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Insights—Optimizing Trade-Offs for Strategic Portfolio Management

Optimizing Trade-Offs for Strategic Portfolio Management

Insights - How Basel II analytics could drive risk-adjusted portfolio strategies

White Paper

The solutions FICO is exploring would provide mathematically optimized answers to such Executive Committee questions as:

  • If we want to grow the portfolio by 3 %, what is the best way to do it from a Return on Capital (ROC) perspective?
  • How can we rebalance account bookings to maintain costs but increase Risk-Adjusted Return on Capital (RAROC)?
  • Does the capital we’ve set aside to cover risk exposure for this portfolio segment generate a competitive return compared to alternative investment opportunities?
  • In an economic downturn, how should we modify our strategic direction to achieve the desired result