CEO
Deep dive Report into BCBS-457
CEOs insight for undertaking FRTB
Compliance landscape is reshaping the digital business in corporate banks.
The greatest challenge of FRTB is the data governance, management of all of the data and analytics and bringing all of it together. There can be a positive feel knowing banks can be adequately positioned in terms of our expertise in time series, integration with pricing models and analytics using our specialist tools ERMNIS. Allowing a consistent framework around bucketed data sets calculations to perform centrally computed risk. As an enterprise risk data management company, the ERMNIS solution to what is vastly becoming the biggest challenge to change the regulatory landscape. The key objective being to identify a market leader accelerator to actually get towards compliance, market survey showed there isn’t one silver bullet to solve FRTB and that, given the complexity of infrastructures within banks, that more point to point in solving these problems that can adapt to a risk architecture is going to be the critical path forward. The systems must build upwards from within the auspices of BCBS 239 compliance, especially in terms of good data management, data quality and the data lineage and verified data. A key measure is not just the management of data within clients market data security management master system, but also the integration of existing databases and the different silos for the different asset classes to try and bring those together. Leading onto a multitude of complex challenges around data management. An implementation requires a clear roadmap timeline of a good out of the box solution. ERMNIS provides an extensive software as a service solution which flexibility to be tailored to clients own competitive needs and designs. FRTB is one of the biggest challenges in the market., and banks are spending billions in major transformation projects.
We discuss key topics
Supervisor Involvement
Leadership Team
Risk and Finance alignment
The imperative for digitisation
Speed is of the essence
Agility and mastery of data
Stress Testing forward-looking scenarios
Addressing non-economic Risk factors such as COVID-19
WHITEPAPER
Expert Thought Leadership papers
FRTB THOUGHT LEADERSHIP PAPER
The Fundamental Review of the Trading Book’s data management process requirements and challenges.
The regulatory landscape continues to move at a very fast pace. The new minimum capital requirements Basel framework has a number important new methodologies and approaches; such as expected shortfall, a revised standardized approach to calculating capital requirements, and non-modelable risk factors (NMRF) as well as new processes and forms of governance. Including P&L attribution test and desk-level approvals.
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In this enlightening paper, we discuss our view of the regulatory landscape and recommend an approach for banks to follow in compliance. The emphasis should be that banks continue the legacy of thought leadership in their solutions, in that they seek to become compliant and continue building robust internal self-regulation processes which go beyond the Basel compliance.
