Regulatory Risk Managment
Clarity and confidence around the regulatory risk framework and the organization’s ability to manage regulatory change is of the key importance for the business continence. The key challenge is alignment of the regulatory requirements and business goals as well as adaptation of technologies to ensure the effective and consistent management of compliance and regulatory obligations.
How Deloitte can help?
• We help clients to anticipate and adapt to changes in the regulatory environment and build better programs and controls to address the wide variety of regulations and regulatory risks.
• We work with clients and regulators on effective remediation in response to regulatory requirements.
We provide wide range of Regulatory Risk management professional services:
1. Capital Requirements Regulation (CRR) and Basel 3 standards.
1.1 Credit Risk (STD approach, FIRB/AIRB approach).
1.2 Market Risk (LCR -Liquidity Coverage Ratio and NSFR - Net Stable Funding Ratio).
1.3 Operational Risk.
1.4 Basel 3.1.
2. Asset Quality Review (AQR) including readiness.
2.1 AQR by Working Blocks (WBs):
2.1.2 WB 1 – PP&A (Processes, Policies and Accounting Review).
2.1.3 WB 2 – Loan Tape Creation and Data Integrity Validation (DIV).
2.1.4 WB 3 – Sampling.
2.1.5 WB 4 - Credit Files Review (CFR).
2.1.6 WB 5 – Collateral and Real Estate Valuation.
2.1.7 WB 6 – Projection of findings on Credit Files Review.
2.1.8 WB 7 – Collective Provisions Analysis (Methodology Review and Challenger Model).
2.1.9 WB 8 – Fair Value Exposure review.
2.1.10 WB 9 – Determination of AQR – adjusted CET 1 and definition of remedial actions proposal.
2.1.11 WB 10 – Quality assurance (QA) and progress tracking.
3. IRB models (Internal Rating Based) rollouts including functional diagnostics.
3.1 Risk Weighted Assets (RWA) Assessment.
3.2 Probability of Default (PD) Development and Validation Methodology.
3.3 Loss Given Default (LGD) Development and Validation Methodology.
3.4 Exposure at Default Development (EAD) and Validation Methodology.
4. Stress Testing Frameworks development and verification.
4.1 EBA Stress Test Guidelines.
4.2 Stress Test Methodology and Implementation.
4.3 Climate Stress Test Guidelines.
4.4 Climate Stress Test Methodology and Implementation.
5. SREP diagnostics & support.
5.1 Business Model Assessment.
5.2 Internal Governance and Risk Management Assessment.
5.3 Risk to Capital.
5.4 Assessment of Risk to Liquidity and Funding.
6. TRIM – Credit Risk, Market Risk, Counterparty Risk.
6.1 Credit Risk.
6.2 Market Risk.
6.3 Counterparty Risk.
6.4 Model Maintenance.
7. ICAAP, ILAAP methodologies development, implementation and verification.
7.1 Internal Capital Adequacy Assessment Process (ICAAP).
7.2 Internal Liquidity Adequacy Assessment Process (ILAAP).
7.3 Risk Appetite Framework (RAF).
8. Ana Credit design and implementation.
8.1 Reporting Architecture Assessment.
8.2 Data Collection Assessment.
8.3 Data Quality Assessment.
9. Fit & Proper trainings and updates.
9.1 Trainings for Top management.
9.2 Assistance with Fit & Proper implementation.