Improving Risk Management
Background
The Alta Group conducts projects in four lines of business. Its work is focused on client objectives. Alta follows a collaborative approach with its clients and remains engaged with the client through successful implementation of the value delivered.
Client’s Objective
Client, a large global operation with a substantial captive financing operation, wanted to consolidate disparate risk approaches throughout the enterprise into one cohesive organization and infrastructure to maximize consistency, optimize risk management practices and do so in an efficient manner.
Project Design
In conjunction with client management, after determination of key business objectives touching on risk management, built complete risk management infrastructure, including policy development, process design (including automation of decisions) and implementation, portfolio management, business controls and system development, across multiple business lines and 80+ countries, for both the parent and captive subsidiary.
Value Delivered to Client
This work gave management a consistent credit process operating “in sync” with overall business objectives( including efficiency and turnaround time targets), a clear view of portfolio composition and direction, early warning on developing issues, lower losses and diminished probability of portfolio surprises.
Outcome
Client has experienced improved risk management results, and a reduced overall "cost of credit" (losses and operating cost), as well as another tool to build confidence in company with external constituencies, such as rating agencies, debt providers, regulators and investors. Further, the enhanced insight into and management of risk has enabled this company to enter/expand into important new segments such as Emerging markets and SMEs in a more orderly and profitable way.
