ALP played a significant role in the launch of Vision Bank. The scope of work also included building an ESG framework, in addition to climate risk stress testing capabilities
Business Strategy & Launch Plan
- Developing business strategy and plan
- Conducting the market gap analysis
- Product Identification & design
- Defining the product mix
- Formulating the product launch strategy & timeline
Tech Infrastructure
- Finalising a development plan & budget
- Vendor management and project co-ordination
- Identifying key focus areas and platforms, such as Core Banking Systems, Client Experience Platforms, AML/KYC Systems and Cybersecurity
- IT Governance: Defining and formulating approval processes & controls
Human Resources
- Hiring Plan: Finalising the organizational structure and defining the hiring timeline in line with the product launch and IT development timelines
- Assisting in the hiring process: creating job descriptions, reviewing CVs, conducting interviews, finalising candidates
Corporate Governance and Controls
- Advise the Board on the Corporate Governance Structure of the Bank
- Work with the team in writing the governance framework and various policies of the Bank, including the Enterprise Risk Framework, corporate governance framework, recovery plan, etc.
- Setting up various procedures required for the smooth functioning of the bank, such as AML/KYC procedures, customer journey, HR processes, etc.
Building an ESG Framework:
- Defining the Bank’s ESG objectives, aligned with its strategic direction
- Building an ESG scorecard to evaluate the ESG performance of its customers, that contained an exhaustive list of scoring parameters, and is integrated with models assessing physical risks
- Defining ESG metrics and setting KPIs around them
- Development of an ESG policy, outlining practices to achieve ESG KPIs and objectives
- Ensuring compliance with the requirements of the regulator
- Ensuring the integration of the ESG Framework with the overall Enterprise Risk Framework of the Bank
Building a Climate Risk Stress Testing Framework:
- The identification of climate risk factors at a borrower + portfolio level
- Climate risk stress testing, which
- Utilised scenarios provided by NGFS
- Can measured the vulnerability to physical risk (flood, cyclone and drought), using latitude and longitude data
- Can measure transition risk vulnerability
- Can measure the impact of the stress tests on credit risk metrics (PD and LGD)
- Provided the ability to assess the above results at a portfolio, sectorial, and borrower level
Regulatory Approvals, Reporting, & Submissions
- Preparation of Regulatory Business Plan
- Preparation of financial projections, including regulatory capital, LCR, and NFSR calculations
- Preparing the ICAAP & ILAAP framework, processes, and documentation
- Creating stress testing scenarios and building models to show the impact of stress tests
- Working with an external consultant on the preparation of the Operational Readiness report
- Assisting the Bank in responding to various requirements for information by the regulator, in preparation for approval for go-live.