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Real estate risk advisory brochure 2013

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  • 1. 1Real Estate Risk Advisory ServicesRiskpro IndiaNew Delhi, Mumbai, Bangalore
  • 2. 2Who is Riskpro… Why us?ABOUT US Riskpro is an organisation of member firmsaround India devoted to client serviceexcellence. Member firms offer wide rangeof services in the field of risk management. Currently it has offices in three major citiesMumbai, Delhi and Bangalore and alliancesin other cities. Managed by experienced professionals withexperiences spanning various industries.MISSION Provide integrated risk managementconsulting services to mid-large sizedcorporate /financial institutions in India Be the preferred service provider forcomplete Governance, Risk and Compliance(GRC) solutions.VALUE PROPOSITION You get quality advisory, normally deliveredby large consulting firms, at fee levelscharged by independent & small firms High quality deliverables Multi-skilled & multi-disciplined organisation. Timely completion of any task Affordable alternative to large firmsDIFFERENTIATORS Risk Management is our main focus Over 200 years of cumulative experience Hybrid Delivery model Ability to take on large and complex projectsdue to delivery capabilities We Hold hands, not shake hands.
  • 3. 3RiskPro HighlightsLarge talent pool of risk experts, consultants andassociate partners in India with deep domain skills fordomestic and global clients11 service locations across Indian region with keyoffices in New Delhi, Mumbai and BangaloreDeep expertise in consulting with over 200 yearsof cumulative consulting experienceOperating Groups: Risk-Advisory, Consulting,Training & HCMSService Lines : Credit, Operational, Fraud Risks,ERM, Regulatory Compliance, OutsourcingManagement, Corporate governanceWe are fastest growing risk consulting companyand have realistic plans to capture comingopportunities while competing with Big - 4’s forsuperior, unmatched, low cost services to ourclients
  • 4. 4Risk Management Advisory ServicesTraining RecruitmentBasel II/III Advisory Market Risk Credit Risk Operational Risk ICAAPCorporate Risks Enterprise Risk Assessment Fraud Risk Risk based Internal Audit Operations Risk Forensic servicesIT Risk Advisory IS Audit Information Security IT Assurance IT GovernanceOperational Risk Process reviews Policy/ Process Review Process Improvement Compliance Risk Insurance RiskGovernance Corporate Governance Business Strategic risk Fraud Risk Forensic AccountingOther Risks Business/Strategic Risk Reputation Risk Real estate risk Contractual Risk Banking – E Learning Corporate Training Regular Risk Management Training Online Training material Project Management/Soft Skills AML-KYC/ ISO 31000 standards Virtual Risk Managers Full Time Risk Professionals Part time Risk Professionals Risk Managers on call – freeSERVICES
  • 5. 5Riskpro’s Network PresenceNew DelhiMumbaiBangaloreAhmedabadPuneAgraSalemKolkataHyderabadChennaiJaipur
  • 6. 6Real estate Market- India Perspective Real estate plays a crucial role in the Indian economy. It is the second largestemployer and is slated to grow at 30% over the next decade. The Indian realestate market size is expected to touch $180 billion by 2020. The housing sector alone contributes to 5-6% of the country’s GDP. Retail,hospitality and commercial real estate are also growing significantly, providingthe much-needed infrastructure for India’s growing needs. Construction industry ranks 3rd among the 14 major sectors in terms of direct,indirect and induced effects in all sectors of the economy. A unit increase inconstruction expenditure generates five times the income, having a multipliereffect across the board. With backward and forward linkages to over 250ancillary industries, the positive effects of real estate growth spread far and wide.Truly, real estate is a growth engine for India’s economy – as per ICRA study. The growing flow of foreign direct investment (FDI) into Indian real estate isencouraging increased transparency. Developers, in order to attract funding,have revamped their accounting and management systems to meet duediligence standards. Customers have also benefited from a hassle-freeaccounting system.
  • 7. 7Typical Risks in Real Estate sector Construction risk Project cash flows vs. debt servicing Market Environment Project Net Operating Income (NOI) and LTV (Loan to value) Financial strength of Developer & Guarantor Collateral coverage Property Technical valuation – FIS/FAR ratio Legal compliances- Ownership/Title
  • 8. 8Early Warning Risk IndicatorsGeneral Loan Characteristics• Interest or other contingency reserves have beendepleted• Delinquent payments because contingency reserveshave been depleted• Requests for extensions, waivers, or similar changesin conditions or terms of the loan - especially if thesewere not provided for in the original documents• Lapse or inadequate insurance coverage• A new subordinated lender or partner involved in theproject• Deferred maintenance has been noted and has notbeen corrected in a timely mannerConstruction Risk Characteristics•Loan is “out of balance” and borrower is unable orrefuses to contribute required equity• Cost overruns which change the scope or nature ofthe project (i.e., improvements of a special purposenature or over-improvements which may limit therefinancing/sale prospects for the project)• Detrimental comments or concerns voiced by theinspecting architect, including hard costs exceedingphysical completion• Construction slower than typical or projected• Major and/or numerous changes in plans andspecifications• Excessive change orders and/or substitution of lowerquality materialsProject Cash flows Characteristics• Projected or actual depletion of interest reserve•Preleasing contracts voided• Increasing vacancy, decreasing effective lease rates,increasing expenses, or the offering of concessionsMarket Characteristics• Unanticipated concessions are being granted in themarketplace to attract tenants• Deteriorating economic climate such as increase incompetition, increase in supply, decrease in demand,or increase in interest rates• Major variances from original underwritingassumptionsBorrower-Developer-GuarantorCharacteristics• Changes in key personnel/management orresponsibilities of key personnel have changed•Borrower is unresponsive or uncooperative torequests to furnish information on the project or overallfinancial condition• Delays in closing on permanent financing• Occupancy, cash flow, or financing problems in otherreal estate owned/developed by the borrower• Problems or renegotiations by borrower on otherdebt• Legal actions, including significant mechanics liens,against borrower, developer, guarantor, partner,contractor or other concerned party• Adverse publicity
  • 9. 9Our Risk Advisory SpectrumNationalDeveloperratingsReal estateratingsLending RisksreviewReview ofvaluationstandardsCreditAssessmentscorecards-PD,LGDAsset qualityassessmentLease structure& StrategyconsultingFinancial RiskmanagementAmortizationschedule review& managementRisk MitigationStrategiesLegal &technicalvalidationchecksRefinancing riskadvisoryPropertyInsuranceadvisory andframeworkFunding anddue diligenceriskmanagement
  • 10. 10Our Services Proposition- Across Value ChainINVESTORS1. Transactions2. Portfolio Management3. Analysis4. Marketing5. ReportingBANKS1. Basel III guidelines2. Loan pricing3. Management4. Covered bonds5. Securitization6. Risk managementteamVALUERS1. Valuation check2. Consistency3. Risk premiums4. Analysis5. Quality of advice
  • 11. 11Integrated Risk Management SolutionsRisk Approach ModelDeveloper-Project modeling based on marketconditions and the marketing power andtrack records of the participants toassess the risk of the project.- Real estate market conditions- Construction risk (cost overruns, delays)- Take-out financing/valuation requirement- Pre-sale figuresConstruction Company-Corporate modeling with industryadjustments to estimate the probabilityof repayment from company revenue.- Financial position- Company track record- Management qualityProperty-Cash flow modeling-Estimate the probability of repaymentfrom property income.- Loan term and structure, location,property quality- Real estate forecasts(supply, vacancy, rents)- Capital market forecasts(inflation, interest rates)Integration LayerOverall Credit Risk Assessment
  • 12. 12Our CommitmentUnparalleled Expertise and Thought LeadershipProfessionals with practical experience as former analysts, practitionersIndepth experience in risk assessmentIndependent evaluations and insightsUnderstanding of your business and customer needsProven Methodologies and DataLeading edge tools, robust and validated models, transparent frameworksComprehensive credit risk data set drive immediate resultsComprehensive SolutionsMultidisciplinary and integrated view of risk management across the value chainCustomized solutions to your needsAdvanced portfolio optimization, for more effective decision-making
  • 13. 13Riskpro Clients Our Clients*Any trademarks or logos used throughout this presentation are the property of their respective ownersBanking/InsuranceCorporateMNCBankingIntlConsultingIT / Others
  • 14. 14Team Experiences Our Experiences*Any trademarks or logos used throughout this presentation are the property of their respective ownersOur team members have worked at world class Companies
  • 15. 15RESUMES – Our team Co-Founder - Riskpro CA, CPA, MBA-Finance (USA), FRM (GARP) Over 10 years international experience – 6 years in Bahrain and 4 years USA 15 years exp in risk management consulting and internal audits, Specialization inOperational Risk, Basel II, Sox and Control design Worked for Ernst & Young (Bahrain), Arab Investment Company (Bahrain),Navigant Consulting(USA), Kotak Mahindra Bank (India) and Credit Suisse(India) Sox Compliance project for Fannie Mae, USA ( $900+ Billion Mortgage Company)ManojJain Co- Founder - Riskpro CA (India), MBA (Netherlands), CIA (USA) Over 15 years of extensive internal and external audit experience in India andabroad. Worked with KPMG United Arab Emirates, PKF South Africa, Ernst and YoungKuwait, Deloitte Netherlands and KPMG India. Worked with clients in a wide variety of industries and countries including trading,retail and consumer goods, NGO, manufacturing and banking and finance. Majorclients include banks, investment companies, manufacturing organizations,aviation etc.RahulBhanCredentials
  • 16. 16RESUMES - Our team Co-Founder - Riskpro PGD (Electrical & Electronics & Computer Programming) 30 years of experience in Information & Communications Technology (ICT) Solutionsfor Retail, Garments, Manufacturing, Services Industries. Has created Companies, Divisions, Products, Brands, Teams & Markets. Consulting in Business, Technology, Marketing & Sales & Strategic Planning. Advisory, Training, Workshops & Implementation in Systems Thinking, SystemsModeling & Balanced Scorecard Worked with TIFR, Mahindra, Ambience, Communico-Graphique & Ionidea Inc, USA,CasperAbrahamCredentialsHemantSeigell Sr Vice President – Risk Management MBA, PDFM,NSE-NCFM, PMP, CSSGB,ISO 9001:2000 I.A,GARP-FBR, ITILV3,CPP-BPM Professional with 17 years of rich experience into diverse Consumer finance/ Lendingoperations ,Risk Management,BPMS, Consumer Banking, NBFC, Management Consulting &Housing finance in BFSI industry having successfully led key business strategicengagements across multi-product environment in APAC, Australia and US regions. Worked with GE, ABN AMRO Bank, Citigroup, Accenture, Deutsche Postbank Highly skilled and expert Trainer in Risk areas across Credit, Fraud, Operational, CorporateRisk management. Specializes in Fraud Control, AML/KYC Compliance ,QA ,ERM and Regulatory governance.
  • 17. 17RESUMES - Our team Head - Insurance Risk Advisory services B.sc, Associate of Indian Institute of Insurance Licensed Category A Insurance surveyor 26 years of experience in Insurance advisory services, Loss adjusting for largecorporates,Claims management. Has assessed more than 4500 high value insurance claims across various industrysectors. Risk management inspection Valuations of fixed assets for insurance purpose.R.GuptaCredentials Head - Human Capital Management Chartered Accountant, Lead Assessor ISO 9000, Six Sigma Trained, Trained on SituationalLeadership, Trained on interviewing skills and Whole Message Model. Over two decades of international, multi-cultural experience in finance and human resourcesviz. internal audit, accounting operations, accounting process review & re-designing, riskmanagement, business solutioning, six sigma projects, talent acquisition, talent retention,organization design/redesigning, compensation and appraisal processing, employee andcustomer satisfaction surveys, knowledge management and finance services. Worked with Citicorp/MGF, India Glycol, Delphi, American Express India, American ExpressUSA, Fidelity International and Macquarie Global Finance Services India.NileshBhatia
  • 18. 18RESUMES - Our team Head – Taxation Risk Advisory B.Com, FCA Senior Partner with 48 year old Delhi based Chartered Accountant firm, Mehrotraand Mehrotra Over 19 years of experience in the field of Audit, Taxation, Company law matters. Major clients served are NTPC, BHEL, Bank of India, PNB, Airport Authority ofIndia etc.RajeshJhalaniCredentialsPresident – Banking & Financial Services A senior researcher in Applied Mathematics leading to Ph.D after MSc (Mathematics),CWA, CAIIB Combined experience of 25+ years in corporate banking, risk management,international trade finance, development of risk rating models, project finance, creditmonitoring and NPA management Since 2006 conducting open / in-house training on the above domains to all Toppublic/ new and old private sector banks, top MNC banks (India and abroad), leadingNBFCs and corporates in manufacturing and financial services space; Worked on IFC(World Bank) funded projects for MSMEs in India and abroad Worked for Bank of Baroda and ICICI Bank – bestowed Top Performer Awardcontinuously two years during his tenure; widely travelled abroad for businessrelations, seminars, offering training, investor meetings, NYSE listing and forprocesses involving establishment of representative Office in USASivaramakrishnan
  • 19. 19Executive Vice President – Risk Management ( Banking & Financial Services) A hands-on banking professional {BSc (Mathematics), CAIIB} with considerabledomestic and international experience An aggregate experience of 24+ years across industry, mainly BFSI in severalfunctional areas including Retail and Commercial Banking, Corporate Lending, teammember of the Business Process Re-Engineering project (BPR); conceptualizing andsetting up shared services centres for centralized operations for the Bank in India. Management through ERM framework overseeing all key areas of the businessthrough various Operational Risk tools like KRI / RCSA matrices. Managing of majorproject implementation of Basel II and Compliance risk framework Directing, reviewing and advising Board of Directors on various compliance issues andrepresenting the bank to the Central Bank regulatory offices. Worked for ANZ Grindlays Bank, Standard Chartered, Bahraini Saudi Bank and DubaiHoldings ( subsidiary)KashiBanerjeeRESUMES - Our team CredentialsConsultant – Information Security & IT Governance LLB, CA, CISA, CWA, CS, CFE and others Over 15 years of experience in the field of Audit, Taxation, Investigations. Specializing in the field of Systems Audit, Cybrex Audit, Computer CrimeInvestigations, IS Forensics International Committee Member of Governmental and Regulatory AgenciesBoard and Academic Relations Committee of ISACA, USAAnjayAgarwal
  • 20. 20RESUMES - Our team CredentialsPhanindraPrakash Vice President – Riskpro India FCA [India], ACMA [India], CFE [USA], CertIFRS [UK] Over 16 years of extensive consulting experience which includes financial & systems audit,process transformation, implementation of internal controls, SOX compliance, fraud audits& due diligence, US-India taxation Engaged in consulting roles as trusted advisor to finance, internal audit and informationtechnology executives of multiple Fortune 1000 companies with project sites in US,Canada, Europe & Asia Worked with E&Y and Deloitte Consulting in USA Some of the major clients served internationally are GE Capital, UBS, McKesson, Eaton,Imation, Albertsons, EVP and Head – Telecom Risk Advisory M.Tech, IIT Kharagpur, India; IES; Doctoral study, research and teaching in LinkopingUniversity/Sweden; Lead Auditor (BVQI). Over 30 years on International experience in networks and mobile Handsets from topglobal companies /institutes like ISRO, Ericsson, Nokia, Nokia Siemens Networks andbased mostly in its head quarter locations in India, EU, USA. Expertise: Setting up capability, behaviour, culture in turning Risk, Quality, Innovation forcompetitive advantage, customer delight and sustainability; key skill sets are Engagement,Handholding, Coaching, Mentoring and lot of best practices, benchmarking/standards likeCMMI, TL9000, Six Sigma, ISO, SAS 70 etc.AsokSit
  • 21. 21RESUMES - Our team CredentialsSiddharthaGhosh Executive Vice President – Riskpro India CPA (USA), ACA, ACS, Grad CWA (India), MBA (USA), Associate ICPAS (Singapore) Over 25 years of extensive audit and industry experience which includes 19 years withRolls-Royce India Pvt Ltd at New Delhi and its associate and parent companies of Rolls-Royce in UK, USA and Singapore in all aspects of Finance, Taxation, Audit, Banking, Legal,Company Secretarial, Statutory compliances and due diligence, Internal Control, ESOP,Budgets, Cashflows, Forecasts, MIS Reporting, HR, Expatriate & Office Administration,Payroll, IT, Retirement Funds Administration, Shared Services, Project Accounts, etc. Worked with Price Waterhouse Coopers for 4 years with reputed MNCs, banks, Indiancorporate houses Worked with McNally Bharat Engineering Company Ltd for 4 yearsPritiTawari Vice President – Riskpro India B. Com, ACA, Dip. IFRS Over 6 years of extensive audit and industry experience in all aspects of Finance, Taxation,Audit, Legal, Company Secretarial, Statutory compliances and due diligence, InternalControl, Budgets, Cash flows, Forecasts, MIS Reporting, HR, Expatriate & OfficeAdministration, Payroll, IT, Project Accounts, etc. Worked with Price Waterhouse Coopers for 3 years in audit & assurance for reputedMNCs, Indian corporate houses. Engage in own practice since 2010 specialize in outsourcing of finance department in midsize MNCs and consultation in Indirect Taxes and Management Reporting
  • 22. 22Executive Vice President – Risk Management ( Banking & Financial Services) Professional Risk Manager with considerable domestic and international experience An aggregate experience of 30 + years across industry, mainly Banking in severalfunctional areas including Wholesale Credit Risk, Operational Risk, Trade Finance ,Retail Banking and Islamic Financial Services. Track record of setting up of excellence in the set-up, and management of credit andoperational risk, compliance and credit administration functions in retail, commercial ,Islamic Banking and offshore banking entities in the Middle East. Key strength includes Corporate Credits, Risk Management in IT, implementation ofRisk Management module in core banking Bank’s Policies, procedures, Country Risk.Played an active role in 3 core banking software implementations Worked for a Private Sector Bank in India, ABN AMRO Bank, Bahrain, Bank MuscatBahrain and BMI Bank Bahrain as AGM Risk Management.VijayanGovindarajanRESUMES - Our team Credentials
  • 23. 23RESUMES - Our team CredentialsManojKumarSenior Vice PresidentCAIIB20 Years of hard core banking experience in India’s most reputed banksacross wide functional areas.Worked with Central Bank of India, ICICI Bank, HDFC Bank, and AxisBank as Asst Vice President, Cluster Head, and Branch Head.Areas of expertise are Financial Risk Management, NPA-Credit-DebtManagement, Asset Reconstruction, Project Finance, and others.Accomplished several achievements in the functional areas of banking.
  • 24. 24 Specialist Risk Consultant – Business Continuity Founder and 15-year Chairman of Survive, the first international user group for BusinessContinuity professionals Founding director and first Fellow of the Business Continuity Institute Over 25 years international consulting expertise in Risk, Crisis, Emergency, Incident, andBusiness Continuity and ICT Disaster Recovery Management Multi-sector experience including Banking, Insurance, Finance, Oil, Gas, Energy,Manufacturing, Retail, Hi-Tech & Telecom Western Press Award for services to business, 1994; BCI/CIR nomination forlifetime achievement in BC, 1999, London; inducted into BC Hall of Fame by CPM magazine,2004, Washington DC.AndrewHilesRESUMES - PARTNERSHIPS Specialist Risk Consultant – Enterprise Risk Management Highly skilled risk and insurance professional with 25 years of experience designing,developing and implementing large, global corporate risk management programs for Fortune500 firms. Principal Consultant and Founder - Excellence in Risk Management, LLC. (Texas, USA) Co-founder and EVP, Professional Services, rPM3 Solutions, LLC (Maryland, USA). Past experiences include Head of Global Risk Management for USAA, PepsiCo/TriconGlobal and American National Red Cross Additional risk and insurance experience at Verizon Corp,. Marsh USA and Liberty MutualInsurance Co. 2004 Risk Manager of the Year – 2007 recipient of the Alexander Hamilton Award for“Excellence in ERM” (at USAA) – former President, Risk and Insurance ManagementSociety, Inc.ChrisE.Mandel
  • 25. 25Key ContactsCorporate Mumbai Delhi BangaloreRiskpro India Ventures (P)Limitedinfo@riskpro.inwww.riskpro.inF 186, Sarita ViharNew Delhi 110076Manoj JainDirectorM- 98337 67114manoj.jain@riskpro.inShriram GokteEVP - Risk ManagementM- 98209 94063shriram.gokte@riskpro.inSivaramakrishnanPresident – Banking & FSM- 98690 19311smaran.iyer@riskpro.inRahul BhanDirectorM- 99680 05042rahul.bhan@riskpro.inHemant SeigellSVP – Risk ManagementM- 99536 97905hemant.seigell@riskpro.inCasper AbrahamDirectorM- 98450 61870casper.abraham@riskpro.inVijayan GovindarajanEVP – Risk ManagementM- 99166 63652vijayan.govindarajan@riskpro.inRavikiran Bhandari VP – ITRisk AdvisoryM- 99001 69562ravikiran.bhandari@riskpro.inGhaziabad / Noida Chennai Kolkata GurgaonSiddhartha GhoshEVP - FinanceM- 9810058072Siddhartha.Ghosh@riskpro.inR Gupta - Insurance RiskM- 98101 07387R. MuralidharanEVP – Risk ManagementM- 95660 77326murali@riskpro.inKashi BanerjeeEVP – Risk ManagementM- 98304 75375kashi.banerjee@riskpro.inNilesh BhatiaHead – Human Capital Mgt.M- 98182 93434nilesh.bhatia@riskpro.inAsok SitEVP – Telecom Risk AdvisoryM- 98105 03463asok.sit@riskpro.inPune Salem Ahmedabad Hyderabad / AgraM.L. JainPrincipal – Strategy RiskM- 98220 11987mljain@riskpro.inPriti TawariM- 9011054085ChandrasekeranRecruitment franchiseeM – 94435 99132Manoj KumarM – 98983 65320Maulik ManakiwalaM – 98256 40046Gourav LadhaPhanindra Prakash (Hyderabad)Member FirmM- 95500 61616Alok Kumar Agarwal (Agra)Member FirmM- 99971 65253