Climate change will continue for many decades to come, Banks should adequately incorporate climate-related and environmental risk within their governance and risk management frameworks in order to mitigate risks.
On 20 October 2022, the European Banking Authority (EBA)published new regulatory requirements on Interest Rate Risk and Credit Spread Risk in the Banking Book (IRRBB / CSRBB) aiming to finalise the implementation of Basel III requirements (BCBS368, Guidelines on IRRBB) in the European Union.
The birth of a general and structured regulation framing environmental performance of financial institutions creates a series of governance and practical questions within the industry. Its relative nascent stage requires an implementation far from traditional financial and risk reporting. Banks and Insurances, among others, need to anticipate the role of all their business
lines, their data and insurers their top governance management in this implementation.
This opinion paper note intends to describe the emerging practices in terms of integrating climate risk into credit risk modelling.
The purpose of this paper is to share preliminary thoughts regarding climate risk stress tests including already planned ECB SSM climate risk stress testing exercise but also our service offer for French customers in terms of climate risk stress testing. It describes our main skills and capabilities including our analysis and acceleration tools before sharing the types of interventions that we cover and our credentials.
The purpose of this paper is to share our service offer for French customers in terms of stress testing. It describes our main skills and capabilities including our analysis and acceleration tools before sharing the types of interventions that we cover and our credentials.
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The purpose of this paper is to share our service offer for French customers in terms of climate risk management. It describes our main skills and capabilities including our analysis and acceleration tools before sharing the types of interventions that we cover and our credentials.
Wind-Down Planning remains high on the agenda of the Financial Conduct Authority (FCA). The first part of this paper describes the WDP in more detail, summarising its purpose, differences to other regulatory requirements, and what information should a plan include for it to be compliant. The following section lays out practical considerations on the four key themes that firms should scrutinise when improving their WDP.
Avantage Reply has designed a quantitative model for the assessment of Reputational Risk, traditionally considered as discretionary, subjective and highly prone to interpretation. The Reputational Risk Quantitative Model allows us to overcome the reliance on human sensitivity for risk management. Download our white paper to find out more about the Q-model.
The FRF review is a major opportunity to improve the effectiveness and efficiency of
banking and finance regulation now that the UK can determine its regime according to
its own priorities. In this response to HMT’s first consultation on phase II of the review,
we make detailed proposals for updating the framework under five main headings.
Leveraging on its experience and in line with market practices, Avantage Reply has developed a Liquidity Stress Testing model. Flexible and easy to use, it provides financial institutions with a toolkit which allows them to easily perform internal stress tests and integrate outcomes into decision-making processes.
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UK Finance prepared this paper, with the support of Avantage Reply, at the request of
HM Treasury (HMT) officials ahead of an anticipated consultation on their approach
to the next phase of the financial-services future regulatory-framework review later in
2020. The paper’s focus is identifying the current way regulators analyse the costs and benefits
of their interventions and the mechanisms for scrutinising these analyses.
This paper provides an overview on
ESG, focusing on
Environmental Finance and
Risk, with emphasis on challenges related to specific ESG factors that could be turned into opportunities if managed promptly.
This unexpected crisis raises questions about the effectiveness and agility of banking models and existing risk management frameworks.DOWNLOAD WHITE PAPER NOW
Climate change is an important and growing trend for the financial sector. The rapidly developing supervisory, investor and customer expectations are presenting new challenges to the financial services sector. As a consequence of the changing risk profile, supervisors in the EU and UK are setting new expectations to ensure banks pro-actively manage their climate-related financial risk.
This Practical Guide will share insights regarding typical root causes for the issues raised by the ECB, the FCA and the PRA — as well as potential ways these issues can be addressed.
Last Autumn the
EBA released its public consultation on the revision of the
Implementing Technical Standards (ITS) for Regulatory Reporting and the harmonization of disclosures in the Euro System. We have analysed the new requirements and offer our insights in this white paper, considering the impacts that Financial Institutions can expect and for which they should prepare.
This White Paper discusses questions such as: What are the supervisory expectations on Internal Control and how can GRC tools support an efficient Internal Control Framework? What needs to be considered when planning the implementation of a GRC tool? What future evolvements need to be anticipated?
IFRS 17 poses a range of challenges for insurance companies, it also represents an opportunity to redesign a strategy for
data governance and generate new business value. This white paper explores the impact of IFRS 17 on
data acquisition, storage, analysis and reporting. It provides a thorough analysis of the impact of the new standard in each step of the reporting cycle from the perspective of different facets of data as a foundation for a an actionable roadmap.
Managing risk is central to any business, no matter the sector. It has always been crucially important in the financial sector, but more so now than ever before due to increased regulation and media scrutiny. Managing risk effectively helps you protect customers, shareholders, your employees and ultimately, a business’ reputation.