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Risk management framework & Risk appetite

Risk management framework and associated risk appetite statement that is proportionate to the complexity and type of bank forms the basic building block for the board’s oversight and governance. This establishes a joined up approach to managing risk across the entire bank.

Risk management framework & risk appetite

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Solvent exit planning for non-systemic banks (SS2/24)

PRA in the supervisory statement SS2/24 outlines requirements around solvent exit planning and execution. This article summarises the requirements and provides specific action points that small- and medium-sized banks can consider to implement these requirements.

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Join us at the webinar on 21-Mar-2024 at 10.00 am hosted by UK Finance

In this webinar, we will provide an overview of the key requirements banks must take account of with respect to their current or planned future relationships with deposit aggregators. Specifically, this will include: Prudential risk: liquidity risk management and liquidity stress testing implications; Liquidity regulatory reporting: implications for calculation and treatment of deposits; and, Depositor protection (Financial Services Compensation Scheme coverage), and third party and outsourcing risk.

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Risk Management – Deposits via Deposit Aggregators

This article outlines the primary risks to banks linked to the utilisation of Deposit Aggregators (DAs) and proposes mitigating measures as outlined in the Dear CFO letter issued by the Prudential Regulation Authority (PRA) on November 15, 2023 and the Dear CEO letter in April 2021.

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How can we help you?

How can we help you?

Katalysys has helped the board and management team of a number of small- and medium-sized banks in developing their enterprise risk management framework and defining the risk appetite statement. These will be is fit-for-purpose and specifically suitable for small- and medium-sized banks business model. The key areas that we can help are:-

  • Develop the risk management framework, which is specific to the bank and not a generic framework

  • Review the risk management framework in light of recent regulatory requirements and industry best practice

  • Conduct board workshops and brainstorming session to establish the risk appetite, and then articulating it from both a quantitative and qualitative aspect.

  • Review the existing risk appetite statement in provide our observations based on the banks business model, regulatory requirements and industry best practice.