Business Science Solutions can help you with:

Problem Identification and Formulation: We can assist you in identifying and structuring your problems for analysis. This involves specifying structural relationships as equations, identifying dependencies, and determining their functional and distributional forms.
Data Structuring and Analysis: We can help you effectively structure your data by identifying what is useful, reliable, and consistent. We analyze internal and external trends, identify data gaps, and uncover consistencies across different data sources. We distinguish between random chance and factors driven by business strategy and market conditions.
Data Sourcing and Management: We offer guidance on sourcing new data, including direct and indirect measures, survey and sample data. Additionally, we advise on data definitions, imputations, and transformations that are suitable for your models, ensuring model suitability, stability, and intuitiveness.
Estimation Methodologies: we can assist in develop estimation methodologies that strike the right balance between complexity, stability, robustness, and conservatism. We ensure that the chosen methodologies are reliable and provide accurate results.
Model Estimation and Evaluation: We can estimate and fit models, providing alternative solutions and demonstrating the trade-offs between parsimony and complexity in an intuitive manner. Our goal is to offer you valuable insights for informed decision-making.
Model Implementation: We provide a seamless implementation environment for your models, including tool hosting options. We offer guidance on self-hosted solutions and support operations such as data updating, access control, and permissions.
Documentation and Compliance: We can document your models to meet the technical standards required by financial auditors and regulators. Additionally, we develop interactive and dynamic tools that provide insights into the operation, assumptions, and sensitivity of your solutions.
General Business Consulting: Business Science Solutions extends its expertise to encompass general business consulting services. We can provide comprehensive guidance and support across diverse facets of your business, ranging from strategic planning and process optimization to risk management and performance improvement. Whether you seek assistance with business growth strategies, market analysis, or operational efficiency, we are adept at navigating the complexities inherent in running a successful business.
Financial Algorithms and Risk Strategies: At Business Science Solutions, we have amassed substantial expertise in developing and implementing financial algorithms and risk strategies that are applicable throughout the entire life cycle of financial products.

We have a number of tools and apps available that cover a range of key contemporary risk and finance strategic questions. These include:

Comparisons of risk weight outcomes for Basel III capital reforms across all portfolios
Simple provisioning calculators for ECL and Individual Provisions
Stamp duty and incidence of property taxes on residential property owners in Australia
The reliability of inflation measures, trends and the implications for inflation forecasts
Risk free benchmarks with bond yield curve fitting strategies and derived forwards
Dynamic Uncommitted Monthly Income (UMI) calculator that can be customised to client needs and specifications

Loan Life Cycle

We at Business Science Solutions have accumulated expertise for financial algorithms and financial and risk strategies applicable across the life cycle of financial products:

	Life-cycle stage	Financial calculations required
1	Price and structure a product	Expected Life and Reservation Price: Establish the take up and tenor of customer demand at a price point within a market for financial products.
2	Advertise a financial product	Comparison Rate: the internal rate of return derived from the contractual interest and fees charged over the contractual life of the loan.
3	Advise on the net financial gain	Net financial benefit: a comparison of the risk discounted net present value of competing loan and related financial offers.
4	Issue a financial contract	Payment schedule: the contractual minimum payment schedule reflecting rates, terms, day count conventions and cycle definitions.
5	Recognise a commitment	Loss provisions: Calculate the AASB/IFRS 9 Expected Credit Loss amount for the next 12 months of the loan reflecting its credit quality and the economic environment.
6	Disburse funds	Gross Carrying Amount and Effective Interest Rate: calculate the net of the loan amount with the directly attributable costs and origination fees and implied effective interest over the expected future life.
7	Accrue interest	Accrued interest: apply loan contract rates and terms to the daily loan balance and offsets to calculate the daily interest accrual and derived the nominal and effective revenue.
8	Demand and process payments	Amortisation: apply a payment waterfall to determine the fees paid, accrued interest paid and update the outstanding loan amount.
9	Excess payments	Redraw: determine an amount against schedules, amounts available redraw and any necessary contract rescheduling.
10	Deterioration in credit risk	Significant increase in credit risk: monitor credit quality and anticipate portfolio deteriorations through bureaus, behaviour and local economic conditions.
11	Insufficient payments	Delinquency: count the number of days since the oldest outstanding repayment was overdue and update Days Past Due, assess the cumulative arrears update provisions and collections strategies.
12	Hardship and payment holidays	Restructured loan: calculate the net present value of any financial value foregone in hardship and from restructuring.
13	Non-performing loans	Default: apply default definitions and forecast loss of scenarios, strategies and outcomes.
14	Non-recoverable loans	Write offs: Foreclose a property, recognise a recovery amount, disburse the recovery proceeds, claim on LMI, write off a residual.
15	Analyse portfolio returns	Credit Value at Risk and capital requirements: Derive the accumulated value of the credit portfolio and regulatory and best economic strategies for absorbing and managing this loss.