Are you facing any problems with your ICAAP?
Based on our experience common areas for concern are:
- ICAAP governance (and roles and responsibilities) within ICAAP. We have worked with clients where responsibility for ICAAP has rested in the Finance Department, the Risk Department, jointly in both Risk and Finance, the Compliance Department and the Corporate Secretariat.
We distinguish between the approaches implicit in each governance model and appraise with you the advantages of each approach relevant to your culture.
- The capital management plan and CFP (Contingent Funding Plan) and interaction with the risk profile.
We work with both Finance and Risk to ensure a consistent approach
- Not all material risks have been considered.
We work with you to appraise your full portfolio of risks and to challenge the more difficult risks such as operational risk, reputation risk and business risk.
- Scenario development and their application and their impact on your ICAAP.
We are experienced with interpreting, developing and applying scenarios and stress tests.
- Extracting greater value by using your ICAAP as a discussion document with your regulator.
We believe the ICAAP document can be a single source of information for your regulator explaining in your words about your firm.
- External Validation of the data used in your models.
We have helped many firms with the external validation required by the regulator.