---
title: "Financial Risk Modelling Services"
ocid: "ocds-b5fd17-5b6ea31f-89d4-4686-be94-e723d2bff4c7"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-b5fd17-5b6ea31f-89d4-4686-be94-e723d2bff4c7"
markdown_url: "https://d3tenders.com/contract/ocds-b5fd17-5b6ea31f-89d4-4686-be94-e723d2bff4c7.md"
json_url: "https://d3tenders.com/contract/ocds-b5fd17-5b6ea31f-89d4-4686-be94-e723d2bff4c7.json"
source: "Contracts Finder"
current_stage: "Award"
buyer: "HOMES ENGLAND (THE NAME ADOPTED BY THE HOMES AND COMMUNITIES AGENCY)"
published: "2024-01-29"
---

# Financial Risk Modelling Services

Buyer: HOMES ENGLAND (THE NAME ADOPTED BY THE HOMES AND COMMUNITIES AGENCY)  
Current stage: Award  
OCID: ocds-b5fd17-5b6ea31f-89d4-4686-be94-e723d2bff4c7

[View canonical contract page](https://d3tenders.com/contract/?ocid=ocds-b5fd17-5b6ea31f-89d4-4686-be94-e723d2bff4c7)  
[Download OCDS JSON](https://d3tenders.com/contract/ocds-b5fd17-5b6ea31f-89d4-4686-be94-e723d2bff4c7.json)

## Summary

The Homes England organisation has awarded a contract for Financial Risk Modelling Services, with a value of GBP 1.3 million. The procurement process was completed on 16th January 2024, with a contract period starting on 29th January 2024 and ending on 28th January 2028. The services fall under the Financial and Insurance Services category and are related to financial risk parameter estimation and modelling. The contract is open for SMEs to participate and is located in Coventry, England.

This tender for Financial Risk Modelling Services by Homes England presents an opportunity for businesses in the financial consultancy and insurance services industry to provide support in estimating financial risk parameters and developing risk models. Businesses with expertise in Expected Credit Loss models, stress testing, and quantitative risk assessment would be well-suited for this tender. The open procurement method allows for a fair competition among potential suppliers, enabling SMEs to also compete for this contract and contribute towards Homes England's risk management efforts.

## Notice

Homes England produces a range of macroeconomic forecasts on a quarterly basis. These macroeconomic forecasts need to be translated into the impact on the portfolio, and used to quantify, understand, and manage the financial risk to the Agency. Homes England manages a multi-billion-pound Recoverable Investment portfolio consisting of c. 300 loans. The portfolio has been running since 2016 and is highly concentrated in the UK housing market with a skew towards small / medium housebuilders with limited financial and credit history, as well as special purpose vehicles (SPVs) set up to specifically to develop a site. Security for the loans is typically provided by the land associated with the development. Internal data for quantitatively estimating the impact of different macroeconomic scenarios on the various model parameters is limited. A range of models including Expected Credit Loss models and Stress Testing models are used to quantify the financial risk of different macroeconomic scenarios on the Recoverable Investment portfolio. The inputs into these models are generally Probability of Default estimates (both through the cycle and point in time), exposure at default estimates, and Loss Given Default estimates. The regularly updated macroeconomic forecasts therefore need to be translated into these parameters for use in the various models. The Quantitative Risk and Stress Testing team (QRS) at Homes England manages this process. All loans are internally credit rated on origination and on a regular basis throughout the term of the loan. The current process for producing the parameter estimates involves both quantitative analysis and qualitative assessment, converting the internal ratings into the required parameter estimates. Homes England also subscribes to an external ratings agency service to assist with benchmarking the estimates. Homes England is seeking assistance on producing these estimates on an ongoing basis. This requirement forms Lot 1: Financial Risk Parameter Estimation Services (PS500k estimated value) of the Service. See Appendix A: Lot 1 Service Scope. It is envisaged that a single supplier will be appointed to lot 1. Homes England is also seeking support in designing, building, and implementing additional financial and financial risk models to improve its understanding of the current portfolio, and to model new products and programmes. This requirement forms Lot 2: Financial Risk Modelling Advisory Services (PS500k estimated value). See Appendix B: Lot 2 Service Scope. It is envisaged that there will be 4 suppliers appointed for lot 2. Homes England designs, builds, and maintains a wide range of financial and financial risk models. These models and methodologies are applied to a wide range of financial and risk management problems, including credit risk modelling, scenario analysis and forecasting, stress testing, and IFRS 9. Homes England is also seeking external support to provide model validation and assurance services on

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Contracts Finder |
| Latest notice | https://www.contractsfinder.service.gov.uk/Notice/9360c819-613a-4a7f-8a1a-0f001b84405a |
| Notice type | Award Notice |
| Procurement type | Standard |
| Procurement category | Services |
| Procurement method | Open |
| Procurement method details | Open procedure |
| Tender suitability | SME |
| Awardee scale | Large, SME |
| All stages | Tender, Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 29 Jan 2024 |
| Submission deadline | 13 Oct 2023 |
| Future notice date | Not specified |
| Award date | 16 Jan 2024 |
| Contract period | 29 Jan 2024 - 28 Jan 2028 |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | £1,300,000 |
| Lots value | Not specified |
| Awards value | £1,300,000 |
| Contracts value | Not specified |

## Status

| Field | Value |
| --- | --- |
| Tender status | Complete |
| Lots status | Not specified |
| Awards status | Active |
| Contracts status | Not specified |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | HOMES ENGLAND (THE NAME ADOPTED BY THE HOMES AND COMMUNITIES AGENCY) |
| Locality | COVENTRY |
| Post town | Coventry |
| Postcode | CV1 2GN |
| Country | England |
| ITL 1 | TLG West Midlands (England) |
| ITL 2 | TLG3 West Midlands |
| ITL 3 | TLG33 Coventry |
| Local authority | Coventry |
| Electoral ward | St Michael's |
| Westminster constituency | Coventry South |
| Delivery location | TLC North East (England), TLD North West (England), TLF East Midlands (England), TLG West Midlands (England), TLH East (England), TLJ South East (England), TLK South West (England) |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 4 |
| Supplier names | 20:20; GOVERNMENT ACTUARY'S DEPARTMENT; GRANT THORNTON; MAZARS |

## CPV Codes

### Divisions

- 66 - Financial and insurance services

### Codes

- 66000000 - Financial and insurance services
- 66170000 - Financial consultancy, financial transaction processing and clearing-house services
- 66171000 - Financial consultancy services

## Release History

- 29 Jan 2024 at 16:33 - Award - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/9360c819-613a-4a7f-8a1a-0f001b84405a
- 14 Sep 2023 at 11:16 - Tender - Tender Notice - https://www.contractsfinder.service.gov.uk/Notice/cfc1578e-45be-404a-b66c-75a5444955e5
- 12 Sep 2023 at 15:51 - Tender - Tender Notice - https://www.contractsfinder.service.gov.uk/Notice/01866633-7b77-46db-a4e1-2913e01c2ec2

## Documents

- https://www.contractsfinder.service.gov.uk/Notice/9360c819-613a-4a7f-8a1a-0f001b84405a
  29th January 2024 - Awarded contract notice on Contracts Finder
- https://www.contractsfinder.service.gov.uk/Notice/cfc1578e-45be-404a-b66c-75a5444955e5
  14th September 2023 - Opportunity notice on Contracts Finder
- https://www.contractsfinder.service.gov.uk/Notice/01866633-7b77-46db-a4e1-2913e01c2ec2
  12th September 2023 - Opportunity notice on Contracts Finder
- https://procontract.due-north.com/Advert?advertId=60bcf490-e7b8-ed11-8120-005056b64545
  Advert
- https://procontract.due-north.com/Advert?advertId=9a0785d3-0b35-ee11-8124-005056b64545&fromProjectDashboard=True
  Advert

## Notice URLs

- https://www.gov.uk/government/organisations/homes-england

## Provenance

This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-b5fd17-5b6ea31f-89d4-4686-be94-e723d2bff4c7. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-b5fd17-5b6ea31f-89d4-4686-be94-e723d2bff4c7.json.