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Lessons in the Dynamics of Risk and Uncertainty


For some time, I have reflected on the dynamics of the firm decision-making process under imperfect information, contemplating how we, as risk managers, can improve our communication with boards and senior leaders — as well as identify the boundaries of our increasingly analytical-driven risk management processes.


Litigation Services Case Study: Five Bridges Helps Australian Plaintiff Win Class-Action Lawsuit Against International Real Estate Company


Australian shareholders alleged that a large international real estate company misrepresented both its current liabilities and its ability to refinance short-term borrowings in 2007.


Risk and Regulatory Insights: The Quest for Integrated Risk Analytics


Financial risk management has witnessed a revolution in advanced analytics over the last 20 years. New analytic techniques combined with quantum leaps in computing power provide risk managers with an array of tools to better measure and manage risks of various types. Integrating analytic capabilities offers great potential for risk managers and their firms; however, it remains an elusive goal for much of the financial industry.


Portfolio Analysis Case Study: Investment Banking Firm Licenses JWL to Overhaul Whole Loan Portfolio Analysis


The client, a U.S-based investment bank, wanted to leverage third party whole loan analytics for use within its fixed income management division.Ideally, the client wanted to be able to use one application to conduct end-to-end analytics for their residential loan portfolio. Five Bridges worked with the client and determined that the customization features offered in Javelin’s whole loan analytics platform, JWL, would offer the tools needed for the client’s project.


Pricing & Valuation Case Study: Large Nonbank Mortgage Aggregator Licenses Javelin Whole Loans (JWL) Platform for Pricing and Valuation Analysis


A large nonbank mortgage aggregator wanted to improve the granularity and accuracy of its pricing used for its QM-eligible correspondent lending activities. The current process was labor intensive and did not capture as many loan level risk attributes as it could. They were in need of a single platform that had the capability to perform valuations at loan- and portfolio levels quickly and accurately.


Profitability Case Study: Mortgage Portfolio Operation Leverages JWL to Assess the Ongoing Profitability of its Business


A mortgage portfolio lender was interested in upgrading its P&L process by leveraging the Javelin Whole Loan (JWL) Platform. The solution required integration with the existing profitability system used by the firm but tying in the JWL’s suite of analytic models that accurately assess the competing risks of credit and interest rate risk simultaneously across the bank’s varied mortgage products.


Pricing & Valuation Case Study: Large Nonbank Mortgage Aggregator Leverages Javelin Whole Loan (JWL) Platform for Pricing and Valuation Analysis


A large nonbank mortgage aggregator wanted to improve the granularity and accuracy of its pricing used for its QM-eligible correspondent lending activities. The current process was labor intensive and did not capture as many loan level risk attributes as it could.


Debt Restructuring/Loan Modification Case Study: Licensing JWL to a U.S G-SIB


The client, the mortgage servicing division of a major U.S. bank holding company, needed to meet regulatory requirements set forth by the FHFA in the Home Affordable Refinance Program (HARP). The client was in need of whole loan analytics tool to forecast the risk associated with the loan modification program for their residential mortgage servicing portfolio of $50+ billion. The desired tool needed to be sufficiently flexible to handle loan valuation at multiple levels of granularity, as well as be adaptable to the existing process.


Stress Test Case Study: Leveraging JWL for Stress Testing Project for a Medium-Size U.S. Commercial Bank


Regulators had identified weakness in the bank’s risk management processes for analyzing the impact of stress economic scenarios on its consumer risk exposures. The bank needed to accelerate its stress testing capabilities beyond its in house capabilities by leveraging the Javelin Whole Loan (JWL) Platform for analyzing various stress scenario impacts.


Loan Loss Reserving Case Study: Large Community Bank Leverages JWL for Loan Loss Reserve Process


A large community bank wanted to migrate away from a roll rate methodology that was subject to more manual error and not easy to run each quarter to a more analytical and efficient approach. The bank did not have much modeling expertise so the enhanced methodology needed to be easily integrated into existing risk management workflow. Five Bridges approached the client about using the Javelin Whole Loan(JWL) analytics platform for its easily adapted and streamlined UI.


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