Enterprise Risk Management Support

The customer requested Avantage Reply to contribute to the analysis and monitoring of cross-functional risks in collaboration with the Bank’s business units, reporting to the head of Enterprise Risk Management.

Avantage Reply supported them by overseeing the entire risk control framework, from the design to the investigation of aspects related to the Bank’s resolution process, including key components such as ICLAAP, the recovery plan, and ESG risks.

Challenges

During this assignment, there was also the need to implement the necessary measures following the latest internal audit recommendations. As the new team had less “internal” experience, achieving the expected outcomes was challenging. Therefore, it was essential to reinforce the interconnection of the ERM team with other departments and, above all, understand the work that had been done previously in order to continue the work.

Solution

Reply provided one full-time resource who conducted the following:

- Identification and materiality assessment of the bank’s climate and environmental risks. 
- Identification of risks within the ICLAAP, particularly through the consolidation of operational risks from risk maps, as well as, the consolidation of information security risks. 
- Implementation of various KRIs regarding the ESG rating of the bank’s own portfolio and the percentage of "brown" industries within it. 
- Collaboration with the Data Office to extract data enabling the determination of the number of assets pledged as collateral and located in flood-prone areas.