Our definition of financial regulatory reporting is all the risk and finance data, which are sent by Financial Institutions according to final templates defined by the regulators. In our definition, regulators mean ECB SSM/ECB Statistics/EBA/FSB/ BCBS/SRB.
WHAT IS THE background ?
• Regulatory reporting is changing from a simple data reporting process to a forward looking, strategic and integrated framework.
• Regulatory data is driving the pillar 2 charge (Stress Test, Risk Assessment Score, ICAAP, ILAAP).
• Regulatory reporting is a moving target with significant upcoming changes (IFRS 9, ECB, Statistics, Liquidity reporting)
• Regulators are still publishing new regulatory reporting requirements
WHAT ARE the challenges ?
• Understand the new regulatory data and concepts
• Ensure an accurate level of controls over the new regulatory data
• Create agility in the reporting process to facilitate ad hoc analysis and to better identify emerging trends or potential issues
• On board top management on the regulatory reporting process and data
• Anticipate the IT challenges based medium term regulatory plans (BIRD, European Reporting Framework, SDD)
- We provide detailed training and business case related to the current and upcoming templates to a large audience in the Bank (top management, risk, finance, ALM, material entities, internal audit)
- We are specialised in aligning credit quality disclosures in the current accounting, regulatory and risk management reporting change (New Pillar 3 / IFRS 9/ IFRS 7/EBA)
- We perform an independent review of your current regulatory reporting operating model and we compare it with best market practice (with focus on governance and scope of the regulatory reporting function).
For example, this review will allow you to answer the following question: shall I centralise the production of all my regulatory reporting? Shall I also centralise the regulatory reporting systems and internal reporting production?
- We assist you in building a regulatory reporting control framework
- 1st level of control by embedding key regulatory data in your BCBS 239 (Risk Data Aggregation) project
- 2nd level of control by:
- Building a regulatory reporting policy and a regulatory reporting control framework
- Building consistency checks (“laboratory of controls”) between the different regulatory reporting templates (example: COREP vs. FINREP, NSFR vs. Leverage Ratio, Data Gap G20 vs. ALMM)
- 3rd level of control by building a Quality Assurance framework or and by better embedding the CRR control framework requirements within your internal audit planWe embed your regulatory data in your operations by building bridges between your key regulatory indicators and your internal and financial communication indicators
• We prepare your internal regulatory indicators to be more forward looking and linked with your return on capital and profitability at business unit, geography and portfolio levels.