Drawing on our core strengths in Data, Analytics, Modeling, and Technology, FI has cultivated a number of Solution Areas through a series of focused experiences and deep thinking. These solutions complement our broader set of services. FI clients benefit from our solutions’ proven methodologies through increased transparency, reduced risk, and faster implementation.
FI solution areas include:
Model Risk Management
In the closely scrutinized field of modeling, FI Consulting excels at helping our clients demonstrate the highest standards of model governance, risk management, and quality to regulators, auditors and management.
Beyond compliance, we help clients improve performance by establishing and continuously improving on their ability to deploy their best models and tap into the rich sources of data spread across their enterprises.
Since 2002, FI Consulting’s clients in the private and government sectors have called on us to address complex and high stakes modeling challenges with services that span our core strengths in data, analytics, modeling, and technology.
We take pride in our ability to deliver high impact and practical solutions that stand up to examination by our clients’ toughest stakeholders.
Our services include:
- Independent model validation
- Model documentation
- Benchmark and challenger model development
- Model governance program design and implementation
- Model risk management system implementation
- Model Risk Manager
To learn more on how to reduce model risk, streamline processes and accelerate performance, download FI Consulting’s Model-Risk-Manager fact sheet (600 KB).
Federal Credit Program Analysis, Design, and Implementation
The US Federal government’s balance sheet includes more than $2 Trillion in credit exposure, comprised of direct loans and guarantees delivered through hundreds of diverse programs that range from residential mortgages to farm loans to financing of renewable energy production facilities.
Since our founding, FI Consulting has been a leader in helping Federal agencies implement and better manage their credit programs. Federal credit agencies hire us to help them stand up new credit programs, gain insight into portfolio performance and risk, make the most of scarce credit subsidy budgets, and comply with statutory, regulatory, and audit requirements.
Our expertise spans the complete credit program lifecycle, including design, implementation, financial operations, subsidy cost estimation, and portfolio and risk management. We help agencies maximize their impact by making informed trade-offs between policy objectives, cost, and risk.
To learn about the impact of the revisions of OMB Circular A-129 on Federal credit programs and credit program managers, check out FI Consulting’s webinar.
To see the interactive Federal Credit Analysis Tool (FCAT) that provides users the ability to analyze historical data on federal credit programs from the President’s Budget, click here.
Portfolio and Asset Management
As the number of assets in a portfolio grows, so do the benefits of using technology and analytics to enable asset management. This is especially true for portfolios that have inherently complex monitoring requirements such as integrating data across multiple sources, analytics, custom reporting based on user type, tracking of servicing actions, and collaboration between various individuals and groups.
FI develops technology solutions that help our clients more effectively manage their portfolios. Our applications are used by real estate investors to manage CRE loans and properties, by government agencies to monitor the soundness and lending performance of bank counterparties, and by loan portfolio managers to track their origination pipeline, set prices, and pool assets into securities. Our approach recognizes that financial institutions and regulators often have requirements unique to their business goals, and that these requirements evolve over time.
Loss Allowance and Forecasting
Under current US GAAP, companies must reserve for incurred credit losses on financial assets. Incurred credit losses are defined as losses that are inherent in the portfolio, but have not yet been recognized. To estimate these reserves, institutions use statistically supportable models combined with management judgment. At financial institutions, loss reserves are an impactful and highly scrutinized part of the financial statements.
FI has deep experience helping financial institutions assess, develop, and enhance their loss reserve processes end-to-end. FI sources and validates data, builds models, develops supporting analytics and documentation, and interfaces with internal stakeholders and auditors. We help our clients develop reserve estimates that are explainable, reflective of portfolio characteristics and the economy, and well-controlled. Our loss reserve experience spans numerous asset classes and we’ve worked through all phases of the economic cycle.
Recently, FASB proposed changes that will shift the basis of the loss allowance accounting framework from incurred credit losses to Current Expected Credit Losses (CECL). This transition to CECL will impact institutions’ financial results and have major implications on data, modeling, and analytics requirements.
To read more about the impact of CECL, download FI Consulting’s presentation given at the MBA’s Accounting and Financial Management conference.