Risk and Capital Management for Institutions
Basel III is a comprehensive set of reform measures, developed by the Basel Committee on Banking Supervision, to strengthen the regulation, supervision and risk management of the banking sector.
It has been transposed in European legislation through Directive 2013/36/EU and Regulation (EU) No. 575/2013 (the "CRR/CRD IV" framework).
- Our services
- Framework development / expert review or internal audit support
- IT tools selection
- Pillar II / ICAAP readiness assistance
Deloitte services offering
Our comprehensive and proven CRD IV approach improves risk management practice performance and efficiency while setting up or refining our clients’ risk management framework to comply with the applicable regulatory requirements. We work closely and collaboratively with our clients, providing the right support commensurate to their needs.
Our Luxembourg based risk management professionals are recognised experts in the market place and within Deloitte global network. They will provide you with the knowledge, technology and outstanding experience they have gained on numerous Basel III projects with leading financial institutions here in Luxembourg and in other European countries and even beyond the European borders.
Our wealth of experience, combined with our market-leading network of risk professionals and our proprietary tools, enable our clients to implement this new framework efficiently. Depending on our client’s risk management practice maturity level, we provide customised services designed to build a tailored framework or to review and enhance the current framework.
Our services focus on the building blocks of a risk management framework:
Framework development / expert review or internal audit support
Based on our extensive business intelligence and expertise, we facilitate our clients in the development of a fully integrated and cutting-edge Basel II compliance framework to manage and assess their risks.
This framework is tailored to the type of approach selected, existing procedures in the institution, the culture and the risk profile of the organisation and, when relevant, the guidelines issued by the parent company.
If a framework exists, we provide our clients with a review identifying improvement opportunities to enhance and align their risk management framework with best practices.
We also support internal audit functions in their framework reviews and validation duties as well as perform independent expert reviews of advanced measurement models (IRB, AMA, VaR, etc.) to challenge the quality and robustness of the modelling parameters and assumptions against best practices.
IT tools selection
When our clients face the difficult task of choosing an IT solution to support their risk management framework, we provide them with our assistance for an independent and objective software selection process to ensure they use the tools that best meet their needs.
To achieve this goal, we build upon our business intelligence to provide our clients with an extensive overview of market players that may speed up the selection process through a “Fast Track” approach.
Pillar II / ICAAP readiness assistance
The second pillar of revised regulatory framework relates to the supervisory review and evaluation process (“SREP”). This process seeks to encourage improvements in risk management by linking regulatory capital requirements to the firm’s internal capital adequacy assessment process (“ICAAP”) and the soundness of its internal control structures.
We assist our clients in establishing their ICAAP by providing various levels of support, ranging from high-level external reviews to in-depth process readiness assistance or from support in alignment with group-level standards to the initial establishment of a regulatory compliance ICAAP framework.