Risk Management for Banks and PFS

Risk and complexity are inherent elements of our business environment. They can be found in new technologies, cyber threats, regulatory requirements and changes in accounting and tax rules. Risk is by far the greater threat, as it can easily spread over the globe undetected and has a much larger and far-reaching impact.

Our experienced risk management professionals can help you develop best practice governance, policies, systems, processes and methodologies to identify, measure, manage, reduce and report any risk that your institution is facing or might face in the future. The variety of topics covered includes but not limited to:

  • Governance and risk management framework (including ICAAP/ILAAP)

  • Financial and non-financial risks

  • Recovery and resolution planning

  • Risk modelling and quantitative analysis

  • Stress testing and scenarios analysis

  • IT and data management

  • Risk reporting (including COREP) and disclosures

  • Technologies and tools

We support a wide range of financial institutions, including credit institutions, payment institutions/electronic money institutions, asset management companies (in relation to the capital requirements) and insurance companies. 

Regulatory background

Over the past years the risk management regulatory framework undergone waste changes and it is becoming more and more complex aiming to promote an efficient, effective and transparent management of risks throughout the financial sector of the EU.

Among others, Luxembourg risk management regulatory framework encompasses:

  • EU Banking package

    • EU Capital Requirement Directive and Regulations (CRD IV / CRR, to be soon replaced by CRD V / CRR II)

    • EU Bank Recovery and Resolution Directive (BRRD II)

    • EU Single Resolution Mechanism Resolution (SRMR II)

For more information, please visit our page "Regulations".

  • Investment firms regulation and directive introducing new prudential framework (IFR & IFD). For more information, please visit our page "Investment firms directive and regulation (IFD & IFR)".
  • BCBS publications and guidelines relating to the capital adequacy (aka Basel III / IV), banking supervision, various risks (including credit risk, market and operational risk), transparency and disclosure. For more information, please visit our page "Basel IV".

  • EBA Single Rulebook, various guidelines and technical standards aiming to provide clarity and detail on the regulatory acts

  • CSSF regulations and circulars aiming to implement and adopt regulatory texts in Luxembourg

The new regulatory framework around ESG risks has started to build up, for more information, please visit our page "ESG in banking: what it means for Risk Managers".

 

How can we help you

Risk Management Governance Framework

Regulatory reporting solutions

This is not a secret anymore, banks are facing unprecedented amounts of changes in regulatory reporting on a daily basis while managing other issues and need expertise assistance to maintain accuracy in their reporting. 

PwC Regulatory Reporting Solutions are there to help with, among others, services like:  

  • Assistance to the regulatory reporting production
  • Review and challenge of your reporting prior to submission
  • Trainings & Workshops
  • Implementation of new regulations

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Regulatory services

  • Guidance in respect of the upcoming regulatory changes and impact analysis

  • Gap analysis against the regulatory requirements and best market practices

  • Development / enhancement of the relevant policies and procedures

  • Development / enhancement of the methodologies applied

  • Support in addressing the regulator’s comments

  • Stress testing development and calibration

  • Modelling and quantitative analysis

  • Risk management trainings

Digital solutions and data management

  • Co-implementation of risk management tools (PMO)
  • Assist in selection of digital solutions from a range of vendors and vendors due-diligence 
  • Validation of implementation of risk management tools and models (independent review) 
  • Calibration of existing systems and tools for regulatory changes
  • Support in development / enhancement of the effective risk data aggregation
  • Quality review of the risk management data and reporting
  • Support in identifying and selecting data sourcing options
  • Quantification of IRRBB under stress scenarios

Risk management vendors solutions

Regulatory Reporting, Risk Measurement, Stress Testing, Operational Risk, Data Management …. complex tasks that are time consuming, costly, and resource draining.

PwC Vendor Solutions is there to help.

Through expert knowledge and additional support from a network of deep relationships with reputable vendors, PwC Luxembourg can support you with tailor-made solutions from a broad service suite.

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Contact us

Jean-Philippe Maes

Risk & Regulatory Partner, PwC Luxembourg

Tel: +352 49 48 48 2874

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