RiskManagementService风险管理服务.pptVIP

Facilitation: These terms are very familiar to us, and perhaps even in our job descriptions! Let’s remind ourselves of ‘first principles’ of these concepts. * Key Message: Note that avoiding risk is not one of our objectives. The focus is on execution of the strategy, and helping to balance the risk reward tradeoff. Joke: how can you bring the loss rate to zero? Don’t lend!!! * Lead-in: Here you see a diagram on of the risk management cycle. In the next slides, we are going to break this down. * Facilitation: Solicit from participants additional methods of risk identification. These might include more specifically for retail: Account or customer level: application scores behavior scores credit bureau scores verification data collateral assessment Market or product level: diligence (for new markets or acquisitions) macroeconomic and customer trends Discussion: What about anecdotal evidence? Can it help you identify risks? [Anecdotal evidence can give us clues of where to look for trends and hard evidence. It’s helpful for “identifying” but to “measure” we better find hard evidence!] * Facilitation: Our Goal is enveloping information systems and analytical techniques to measure risk inherent in credit requests and support accurate approval/rejection decisions Note: This must be consistent with the nature, size and complexity of the bank’s activities Let’s contrast the left and right boxes on the bottom: On the left side (support accurate accept / reject decision) we have a lot of tools available. This allows us to take an analytic approach to risk assessment. On the right side (inherent risks), this can be much more difficult. For example, a property bubble bursting is a risk inherent to mortgage lending. How do we know if there is a bubble? How do we know how big it is or if it will pop soon? Not so easy! * Lead-In: Sometimes we think we should start with the financial indicators -- but those are the easie