Ambit Risk Consulting

Whether facing a business or regulatory challenge, looking to improve the bottom line, or building for future growth, SunGard can help.

SunGard’s Ambit Risk Consulting provides a range of methodological, tactical and strategic insights that can help banks assess and improve their risk and performance management infrastructure. Ambit Risk Consulting helps banks in diverse areas including enterprise risk reviews and framework designs, risk ratings refinement and model validation, loss forecasting, allowance and capital adequacy assessments, risk-based pricing and profitability, and incentive compensation. All projects produce tangible results that have a direct impact on the bank’s bottom-line.

What We Offer

  • Allowance for Loan Lease Losses  
    Ambit Risk Consulting provides two primary approaches to the complicated issue of developing an allowance framework. This includes a one year loss cushion approach and a multi-year expected loss approach.
  • Business Unit/Product RAROC    
    Ambit Risk Consulting can help banks calculate return on economic capital by business unit and product line, working with the bank to navigate the difficult process of allocating revenue, costs, and capital across multiple dimensions.
  • Capital & Liquidity Planning  
    Ambit Risk Consulting will work with the banks management team to understand it’s available versus economic capital requirements and use this information to develop a strategic multiyear capital plan.
  • Credit Line Optimization   
    Ambit Risk Consulting analyzes customer behavior prior to default to develop predictive models. These models provide early warning indicators for troubled accounts, thereby allowing banks to better manage outstanding credit lines. 
  • EWRM Gap Analysis  
    Ambit Risk Consulting provides a comprehensive Enterprise-Wide Risk Management (EWRM) gap analysis that helps banks develop a clearly defined roadmap and blue-print to achieve a best-in-class risk management function.
  • Incentive Compensation    
    Ambit Risk Consulting provides a practical solution to the (re-)development of a bank’s incentive compensation structure, focusing on the right tradeoffs to make in setting risk-adjusted NIM, ROA, ROE and growth targets.
  • Limit Setting, Monitoring and Management  
    Ambit Risk Consulting produces risk based portfolio limits by industry, property type, product and region as well as limits at the name level by risk ratings in order to control for “lumpiness” caused by large borrowers.
  • Loss Forecasting and Stress-Testing   
    Ambit Risk Consulting can help create cycle sensitive estimates of loss estimates for bank customers and facilities as they vary with such dynamic factors as unemployment rates, interest rates, and housing prices. 
  • Pricing & Profitability Optimization    
    Ambit Risk Consulting provides an objective framework to quantify the risk adjusted profitability and required pricing from each relationship, thereby allowing loan officers appropriately negotiate terms at origination and renewal.
  • Process Optimization  
    Ambit Risk Consulting provides recommendations on how a bank can maximize the value for cost of different activities. This includes a view of organizational restructuring, systems replacements, and policies and procedures.
  • Risk Ratings & CRE Modeling   
    Ambit Risk Consulting offer scorecards for C&I, CRE and Retail. Ambit Risk Consulting develops point in time and through the cycle estimates of PD and LGD and has a proprietary “fundamental” CRE model which requires no default data to run.