Avantage Reply assisted the internal audit department of a leading Private Bank in the Eurozone, a less significant institution (LSI) that is part of an international group.
Following the supervisory review and evaluation process (SREP), the bank received a letter from the respective national Central Bank highlighting a number of weaknesses concerning its liquidity risk management framework and outlining a number of recommendations the bank needed to implement. The bank submitted a response to the competent supervisory authority committing to implement these recommendations in advance of its submission of the 2020 Internal Liquidity Adequacy Assessment Process (ILAAP). After the bank’s internal remediation and implementation, the bank requested assistance from outside experts in liquidity risk management to support the internal audit function in the review and confirmation that the required enhancements, as outlined in the letter, were implemented to satisfactory standards.
The customer’s goal had two main aspects:
There were two primary challenges:
Avantage Reply approached the problem in a structured and efficient manner, tackling the internal review by systematically executing numerous tasks:
The overall deliverable from the assignment was a comprehensive memo documenting the approach and key findings from the review. The memo assessed the following areas: