d2e delivers changes to risk measurement models for major Australian Bank
The banking Regulator had asked a major Australian Bank to re-develop some of its risk measurement models. These models were used to predict potential losses for lending exposures worth 15B. d2e managed a multi-disciplinary team to redevelop and implement the risk models. Successful implementation of the change required managing internal and external stakeholders to endorse the proposed changes and train approximately 2000 frontline staff.
As a result of the changes the relevant business units are pricing risk more accurately. This is expected to enable share growth in some market segments and a reshaping of the portfolio to align with the new risk measures.