On 8 July 2019, a number of changes to the Solvency II standard formula and own funds came into effect. These changes imply that the capital requirement for certain asset classes and exposures is now more favourable.
Since the implementation of International Financial Reporting Standard (IFRS) 9, capital & impairment forecasting and stress testing has seen a sharp rise in complexity across the banking industry. 4most consultants have been working on projects dealing with Internal Capital Adequacy Assessment Process (ICAAP)…
4most has been announced as a finalist for three categories for the Car Finance Awards 2019; Best Use of Technology, Game Changer and Best Innovation, based on their outstanding development and implementation of a machine learning (ML) based solution.
We are proud of the passionate team of experts we have at 4most and we would like to share their motivations and thoughts on their specialist areas with you. This is the first in our series of ‘120 Seconds’, a question and answer session with Fabrizio Russo, Head of Decision Science.
On the 15th April the PRA wrote to the CFO’s of the top seven banks to give their initial opinions on the implementation of the new impairment requirements under IFRS 9. As expected for such a substantial subject, the findings, based on their written auditor reporting work, are varied in nature. Through discussion with a range of lenders and client engagements, we see many of the issues raised by the PRA. However, there are also some omissions that we expected to see.
25 March, London: 4most, the leading employee-owned credit risk analytics consultancy, has been ranked 241st in the Financial Times (FT) list of Europe’s Fastest Growing Companies 2019. This recognition comes after five years of consistent double-digit organic growth for the company.
Machine Learning has been one of the hot topics in finance over the last few years, with benefits observed in most areas – many large institutions have prototyped and implemented techniques across decisioning, strategy optimisation, and fraud. The other key area that Machine Learning can bring significant benefits to, is automation.
Today 4most, the global credit risk consultancy, announces the appointment of Phillip Dransfield as their new Client Partner. Phillip joins from Zopa, where he was the Chief Risk Officer (CRO) and a previous client of 4most.
A recent Bank of England working paper highlights the link between banking market competition and financial system stability. Consistent with earlier work, it highlights that as competition increases, the banking system overall responds typically by moving to higher risk lending. However, in addition, it describes how individual banks tend to converge with the most-risky becoming more secure as competition increases.
Providing insight beyond the macroeconomic headlines. 4most, the leading risk analytics consultancy, has successfully launched a bespoke economics subscription service. The international service brings rigorous economic analysis to the challenges faced by the financial services sector.
21 September 2018, London: 4most, the global credit risk consultancy, has appointed Alvin Ng as their new Chief Financial Officer (CFO). Alvin joins from the UK arm of the Weston family’s private office, Galewest Investments Ltd, where his role spanned strategic tax planning and global private assets management. At 4most, he will be responsible for directing and managing all aspects of the finance function and will be a key component in 4most’s leadership team.
Welcome to the first edition of RegRadar. With publication of Basel III reforms in December 2017, the ongoing EBA RWA harmonisation programme and both the BoE & the ECB consulting on the Definition of Default for credit risk, forward planning and timely implementation is key to understanding how reforms will impact capital and compliance costs of current and future business plans.
The financial services industry has recently undergone a major change due to the introduction of IFRS 9 impairment requirements. This has come generally at increased costs due to either the redirection of internal resource or engagement of third parties to develop compliant models.
4most, the leading risk analytics consultancy, today announces that it has sold majority ownership to an EOT (Employee Ownership Trust). Co-founders Sisson and Somers, together with early investors Beechbrook Capital have sold 55% of the issued share capital to the Trust which will ultimately own the company for the benefit of staff. Sisson and Somers will remain on the board and continue to manage and run 4most Group.
IFRS9 Expected Credit Losses (ECL) are commonly calculated as the sum of the marginal future expected losses in each period following the reporting date, using PD, LGD and EAD components. ECL can also be calculated directly from expected future cash flows. This could be an attractive option for many short-term lenders, especially for those that cannot leverage existing PD, LGD and EAD models, as it requires developing a single cash flow model.
This March marks 10 years since the fire sale of Bear Stearns in 2008, a significant moment in the global financial crisis. This moment offers us an appropriate time to reflect and assess how the banking industry has changed in that time and learned from the mistakes of the past – and to consider what the future holds for the sector.
The Bank of England has today published the latest outlook from the Financial Policy Committee and outlined the scenario for 2018’s bank stress tests, providing us with an indication of its likely areas of focus in assessing UK financial stability.
Open Banking will transform UK banking. For consumers, the whole experience will be more convenient, with better digital banking capability, more targeted and appropriate products and potentially better deals.
4th December 2017, London: 4most, a leading risk management consultancy, has been ranked 22nd in the 21st annual Sunday Times Virgin Fast Track 100. This represents an eleven place rise from 2016, where 4most were ranked 33rd and prior to that placed 63rd in 2015.