After the release of the Revised Capital Requirement Regulation (CRR 2) in Q2 2021, the client needed support during regulatory production exercises for the selected perimeters. Moreover, off regulatory production periods, the client required a business analyst to coordinate with IT teams to provide requirements in order to automate some of the reporting templates.
In response to this, Avantage Reply provided the support and regulatory know-how needed to produce the templates and off-cycles the technical expertise for the construction of those templates for their automation.
Every quarter, banks need to produce a certain number of templates to satisfy regulatory needs. Evolving regulation and the switch to the standard approach for counterparty credit risk, created a need from the client for support during this process. The global aim of the client was to produce quality reports that satisfied new regulation and both, the local regulator and the ECB.
Outside of production exercises the client also wished to automate the C34 templates and to formalise the complete technical specifications to the IT developers. The goal would be to reduce production time, increase data quality and limit operational risk related to the complicated production process for those specific templates.
The production support required detailed regulatory knowledge as it concerned various scopes which have little links to each other and their own respective requirements. Consolidation and many data sources for reporting needs gave rise to additional complexity and operational risk.
Furthermore, changing regulation and controls from competent authorities created additional challenges as constant surveillance and updates are necessary.
Finally, providing requirements for the selected templates engages both strong knowledge about every aspect of the templates and the capacity to explain the needs to IT developers.
To fulfill the client’s goals, Avantage Reply provided regulatory expertise and analysis on diverse topics and encountered issues. That also included updating procedures to reflect new needs from the regulator and the ongoing automation, regulatory training for staff and sessions with IT developers to communicate efficiently the needs from the business side.
This often meant “translating” legal text into algorithms to be implemented in the IT infrastructure of the project.