SECTOR FOCUS - BANKING
The cycle won't slow down.
Your process should keep up.
Has the portfolio data landed yet? Did the run finish? Has the risk committee looked at the numbers?
Do we even have time for that?
The Cycle
What the cycle demands of your team
Predicting credit losses, capital reserves, and liquidity are big banking tasks that run in cycles. The instant the data snapshot is ready, the clock starts ticking, and however long the cycle is, that time is better spent analyzing results than waiting for them.
Flexibility
Input comes in many formats and languages. If that trips up your process, you waste valuable time on something that should already be handled.
Our approach: Our digital teams find your data where it is, run your models regardless of how they are articulated, and deliver results wherever you need them.
Turnaround
Last-minute changes are part of the job. If every tweak costs half a day, that's a lot of waiting around to hurry up.
Our approach: Our digital teams optimize processes. Whether it is reorganizing calculations for speed or ensuring you get the most out of your compute power, they have the craft down.
Complete Detail
Being able to trace every aggregated result down to the account or loan level is imperative for trustworthiness, explainability, and compliance.
Our approach: Our digital teams give you results in high resolution, plus the dynamic tools to drill down further.
Scalability
Higher complexity shouldn't require a bigger headcount or a costly new risk solution.
Our approach: Our digital teams scale with you, handling the complexity so your team doesn't have to grow just to keep up. And if you'd rather not manage it yourself, we can host and run it for you.
digital teams
Risk Blueprints for Banking
Every risk process our digital teams run starts with a Risk Blueprints are the instructions for the tasks and the order in which the digital teams must do them to complete end-to-end risk processes..
Our digital teams already have blueprints for the following essential risk processes:
- Staying on top of Expected Credit Loss: IFRS9 and CECL compliance
- Conducting Stress Testing & Capital Adequacy: CCAR, DFAST, and ICAAP-ready scenario analysis—including physical climate risk—supporting both regulatory submissions and internal capital planning
- Analyzing Market Risk: VaR, Expected Shortfall, and scenario-based measurement for portfolios exposed to financial market movements
- Handling Model Governance: Automated model execution, monitoring, and validation across your full model complex
- Quantifying Liquidity Risk: IRRBB-compliant forecasting and limit monitoring to stay ahead of liquidity demands
Under the hood
VOR Risk Intelligence Suite
Our digital teams and Risk Blueprints work on whatever platform your institution runs today. They also integrate naturally with FRG's own VOR Risk Intelligence Suite, which automates the processing that keeps you ahead on credit losses, liquidity issues, and regulatory compliance.
Expected Credit Loss
VOR IFRS 9 / VOR CECL
These waterways take you from loan portfolio snapshot to (staged) expected credit loss. They handle retail and wholesale portfolios of any size, incorporate scenarios and models, and deliver loss figures for each time point, from individual loan level to the full portfolio aggregation.
Risk-Weighted Assets
VOR Basel
The VOR Basel Waterway automatically takes you from A to RWA under the Basel III Standardized Approach for assessing credit risk-weighted asssets as part of the capital adequacy calculations (requirement CRE20). It then aggregates the results and hands them off in the regulatory report template relevant to you, ready for your review and approval.
Economic Value of Equity & Net Interest Income
VOR IRRBB
The VOR IRRBB waterway streamlines the forecasting of Economic Value of Equity (EVE) and Net Interest Income (NII) as prescribed by the Basel framework. The waterway then takes it a step further and delivers the results in the regulatory template relevant to you so you can focus on signing-off on the numbers.
Modeling
VOR Model Reservoir
This VOR module can also be combined with VOR waterways. It organizes your models regardless of how they are built or articulated, and ensures your model complexes are automatically executed. The Model Reservoir can be extended to include model monitoring to ensure your models are always validated, current, and audit-ready.
Stress & Scenario Testing
VOR Scenario Builder
This VOR module can also be combined with VOR waterways. It allows for complex scenario building from scratch or based on historical timeseries, and without your team having to program a single line of code. Scenarios are directly integrated into your end-to-end processing in VOR.
Built for Growing Banks
We know that growing from a small- or medium-sized bank into something bigger can put you in between risk solutions. Your business may have outgrown spreadsheets, but a costly in-house solution—and the tech team to run it—isn't for you.
Our digital teams with risk blueprints for banking can scale up or down with you, and we tailor it to where you are today and where you're going. We help you deploy state-of-the-art methodologies and analytics that, until now, have only been within reach for the big banks. Not ready to take it on yourself? We can host and manage your digital team for you.
FAQ
Frequently Asked Questions
Is my loan data safe?
Yes. Our digital teams are designed with safety at the center and deploying them does not expose your data to any additional risk. Also, while the digital teams are equipped and continually updated with both general and specific knowledge, what they learn and improve from while working for you, will stay with you. In other words, knowledge and skills can and will flow into the digital team from public and private sources, but not from the digital team into the public.
Will my cycle run with the same frequency as now?
That depends. One of the big advantages of a digital team is its ability to run continuously and not be constrained by the calendar availability of a risk analyst team to kick off the cycle. That opens new possibilities for running the cycle incrementally and more often, and gathering insights on a weekly or even daily basis while still delivering timely results for regulatory compliance.
Can the digital team update my models?
Yes, if you want them to. You are in charge of how much the digital team can do on its own. Should you wish, the digital team can monitor model performance and alert you with recommendations for how to remedy any drifts, or it can be allowed to go further and update the models by itself according to your governance policies.
Is the digital team allowed to make qualitative adjustments to my forecasts?
No, we would not recommend that, and it is not a feature embedded in the risk blueprints that direct the digital teams. Qualitative or executive adjustments most often require a human-in-charge and will be a distinct point for your judgment and approval.