Time is of the essence. In an ever-evolving industry, banks must pivot more effective approaches to cybersecurity solutions and model risk management. The sooner banks start their journey, the faster they can establish controls and manage risk.
Through modernizing business-lending procedures, banks can harness new SME opportunities and achieve forecasted growth gains.
The International Financial Reporting Standard (IFRS) 9 models need to evolve quickly. There is no doubt the pandemic’s impact on the models and framework generated stressors in unforeseen ways, creating significant challenges to banks’ loan-loss provisioning levels.
By enhancing MRM framework capabilities—organizations are upgrading validation resources. Risk culture, standards, and procedures rank high on the overall MRM 2.0 agenda.
Banks need to implement more automated credit-decisioning models that can tap new data sources, understand customer behaviors more precisely, open new segments, and react faster to changes in the business environment. These best practices can help any bank elevate its credit model.