Financial Services and Treasury

Develop proactive risk management framework for managing credit risk covering policy, processes, account and portfolio-level quantifications and monitoring.

Today, risk management has become a dynamic and global field that has a far-reaching impact on banks and FIs. Credit risk is one of the key risks that banks, FIs and even corporates are exposed to in an increasingly complex environment. Our approach helps business leaders embed a proactive and dynamic risk management capability and mindset into leading practices in credit risk, right from strategic planning to implementation. Our areas of expertise include development and review/validation of credit risk management framework including governance, credit risk policies and processes, credit risk appetite and tolerance, credit risk rating/scoring model, International Financial Reporting Standards (IFRS 9) Expected Credit Loss (ECL) policy and models. 

Manage risks associated to market volatility like equity, debt, commodity and forex markets, and quantification. Facilitate valuation of financial instruments, derivatives and hedge-effective testing. Management of asset liability risks due to balance sheet exposures.

Market risk (MR) is generally defined as the risk of the mark-to-market value portfolio, instrument or investment increasing or decreasing as a result of volatile and unpredictable market valuations. Banks are faced by four major market risks: Interest rate, foreign exchange, equity price and commodity price risks.

ALM is the management of both assets and liabilities to control the balance sheet risk/return due to changes in market factors. Our team analyses each risk factor as per a predefined operating model and engages with key stakeholders at the bank to map the entire projection process, and understand the underlying modeling approaches, assumptions and their associated limitations.

Develop capital management frameworks, facilitate product development, pricing of insurance products, and risk and asset liability management, and conduct actuary due diligence.

Actuaries are the backbone of insurance companies and are involved in various aspects of insurance business. The service includes product development, pricing of insurance products, valuation for statutory, shareholder purpose, accounting on Indian Generally Accepted Accounting Principles (IGAAP), IFRS 17, risk management and asset liability management. 

In addition, the actuarial capability helps and support clients in performing required regulatory reviews, due diligence for potential buyers/sellers, managing their insurance liability requirements, transitioning to new regulatory and market requirements and offering new products to its customers.

Develop effective climate risk management framework for managing transition and physical risks. Create quantification framework and enable scenario analysis for Pillar 2 risks.

Climate risk poses significant tail risks with catastrophic system-wide consequences to the stability of entire financial systems. Climate risk introduces new risk drivers which subsequently change the characteristics of prevailing risks and affect how those impact financial institutions. Climate change developments will therefore require changes in the way FIs manage and mitigate their prevailing risks.

PwC’s Financial Risk and Regulations team guides and supports clients to understand climate risk and assess its potential impact on the financial ecosystem. Climate change is an emerging risk that needs a structured and calibrated approach so that risk is mitigated.

Develop and implement project management/best practices to facilitate change management under project management office.

Change is inevitable. With businesses evolving constantly, the associated technologies change and so do the strategies, along with the workforce. However, this isn’t the core issue; the issue is how to adapt to change.

Our structured approach to change management begins by understanding stakeholders’ needs, expectations and desires and translating them into deliverables, products, benefits and values. We have successfully delivered global change programmes for tier 1 banks and investment banks across financial risk, finance, treasury and regulatory reporting. We also have the functional and techno-functional capabilities required to help clients succeed in driving global transformation across design, operational model definition, implementation, testing, go-live and production release.

Sample projects

Prepare and respond to risks associated with cash and working capital management and manage financial risks like forex, interest rate.

Corporates today are scaling business with the objective to generate highest value for their stakeholders. As businesses grow, organisations are required to upgrade treasury processes to better support their growth, transition treasury from a historic cost centre model, and bring processes in line with best practices. This comes with various risks associated with fluctuations in foreign exchange, interest rate and commodity prices along with liquidity management including cash forecasting. 
PwC’s Financial Risk and Regulations team guides and supports clients to establish a treasury framework that is aligned with the growing business needs.