Risk and regulatory compliance

For all organisations engaged in activities that come under the control of a regulator (BFIC), PwC provides support, advice and assurance to help you manage your regulatory risks. In an ever-changing regulatory environment, we help ensure that you identify, manage and control any existing and future regulatory risks. A proactive rather than a monitoring approach to regulation is now a full time strategic business activity. For those working in financial services the past year has been a rollercoaster of a ride. The key question we ask ourselves is how best to act in these volatile times. Despite risk practices being tested to the extreme and, in too many cases, come up short, a risk based approach is still an organisation’s best bet for answering this question.

Our team consists of experienced regulatory and risk management specialists, who not only know the rules, but have also implemented and assessed compliance against them. Our people can help you at the strategic level - by maximising any competitive advantages from regulation and strong risk management, through to the operational level - by minimising the costs and disruptions to your business, freeing up management time in the process.

Potential issues Compliance

• You don’t know whether you are regulated, or will be regulated
• You have concerns about the implementation of Mifid, article 20 (banking law) or future internal control requirements for insurance companies
• You don’t know whether you comply with your regulator's rules
• You might be spending too much to comply with regulations
• There are too many regulations for you to cope with
• You might be tying up too much regulatory capital in specific businesses
• You need to plan for staff training in light of new compliance issues
• Proposed regulations might destroy your business or lead to a loss in competitive advantage
• You are concerned about the reputational risk from failing to comply with regulations

Potential issues Risk Management

• You want to identify the full set of risks to which you are exposed including operational risks
• You want to assess your risk-based capital requirements under Basel II or Solvency II
• You want better monitoring of your liquidity risk
• You want independent assurance about the value of your structured credits or CDS portfolio
• You want to assess your risk-based value measures
• You want to enhance the management information employed by your risk committees and Board
• You want to enhance your financial modelling suite to allow for enhancements to your management information
• You want to align your financial and risk management information
• You want to select the optimal allocation of capital
• You want to provide risk training to your staff and Board
• You want all of the above group wide and yesterday
• You want risk, capital and value management expertise for one-off special projects
• You want assurance that your risk framework is robust

PwC's Risk and Regulatory Compliance services include

Compliance

• Independent assurance of regulatory compliance and benchmarking against industry peers, supporting your regulatory responsibilities
• Assessment of current and future regulatory risk profile and impact of new regulations
• Effectiveness reviews of current compliance departments
• Assistance in managing regulatory capital requirements and optimising use of regulatory capital across a group
• Independent assurance on regulatory financial statements
• Developing and implementing a risk-based compliance control framework and monitoring programme
• Helping to increase the profile of regulation and an appropriate compliance culture within your business
• Evaluation of strategic implications of new regulations and integration into business model
• Advice and assistance with regulatory relations and in meeting regulatory standards and expectations
• Advice and assistance with getting your business authorised by a regulator
• Assistance and support in dealing with regulatory enforcement actions and remediation exercises - getting your business back on an even keel quickly.

Risk Management

• Design and implementation of risk identification processes such as product reviews and risk and control self assessment, and facilitation of risk workshops
• Design and implementation of risk-based capital assessment
• Design and implementation of risk-based value assessment
• Design and monitoring of a liquidity risk monitoring framework
• Specification of key indicators and risk dashboards for the various layers of management reflecting the audience
• Design, implementation and validation of financial modelling enhancements
• Design and implementation of risk appetite setting metrics such as economic capital and market consistent embedded value, and facilitation of risk appetite workshops
• Design and implementation of optimisation routines that iteratively seek optimal solutions
• Design and presentation of risk training to your staff and Board
• Design and implementation of aggregation methodologies and performance improvement around your risk-based management information
• Support your internal audit reviews for your Individual Capital Assessment review
• Support your Basel II/Solvency II project team for your gap analysis
• Support your Basel II/Solvency II project team with your internal model approval application
• Valuation of structured credits and complex derivatives.