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.
The spike in SPAC activity has two main causes: the increase in volatility in the markets due to the COVID-19 pandemic, making SPACs more appealing than traditional IPOs; and the large number of billionaire investors and bulge bracket banks sponsoring SPACs, which caught the attention of the public
The COVID-19 pandemic and related lockdowns brought the global M&A market to a halt in H1 2020. Both domestic and cross-border deals declined, amid the pandemic-induced uncertainties.
The International Accounting Standards Board (IASB) published the draft proposal of a new standard, General Presentation and Disclosures in December 2019, which is expected to replace the existing IAS 1.
In 2020, the technology sector witnessed the highest growth with more than 42% returns, which were more than double the returns (on average 18.9%) generated over the last decade
We take a look at the top 10 countries by M&A volume and evaluate how are they performing with regard to dealing with COVID-19 uncertainties, economic activity, and M&A deal making.
M&A in APAC increased by 15% in 2020 primarily due to a surge of activity in Q3 2020 and activity started recovering at the end of H1 2020; strong H2 2020 ensured double digit
growth for the full year.
In our conversations with industry leaders, fulfilling the following parameters will help ensure a successful partnership.
Fintech stocks outperforming other stocks in the FIG sub-sector and banking remains the most affected sub-sector due to deteriorating loan portfolios and low
interest rates
A global asset manager needed our help with creating a comprehensive and real-time solution for their product team that would support their key functions of market monitoring, innovation scouting, and strategic planning.
The banking industry’s creditworthiness remains closely tied to the economic performance of sovereign agents during times when the IMF and IDB forecast GDP losses between 8-10% for Latin America and the Caribbean in 2020.
COVID-19 has shut down large segments of the economy despite complete lockdowns being lifted in most countries, since negative effects caused by the disruption in supply chains and social-distancing restrictions has caused the risk of mass loan defaults to continue to mount.
If Standard Due Diligence cannot answer these questions, Enhanced Due Diligence (EDD) is required. If EDD is unable to answer these questions, the determination may be that the client relationship/transaction is not appropriate for the institution performing the due diligence.
Amit Inamder shares highlights from RiskMinds International 2020 conference
Through our proposed solution, we see the addition of shame to financial institutions’ vocabulary as an essential tool to empathetically and respectfully reach those who have been greatly affected by the pandemic.
We bring ways that asset managers can stay competitive into a post-Covid world.
For many banks, the third quarter of 2020 is lining up two competing challenges: business planning for 2021, and continuing uncertainty about the duration and magnitude of COVID-19’s impact on their business.
Models are complicated things, and the principles of model governance, implementation, and use are there to make sense of them, make them explainable, and confirm that they work. Let’s take a closer look at how financial institutions currently do that and check our recommended practices for robust financial crime prevention, detection, and reporting.
Covid-19 has augmented the traditional weaknesses faced by model risk management (MRM) teams, such as error-prone test evidence collection processes and time-consuming deep dives, as well as an increased workload.
Strong Rebound in M&A in Q3 2020 with Value of Announced Deals up 41% Y-o-Y and strong ECM Activity across IPOs, Follow-ons, and Convertibles
SPACs have no commercial operations and are formed exclusively to raise capital via IPO, with the only purpose of acquiring an existing company, which generally is unidentified, within a predetermined period up to 24 months. After the acquisition, the acquired company automatically turns into a public company.
Most global asset managers have multiple market and competitive intelligence teams spread across the enterprise that is responsible for providing market insights.
The six largest economies of LatAm – Argentina, Brazil, Chile, Colombia, Mexico and Peru – are among the top 12 countries with the most coronavirus cases in the world, which has led to negative GDP forecasts for 2020, depreciation of local currencies and deterioration in credit profiles.
The Investment Management industry has witnessed secular changes in structure, pricing, and asset flows.
Access actionable insights powered by AI / NLP and curated by domain experts. Stay updated on latest developments across the Asset and Wealth Management space.
Factsheet automations are only successful if they are supported by robust data processes.
The client wanted to improve their overall process for creating factsheets from the bottom up.
The volume of M&A activity in APAC increased by 13% YTD compared to 2019 and aggregated to $585bn, primarily due to higher deal volumes in China and Japan.
We take a look at the top 10 countries by M&A volume and how they are faring with regard to COVID-19, their economy, and M&A dealmaking. We assign a recovery score indicating their extent of recovery so far and how much they need to do to achieve a pre-COVID-19 level of normalcy.
Before we delve into the post-pandemic scenarios, here is a quick recap of the developments in the LNG market: The first six months of 2020 were one of the most turbulent phases for the market.
Perpetual (always fresh) Know Your Customer (PKYC) is the ongoing process by which financial organizations continuously aggregate and update customer information with the aim to use it for risk management.
RPA for Model Risk Management has become a rising topic in the risk and compliance space, as Model Risk Management (MRM) teams have started to look at the use of robotic process automation (RPA) to help ensure that their models are meeting regulatory requirements and the bank’s financial standards.
Globally, the M&A activity slowed down in H1 2020, with USD1.2 trillion of deals announced during the period, which was the lowest first half value recorded since H1 2013. The number of announced deals during the period also declined to a six year-low.
Fintech stocks outperformed the S&P 500 due to a strong demand for digitalization. Banking stocks, on the other hand, have suffered the most due to existing pressure on margins due to the recent cuts in interest rates and expected continuous increase in non-performing loans due to the overall economic slowdown.
As of May 2020, four European monetary zones (the Eurozone, Denmark, Sweden, and Switzerland) along with Japan are firmly in negative interest rate territory.
Making Credit Risk Review Process Faster, Accurate and More Efficient.
Climate-related incidents are increasing, and institutions that are not adequately assessing risks will suffer unexpected financial losses. Banks’ perceived role in averting the course of climate change is also coming to the forefront of the public agenda, and any financial institution that is not proactively tackling the problem will likely be behind the competition in implementing future regulations as well as managing their portfolios.
COVID-19 adversely affected the FIG sub-sectors, compelling firms to take drastic measures to mitigate long-term risks.
Do you have optimal processes for refreshing customer documentation such as KYC reports and performing handovers to relationship managers? We understand the challenges involved. Let us help you acquire information with minimum hassle to customers, deal with foreign language documentation and more.
The performance of factors in the US and other developed markets have been widely studied.
Examining private equity interest in struggling sectors such as automobile, travel, oil and gas, and power reveals declines in deals and investments. This article suggests strategies for firms to navigate the crisis.
As financial models increasingly adopt machine learning and other advanced technologies, the need becomes pressing to adopt objective validation standards for determining their fitness for purpose. In this article, we detail a three-step process for detecting unintended biases which is our contribution toward the establishment of such standards.
The CEE economies are readying for a severe recession and the banks are bracing for defaults in the wake of the coronavirus lockdown.
This insights paper was prepared by the Risk & Compliance practice at Evalueserve. For a detailed analysis on how the Covid-19 crisis can impact your anti-financial crime operations and your immediate opportunities to enhance them during the lockdown and beyond.
The Evalueserve Global Recovery Index (EGRI) is a view to combine three aspects that Covid-19 has had maximum impact on—health, economic/work resumption and social interactions.
Even as COVID-19 continues to spread, the burden of the disease is asymmetrically distributed; countries find themselves at different stages of the pandemic. Some nations that succeeded in initial containment of the virus, such as Singapore and Hong Kong, are now witnessing a resurgence
China is almost 4-10 weeks ahead of rest of the world when it comes to Covid-19 outbreak and its implications for the country’s economy. Not surprisingly, Covid-19 had a strong negative impact on China’s GDP during Q1 2020 with projected Q1 Real GDP growth expected to decline from pre-Covid-19 projection of 5.9% YoY growth to post Covid-19 projection of 0.2% YoY growth for Q1 2020. Projections are as of Mar 31, 2020.
Monetary policies and quantitative easing (QE) across the globe are aimed at promoting liquidity and stimulating credit, but the demand shock will require expansive and ongoing fiscal stimulus. Banks with credit exposure to vulnerable sectors like Energy, Hospitality and Leisure, Retail, Airlines, and Industrial products are likely to see loan-loss reserves increase as default rates tick up.
KYC as risk management, rather than data management, remains elusive for financial services firms as well as for the high-value goods and other industries
Banks and financial institutions are facing an uphill task of efficiently managing their ever-growing bundles of financial data in multiple and complex formats.
Facebook surprised the market by announcing its intention to launch Libra, a new global currency powered by blockchain technology.
Evalueserve supported a leading mid-market-focused PE firm to manage the data and financials of its portfolio companies.
Evalueserve helped a PE client to manage and analyze its portfolio company’s unstructured data and profitability trends.
A month after April 2020, when oil futures traded negative for the first time in history, markets are still wary, although
A leading M&A advisory firm was looking for solutions to manage staffing issues amid peak workloads without onboarding full-time employees and compromising data confidentiality.
COVID-19 has taken the world by storm, and for the first time since the Great Depression, both advanced and emerging economies are plunging into recession simultaneously.
A private equity firm that was handling increased deal flow needed to scan multiple opportunities, analyze significant amounts of target company data, and build and analyze standard financial models.
A private equity firm focused on the food & beverage industry wanted to understand the impact of the COVID-19 shutdown on its portfolio companies.
ESG & Sustainability Services From ESG integration to sustainability performance Charting progress with custom ESG data, analytics, research, insights & advisory.
The COVID-19 pandemic has emerged as a grave threat for both global health and the economy.
Public and regulatory attention to the impact of COVID-19 on banks has been rightly focused on credit quality.
As China heads to a long Labor Day weekend (1st to 5th May), the uppermost question in the minds of all policymakers, is how to spur more consumption and get the economy back on the path to recovery as quickly as possible.
The Global Lockdown May Accelerate Automation And New Ways Of Working With Lower Costs.
Imagine yourself in a Harry Potter movie, reading a newspaper with pictures that move and characters that smile and wave to you! How cool would that be?
As Covid-19 continues to spread, the burden of disease has been asymmetrically distributed, as countries find themselves at different stages of the pandemic.
The bank needed resources experienced in Financial Due Diligence who could provide end-to-end support, including creating a full-fledged FDD databook and report.
Covid-19 has caused significant disruption to our way of life, with many changes expected to outlive the current crisis.
There has been a high level of interest from our clients and partners on the recovery in China.
The journey of SFTR had initially started in Jan 2016 and is now planned to become partially in force from July 2020.
Saying that the COVID-19 pandemic is creating havoc across each node of the global supply chain is an understatement.
A leading global management asset company struggled with having no workflow system in place when tracking and prioritizing content requests.
In this post, we take a look at the key trends and themes in risk for 2020 – and some smart solutions too.
How often do you find yourself or your team members tied up in essential but repetitious tasks?
Financial statements, SEC filings, management presentations, etc., have long been the only reliable data sources for analysts. Not anymore.
Discover the multiple ways that automation can make small but powerful changes to your KYC process.
Asset managers rely on third-party composite scores for their investment decision-making. But how reliable and valid is this data, and does it truly meet their investment objectives? Let’s try and understand.
Increasingly, ‘alternative’ or non-market data holds the promise of smarter investments and superior returns. But how can you get to grips with the mass of information out there and use it to make better decisions?
A top global bank needed our help with making process improvements to flag high-risk accounts.
The bank needed help with bringing together and refining diverse risk management processes surrounding their high-risk portfolio management, in order to improve their report turn-around times.
A leading US investment bank was struggling with providing the right number of staff with the right language skills at the right time, in order to deal with the peaks and troughs in enhanced due diligence work.
The Insightsfirst platform solution allowed this client to identify and take timely action on relevant, recent, and valuable potential opportunities in the payments market.
ESG investing – still not convincing financial advisors? See what will make them drive the demand for it and how asset managers can support them.
See how by breaking down the validation process into its essential elements and standardizing the approach, you can make significant time and cost savings while also enhancing quality.
What is the role of the shadow banking in China’s economy and how does it develop under the impact of crackdown and a raging trade war? Check out this blog article for more details.
The key pillars for a strong ESG data strategy are smart data interventions, backed up by input from subject matter experts (SMEs). Here are four areas where that approach can help you overcome ESG data issues.
The once revered LIBOR fell out of favor after banks manipulated it to boost profits. With the FCA deciding to phase it out completely by 2021, companies will need to change their systems within a short span of two years. Are you prepared?
See how asset management marketing can enable growth and profitability by modernizing its own operations. In this post, we discuss three automation strategies that can help industry CMOs and marketing stay relevant.
What are the opportunities in Latin America for investors seeking non-traditional assets? Here is a strategy that yields the same returns as the market, while reducing risks for investors.
Increasing importance of data lineage and advent of machine learning indicates that traditional and new risk models will co-exist, as the MRM life cycle is optimized. But what will help minimize teething pains associated with this growth phase? Find out more in this blog.
The client needed a solution that would not only streamline the update process, but convert the marketing handout into a digital format, with interactive and engaging charts.
Our client’s existing offshore strategy was based on a dedicated one-toone support model, with very few analysts having access to offshore teams.
Our Automated Model Update Solution reduced the time spent on updating financial models dramatically. Research associates were able to save approximately 40-70% time on model updates.
This client was looking for deeper, more sophisticated analysis of clients’ portfolios in relation to their investment goals, plus a rigorous way to evaluate the performance of their accounts and financial advisers.
To secure sustainable growth and deliver high-quality services to their end clients, banks need skilled offshore teams who can support their business throughout the index life cycle.
Developing, validating and monitoring multiple models is hard work. Regulators want high-quality, well-produced reports.
We helped a leading US investment bank to decompose the process of validation and to automate key processes for testing and documenting, delivering significant time savings and business benefits.
See why young investors looking to invest for a long term should consider dividend stocks.
As digital transformation advances, many are turning to automated marketing solutions – but they’re still overwhelmed by their workflow.
Is it time for investors in LatAm to tread an investment path different from the one taken by traditional asset managers? Should they embrace the global trend of factor indices and take controlled risk with proven strategies?
Have a look at current trends in the world of robo-advice, and how leading and challenger brands are exploiting it.
A large-scale investment manager engaged Evalueserve to develop a target operating model for its marketing team that would enhance its operational efficiency, marketing effectiveness, and overall customer experience.
We set up a dedicated team with experience in credit risk model monitoring and various data analytics tools, including SAS. A senior risk specialist supported the team.
The client’s credit risk reporting and analytics team were tasked with meeting the reporting and analytical needs of credit risk managers across the WIM line of business.
We helped a US bank to proactively identify and manage bad actor risk, improve name screening for AML monitoring, and maintain financial advisor compliance.
Dividend stocks are often associated with older investors looking for a regular yield, while young investors target short-term price movements. But does the relentless pursuit of price returns actually work?