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Risk Management Solutions Sdn Bhd

MARC RMS' principal activities revolve around the new business lines that were created within MARC in 2018, primarily credit risk or ESG risk analytics solutions; and sustainability-linked offerings. The changing market landscape, technology, regulation and changing customer objectives offer growth opportunities in areas such as analytics and consulting and non-credit sustainability type assessments.

MARC RMS provides analytics consulting services to entities which are implementing Probability of Default (PD) models for their credit risk management needs. The analytics consulting services it currently offers are internal rating model validation and enhancement services, and bespoke credit and non-credit model development services. MARC RMS builds its analytics solutions by listening to and working closely with the user. The company's mission is to build solutions that act as the foundation for day-to-day risk management. To assist clients in strengthening their own in-house analytics resources, MARC RMS also provides structured knowledge transfer as a part of its services.

MARC RMS completed its first validation and internal credit risk rating modelling project for an investment bank in 2019. The project paved the way for MARC to venture into new territory and to demonstrate its analytical capability. The project deliverables which took the form of one corporate credit risk rating model and two specialised lending risk rating models. As the banking system is an important financing vehicle in the domestic economy, MARC RMS' goal is to deliver analytics that will provide financial institutions with intuitive risk insights that will help them more efficiently manage their credit risk measurement and management processes.

Today's realities are such that stronger and deeper collaboration between businesses, governments and consumers is required to make significant strides in sustainability over the next decade. The private sector is increasingly embracing the UN Sustainable Development Goals (SDGs), heeding the call to be a force for good and demonstrate a broader purpose. There is an increased awareness that sustainability can be a business driver and differentiator. Bursa Malaysia's phased introduction of mandatory sustainability reporting for public-listed companies on an annual basis beginning December 2016 has also been instrumental in keeping sustainability on the business agendas of public-listed companies. MARC and MARC RMS are cognisant of expectations on domestic rating agencies to help advance environmental, social, and governance (ESG) transparency on the financing line of action and in capital markets.

With sustainable finance on the rise, the prospects are bright for mainstreaming sustainable bond and sukuk issuance. MARC RMS is proud to play a role in facilitating sustainable finance; during 2019, MARC RMS completed its first green and sustainability bond assessments. Moving forward, MARC RMS will continue to develop sustainability-related analytical offerings with a view to influencing more vigorous discourse in corporate boardrooms on sustainability and corporate regeneration.