This module presents many kinds of projects that EFC has effectively developed and applied in Projects for the Financial System: Banks, Stock Exchanges, Stockbrokers and Securities Dealers, Finance Companies, Factoring Companies, Class Associations, etc, many times in a pioneer way.
Kinds of System
Internal Control Systems: EFC has developed six different Internal Control Systems for Financial Institutions, based on the methods COSO and CoCo: Departmentalization, Control through Processes; Exception-based Control; Parameter-related Control (Balanced Score Cards), Control through Management Reports; Self-Assessment.
Credit Risk Management Systems: Credit risks are the main cause of liquidity problems in banks; when they come along with poor management and lack of internal controls, many times banks go bankrupt. Such chain of events does not happen exclusively in Brazil, but world widely too. However, in view of the volatility of the Brazilian economy, inflation and high interest rates for loan takers, the risks of lending money in Brazil are high. A modern credit risk management system, designed and implemented with competence, greatly helps the performance of a bank in the area of credit granting. EFC has developed, in partnership with CBM Group of New York, the most modern models currently existing in the Banking Industry to assess risks and grant safe credit in any country of the world.
Operating Risk Management Systems: Operating risks at financial institutions can be better defined by exclusion: operating risks are all those that do not include credit and market-related risks (arising from exchange rate and interest rate). Such risks include failures caused by lack of training, flaws produced by negligence, fraud, theft and money or equipment misappropriation, failures of technical nature (for example, coming from the computing environment), faults due to conjuncture issues not visualized by the management, Acts of God, etc. Banks lose fortunes with operating risks, but invest very little in planning and implementation of systems to track, identify, measure, evaluate and avoid such operating risks. EFC, in partnership with Multidoc, presents the most modern control system for operating risks: the DBS Accord that can even be implemented through the Internet.
Electronic Control Systems Electronic Control Tower - TCE: EFC and Multidoc, acting together, and studying in details the complex control issues of large retail banks, have developed the concept of Electronic Control Tower - TCE, that has vast utility as a super modern control tool, gathering the functions of event and process measuring, evaluating their performance against pre-established standards and generating correction alert signals, through workflow procedures, centralized repository for storing data and automatic signals. TCE offers many utilities for it. Examples are the implementation of an Audit Committee, monitoring of new and complex projects, Corporate Governance Systems, etc.
Peer Group Analysis: EFC has developed to its clients (Financial Institutions) comparative projects with relevant competition ("Peer Group"). Such projects encompass products, processes, performance analyses, studies on differential strategies, growth comparison, rating comparative exams used by independent agencies, etc. Those projects provide a powerful comparative analysis tool to improve performance of financial institutions.
Computerized Systems: EFC develops, in partnership with specialized companies, computerized systems for management of financial institutions, whether Front Office, or Back Office. The method EFC has been employing is registering operating flows from existing methods and processes, analyze them under the point of view of simplification and automatic controls, redesigning them and next transferring them to the technology area of the financial institution or the one of EFC's partners to be coded. We have already performed this in retail banks looking all the branches, credit departments, current account process and flow, leasing operations, treasury operations, etc, with great success.
Special Studies: They are the ones developed to meet specific demands of clients. A financial institution may have a very special demand that has not been developed yet by any other consulting firms, whether in relation to the market in its country or the one abroad. EFC is equipped, with focus on the client, to meet such special demands.
What are they for?
Meeting standardized demands, such as internal control systems, credit risk management, operating risks, etc.
