Regulation, Risk & Compliance
Shape the future with excellence and innovative approaches
The primary factors affecting the financial services sector form a complex structure, which is currently forcing banks to invest in change processes at various levels simultaneously. These factors include the pressure toward digitalization, changing macroeconomic conditions, the transformation of HR management and demographics as well as the almost inevitable trend towards "lean banking" which includes streamlining banking processes and cost structures, shifting focus to sustainable competitive advantages, and achieving increased profitability. All of these factors significantly affect a company's risk management culture. This field is providing not only new challenges for banks, but also opportunities.
For over 25 years now, we have been advising our clients in all areas of the complex interdependent framework consisting of regulatory law, risk management and compliance. We provide support with always up-to-date professional excellence, technological foresight and innovative approaches.
- Regulatory law
- Risk management
- Our services at a glance
- Implementation solutions
Comprehensive best-practice solutions for regulatory requirements
Consideration of our clients' entire value chains represents a key pillar of our core competencies in the area of regulatory law. We are thus capable of developing comprehensive approaches, which account for the (legal) consequences of regulatory developments across the enterprise. At the same time, we take into account the impact on existing business models and corporate strategies, as well as the many other business and risk-oriented factors. We develop tailor-made solutions for you based on this and contribute our extensive experience to help you implement these solutions in your organization's architecture. As such, our range of services even extends to upgrading and future-proofing your entire financial and risk architecture.
The second pillar of our core competencies consists of our exceptional professional expertise with regard to all aspects of the complex hierarchy of standards of regulatory requirements stipulated by Basel III/IV, CRD IV/V, CRR/CRR II, BRRD/BRRD II and SRMR I/II. The (new) Basel requirements and related technical standards serve to drastically change the existing hierarchy of laws governing banking supervision. Similar developments affect insurance and securities supervision. Our solution concepts serve as a response to the related effects on risk management and accounting. In addition to this, we include consideration of external reporting in compliance with regulatory requirements, the risk-bearing capacity and the methodological complexity resulting from the new valuation standards.
Our ongoing goal consists of meeting your challenges with best-practice approaches in a focused, comprehensive and integrated way. We keep in sight the growing demands of regulators as well as the interactions between your regulatory responsibilities and the affected functional areas.
Our services at a glance:
- Conceptual design of the functional and technical requirements
- Development and implementation of regulatory/quantitative models
- Development and enhancement of risk management systems
- Support in the selection and implementation of regulatory-related standard software (especially for reporting)
- Development of recognized assessment methods with regard to regulatory law
- Optimization of your processes
We design transformation processes through to full IT implementation. With regard to regulatory law and reporting, we rely on our longstanding expertise and standard applications from renowned partner companies as well as our own industry-specific developments. Among others, these include:
- SAP Bank Analyzer - Credit Risk Analyzer
- SAP Bank Analyzer - Data platform for reporting and disclosure
- SAP Business Warehouse - Solutions for disclosure
- SAP HANA - High-performance solution for big data in risk management and reporting
- ABACUS DaVinci and ABACUS 360 - Comprehensive reporting solution for banks
- BAIS - Reporting for banks
- ManCorr - Correction tool for RDL datasets for SAP Bank Analyzer
- Our services at a glance
- Implementation Solutions
Enterprise-wide risk transparency with an optimized data platform and flexible control mechanisms
New risk landscapes with varied interdependencies have emerged in the banking sector. The already immense number of risk issues resulting from regulatory and accounting law continues to rise in the global context. This requires adaptation that fundamentally affects strategic decisions, business models and digitization as well as enterprise architecture and processes. Defining a digital strategy, in particular, will be one of the most important items on the agenda in the banking sector in the next few years. Focus here will be placed on the comprehensive collection, analysis and use of digital information.
In addition to this, significant tasks are associated with the issue of risk quantification as an important component of risk management. Qualitative factors, also play an important role. This is becoming increasingly apparent given the complex hierarchy of standards stipulated by regulatory law (Basel III/CRD IV and CRR or Basel IV) as well as the standard hierarchy of international accounting regulations in practice (e.g. IFRS 9 and requirements for risk models). New capital requirements, liquidity indexes and leverage ratios are of paramount importance in this regard.
Another focus of our services consists of establishing group-wide acquisition and processing of risk-relevant data and reports in short cycles and at the highest standards of quality, reliability and consistency (risk reporting). Our interdisciplinary approach ensures company-wide risk transparency and provides effective control mechanisms, which closely integrate risk management with corporate governance. We can therefore create the structural and procedural conditions required to fully determine the opportunities and risks of your decisions and quickly meet external requirements.
We advise and support you in all matters of risk management with expertise, experience and constant consideration of affected functional areas and departments.
Our services at a glance:
- Development and implementation of quantitative models
- Conceptual design of the functional and technical requirements of quantitative models
- Development and enhancement of internal risk control and risk management systems
- Selection and implementation of standard software
- Development of suitable assessment methods (e.g. for pricing complex derivatives)
- Development of software tools
- Process optimization
We design transformation processes through to full IT implementation. With regard to technical implementation for risk management, we rely on our longstanding expertise and standard applications from renowned partner companies as well as our own industry-specific developments. Standard applications in the context of risk management include:
- SAP (including Predictive Analytics, Design Studio, Lumira, Web Intelligence, Crystal Reports, BPC, TRM, SEM Banking)
- Moody’s Analytics (especially ImpairmentCalc™ as well as IFRS 9 and CECL Impairment Calculation)
- Oracle (specifically Business Intelligence and reporting modules)
- SAS (including Advanced Analytics, Business Intelligence & Analytics, Cloud Analytics, Customer Intelligence, Data Management, Decision Management, Fraud & Security Intelligence, Performance Management, Risk Management, Solutions for Hadoop, Supply Chain Intelligence)
- Okular KRM
- Okular KPM-EG
- Okular ZIABRIS
- Okular ZINSMANAGEMENT
- Okular ORM
In addition to this, we have acquired extensive practical experience with the matrix-based MATLAB language complemented by additional knowledge regarding numerical algorithmic programming.
- Our services at a glance:
A strong compliance culture for the challenges of the future
Driven by stricter regulatory requirements, alignment of entire organizations with compliance guidelines will play an increasingly important role in the banking sector in the future. Banks with a successful "compliance organization" not only meet regulatory requirements, but also minimize their risks of financial and reputational damage. Typical vulnerabilities that call for solutions include the following:
- Adequate early detection of compliance risks is often missing, which makes it impossible to effectively avert criminal economic and financially harmful acts or reputational damage.
- The suffered damages are often insufficiently analyzed or concealed.
- Fine-tuning of the ICS (internal control system) is internally and externally flawed and corporate culture is not characterized by integrity as a whole.
When it comes to solving these issues, ifb serves as a specialized partner with an integrative mindset. We use our interdisciplinary expertise to support you with individual issues, and in the design and implementation of enterprise compliance management systems with a consistent data infrastructure. We assist you in establishing a culture of integrity with a binding code of conduct. We design the functional and technical connection of all necessary qualitative and quantitative elements, and create clearly defined processes, competences and responsibilities. At the same time, we introduce a binding compliance framework and ensure a transparent flow of information. With our risk-oriented audit-related approach, we comprehensively cover the full compliance context including accounting, risk management, governance and reporting.
Our services at a glance:
- Comprehensive hazard and risk analysis (fraud, MLA, compliance with other regulations such as MaRisk), determination of loss potentials and definition of potential functional and technical countermeasures
- Comprehensive advisory services on selected compliance issues
- Development of manuals, coaching, training measures or seminars
- Development of methods and systems to support the compliance organization (e.g. problem pattern recognition to prevent money laundering)
- Investigations (forensic services)
Our wide range of services provides you with measurable added value in the following forms:
- Significant reduction of damages
- The effective and efficient limitation and control of risks
- A company culture characterized by integrity
- The utmost regulatory compliance with the greatest possible process efficiency