Briefing Notes

ICT and Third-Party Risk Management

Briefing Note

BaFin Implementation Guidelines on DORA

This paper summarizes BaFin's September 2024 guidelines on implementing DORA in Germany’s financial sector, highlighting key differences in ICT and third-party risk management. It outlines actions for firms to align with DORA’s broader resilience requirements in governance, IT operations, and security.

AI Risk Management in Finance

Briefing Note

AI Risk Management: Observed Industry Priorities for Financial Institutions

Financial institutions are prioritizing AI risk management, regulatory alignment, and governance in H2 2024. As AI adoption grows, firms are addressing risks like data quality, model transparency, and privacy while preparing for evolving regulations. This report highlights industry priorities and the need for clear strategies to manage AI risks and drive innovation.

GUIDE TO EFFECTIVE RDARR

Briefing Note

Chief Risk Officers: A 100 Day Plan for Impact at Scale

An overview of the key incentives for CROs to develop a robust first 100 day plan and major risks that can materialise from ineffective initial navigation of the role.

Guide to Effective RDARR

Briefing Note

Data governance framework, including the role of the 'validation function'

On 3rd May 2024, the ECB released its Guide on Effective Risk Data Aggregation and Risk Reporting (RDARR), relating to the Principles adopted by the Basel Committee on Banking Supervision (BCSB239). The ECB outlined its supervisory expectations across seven key areas; this one-pager focuses on the ECB's expectations regarding the data governance framework in Significant Institutions (SIs).

AML

Briefing Note

EU'S FINANCIAL SHIELD: STRENGTHENING AML MEASURES IN A GLOBALIZED ERA

In an era marked by rapid globalization and technological advancement, combating money laundering and countering the financing of terrorism (AML/CFT) has become imperative for maintaining the integrity of financial systems worldwide. Nowhere is this challenge more pronounced than in the European Union, a region characterized by diverse economies and interconnected financial networks.

GUIDE TO EFFECTIVE RDARR

Briefing Note

ECB SUPERVISORY EXPECTATIONS ON BCBS239: SCOPE OF APPLICATION

On 3rd May 2024, the ECB released its Guide on Effective Risk Data Aggregation and Risk Reporting (RDARR), relating to the Principles adopted by the Basel Committee on Banking Supervision (BCSB239). The ECB outlined its supervisory expectations across seven key areas; this one-pager focuses on the ECB’s expectations regarding the scope of application of BCBS239 in Significant Institutions (SIs).

Guide to Effective RDARR

Briefing Note

RESPONSIBILITIES OF THE MANAGEMENT BODY

On 3rd May 2024, the ECB released its Guide on Effective Risk Data Aggregation and Risk Reporting (RDARR). Among seven areas considered prerequisites for sound data governance and effective processes for identifying, monitoring, and reporting risks, the ECB placed at the forefront the responsibilities of the Management Body of Significant Institutions (SIs).

Crypto Asset

Briefing Note

TIME TO MICAR

Crypto-assets and DLT technology are consolidating in the financial industry. Avantage Reply brings the right skill-set to support banks and financial institutions in embracing with innovation and new business models meanwhile managing risks and uncertainty.

AML

Briefing Note

AML package

Fresh from the presses! A tidal wave is looming on the horizon of the AML landscape: the first European Regulation on AML/CFT, an independent and autonomous authority specific to AML... 2024 will be a landmark for financial crime regulation!The GRC Team is proud to present an in-depth look at the AML Package set to be adopted by the end of the year.

Briefing Note

Six Design Principles for Bank Risk and Control Operating Model Transformations in 2024

This briefing note functions as a starting point for banks’ senior management to identify key priorities and design decisions for risk and control target operating model (TOM) transformations in 2024. It has been developed by identifying the key supervisory priorities of the UK and EU regulators, analysing strategic risk management trends in the industry, and leveraging Avantage Reply’s insights from developing target operating models for a range of risk and control functions at some of the most significant financial institutions across Europe.

Briefing Note

Solvent Exit Planning for Non-Systemic Banks and Building Societies

The Consultation Paper outlines the Prudential Regulation Authority’s (”PRA”) proposals for non-systemic banks and building societies in the UK to prepare, as part of their business-as—usual activities, for an orderly ‘solvent exit’ and if needed, to be able to execute one.

Briefing Note

DORA - Overview of the Joint Consultation on the First Batch of DORA Policy Products

On 19th June 2023, The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) launched a public consultation on the first batch of policy products under the DORA. This pack provides an overview of the four draft regulatory technical standards (RTS) and one set of draft implementing technical standards (ITS) released.

Briefing Note

SMCR Overview for 2023

The SM&CR was introduced in response to failures in senior management conduct and accountability evidenced in the Global Financial Crisis of 2008. The regulatory expectations under the regime are proportional to the degree of influence a stakeholder has on the firm’s decision-making. In particular, it is categorised under three key elements.

Briefing Note

Unique Product Identifier - UPI

The Unique Product Identifier (UPI) is necessary to improve transparency and reduce risk in the OTC derivatives market, but implementing it poses challenges for financial institutions, including data quality, system integration, cost, and industry coordination. High-quality data and system integration are crucial for effective implementation, and coordination is necessary for consistent global adoption.

Briefing Note

Last amendment on SFTR

The European Securities and Markets Authority (ESMA) released an update to Validation Rules and XML Schemas for the Securities Financing Transaction Regulation (SFTR) and Reply’s team will support you in defining the main impacts.

Briefing Note

BASEL 3.1: BRACE FOR IMPACT

The Bank of England has published its position on Basel 3.1 reforms, introducing a series of fundamental changes to the current prudential regulation regime in the UK. CP16/22 - Implementation of the Basel 3.1 standards has largely been adopted from BCBS standards and its core principle are aligned to global practices. However, there remain some key points of difference/divergence, specific to the practices in the UK market.

Briefing Note

NEW SUPERVISORY REGIME FOR NON-SYSTEMIC BANKS

Following Brexit, the UK Government has sought out ways to improve, clarify, and simplify the regulatory regime for UK financial institutions. On April 29, 2021, the PRA published a Discussion Paper, “A Strong and Simple Prudential Framework for Non-Systemic Banks and Building Societies”, outlining its proposed changes to the prudential framework regime for non-systemic banks and building societies to ensure the resilience, stability, and soundness of smaller firms.

Briefing Note

SUPERVISORY EXPECTATIONS FOR NEWLY AUTHORISED BANKS

Following Brexit, the UK Government has sought out ways to improve, clarify, and simplify the regulatory regime for UK financial institutions. On April 15, 2021, the PRA published a Supervisory Statement, “Non-systemic UK banks: The Prudential Regulation Authority’s approach to new and growing banks”, outlining its supervisory expectations for newly authorised non-systemic banks in the UK.

Briefing Note

Regulatory Reporting - Practical roadmap to implementing regulatory changes

The European Banking Authority (EBA) is responsible for setting harmonised prudential rules for financial institutions throughout the EU. To achieve this objective, the EBA has developed Binding Technical Standards and guidelines commonly known as Implementing Technical Standards (ITS) for regulatory reporting – standards that must be respected by all European financial institutions.

Briefing Note

Carbon Asset Risk Assessment Framework

Among the many challenges relating to climate risk management is the question of identifying and assessing exposure to Carbon risk. Indeed, Carbon risk could affect a wide range of physical assets and businesses.