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.
Recent technological advancements have accelerated the integration of AI and machine learning models into more and more banking processes. In today’s banking industry, institutions not using AI and machine learning risk losing their competitive edge, as competitors are increasingly enhancing their strategic decisions with the powerful analytical capabilities of AI and machine learning.
On 29 March 2019, the UK will leave the EU after 46 years of continuous membership. What exactly will Brexit mean for Financial Institutions? What actions will need to be taken as a result? While the exact answers to these questions depend on the outcome of UK-EU negotiations, this Whitepaper explores the consequences of the possible scenarios to help Financial Institutions brace for impact.
In February 2017, the ECB launched the executive phase of the Targeted Review on Internal Models (TRIM). This White Paper provides both an update for the Credit Risk side and shares the common understanding related to the latest results and future points of attention. It also discusses the requirements for the design of the process and IT architectures supporting the regulatory exercises, as well as providing best practices for institutions.
Data Robotics Solutions are emerging as a highly effective, yet practical approach for banks to reduce operational risk, improve efficiency, reduce costs and derive additional value. From Robotic Process Automation to machine learning enabled Intelligent Process Automation, banks that have started implementing these solutions are reaping the rewards, both from a financial and compliance perspective.
Models are an integral part of modern banking. They are used inter alia to price transactions, value portfolios and optimise returns. They are also a key cornerstone of the regulatory framework, used to determine required capital and liquidity. In this paper, we set out the key cornerstones of a modern model risk management framework. We start with an overview of the regulatory (i.e., mandatory) requirements, but then consider in greater detail other aspects of the framework, in particular those where some element of management discretion remains.
2016 promises to be another challenging year with more extensive regulatory involvement and further disruption of existing business models. Whilst financial industry firms will continue to rebuild their balance sheets and implement new regulations designed to strengthen standards for a simpler and safer industry, this year will bring additional challenges of dealing with new entrants, including fintech companies, and the necessity of business restructuring and portfolio rebalancing to achieve viable capital and cost bases.
The paper provides an overview of the BCBS 239, including its objectives and requirements, along with some of the stumbling blocks identified by the surveyed G-SIBs and D-SIBs so far. Finally, the paper identifies key areas for successful BCBS 239 compliance, and looks at how banks can use the requirements outlined in the principles to their competitive advantage.
This report takes stock of the evolving regulatory requirements and industry practices in the Eurozone and the UK, focusing on outsourcing by custodian banks, depositary banks and asset servicing companies
(referred to collectively in this report as ‘custodian banks’ for the sake of readability). The intention is to provide an overview of outsourcing in the current environment and to convey an understanding of the trajectory of
outsourcing practices, regulation and supervision.
Over the last decade, financial institutions have become increasingly interested in outsourcing business activities in order to reduce costs, get access to new technologies and improve flexibility and efficiency. Find out more on outsourcing and third party risk management in our white paper, focusing on the EBA Guidelines and the pan-European regulation on outsourcing arrangements.
This White Paper takes stock of the current state of play of the resolution framework in the Banking Union, a little bit over one year after the entry into application of the Single Resolution Mechanism, and contemplates the associated challenges (as well as opportunities) for banks in that context.
This White Paper shares insights on how Eurozone credit institutions have been dealing with the first two SREP exercises. It also shares our understanding of the ECB’s current and future expectations. Last but not least, the Paper explores the impact of the changes in supervisory practices and how these have affected and will continue to affect credit institutions in the Eurozone.
Availability of sufficiently granular and reliable data is a major priority of the Single Supervisory Mechanism (‘SSM’). To this end, the ECB is demanding additional and more granular reporting from banks under its supervisory remit by introducing its new reporting requirement: the Analytical Credit Dataset – also known as AnaCredit.