Maintenance & user assistance of a regulatory credit risk database

FOCUS ON: Case studies, Finance,

SUMMARY

The client is a European Investment Bank with global operations. Its expertise covers Corporate & Investment Banking, Private Banking, Asset Management, and Specialised Financial Services. The client requested Avantage Reply to relocate its database system for CoREP computation to another European country and maintain it for several years.

CHALLENGES

The assignment covers the main aspects of the Capital Requirements Regulation (CRR) pertaining to the computation of the Risk-Weighted Assets for Credit and Counterparty Risk, the limits and exposures (including funds and securitisation look-through) within the framework of the Large Exposures regime. It also encompasses all the activities related to the specification of IT requirements and user assistance on the system itself, as well as on its underlying regulatory principles (explanation of the reliability of the system computations).

APPROACH AND SOLUTION

The project started with a transition phase consisting of (a) the implementation of governance and organisational arrangements, processes and procedures to control and monitor the team assigned to the contract and inform the client on the global performance of the project (b) the development of the knowledge of the assigned team on the system, subject to the contract and on the client’s own system development life cycle (SDLC), and (c) the relocation of the services from the client’s office in one EU country to another. Since the completion of this phase, the assigned team has been maintaining the system subject to contract and assisting its users on a stand-alone or business-as-usual basis (without the involvement of the client’s internal resources). The last phase will consist of the decommissioning of the system which is currently expected to be in 2021.

RESULTS AND BENEFITS
At the end of the project, the client had a fully operational database system to compute and manage regulatory and accounting figures for the group Common Reporting (CoREP) at the chosen location. Additionally, Avantage Reply continues to maintain the systems until its decommissioning in 2021.

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