ING Group
Capgemini helped the Credit Risk Division of ING Group embark on a transformation toward a Basel II compliant strategy.
ING Group is a global financial institution of Dutch origin, active in the field of banking, insurance and asset management. Located in 65 countries with more than 100,000 employees, ING provides a wide range of financial services to private, corporate and institutional clients through a variety of distribution channels.
The Challenge
Substantial changes in the financial and regulatory environment called for banks to revise their credit risk management strategies. In response to the new Basel Capital Accord (Basel II), Capgemini helped the Credit Risk Division of ING Group embark on a transformation toward a Basel II compliant strategy.
Capgemini Approach
A management model based on Risk Adjusted Return on Capital (RAROC) was chosen to meet Basel II compliance and strengthen ING Group’s competitive edge through improved credit risk management. Capgemini was chosen to guide ING Group through the design and implementation of the new credit risk strategy. Capgemini contributed expertise in risk management and data warehousing, program management and facilitation of the transformation process.
Value Delivered
With assistance from Capgemini, ING Group will comply with the risk sensitive framework of the Basel II accord, translating into substantial savings on capital requirements. Exposure to credit risk will be more accurate and transparent, enabling management to make strategic decisions based on improved and timely information. The credit policy and processes will be more effective and efficient and the quality of data will be improved. Capgemini will continue to assist the transformation until its completion in 2004.
