Finance & Risks consulting
Ares & Co is a Finance & Risk consulting firm for General Management of Financial Services: Performance management, Optimisation of financial resources, Regulatory and compliance risk management
Context of Finance & Risk consulting
During the last financial crisis, the losses incurred by certain institutions revealed an insufficient level of knowledge and control, by the directors and sometimes Managers of the Banks, of the risk profile of their institution and of the best way of allocating their financial resources.
Since then, regulators have strengthened Banks' resilience and oversight by setting standards and implementing extensive controls.
Challenges of Finance & Risk consulting
This was a necessary development, but poses a real challenge for institutions which, in this context, must continue to control their growth and profitability while ensuring that their risks and resources are carefully managed and that the regulations in force are complied with.
Finance & Risks consulting firm
Our Finance & Risk expertise for Financial Services
Ares & Co supports the directors of financial institutions by helping them to rethink their entire model, above and beyond the recommendations of the Basel Committee and the French Prudential Supervision and Resolution Authority, in particular with regard to resource allocation and risk management, thereby securing the achievement of their strategic objectives.
Ares & Co, consulting firm in Finance & Risks for Financial Services
Adapt to regulatory changes
Anticipate, adapt to regulatory changes and integrate the various management KPIs accordingly (P&L, balance sheet, risks, etc.)
Manage risks
Manage risks and capital to strengthen resilience to shocks
Engage in regulatory reforms
Initiate the Basel III regulatory reforms (standardised approach, internal credit risk model and calculation of the CVA (Credit Valuation Adjustment)
Improve risk models
Improve operational, credit and market risk models
Accelerate compliance
Accelerate compliance with BCBS 239 principles
Set up ICAAP and ILAAP systems
Implement robust and compliant Internal Capital Adequacy Assessment Process (ICAAP) and Internal Liquidity Adequacy Assessment Process (ILAAP) mechanisms
Submit to the monitoring process
Undergo the Supervisory Review and Evaluation Process (SREP)
Integrate IFRS 9
Integrate ‘IFRS 9 Financial Instruments' into the accounting system
Develop the Risks function
Change the role and organisation of the Risk function
Have recovery plans
Put in place recovery and resolution plans consistent with ICAAP procedures
Ensure data quality
Ensure the quality of data (AQR - Asset Quality Review) in line with the latest recommendations of the Basel Committee
Transform regulatory constraints
Transform regulatory constraints into business opportunities
Adapt performance management
Adapt performance management to organisations' movements
Our consulting expertise in Finance & Risks
Performance management
Optimisation of financial resources
Gestion des risques
Regulatory and compliance risk management
Our Clients in Finance & Risks
Banks
Insurance
Investment Funds
Corporate Functions
Assignments in Finance & Risks
Ares & Co supports many General Management of Financial Services in Finance & Risks
- Review of the provisioning policy (collective, individual and dynamic) and implementation of new measurement methods and models
- Assessment of the governance and quality of the aggregation and reporting processes within the scope of Basel II and assessment of the level of compliance with the BCBS 239 principles
- Design and implementation of performance management dashboards and processes for senior management of a large bank
- Re-allocation of capital within a regional branch of a mutual group
- Simulation and optimisation of net interest margin formation
- Overhaul of an ALM model
- Management of scarce resources and integration of P&L and Balance Sheet management
- Definition of medium-term strategic initiatives and associated budget forecasts
- Integration of the Risk Appetite system in Senior Management-level management tools
- Assessment of the correct historical application of the rate and exemptions from the rate policy and proposal of a performance recovery plan
- Costing of financial challenges and anticipation of the organisational impacts of IFRS 9 for a large banking group
- Management of the AQR of a major banking group on behalf of Senior Management
- Study and validation of the concentration of behavioural scores (Basel II)
- Design of credit stress test models
- Review and modelling of RWA optimisation scenarios
Focus Consumer Credit
Despite sharp falls in interest rates, traditional credit-based consumer segments remain buoyant
The consumer credit market is highly correlated to household consumption and evolves structurally under the effect of new consumer profiles (younger and older) and new uses (substitution of leasing for purchasing and the immediacy of new credit).
Despite the sharp falls in interest rates, traditional consumer segments that rely on credit remain buoyant (means of transport, renovation and home equipment) and new segments are opening up to credit (healthcare, studies, leisure and clothing).
In France, as a result of these new practices and the legislative framework provided by the Lagarde and Hamon Acts, the types of credit products are changing significantly (consolidation of allocated and unallocated amortisable loans, reduction in revolving credit and the accelerated development of leasing and bank overdrafts).
Competition within and between the three main types of company in this market – automotive captives, consumer credit specialists and traditional banks – is only increasing and the emergence of new organisations, sometimes not strictly banking professionals, creates an additional risk of disintermediation. Relations between credit specialists and distributors (the so-called long circuit) are changing under the twofold effect of the development of e-commerce and the entry of new challengers into the market.
Ares & Co helps consumer credit institutions adapt, in particular regarding:
- The launch of new offers (Go to market)
- Changes in lending rules
- Rationalisation of the costs of risk
- Credit portfolio review (NPL and securitisation)
Contact Ares & Co
Finance & Risks
Would you like to know more about our expertise and our Finance & Risk consulting solutions dedicated to Financial Services General Management?