Assets & Liability Management (ALM)
Asset and Liability Management (ALM) is a strategic balance sheet management practice incorporating dynamic risk management, forecasting and performance management. The strategic mandate of the ALM process is the optimisation of the risk-adjusted return on equity. The importance of ALM principles was captured and incorporated under the Basel III following the 2007/08 financial crisis.
We develop and implement an effective ALM process to address both internal and regulatory liquidity management requirements and delivery of an optimal balance sheet structure. We can advise on set up of an effective Asset-Liability Committee (ALCO) made up of senior management.
We also develop and review policies and procedures and train key staff on ALM and Risk Management matters.
Credit Scoring System & Management Process
Credit risk arises from the potential that an obligor is either unwilling to perform on an obligation or its ability to perform such obligation is impaired resulting in economic loss to a financial institution. Lender’s failure to assess and manage credit risk proactively may be detrimental to the financial health of an institution and may lead to insolvencies.
We develop an internal credit scoring model/system and the management process to address the internal and regulatory credit risk management requirements. In addition, we can provide professional credit management process appraisals, annual reviews, and annual model back testing to eliminate modeling risk.
Some of the advantages of an internal credit scoring systems are:
- Increased credit availability,
- Improved credit ratings,
- Faster credit decisions such as approvals for higher limits
Developing / Re-evaluating Policies
Best practice in risk management in financial institutions is to adopt an ongoing analysis and review of practice to benchmark against regulatory changes, industry best practice and latest market developments. At DistinctUS we keep abreast with latest changes and best practice and can offer annual advisory services on policy reviews and updates. We conduct an independent objective review of adherence to both internal and regulatory policy requirements and recommend improvements or compliance strategies.
Financial Planning & Money Management Advisory
We provide training and consultancy services in financial planning and money management, investment management and retirement plan to individuals, families and groups. We help you to be proactive in your financial, money and investment decisions. We develop a strategic and coordinated approach and implement personally tailored financial plans to you and then help you monitor your progress.
Financial Modelling
We specialize in the provision of bespoke quality financial modeling services which is a combination of financial modeling consultancy and modeling training to enable you to consistently produce effective models to support informed business decisions. Either by working collaboratively with you to produce quality business tools, or by helping you to develop and empower your existing talent, DistinctUS draws on experience to become your partner in dynamic risk management.
Information Technology (IT) Solutions
Our IT solutions are tailored around financial risk management, asset and liability management and credit scoring. We have also partnered with a local software developer offering a local core banking solution currently in use by several micro finance institutions
Non - Governmental Organizations
Vision 2030 Agenda is anchored on the Global UN Sustainable Development Goals (SDGs). These universal, transformational and inclusive SDGs describe major development challenges for humanity. The aim of the 17 SDGs is to secure a sustainable, peaceful, prosperous and equitable life on earth for everyone now and in the future.
The goals cover global challenges that are crucial for the survival of humanity. They set environmental limits and set critical thresholds for the use of natural resources. The goals recognize that ending poverty must go hand-in-hand with strategies that build economic development.
The path to achieve sustainable development requires a profound transformation of how we think and act. To create a more sustainable world and to engage with sustainability-related issues as described in the SDGs, individuals must become sustainability change-makers.
They require the knowledge, skills, values and attitudes that empower them to contribute to sustainable development. Education, therefore, is crucial for the achievement of sustainable development. It is in this spirit that our firm Distinctus Consultants has included Education for Sustainable Development as part of our training programs.
Distinctus consultants is a company formed by a team of experts who have come together to address various training aspects of the vision 2030 development agenda. This team of experts has designed a training framework that is meant to provide a knowledge platform through offering Education for Sustainable Development to Institutions, Non Governmental Organizations and individuals. This is done through imparting knowledge and information on the sustainable development goals.
Our training programs include; Strategic Planning, Capacity Building, Grant management, Budget formulation, implementation and risk management.
Enterprise Risk Management
As a consequence of economic crisis many executives now recognize that single risks can be valued realistically only in their interaction with other risks. Risks should no longer be regarded isolated, but be identified, analyzed and controlled within the framework of all interacting risks. Studies show, almost every company looks at these risks in isolation.
Existing risk management approaches are focused on protecting the tangible assets reported on a company’s balance sheet and the related contractual rights and obligations. ERM looks at the complete risk sphere with an emphasis on enhancing business strategy. The scope and application of ERM is much broader than protecting physical and financial assets. The scope of ERM is enterprise wide and the application of risk management is targeted to enhancing as well as protecting the unique combination of tangible and intangible assets comprising the organization’s business model. ERM logically aligns risk management with strategic business goals.
- Strategic Risk
- Credit Risk
- Operational Risk
- Liquidity Risk
- Interest Rate Risk
- Market Risk
- Compliance & Legal Risk
- Enterprise Risk Management
Some of the advantages of a well set up framework on financial and enterprise risk management are:
- Creation of a more risk focused culture for the organization,
- Standardized risk reporting,
- Improved focus and perspective on risk,
- Efficient use of resources,
- Effective coordination of regulatory and compliance matters.
Derivatives
Derivatives are great financial instruments for navigating and managing risks if used properly and with a clear insight. Navigating financial risks require an experienced guide. With a team at the heart of the Kenya Derivatives Market set up, we provide a combined local knowledge and technical expertise in training, operations, capital & regulatory compliance, legal and counterparty and market risk management Derivatives services.
