Regulatory and Legal

Create a secure future with Regulatory and Legal

Emerging new technologies, constantly changing regulations and ever-evolving business needs shift the ground beneath your feet. We can help you re-write the story, one where you can identify and manage risks and issues in advance, use technology to your advantage and free up your resources to focus on the future, making the most of every opportunity, compliantly and responsibly.

Services

Actuarial Services

Recent legislative changes have affected the insurance industries in recent years. New products, capital management, risk management and IT solutions have driven the development of the financial services industry. Deloitte’s Actuarial team has been at the forefront of these changes, providing the skills, expertise and experience necessary to ensure that our clients’ businesses transform and grow. Our intellectual capital, consulting expertise, and modelling capabilities can help you to transform the way you manage your business.

Actuarial services for insurance companies (general insurance and life insurance companies):

• Audit support
• Development of actuarial methodologies, models and calculation tools
• Reserve assessment
• Solvency analysis
• Tariff modelling and optimization
• Development of new insurance products
• Automation of actuarial calculations, reserve modelling in specialized IT systems
• Strengthening the actuarial function
  
• Embedded value calculation and review
• Risk and capital management
• Reinsurance – optimization of strategy and programs
• Strategy and operations

IFRS 17 implementation:

• Business impact assessment and financial reporting indicators
• Development of actuarial methodologies and valuation models under IFRS 17
• IFRS 17 training programs
• Assistance with IFRS 17 implementation

Actuarial services for pension funds:

• Methodology development
• Mergers and acquisitions
• Actuarial assumptions
• Actuarial assessment of the fund’s activity
• Cash-flow modelling of the fund’s assets and liabilities
• IT system development
• Asset and liability modelling (ALM)
• Strategy and operations
• Training and seminars

Technological support of risk management

Deloitte provides organizations with technological support of risk management process.

• Concept review, development of business and functional requirements for automation of risk management processes and risk reporting (for example, information disclosure under IFRS, internal reports, dashboards, etc.)
• Assistance with the selection of IT solution vendors for automation of risk management processes and risk reporting (market analysis of relevant IT solutions, vendor SWOT analysis), development of temporary IT solutions
• Support with the implementation of risk management software: configuration, testing, training and support of clients during the testing process, software enhancement
• Support with building a system for managing data required for risk reporting (Basel, BCBS 239)

Organizational change management and corporate innovations through R&D

Innovation is a step towards creating a future-proof business that is a priority for the Deloitte team, as our goal is to increase the value of business and to contribute to the success of our Ukrainian and multinational clients. How to combine a deep understanding of business and precision inherent in technology? This is a task for our team that knows how to achieve a desired synergy. Achieving maximum impact and value from investments in R&D for our clients’ various functions (such as finance, business, accounting and IT operations) requires a holistic view of key business functions from strategy to process design and technology enablement. Therefore, we approach the tasks comprehensively in order to develop new technologies to achieve a maximum impact for the client's business, especially in times of crisis and uncertainty.

Our team of experts has many years of experience in risk management, processes of risk management, risk strategy development and implementation of latest technologies and acts as a reliable advisor on emerging technologies for heads of IT, finance, risk, and business functions. We have experience in developing automated solutions for companies around the world and help our clients to transform through innovation. Our approaches cover a range of services from data analysis consulting to development of new business solutions in line with the Ukrainian and international regulatory requirements in the field of IT, risk, and finance.

Examples of our innovation-related work include the following:

• Automation of internal audit processes using Agile methodology
• Robotic business process automation
• Text recognition automation (OCR)
• System for automatic validation of financial risk models
• Collateral and guarantee management system

Our team provides the following services:

• Consulting on methods and tools for automating processes selected by clients
• PoC and MVP development for business cases selected by clients
• Full-scale development and implementation of automated solutions and systems of different complexity and on various technological platforms
• Trainings and industrial seminars for clients on selected innovation topics and based on specific requests from clients
• R&D outsourcing
  

Financial risk and capital management

Deloitte provides support to financial institutions and organizations in all areas related to financial risk and capital management, including identification, assessment, monitoring, control, reporting, and risk mitigation at all organizational levels.

Our knowledge and experience will help with addressing or improving the following processes and areas:

1. Risk appetite implementation services:

• Development of risk appetite model
• Development of indicators for continuous risk appetite monitoring
• Cascading of risk appetite to the level of operational limits, determination of key risk indicators for business units and identification of primary risks

2. Service offerings under ICAAP include risk identification and assessment, formation of sufficient capital to cover risks and implementation of appropriate risk management procedures to ensure long-term solvency.

3. Credit risk management services that include the provision of support in the development or improvement of credit risk management approaches, and support with the implementation of internal models, in particular:

• Development of risk parameter assessment models for estimating expected credit losses, in particular with reference to macro factors
• Development of scoring models for retail business portfolios using model ensembles based on different data sources
• Validation of all types of models used by the risk management function for internal purposes, including the provision of recommendations
• Development and implementation of credit product pricing methodology: portfolio segmentation, calculation of necessary parameters, determination of a breakeven point, and monitoring of net interest margin. Integration of profitability into the decision-making process
• Assessment of economic capital requirements for credit risk in accordance with Basel requirements

4. Liquidity risk management services include the provision of assistance to the clients in developing or improving the liquidity risk management approaches and implementing the internal management models, in particular:

• Gap analysis (static and dynamic, with the possibility of running multiple scenarios)
• Automated forecasting of indicators with a horizon of up to 360 days: LCR, NSFR, gap analysis
• Development of a system for early detection and response to a liquidity crisis
  
• Development of a business continuity plan
• Development of methodology and tools for liquidity analysis under different scenarios
• Automated control of liquidity risk indicators (current state of key indicators, intraday dynamics presented in tabular/graphical form)

5. Market risk management services include the provision of support to clients in developing or improving market risk management approaches as well as implementation of internal market risk management models, in particular:

• Development or enhancement of the limit system and methods for assessing market risks, including internal models and methods
• Adaptation of market risk measurement methods, such as Value-at-Risk and Expected Shortfall
• Development of the market risk management reporting structure
• Development of tools and methods for backtesting and validation of models
• Assessment of economic capital requirements for market risk in accordance with Basel requirements

6. Management of interest rate risk in the banking book includes the development of methodologies and policies, as well as the development of models of economic value of equity (EVE) and net interest income (NII).

7. Stress testing of primary risks and assessment of impact on capital.

• Global IFRS Insurance Survey 2018
• Entering a “new normal” for IFRS 9 ECL measurement. Managing the Covid-19 impacts
• 2021 Governance Outlook Projections on Emerging Board Matters