of financial risk

We are a team of problem solvers that help clients to be more efficient and establish innovative financial risk management culture, dealing with the array of risks which they encounter, such as credit, market, operational, liquidity risk and management of its economic capital. 

We provide a full cycle of solutions set covering financial modelling, financial instruments valuation, treasury, funding and capital across all industries. 

Our services

Our expertise includes the following services throughout the 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 risk, market risk and operational risk. 

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

We cover the following topics as well:


  • MFRS 9/IFRS 9 Expected Credit Loss model 
  • Customer credit application and behaviour scorecard 

  • Collection scorecard (C-score)

  • Customer Risk Profile Assessment (CRP)

  • Product risk scorecard (PRS)

  • Stress test model 

  • Risk Basel pricing

  • Basel II Internal Rating Based (IRB) model

  • Early warning signal assessment

  • Artificial Intelligence / Machine Learning model validation


  • Value-at-Risk (VaR)

  • Credit / debit valuation adjustment (CVA / DVA) 

  • Basel IV internal model approach (IMA) 


  • Operational risk management 


  • 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

    • ALCO reporting template

  • Develop, review and validate recovery plans required by regulators 

  • Develop contingency funding plans and perform crisis simulation to assess the reliability of the contingency funding plan.


We can assist you with the following:

Treasury strategy and operating model  transformation

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

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

  • Executing treasury and cash transformation

Cash and liquidity management 

  • Evaluating and selecting the right banking partners and services

  • Developing and implementing a robust and dynamic cash forecasting programme

  • Designing and implementing in-house banking, payment factory, pooling and netting structures

  • Enhancing the effectiveness of your performance reporting

Currency and other financial risk management

  • Risk identification and measurement in relation to FX, interest rates and commodities 

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

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

  • Developing valuation techniques for hedging instruments

  • Training to management and employees

Treasury technology 

  • Developing technology vision and strategy

  • Defining functional requirements and preferred systems

  • Implementing and integrating 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 the development of solutions for compliance with accounting standards

Contact us

William Mah

William Mah

Partner, Business Continuity Management Leader, Risk Services, PwC Malaysia

Tel: +60 (12) 337 6681

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