A Tier 1 South African bank commissioned Riskworx to write a white paper on “Collateral, Funding and Discounting” in the modern-day context.

Solution:
Riskworx delivered a theoretical framework and a view of the best practice operating models for managing discounting risk and collateral cost. Riskworx then reviewed the client’s existing framework, providing recommendations to address the deficiencies identified based on a cost-benefit analysis.

“The client was able to gain an in-depth understanding of the recent theory underpinning collateral, funding and discounting.”

Value
The client was able to gain an in-depth understanding of the recent theory underpinning collateral, funding and discounting, as well as guidelines to update their operating model in line these best practices. This made them better equipped to evaluate the recommendations put forward by Riskworx and determine which framework changes would deliver most benefits to them.