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A practical guide for independent directors, executives and heads of regulatory reporting
Regulatory reporting is a moving target as a result of evolving regulatory reporting requirements. Secondly, “garbage in, garbage out” remains a pervasive problem, as the industry grapples with significant data quality challenges. Finally, as with any complex system, regulatory reporting requires (preventive) maintenance.
These challenges, relating to the evolving regulatory requirements, are compounded by the institutions’ own changes.
Given the changing nature of regulatory reporting, data lineage ensures that the organisation can understand the impact of changes.
There has been an improvement in the range of positive initiatives that have been adopted whereby Boards and their Committees promote an enabling environment for financial institutions to enhance the effectiveness of the governance, controls, and other processes regarding regulatory returns. Ensuring that procedural documentation (e.g., data input, process description, approved calculation methodologies) and a formal data attestation process between business lines and the regulatory reporting function are in place, including obtaining evidence of independent review evidencing compliance with the procedural documentation.
The supervisory expectations outlined in this Whitepaper are daunting and banks are encouraged to plan well in advance for any potential review. Supervisors will assess all aspects of IT risk. Preliminary views will be formed based on information the supervisor will have already collected through their ongoing supervisory activities, the banks’ regular data submissions as well as specific questions addressing each of the dimensions.
Advisory
Plan & Design
Implementation
A proven track record in developing and implementing robust, flexible, and cost-efficient regulatory reporting systems: Our credentials range from ‘building’ systems (typically within large institutions), integrating vendor products in a meaningful way.
A proven track record in developing and implementing robust, flexible, and cost-efficient regulatory reporting systems: Our credentials range from ‘building’ systems (typically within large institutions), integrating vendor products in a meaningful way.
These include data governance, data architecture, data sourcing and feeding, data quality verification and attestation.
Avantage
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Avantage Reply is a pan-European Financial Services (FS) management consulting firm, delivering change initiatives in Risk, Compliance, Finance and Operations. Avantage Reply has operations in Amsterdam, Brussels, Frankfurt, Lisbon, London, Luxembourg, Milan, Munich, Paris, Rome and Turin. Our consultants advise on and deliver pragmatic solutions, supported by comprehensively tested analytical techniques using proprietary solutions, methodologies and prototypes. Being part of the Reply Group, Avantage Reply successfully leverages on the group’s technology competencies to deliver on client engagements. More details at