Emerging Mandates
Helping financial institutions anticipate, govern, and respond to risks shaping the future of financial services.
Climate Risk & ESG Integration
Integrate climate and environmental risks into governance, risk assessment, scenario analysis, and strategic decision-making.
Sustainable Finance Frameworks
Develop practical frameworks that support sustainable finance strategies, governance, risk assessment, and evolving regulatory expectations.
AI Strategy & Risk Governance
Build responsible AI governance frameworks covering oversight, risk management, model controls, transparency, and regulatory readiness.
Model Risk Management
Strengthen governance, validation, monitoring, and controls across models used for credit, risk, finance, and business decision-making.
Climate Risk & ESG Integration
Climate risk is becoming an increasingly important consideration for financial institutions, driven by evolving supervisory expectations and sustainable finance frameworks. AFS helps institutions identify, assess, and integrate physical and transition risks into their broader risk management and decision-making frameworks.
Our approach covers climate risk assessment, scenario analysis, portfolio exposure, sector concentration, and integration into credit risk and capital planning. We help institutions translate climate-related risks into measurable insights that can support risk management, governance, and strategic decisions.
AFS also supports the development of climate risk and ESG frameworks aligned with applicable regulatory and international standards, including governance structures, policies, reporting, and ongoing framework enhancement.
Advanced Financial Solutions Delivers
Climate risk gap assessment aligned with applicable regulatory and international frameworks.
Physical and transition risk identification, assessment, and measurement.
Climate scenario analysis and climate-adjusted stress testing.
Portfolio-level climate risk heatmaps and sector concentration analysis.
Integration of climate risk and ESG considerations into credit risk and ICAAP frameworks.
Board and management climate risk reporting and governance frameworks.
Sustainable finance and ESG framework development.
Sustainable Finance Frameworks
Sustainable finance is becoming an increasingly important part of banking strategy, creating opportunities across green lending, sustainability-linked products, and sustainable funding. AFS helps financial institutions develop practical frameworks that connect sustainability objectives with business strategy, risk management, and regulatory expectations.
Our advisory supports the design and governance of green and sustainability-linked finance, including product frameworks, eligibility criteria, use-of-proceeds governance, impact measurement, and sustainability performance indicators. We help institutions build credible frameworks that can evolve with regulatory and market expectations.
Advanced Financial Solutions Delivers
- Green loan and Sustainability-Linked Loan (SLL) framework design.
- Eligibility criteria, green taxonomies, and ESG classification frameworks.
- Use-of-proceeds governance and impact measurement methodologies.
- Sustainability-linked pricing and KPI framework design.
- Green bond governance, issuance, and reporting frameworks.
- Sustainable finance policies and governance structures.
- Alignment with applicable central bank requirements and international standards.
AI Strategy & Risk Governance
AI is transforming credit, fraud detection, AML, customer analytics, and other banking functions. As adoption accelerates, financial institutions need governance frameworks that balance innovation with responsible use, model integrity, and regulatory expectations.
AFS helps banks establish practical AI governance across the lifecycle from strategy and use-case assessment to model risk, validation, monitoring, explainability, and board-level oversight. Our approach helps institutions adopt AI with greater confidence while maintaining appropriate controls and accountability.
Advanced Financial Solutions Delivers
AI strategy and responsible AI governance frameworks.
AI use-case risk assessment and governance standards.
AI/ML model validation and independent review.
Explainability and algorithmic fairness assessments.
Model performance, drift, and ongoing monitoring frameworks.
AI risk appetite, escalation, and board reporting frameworks.
Alignment with applicable AI and model risk regulatory expectations.
Model Risk Management
As banks rely increasingly on models for credit, IFRS 9, IRB, fraud, AML, and other critical decisions, effective model governance is essential. AFS helps financial institutions establish robust model risk frameworks that provide visibility, accountability, and independent challenge across their model landscape.
Our approach covers model inventory, risk tiering, materiality assessment, validation, performance monitoring, documentation, and governance aligned with applicable regulatory expectations and international principles such as SR 11-7.
AFS also helps institutions address model governance gaps, strengthen independent validation, and establish sustainable monitoring and reporting practices that keep model risk under control as portfolios and models evolve.
Advanced Financial Solutions Delivers
- Enterprise model inventory and model risk classification.
- Model risk policy and governance framework.
- Independent model validation and review.
- Model performance monitoring, back-testing, and ongoing challenge.
- Model documentation and lifecycle management standards.
- Model risk appetite, escalation, and board reporting.
- Integration of model risk into broader risk and capital frameworks.
Preparing for Risks Beyond Conventional Stress Scenarios
Financial institutions can face extreme events that fall outside historical experience and conventional stress-testing assumptions from systemic financial shocks and geopolitical disruption to pandemics and severe market dislocations. AFS helps institutions develop frameworks to identify, assess, and govern these low-frequency, high-impact risks.
OUR APPROACH
Extreme Scenario Design
Extreme scenario design using historical analogues and narrative-based analysis.
Tail-Risk Quantification
Tail-risk quantification to assess potential impacts beyond conventional stress testing.
Practical Decision Frameworks
Translating extreme scenarios into practical decision frameworks for senior management, boards, and risk functions.
Reverse Stress Testing
Integration of extreme-event analysis with reverse stress testing.
Resilience & Recovery Planning
Integration with ICAAP, recovery planning, and broader resilience frameworks to strengthen preparedness for severe and unexpected disruptions.
WHAT AFS DELIVERS
Extreme & Tail-Risk Scenarios
Using historical and narrative-based approaches.
Tail-Risk Quantification
Tail-risk quantification and Expected Shortfall analysis.
Reverse Stress Testing
Reverse stress testing and severe-but-plausible scenario analysis.
Crisis Decision-Making Frameworks
Board and executive crisis decision-making frameworks.
ICAAP & Resilience Integration
Integration with ICAAP, recovery planning, and resilience frameworks.
Disruption Scenario Libraries
Systemic, geopolitical, pandemic, and market disruption scenario libraries.
Tail-Risk Governance
Tail-risk governance, documentation, and regulatory reporting support.
AFS combines deep analytical expertise, robust governance, and rigorous validation to deliver credit rating models that strengthen risk decisions and meet regulatory expectations.
Turning Emerging Risks Into Strategic Readiness
Our Emerging Mandates advisory helps financial institutions anticipate change, strengthen governance, and turn emerging risks into informed, manageable decisions.
Greater readiness for evolving regulatory expectations
Stronger governance of emerging and non-traditional risks
Better integration of climate, ESG, and sustainability considerations
Responsible adoption of AI with stronger governance and controls
Stronger model risk oversight and accountability
Improved preparedness for severe and unexpected disruptions
More proactive identification and management of emerging risks
Greater confidence in strategic and risk-informed decision-making
Ready to Prepare for What’s Next?
From AI and model risk to climate, ESG, and emerging threats, AFS helps financial institutions anticipate change and build governance frameworks that keep pace with a rapidly evolving risk landscape.
Advisory Expertise Built for Financial Institutions
We combine deep financial-services expertise with practical methodologies and technology-enabled delivery to help financial institutions strengthen risk management, improve lending performance, and prepare for emerging regulatory and business challenges.
Enterprise Risk Management
Build stronger, regulator-ready risk frameworks. We help financial institutions develop Capital Adequacy, Liquidity, Stress Testing, and Risk Appetite frameworks to strengthen risk management and support confident decision-making.
Credit Lending
Build smarter, more profitable lending strategies. We help financial institutions strengthen credit product design, scoring, portfolio strategy, and decisioning infrastructure to lend confidently and responsibly at scale.
Credit Risk
Strengthen credit risk management with robust, regulator-ready frameworks. We support IFRS 9 model development and validation, ECL governance, portfolio monitoring, and credit rating to enhance risk oversight and regulatory confidence.