Implementing Basel III and CRD IV is a challenge for all financial services organisations, but particularly for smaller banks and firms whose resources are often at stretch and have little time to wade through the hundreds of pages of the directive text, consultation papers, rules and guidance produced by the Basel Committee, EU, PRA and other related bodies. This is where briefings and ad hoc assistance can prove cost effective.
Briefings can be provided on site and tailored to the specific needs of the organisation and the intended audience - board members, managers, key staff and those responsible for its implementation. Topics typically covered are:
Topics typically covered are listed below. Their inclusion and depth of coverage will depend on the needs of the target audience:
- Overview of the components of a liquidity risk management framework
- Governance, oversight and risk assurance
- Expressing liquidity risk appetite in accordance with business and risk strategy
- Early warning signals, limits and triggers for escalation
- Monitoring and managing capital and liquidity risk within risk appetite
- Approaches to undertaking capital and liquidity stress testing
- Recovery and resolution planning.
Flexible and cost-effective assistance with your Basel III / CRD IV project can take the form of just a day or two when needed or be on a regular basis, such as a few days each month, depending on your own particular requirements. This will greatly reduce the burden on your own resources in tackling such tasks as:
- Defining and establishing your Basel III / CRD IV implementation strategy.
- Formulating your implementation plan - activities, milestones and project deliverables.
- Briefing your directors and senior managers on Basel III / CRD IV legislation and its implications.
- Assisting with your Basel III / CRD IV project tasks such as gap, impact and cost analysis.
- Facilitating your risk assessment and risk management procedures.
- Reviewing your ICAAP and related procedures for assessing capital requirements.
Implementing liquidity adequacy standards presents a number of specific challenges, especially for small banks and investment firms. We can assist with:
- Documenting your liquidity risk management framework
- Formulating/expressing risk appetite and setting limits to risk tolerance
- Reporting and MI – for internal monitoring and meeting regulatory demands
- Stress testing and scenario analysis to meet the EBA’s required criteria
- Documenting your ILAAP
- Formulating/documenting liquidity contingency plans
- Ensuring you meet implementation deadlines.