Key activities
The Recovery Plan (RP) and Resolution Plan (ReP), somethings together is referred to as RRP, builds on the Bank’s risk management framework and stress tests conducted as part of the ICAAP and ILAAP. The RP further prompts the bank’s management body to formally articulate recovery triggers and options rather than relying only on modelling buffer requirements to manage stress scenarios. This should be updated at least annually or in the event that significant changes to the bank’s business, risk profile or operating environment.
To ensure your RP is aligned with regulatory guidance and best industry practices, we offer a structured and collaborative service model:
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Examine and assess the business model, risk management framework and risk appetite, governance, policies, strategy, business plans, risk register, ICAAP, ILAAP, financials and feedback following previous regulatory or internal/external audit reviews.
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The Early Warning Indicator (EWI) framework setting out the limits, early warning indicators, risk appetite, risk capacity and triggers
The recovery options available to the bank considering, for each, key aspects of their implementation (including the practicalities, impediments and time frames) together with conclusions about the resulting beneficial outcomes, notably on capital and liquidity.
The evaluation of the impact on the bank’s capital and liquidity due to the stress scenarios.
The recovery options that can be used as part of the management actions to restore the business to a stable and sustainable condition.
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Preparation of the RP document, structured to clearly articulate your risk profile, stress testing results, governance, and risk appetite framework. We ensure consistency across the ICAAP and ILAAP, and alignment to your Risk Management Framework.
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The draft RP is presented to the relevant Management Committee (e.g., Asset and Liability Committee) and Board Risk Committee for challenge and refinement. Final approval is obtained from the Board, with supporting packs tailored for executive discussion and regulatory submission.
What we offer
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End to end solution
We work collaboratively with your senior team and boards, tailoring our approach to your business to develop a bespoke project plan for your RP, and the production of documents and regulatory returns.
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Elective services
You may just require support for specific tasks, such as scenario and risk evaluation workshops, stress testing, and training on industry guidance and best practices. Whatever support you need we’d be glad to be an extension of your team.
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Review & assurance
You may undertake the preparation of the RP internally. In this event, we will be pleased to review the inputs and outputs of the process including the RRP documents to provide assurance that you have followed regulatory guidance and industry best practice.
Ready for your Recovery Plan?
Why choose us
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Deep practical knowledge of the regulations and how to apply them proportionately for small and medium sized banks, ensuring settting of effective recovery indicators and utilisation of efficient and impactful recovery options.
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We’ve undertaken a significant number of Recovery Plans for our clients so keep abreast of the latest PRA guidelines and industry best practices.
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Effective project delivery with an efficient and high-quality engagement that saves you time and reduces the regulatory burden. This includes k-alm® our software as a service that includes robust, in-built stress testing models.
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What really defines our success is the strong, strategic partnerships we form with our clients. We listen carefully to their requirements to achieve positive results and make a lasting impact. Time and again clients comment on our responsiveness and the accessibility of our senior team.
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A professional and fit for purpose RP document that has a a clear flow and structure, and which becomes a play book in the event of a crisis where exeecution of a recovery plan becomes necessary.
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Our clients are able to use the inputs and final RP document(s) on an ongoing basis as part of their wider risk-management practices.
What are we talking about
You might be interested in k-alm®
k-alm® is a risk management software-as-a-service solution that we’ve specifically designed to help small and medium-sized banks conduct stress tests, evaluate funds transfer pricing, and manage liquidity and interest rate risks, without the cost or complexity that is often associated with enterprise solutions.