The Deloitte approach
The SREP supervisory process will apply to all banks irrespective of size or complexity, through a common decision making process allowing for peer comparisons and transversal analyses on a wide scale. With risk management under the spotlight, The CRO, risk team, BoD and risk committee need to be equipped with the right mix of risk and regulatory know-how to be able to influence and challenge decision making. Investing in training and development is therefore critical. We are offering a free session to discuss what we believe to be the key areas impacting the industry.
Outlining the SREP priorities for the year, the ECB put business model and profitability analysis at the top of the list, followed by internal governance. The ECB’s concerns over capital adequacy which have preoccupied them since the last financial crisis featured at the bottom of the list of priorities.