The world of financial risk and capital management is evolving rapidly in response to changes in industry structure, new products and channels, and pressure from shareholders and regulators. At the same time, credit and market risk are converging, operational risk is emerging as a priority issue and new insurance and risk mitigation techniques are gaining acceptance.
PA has wide-ranging capabilities in risk and capital management to address these challenges, from designing economic capital methodologies that promote better understanding of shareholder value creation, to implementing value-at-risk models that manage market risk more effectively.
In particular, with credit risk still a major concern among financial institutions, PA has focused on developing world-class solutions that take an integrated approach to credit risk management. PA has not only designed and implemented credit risk grading models for consumers and businesses, but has also integrated these models with current financial data, to enable active portfolio management and profitability modeling across customer segments and products.
Operational risk will also continue to be high on the agenda of financial institutions, and PA's world-leading methodology for operational risk measurement and economic capital allocation is at the forefront of this field and has won plaudits from regulatory bodies. The methodology provides a practical approach to operational risk mitigation and control, combining quantitative and qualitative data to give business lines control over their capital allocations and, thereby, providing businesses with a strong incentive to reduce operational risk.
Across all these areas, PA offers pragmatic risk management solutions that focus on business results, not 'black box' theory. PA helps clients to develop solutions that they can maintain and progress for themselves, and that deliver not only one-time improvements in risk management, but also lasting business benefits.
