Services

Deloitte and SAS join forces to help firms tackle the burdens of risk calculation and reporting

Alliance announcement

The level and complexity of prudential regulation continues to make the design and maintenance of high quality and compliant regulatory processes an increasing challenge. Banks, building societies and other lenders must meet a growing list of requirements relating to risk model management, calculation and reporting for capital planning, impairment and liquidity. Combining new technology and a managed service operating model gives these organisations the opportunity to benefit from economies of scale and to mutualise the costs of regulatory compliance across the industry.

A new alliance with new ways of calculating and reporting risk

Deloitte and SAS are collaborating under a recently signed Managed Analytics Service Provider (MASP) agreement to offer “Risk Calculation and Reporting” as a managed risk service delivered via a cloud-based technology platform. This collaboration brings together advanced analytical software with Deloitte’s specialist services in Financial Risk Measurement and Managed Risk Services, to offer an integrated, highly automated and auditable processes.

The Managed Risk Service is a more agile approach that is structured to benefit our clients by removing the need for extensive investment in staff training and delivery costs associated with the implementation of an on-premises solution, reducing ongoing costs and enhancing business agility. This technology has great potential, which we aim to allow our clients to benefit from

said Hugo Morris, Head of Deloitte’s Managed Risk Services.

Four interrelated modules are being offered to banks, building societies and other lenders, which delivers calculation and reporting outcomes as a service across:

  • IFRS 9 impairment: The new IFRS 9 Financial Instruments Standard requires compliant and consistent impairment calculations (at an account and aggregated level) based on Expected Credit Loss models and expert credit judgement.
  • Capital: The new and changing Basel requirements require firms to calculate, consolidate and report Pillar 1 and Pillar 2 Capital on a controlled basis, whilst having the flexibility to quickly assess business impacts.
  • Stress Testing: The increased use of stress testing as an instrument for regulators to assess the flexibility and strength of financial institutions is forcing firms to deliver enhanced processes and reporting in order to embed analysis in management decision making.
  • Liquidity: The fast-changing liquidity regulatory reporting requirements have increasing complexity and require a quality-assured, highly controlled process.

Deloitte was recently named the 2018 SAS Global Partner of the Year and 2018 SAS Sub-regional UKI Partner of the Year. As a 14-year SAS Platinum Partner with Risk Specialisation and Analytics Competency, Deloitte has the depth and breadth of expertise to maximize the use of the risk technology for these services.

The agreement is a key breakthrough for banks, building societies and other lenders in North West Europe, providing more accessible and more flexible opportunities to complete regulatory analytics, risk measurement and compliance reporting

said Rob Spee Director, SAS Global Channels.

Julian Leake, Head of Deloitte’s Financial Services Risk Advisory in North West Europe:

We recognise that with increased regulatory expectations and emergent technologies, the future of risk management will look dramatically different from which many are familiar with and current risk frameworks are set up for. This Managed Risk Service brings the benefits of this cutting edge technology to a much broader population of banks, building societies and other lenders. This will enhance risk management and ultimately, deliver stronger competition and greater stability in the long term.

To find out more about how Deloitte and SAS can help your company in calculating and reporting risk, please contact one of the team below.

Key contacts

Julian Leake

Julian Leake

Partner

Julian is a Partner at Deloitte and leads the firm’s Financial Service Risk Advisory practice which spans prudential and conduct regulation, operational and technology risk including cyber and GRC. Ju... More

Hugo Morris

Hugo Morris

Partner

Hugo has over 20 years’ experience in the successful delivery of large scale claims, complaints and process based operations. He specialises in delivering multi-faceted projects across numerous geogra... More

Tom Clifford

Tom Clifford

Director

Tom Clifford is a Director within Deloitte’s Financial Risk Measurement team. Tom leads credit risk modelling, model validation and IFRS 9 analytics in the UK and is a member of the UK Credit Centre o... More