Risk management

In the current environment, the management of all risk types in financial institutions is a key focus for regulators, shareholders and customers. Recent market developments have increased the focus on risk management practices and consequently regulators today are placing greater emphasis on the need for sound and effective risk management frameworks.

In addition to this an increased onus is also being placed on firms to deliver a more integrated risk and capital framework, which is creating challenges as firms seek to embed new concepts of risk management into business as usual. This increase in focus is also being driven by legislative requirements such as those encapsulated in the Capital Requirements Directive (‘CRD’), Solvency II, and the Markets in Financial Instruments Directive (‘MiFID’).

How can PwC assist you?

Our team has extensive experience in this area working with some of Ireland’s leading financial institutions supporting them in the following areas:

• design of a bespoke risk management framework, providing the means to effectively embed risk management within an organisation, whilst providing assurance to all relevant stakeholders on the robustness of the framework (including satisfying the regulator’s requirements). Our work has incorporated the definition of risk appetite, development of risk assessment templates, design of risk measurement and management techniques, related capital planning and implementation of governance arrangements surrounding the risk management framework. All of this can be conducted within the context of fulfilling the Pillar 2 requirements under the CRD or Solvency II and,
• technical assistance supporting financial institutions in addressing regulatory requirements for the management of individual risk types such as market, liquidity, operational, insurance and credit risk, as applicable, including controls and governance of these risks.