Risk & Compliance
Heightened Risk + Stringent Regulation = Need for RiskTech Solutions
The heightened level of risk in today’s world, combined with increasing regulations, necessitates that financial institutions employ RiskTech.
The heightened level of risk in today’s world, combined with increasing regulations, necessitates that financial institutions employ RiskTech.
Private equity (PE) has had a great run in the last couple of years. However, we expect the PE industry to return to normalcy in 2023 as investors continue to seek stable, high-return investment opportunities in the face of economic uncertainty.
Financial institutions face a multitude of risks linked to operations, governance, and compliance. Because of the sector’s importance to global economies
The sharp decline in Global IPO activity in 2022 had a substantial impact on the financial markets, as it followed 2021.
The knock-on effects of COVID-19, labour force displacement, geopolitical uncertainties, and shortage of liquidity dominated discussion during 2022. The global healthcare industry is typically considered a recession safe haven, still faced financial strain due to these factors.
The team at Evalueserve, a provider of banking and advisory support services, is back with another iteration of our M&A Outlook Report, covering 10 Major M&A markets, as we move into 2023. M&A activity in 2022 took a drastic downward turn in the second half of 2022 driven by a global economic slowdown fueled by elevated inflation, higher financing costs and geopolitical conflicts.
One of the biggest challenges in ESG reporting according to investors is the lack of transparent and consistent data. It is important to understand and distinguish the challenges across the ESG data and insights value chain and then follow a piecemeal approach to address each of them. In this article, we will explore the three levels of the ESG data value chain and address these challenges and how to meet them.
A Confidential Information Memorandum (CIM) is one of the first documents a buyer receives during the M&A process. It is a descriptive resume of the company curated by the M&A Advisor on the seller’s side.
Published by Finextra
A global investment bank headquartered in Switzerland partnered with Evalueserve for over a decade to improve the junior banking experience. Today, junior bankers at the investment bank are assisted by Evalueserve’s full Deal Automation Suite.
Investment banks have undergone drastic changes during the pandemic and some of those legacies would continue in a post-Covid world. Alexia Fernandez aims to highlight this by explaining how Evalueserve has played a key role by adjusting to its client needs as they move their RSM-related functions online.
Our detailed analysis of the Global FIG M&A and Capital Markets landscape captures the probable answer through deep insights on Investors’ behaviour, Recovery of the banking sector, Key M&A themes…
After the global financial crisis, the Basel Committee on Banking Supervision (BCBS) issued the Basel III reforms to its standards to
In our detailed Q3 review of the global investment banking industry, we have discussed the M&A, ECM, and DCM markets, along with the performance of bulge bracket investment banks and M&A advisory firms.
How Private Equity bracing for slowdown next year. Read more in our latest blog to find out.
After a prominent Saudi Arabian bank acquired another large financial institution, they embarked on a five-year digital transformation plan.
A prominent Middle East bank wanted to automate its financial spreading efforts to ease pressure on its analysts and lower operational costs.
Deal activity across the global healthcare industry remained low, a stark contrast to the economic buoyancy witnessed during the same period last year. Investors continued to adopt a cautious approach amid the uncertainties related to global growth outlook…
Global O&G M&A activity slightly decreased in Q3 2022 amid indication of current global slowdown; however, North American M&A activity is up. Current geopolitical tensions and energy security is impacting the oil and gas sector majorly.
Despite low volumes, rising costs, supply chain interruptions, and lowered guidance in Q3 2022, the North American consumer and retail sector has continued to see modest growth, albeit at a considerably slower rate than in 2021…
In 2022, the prevalent geopolitical conditions and macroeconomic uncertainties caused a decline in broader market performance in general and the tech stocks declined to a high level, due to which sector experienced a downtrend in M&A and listing activity.
The risks to the M&A outlook for Asia Pacific markets are overwhelmingly tilted to the downside as rising prices continue to impact growth prospects worldwide. While taming inflation remains the top priority for policymakers, tighter monetary policies will inevitably have real economic costs.
The team at Evalueserve, a provider of banking and advisory support services, has undertaken research for the Over-the-Top (OTT) market globally and in India, covering Major Players and prominent modes of OTT streaming. The pandemic period has been a revelation for the industry with the market experiencing unprecedented increase in Market Size.
Supply chain disruptions caused by the pandemic and Russia’s invasion of Ukraine have led to the highest-ever inflation in decades in many major countries. It has since emerged as a serious concern in investor markets, including real estate.
In order to curb the growing influence of index providers on global asset market, the US SEC is tightening regulations on index players. Bhashkar Upadhyay in this research piece aims to examine the role of new regulations that would govern the producers of financial indices, challenges and concerns in implementing them, and their impact on the industry in general.
The global financial services market continued its frenetic pace of M&A and capital market activity at the start of 2022, keeping pace with a record-breaking 2021. However, it must be noted that the deal volume in 2021 did not yield an easy number that could be effortlessly replicated.
The year 2021 witnessed a renewed interest in liquid alternatives (alts.), and 2022 continues to see a strong inflow of funds. The primary reasons driving this inflow are volatile equity market returns, weakening policy support, higher interest rates and inflation, market volatility, and geopolitical turmoil, as they forced investors to critically think about portfolio construction and seek strategy changes.
The first half of 2022 saw ~USD 2.2 trillion of M&A deals being announced, ~21% lower than the same period last year and the slowest opening six months for M&A in two years. Technology, financials, and industrials accounted for almost half the total deal value in the first half of 2022.
The team at Evalueserve, a provider of banking and advisory support services, is back with another iteration of our M&A Recovery Report, covering 10 Major M&A markets, as we move through 2022. M&A recovery in 2022 took a drastic downward turn from the blockbuster start witnessed in the previous quarter on the back of growing concerns of a global economic slowdown.
On December 8, 2020, the Monetary Authority of Singapore (MAS) published the Guidelines on Environmental Risk Management for Insurers. These guidelines are aimed at improving the management of environmental risks by all insurers, in line with the expectations of the MAS.
These guidelines are aimed at improving the management of environmental risks by all banks, merchant banks, and finance companies, in line with the expectations of the MA
Deal making in the global healthcare industry has been relatively slow in 2022, compared with a blockbuster 2021. Investors were primarily forced to hold off on deal making because of the uncertainty regarding the global growth outlook.
In June 2022, the Prudential Regulatory Authority (referred as the PRA/ The Regulators henceforth) published its Consultation Paper (CP6/22) on Model Risk Management Principles for financial institutions. With this document, the PRA has set out its expectation on financial institutions’ model risk management and has termed MRM as a risk in its own.
The 2021 Climate Risk Management Guideline was published by the Hong Kong Monetary Authority (HKMA) in July 2021.
Banking authorities strive to ensure strong risk management practices, including the detection, disclosure, and management of risks emanating from climate change. These practices are critical to boosting banks’ resilience to climate-related events and risks.
On December 8, 2020, the Monetary Authority of Singapore (MAS) published the Guidelines on Environmental Risk Management for Asset Managers. These guidelines are aimed at improving the management of environmental risks by fund management companies and real estate
The Middle East banking industry has been witnessing knock-on effects of the pandemic, volatile oil prices, and intensifying multi-dimensional disruptions. However, it has been able to withstand these pressures and bounce back strongly.
SPACs took the world by storm in 2021, however it also attracted the attention of regulators along with investors. 2022 proved to be the year of deceleration for SPAC industry but possibly it will speed up again in 2023. Read more in our latest overview on SPAC
Cryptocurrencies have seen massive adoption and have become one of the hottest investment products for investors and asset managers alike. This increased uptake has been driven by its growth potential that it has demonstrated over the years.
A leading Canadian bank possessed a large model data set from disparate sources. Evalueserve cleaned, standardized, and transformed the data set.
As market headwinds pick up speed in the post-Covid phase, bankers and analysts at boutique advisory firms are busy in keeping the ball rolling under high volume of M&A deals. With the increasing volume of deals, many bankers are spending a lot of time on unstructured data of private companies, one of them being franchise companies.
The biggest challenge for investment bankers is speeding up turnaround time while working on detailed and informative pitchbook presentations. Investment banking clients of Evalueserve can take use of a full range of presentation design services, including the templates and layouts creation, formatting support, and the pitchbook support using our in-house bankers’ productivity suite – Pitchready.
As per financial data provider Preqin, dry powder of the buyout industry stood at $873 billion as of June 1, 2022. Overall it estimates that the investment industry reported $1.86 trillion of dry powder (up 3% from the end of 2021), excluding venture capital. Through the end of May 2022, Preqin said that firms have raised $92 billion and the total is projected to increase to $221 billion by year end.
As a result of global economic meltdown of 2007-2008, the US Senate passed the Dodd-Frank Act of 2010, targeting banks and mortgage lenders among other financial institutions for stringent regulations.
The use of machine learning (ML) models by financial institutions has grown steadily in recent years given their enhanced capabilities and widespread potential application. However, building, adopting, and regulating machine learning models remains a challenge.
A global investment bank headquartered in Japan encountered regulatory issues with its model monitoring. Together, the bank and Evalueserve created a model monitoring program.
In a constantly evolving Asset & Wealth Management industry, the client wanted to have a comprehensive view on the digital financial planning, advice, guidance and educational resources/tools that competitors provide and benchmark them with their own capabilities to identify the gaps and subsequently address these gaps.
A Fortune 100 Financial Services firm offering investment, advice and retirement solution wanted to analyze value proposition and differentiation strategies of key competitors’ and identify implications to their evolving strategy and value proposition.
A top-tier US-based asset management firm was concerned about its distorting core brand positioning & value and hence wanted to assess competitors’ marketing strategies and product promoting campaigns to revamp its strategic roadmap so as to strengthen its core brand positioning and to retain a strong competitive edge in its core space.
In rapid and fast evolving Asset & Wealth Management industry, the client wanted to have a comprehensive product benchmarking across capabilities to identify the gaps and subsequently address these gaps by zeroing in on the most critical capabilities.
With the help of an Early Warning Indicators (EWI) system, banks could effectively monitor their lending portfolios and could execute timely and appropriate actions to mitigate any upcoming risk.
We recently hosted an Investment Banking Executive Event in New York where senior leaders at top banks discussed Investment Banking trends such as the roles of AI, CRM, and Data Science in junior banker retention.
ESG-focused asset management (AM) firms are facing increased regulatory pressure and scrutiny to prioritize and tackle “greenwashing”. The term greenwashing is generally used to represent the practice of identifying a business as more ‘sustainable,’ ‘green,’ ‘low-carbon,’ and ‘planet-friendly,’ when, in truth, an entity may be either creating a false impression.
The first quarter of the year has been characterized by geo-political tension, inflationary concerns, and extreme market volatility. These have had a detrimental impact on the investment banking revenues of all the bulge bracket banks. The only light at the end of the tunnel seemed to be the ‘normalisation’ of interest rates and a heightened trading activity which served as a surprise bailout factor.
An agile approach to business strategy is not just about velocity to adapt to evolving market needs but also, how efficiently to out-innovate the competition. Business leaders are constantly facing new market challenges, many of which are known while others unknown. It is becoming increasing important to continuously observe the market signals and respond timely for mitigating the risks and ensuring business growth sustainability.
They wanted to partner to bring process excellence in their Credit Review function. A partner that could scale up staffing support on demand during surged period while maintaining the quality work was provided to client that helped with review of 8,000 borrowers and 20,000 loans per year.
Increased model usage and complexity are overwhelming model risk management teams, but software can help them get ahead.
Evalueserve built a series of risk reporting microservices to help a Japanese investment bank meet regulatory requirements.
In recent years, the use of machine learning algorithms has become increasingly prevalent in financial institutions for enhancing the analytical and forecasting capabilities of business models, and facilitating automation. Their potential applications include credit underwriting, fraud detection, compliance, and risk management.
A major global retail bank wanted to automate its document processing to yield faster and more efficient results. Evalueserve implemented a customized use of our IPDA capabilities to extract documents at scale to help the client meet this goal.
There are several model risk management tools available that automate manual processes to help MRM teams keep up with overwhelming demand.
The great recession of 2008 resulted in countless new financial regulations. Many of them are still top of mind for banks today as they continue to navigate implementation and reporting.
ESG orientation is creating value through higher revenue growth, cost optimization, lower financing costs, higher employee productivity, etc. Few big players are leading the way to standardize ESG reporting and closely tracking KPIs for their portfolio companies, a trend that will be followed by other players.
We are already seeing serious implications from Russia’s invasion of Ukraine, including the humanitarian crisis in Ukraine; the refugee crisis in Europe; a looming global food crisis; the risk of further military escalation […]
The ongoing geo-political tensions, inflationary pressures, and extreme market volatility has halted investment banking revenues of the bulge bracket banks in the first quarter of 2022. However, advisory revenues remained robust as firms ramped up their internal pipelines and hired senior executives.
Shockwaves from the Ukraine Crisis and tightening of financial conditions have tested the Financial System’s resilience in 1Q’22. Deal activity across all the sub-sectors declined as investors traded cautiously while deploying their capital.
In a world of traditional banking when a customer applied for a loan, it took weeks to get to the loan approval decision. Traditional banks made the process seem as difficult as swimming across an ocean!
Fueled by rising geopolitical tensions in the wake of the Russia-Ukraine conflict, worsening macro-economic outlook, higher interest rates, and supply chain disruptions have all led to dampening investments activity, particularly in M&A hubs in Asia-Pacific including China, Japan, and South Korea.
In this industry expert we discuss what DI is, it’s advantages, challenges and how it can provide a competitive advantage for investors.
As we transition through the first quarter of 2022, the team at Evalueserve brings you another iteration of our M&A Recovery Report for eight major M&A markets. Click here to read deeper insights on M&A Trends and Outlook in Q1 2022.
Our detailed review of the Q1 2022 results of the US bulge bracket investment banks captures the key factors impacting growth and the potential path forward.
Our detailed analysis of the 2021 Global Investment Banking review captures the trends in the M&A, ECM & DCM markets, and full year performance of bulge bracket investment banks & M&A advisory firms.
Asset and wealth management firms outsource processes such as research, sales, and marketing to improve their functioning and gain cost efficiency.
Model validation is key to assessing reliability and identifying errors and corrective actions, but high-quality validation is increasingly difficult to achieve.
Our detailed analysis of the M&A and Capital Markets landscape captures deep insights into the investors’ behavior, consolidator’s dry powder, M&A appetite across sub-sectors, availability cash runaways, SPACs’ sustainability and key sectoral outlook, among others.
The ongoing Russia-Ukraine situation has created a dynamic scenario in which index providers must consider all the aspects impacted in index management and respond accordingly.
In its recent meeting, the Fed signaled an end to its accommodative monetary policy in what could be the first hike in Federal fund rates since September 2018 after cutting it by 1.5 percentage points to 0.25% at the onset of the covid-19 pandemic in March 2020.
A global payments company wanted to understand why one of their three call centers received significantly lower ratings on customer satisfaction than the others. The company’s customer experience group had long used Evalueserve to conduct surveys.
A sound model risk management framework is imperative to avoid the costly consequences of misused or flawed models. Strong model governance is the key to achieving effective model risk management.
An unexpected result of the COVID-19 pandemic was increased model malfunctioning that heightened the importance of model risk management (MRM). As model usage becomes more widespread, reducing risk and complying with regulatory requirements demands increased testing.
While models are invaluable decision-making tools for financial firms, there is significant risk associated with the incorrect use of models or model malfunction. Decisions based on flawed or misused models can have dire consequences and be extremely costly.
Over the last couple of years, the COVID-19 pandemic has reshaped markets and sectors, especially in terms of consumer behavior.
Automation in model risk management has been gaining traction, however, despite the benefits automation offers, banks still resist adopting it.
“With great risks comes great reward,” especially in banking. Banks are in the business of taking on financial risk to generate profit. However, the stakes are high, and the downside potential is huge.
Model malfunctioning has been an unexpected consequence of the pandemic, creating a new source of financial risk.
As we approach the end of 2021 it seems that the Financial Services Industry’s pandemic driven headwinds have finally bottomed out.. The resurgence of ‘big ticket’ deals during the year has proved to be a light at the end of the tunnel after a difficult 2020.
One of the world’s largest banks and a long-term customer turned to Evalueserve to resolve its corporate finance analytics challenges.
A top-five Canadian bank wanted to manage the seasonal surge volumes associated with its commercial lending experience while managing regulatory requirements on time.
Context A global top five wealth management firm running a multi-channel demand generation program sought to optimize its marketing analytics through
Introduction The purpose of this blog is to construct and analyze the performance of an in-house ESG index for the Chilean
Banking leaders face numerous challenges, from the ongoing global pandemic and an uncertain recovery to an accelerating digital transformation and a
M&A market sentiment in APAC seems cautiously optimistic and positive. Momentum in deal making activity has continued and led to a Y-o-Y growth of 78% and high growth in technology, energy and consumer space, seemed to be the common theme across capital markets.
The existence of a “low-volatility anomaly” in Canadian equity markets
The recent pandemic significantly stressed the model tiering approach presenting a clear to need for a model risk management system.
As the fight against COVID-19 continues, economic recovery across economies has been diverging due to differences in the pace of vaccine rollout and policy support. Mass vaccination drives by advanced economies are driving positive market sentiments.
Let’s discuss the challenges that come with adopting ESG indexes, are they more than a green initiative, how and what does it mean?
Lets talks about ESG enablers – Data, Rating & Index Services, Consulting & Auditing Services, Software, Reporting & Analytics
A large U.S. bank reached out to our team, hoping we could save their bankers time on this repetitive task while improving the quality and consistency of their pitchbooks.
The recently issued interagency statement SR 21-8 is a non-binding guidance note with very useful and practical suggestions on how banks can juggle resources between SR 11-7 and AML/BSA compliance.
A top US Bank was searching for a partner who could conduct a baseline validation as per SR 11-7 requirements.
A global investment manager with over $800bn assets under management struggled with operational efficiency and marketing effectiveness.
Let’s look into an alternative to funding President Bidens new tax plan.
RiskMinds event key takeaways – managing uncertainty, credit risk and systems, second generation risk models
and ESG stress testing.
The London Inter-bank Offer Rate (LIBOR) is the most important rate globally, referencing nearly USD 370 trillion (as of 2018) equivalent of contracts that cover a myriad of products such as mortgages, bonds, and derivatives.
The objective of the stress testing is to understand the resilience of UK-based Banks and Insurance agencies from physical and transition risks emanating from climate change.
Five key takeaways from Risk Americas 10th Annual Virtual Event.
While data can certainly be used to keep financial organizations informed and reduce their exposure to risk, it is important to consider what sort of data is most useful and what is the most effective way of gathering and using it. Not all data or all data management systems are equal.
Advanced Model Risk 2021 event offers eye-opening view of how MRM models enhanced through improved technology and practices.
When you think about sustainability, you probably won’t have Latin America at the top of your mind.
May 25, 2021
With emerging rules and regulations on ESG reporting and increased sustainability mandates, Investment Managers must take a deeper dive into their portfolios.
Bhashkar Upadhyay, Evalueserve’s, Financial Services lead analyst weighs in on President Joe Biden’s infrastructure plan.
April 27, 2021
The ever-growing dry powder and chronic situation of too many hands chasing too few deals is making it increasingly important to identify proprietary opportunities.
Competition in the private equity game has continued to heat-up over the past few years as more capital has flowed in, leading to higher prices for fewer deals.
LatAm M&A activity slowed in 2020 due to volatility caused by COVID-19. Deal volumes declined through most of Latin America in 2020.
The MRM infrastructure implemented by banks in the past few years has finally been put to test. The plane has met air, and risk teams need to adjust to any turbulence mid-air.
The traditional types of risk such as credit and market risk are about losses and are able to be quantified. It may not always be easy to mitigate risk, but the first step is to gather data and make calculations that provide a basis for decisions about whether any given business is worth doing.
A global merchant bank wanted to transition from a disjointed and decentralized file-based system to a more unified cloud-based CRM solution platform, DealCloud.
Taking a strategic review of VaR models uncovers shortcomings in market risk modelling approaches, stress testing, FO integration, and Market Risk systems and processes.
