Risk and capital management assessment and optimisation
The risk and capital management system in a credit institution or a banking group is designed to identify, assess, and control significant risks, evaluate capital adequacy to cover these risks and potential exposures, and plan capital allocation based on comprehensive risk assessments, stress testing, and other factors. It is established through the implementation of Internal Capital Adequacy Assessment Processes (ICAAP), as required by Bank of Russia Ordinance No. 3624-U “On the Requirements for the Risk and Capital Management System of a Credit Institution or a Banking Group”.
FBK renders services for independent assessment and optimisation of risk and capital management to ensure compliance with regulatory requirements.
The assessment and optimisation process of risk and capital management includes the following stages:
- Evaluation of the compliance of the risk and capital management strategy with Bank of Russia Ordinance No. 3624-U dated 15 April 2015.
- Assessment of the Bank’s risk appetite determination procedures.
- Development of recommendations for the efficient structure and classification of significant risks.
- Review of the completeness and adequacy of policies and procedures for managing significant risks.
- Analysis of the need and scope for adjusting operational risk management procedures in light of new regulatory requirements.
- Evaluation of the integration level of significant risk management procedures.
- Assessment of the effectiveness of risk assessment methodologies.
- Review of the organisational structure of the Bank to ensure proper segregation of responsibilities among risk management personnel/departments.
- Analysis of the integration of compensation system elements into risk management practices.
- Evaluation of the feasibility of incorporating risk assessment data into financial planning, budgeting, and decision-making processes.
Upon completion of risk and capital management assessment and optimisation, the client receives:
- Expert opinion for submission to the governing bodies on the status of the risk and capital management system.
- Recommendations and suggestions to perfect the risk and capital management framework.
- Proposed amendments to internal risk management documentation.
- Minimisation of regulatory risk.
- Reduction of the risk of downgrading the Bank of Russia’s assessment of the risk management indicator (PU4) in accordance with Bank of Russia Ordinance No. 4336-U “On Assessing Banks’ Economic Situation” dated 3 April 2017.
- Optimised risk management and control line efficiency in line with the nature, scale, and risk profile of the credit institution’s activities.
Our advantages
Expert Team
Over the past 3 years, FBK experts have successfully assessed and optimised ICAAP in over 10 credit institutions of varying sizes, activities, and risk profiles.
Expertise
FBK specialists monitor legislative changes, ensuring our consultations are always grounded in latest regulatory requirements, while our recommendations are crafted to incorporate best domestic and global practices.
Individual Approach
FBK develops personalised solutions tailored to each credit institution’s size, operational specifics, organisational structure, and risk/capital management strategies.
Key Persons
