Financial Industry Risk & Regulatory
We assist our clients with setting-up and auditing risk management framework and processes and achieving regulatory compliance in terms of trading on financial and capital markets, Asset and Liability Management, credit risk, loan origination, monitoring and collection, capital and liquidity management, recovery and resolution planning and regulatory reporting system.
Market risk, other risks and regulations related to trading on financial and capital markets
- Setting governance, processes, segregation of duties – from front-office to back-office;
- Regulatory compliance gap analyses (e.g. MIFID, EMIR, SFTR, MAD/MAR, BMR) and implementation of remedial measures;
- Valuation of financial assets and derivatives;
- Designing, reviewing and implementing the system of market risk limits and models for their measurement;
- Assessing model risk;
- Implementing of SW for trading on financial and capital markets including accounting, settlement and reconciliation.
Asset and liability management (ALM)
- Setting up processes, governance, responsibilities and segregation of duties, a system of limits;
- Setting up methodology and models for the identification and reporting of risk exposures;
- Interest rate, liquidity and currency risk management and hedging, creating hedging documentation within hedge accounting and hedging efficiency testing;
- Setting intrabank and client pricing of products;
- Statutory compliance gap analysis (ICAAP/ILAAP, IRR BB, SREP, CRR/CRD – LCR and NSFR) and implementation of remedial measures;
- Assessing model risk.
- Setting the risk appetite and the entire credit risk management framework – responsibilities, empowerments, segregation of duties as well as the relevant credit risk policies;
- Setting the criteria for granting of loans and scoring models and their regular evaluation and back-testing;
- Prevention and analysis of loan frauds;
- Building, validation and back-testing of models for calculating capital requirements (IRB models) and provisions (IFRS 9);
- Implementing tools for granting of loans and collateral evidence;
- Asset Quality Review and stress testing;
- Regulatory compliance gap analysis (CRR/CRD, EBA guidelines) and implementation of remedial measures;
- Assessing of model risk;
- Loan portfolio monitoring;
- Credit risk reporting;
- Setting an effective process of collecting loan receivables.
Capital and liquidity risk management, recovery a resolution planning
- Setting governance, processes, segregation of duties in capital and liquidity management in line with the regulator’s expectations;
- Reviewing or setting an internal adequacy assessment process of capital adequacy/liquidity (ICAAP/ILAAP);
- Reflecting liquidity and costs of capital in intrabank pricing;
- Creating and implementing effective stress testing;
- Assistance in designing recovery plans.
- Developing and setting up a regulatory reporting system compliant with the requirements of the Czech National Bank.
- Aggregation of data from various systems and the creation of reports.
- Verification of reports and submission to the CNB.