National Standard applies actuarial skills applicable in insurance and other traditional actuarial practice areas in managing risks for banks. The principal banking risks are Credit, Market and Operational risks. Other banking risks include Concentration, Interest rate and Counter party credit risks. The roles of actuaries in banking, therefore, relate mainly to risk management, ranging from credit risk, market risk, liquidity risk and operational risk to other business risks. Each of these risks can be broken down further into a breadth of topics. For example, credit risk is a major area of work and can be broken down into loan origination and pricing strategies, monitoring of portfolio trends, provision of capital and reporting. Given actuaries’ quantitative abilities and understanding of the financial world, they are able to play a key role in each of these areas.

National Standard is, therefore, positioned to provide risk management expertise to banks in the following areas given its actuarial expertise:

• Credit scorecard development and validation
• Credit risk management and reporting
• Design and pricing of banking products (credit- and non-credit-related)
• Customer and product profitability analysis
• Customer behaviour analytics
• IFRS 9 expected credit loss provisioning model development and validation
• Balance sheet management involving asset–liability mismatching risk and liquidity risk management
• Capital modelling
• Credit, operational (including fraud analytics) and market risk modelling and validation
• Balance sheet management

National standard also has expertise to provide risk management expertise to insurance companies where appropriate.