Financial Risk Management

Effective risk management is a constant source of concern for domestic, foreign, and international businesses.  In times of market instability, financial companies need a high-quality risk management system in place to protect their business, ensure dynamic development, and increase their investment attractiveness.

KPMG has extensive experience in advising clients on professional risk management and providing other advisory services in the financial sector.

KPMG in Ukraine maintains a high-qualified group of risk management specialists with extensive experience in project implementation, including in Europe and the US.

The advantages of working with KPMG include our modern approach to novel problems, a deep understanding of local markets, and comprehensive knowledge of regulatory requirements; enabling us to successfully assist clients in financial risk management.

KPMG can also access consultants in Ukraine and abroad to engage their extensive international experience and in-depth expertise in the financial industry to meet the challenges of building and optimising processes for managing financial risk.

KPMG provides a wide range of advisory services tailored to the specific needs of our clients, including:

• Risk management solutions for banks, insurance companies, investment companies, corporate treasuries, and other financial market participants.
• Regulatory advisory services related to current and prospective regulations and standards, including IFRS 9, NBU requirements, Basel II/III, etc.
• Risk model development and validation in line with leading industry practices for credit risk (PD, LGD, EAD, CVaR), market risk, operational risk, etc.
• Credit rating and credit scoring model development for both corporate and retail clients.
• Management reporting and analytical data regarding financial risk, including support for Data Warehousing and developing Business Intelligence solutions.
• Economic capital framework development and optimisation, including risks measurement, aggregation, risk-based pricing, risk-based performance evaluation, capital allocation, RAROC, etc.
• Developing and documenting internal capital and liquidity adequacy procedures (ICAAP, ILAAP).
• Asset Liability Management and Treasury optimisation, including Balance Sheet optimisation, transfer pricing framework implementation, approaches to liquidity risk, interest rate risk in banking book (IRRBB), etc.
• Developing business recovery plans and liquidity management plans in crisis situations.
• Analysing loan portfolios and developing practical recommendations for loan portfolio management.
• Analysing and developing strategies, policies, procedures, and methodologies for managing all risk types.
• Benchmarking and training sessions.
• Regulatory due diligence for banking institutions (National Bank of Ukraine Resolutions No.s 368, 161, 64, 88, 95, 97, etc.)