Prudential & Risk

• Insight have strong experience of project managing, co-ordinating and drafting ICAAPs/ICARAs, ILAAPs, Recovery Plans and Wind Down Plans;
• Insight has worked with institutions in the UK and EU, and agreed individual capital guidance with regulators – including success in reducing the Pillar 2 add-ons.

• Risk identification process – this forms the foundation for the ICAAP/ICARA/ILAAP which then drives the rest of the process including stress testing;
• Identify the material risks and determine whether additional capital or liquid assets are required including a review to ensure the correct Pillar 1 requirements have been applied;
• Defining and agreeing assessment;
• Pillar 2A and 2B quantification and development of stress testing;
• Review and challenge of assumptions by senior management;
• Appropriate documentation of assumptions and review;
• Drafting communications with regulators; and
• SREP preparation and training.

• Insight have deep knowledge and experience of capital and liquidity requirements.

• Strong in-house knowledge and experience of advising business units and control functions on CRD and CRR requirements;
• Reviewing current Pillar 1 requirements – Regulatory Reporting and RWA optimisation;
• Getting Regulatory Reporting Right (GRRR) – we can help UK and EU banks and investment firms put in place a robust governance process around capital and liquidity reporting, Pillar 1 calculations and interpretation;
• Conducting impact analyses of new requirements including:
  • Brexit–legal entity analysis, options assessment and relocation/authorisation issues;
  • Fundamental Review of the Trading Book (and wider CRDV/CRR2 requirements); and
  • FCA Investment Firms Prudential Regime (IFPR) analysis and implementation;
• Drafting Business Requirements Documents for regulatory implementation projects;
• Managing implementation of new regulatory requirements including CRD v/CRR2 and IFPR/IFR/IFD; and
• Expert witness services in regulatory disciplinary proceedings.

• Expert guidance to help banks and investment firms navigate the complex landscape of UK PRA and FCA capital and liquidity regulatory reporting (and also EBA and ESMA reporting).
• Deep industry knowledge and up-to-date expertise, to ensure accurate and timely submissions, reducing the risk of non-compliance penalties.

• Regulatory Expertise: Insight’s team is well-versed in the evolving regulatory landscape and can help banks and investment firms align their regulatory reporting meet regulatory expectations. We have implemented regulatory reporting systems at large banks and investment firms.

• Data and Infrastructure Management: Insight and its partners can help banks and investment implement robust data management systems and strategic solutions to ensure accurate and reliable regulatory returns.

• Governance and Control Enhancement: Insight has deep experience in regulatory best practices, to help banks and investment firms establish strong governance frameworks for regulatory reporting, ensuring senior management involvement, clear accountability, and comprehensive management information on controls and data quality.

• Resource and Interpretation Support: Insight’s regulatory specialists have the expertise and experience to provide accurate interpretations (mapped back to the rules), establish consistent governance processes for regulatory interpretations, and enhance second-line coverage of regulatory calculations.

• Documentation Improvement: Insight can help develop, draft and maintain comprehensive documentation to ensure accurate records of systems, processes, procedures, controls, and regulatory interpretations.

• Pipeline Preparedness: Insight can advise banks and investment firms on new reporting requirements related to Basel 3.1, climate-related disclosures, and evolving reporting regimes in the EU and UK, ensuring proactive compliance.

• Experience of managing, co-ordinating and drafting Recovery Plans across different EU jurisdictions;
• Regulators have found Insight plans comprehensive and meeting BRRD requirements with no material deficiencies, and fully integrated into the risk management framework of the firm.

• Recovery Plans are based on the work done in the ICAAP and ILAAP;
• Insight will work with the client to develop all aspects of the Plan:
  • Recovery Scenarios: the Plan must set out the detailed idiosyncratic, market-wide stresses that would impact the bank’s business such that it comes close to breaching its minimum capital and liquidity ratios;
  • Recovery Indicators: How does the bank monitor the key ratios and what other metrics are monitored? How is the plan integrated into the bank’s existing risk management framework and ICAAP and ILAAP? E.g. early warning indicators both internal and external;
  • Recovery Plan implementation and governance – how will the Plan be activated? Who is then involved in implementing the Plan?;
  • Recovery Options: Summary and detail of each option; what is the capital and/or liquidity impact of each option?; timing and feasibility of each option; how will each option be executed and who is responsible?; and
  • Communications plan: with both internal and external stakeholders.

Insight has experience of managing, co-ordinating and drafting wind-down plans that meet the regulatory requirements.

• Insight will help clients develop a step-by-step plan based on the relevant FCA handbook and PRA requirements, taking into account market practices where the handbook is not sufficiently prescriptive. This will include:
• Identification of scenarios that lead to a firm no longer being viable, governance processes, management information monitoring and other control processes to support timely wind-down decision making;
• Plan to steer the firm to wind-down its business in an orderly manner after a decision to exit the business has been made;
• Assessment of necessary resources, both financial and non-financial, to support an orderly wind-down; and
• Proactively identifying and mitigating any material obstacles to orderly wind-down.

The Insight team have deep experience of establishing effective governance frameworks and drafting risk policies and procedures for Market, Credit, Liquidity and Operational risks.

• Risk Assessment Frameworks – producing comprehensive documentation to evidence risk policies, processes, controls, systems and procedures including consideration of legal entity and or group:
  • risk capacity;
  • risk appetite;
  • risk limits; and
  • risk profile;
• Risk Appetite Statement – helping to produce the documentation that sets out the levels and types of risk the bank/firm is willing to accept to achieve its business objectives; and key background information and assumptions that informed the risk appetite statement in line with the strategic and business plans;
• Risk Governance – helping to establish an affective governance structure and roles and responsibilities for different committees and senior managers; and
• Drafting and managing policies and procedures for:
  • Market risk;
  • Credit risk;
  • Liquidity risk and
  • Operational risk.