PwC – ‘Inspiring Credit Risk Modelling’ Conference

Imran Akhtar, MD of Quantribute had the privilege of attending the recent two-day PwC event – ‘Inspiring Credit Risk Modelling – the future of regulatory and business driven models’ in Frankfurt. The literature for the conference had the following opening statement:-

Risk modelling has been one of the main sources of concern for banks over the last few years and, as such, one of the main focuses of investment. With the altered regulatory rules and new supervisory expectations, banks have to make urgent and fundamental changes to their models to meet the new standards. Meanwhile, the need to increase revenues and/or cut costs has become an ever more pressing issue.

 The hot topics currently shaping the industry demands are IRB Modelling, Basel IV, AI & Machine Learning and Data-Driven solutions for regulatory purposes.  How are banks going to weather this storm of altered rules and new supervisory expectations? How should they reshape their models to meet the new standards? How should they harness new technologies?  Redefining default, revising historical datasets, introducing new data standards and implementing revised validation procedures are just some of the steps that need to be taken in the near future.

https://blogs.pwc.de/regulatory/files/2020/01/pwc-inspiring-credit-risk-modelling-conference.pdf

However, the number one challenge and primary concern for banks should be the acquisition and retention of top tier talent to facilitate this rapid pace of change. This is especially true for Credit Risk Modelling departments.

How will modelling departments within banks face the tsunami of regulatory legislation about to hit them without the internal or external manpower to meet these changes and regulatory demands head on? What innovative and realistic measures have they put in place to attract staff, especially from the clutches of newer, potentially more attractive players in town, such as Fintech?

Posting vacancies on internal websites, job-boards or LinkedIn won’t cut it any longer. It’s hit and hope recruitment; outdated, reactive – not proactive.

The need to work with extremely specialist, rather than generalist, recruitment partners is vital in winning the war for very specific, quantitative modelling talent.

If you are a bank seeking to rapidly scale up your Quantitative Credit Risk Modelling capability (internals and externals), then you need to engage with Quantribute, a firm deeply embedded within the fabric of the UK and European Quantitative Credit Risk community.   Conversely, if you are a Credit Risk Modelling expert, then rejoice – there has never been a better time than now to be one!

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