Key activities
A well-designed Risk Management Framework (RMF) forms the foundation of sound governance, effective decision-making, and regulatory compliance for banks. An RMF helps a bank to consistently identify, assess, manage, and report risks that could affect its ability to meet strategic and regulatory obligations. The Prudential Regulation Authority (PRA) expects all firms to maintain a proportionate yet comprehensive risk management framework that is embedded across the business and updated regularly to reflect changes in the risk profile, market environment, or business model.
To support your bank in building or strengthening its RMF, we offer a structured and end-to-end service model:
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Assess the current state of your risk framework against PRA expectations and industry best practices. Activities typically include:
Review of existing risk documentation, committee structures, and oversight arrangements.
Interviews with key stakeholders and analysis of risk-related processes and reporting.
Gap analysis highlighting strengths, weaknesses, and priority areas for development.
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Co-develop a practical and proportionate target operating model for your RMF. This includes:
Articulating a Risk Governance structure with clearly defined roles across the three lines of defence.
Defining a Risk Appetite Framework (RAF) with limits and triggers tailored to your risk profile.
Establishing a risk taxonomy and classification methodology aligned with internal and regulatory expectations.
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Build out the core components of the RMF including:
Drafting or updating risk policies, procedures, and manuals.
Designing key risk indicators (KRIs) and control self-assessments (RCSAs).
Drafting the Risk Appetite Statement (RAS).
Creating templates and protocols for risk reporting and escalation.
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Work with your team to integrate the RMF into day-to-day operations through:
Facilitated training sessions and risk workshops.
Support with populating and implementing risk registers.
Assistance with aligning risk processes to ICAAP, ILAAP, Recovery & Resolution Planning, and internal audits.
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Provide structured support for management and board-level engagement and approval:
Prepare Board and Committee briefing packs to support RMF and RAS governance.
Assist in presenting the framework to relevant governance bodies for challenge and sign-off.
Provide documentation and evidence to demonstrate regulatory alignment and supervisory readiness.
What we offer
Katalysys offers a tailored and practical approach to Risk Management Framework development, ensuring our clients have a framework that is not only regulatorily compliant but also actionable, scalable, and embedded in decision-making. Whether you are building from the ground up or enhancing existing structures, we partner with you to develop a fit-for-purpose solution aligned with your bank’s size, complexity, and strategic ambitions.
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End to end solution
We work closely with your senior management and board to design and embed a proportionate, practical Risk Management Framework tailored to your business model. From diagnostic assessments to policy drafting, training, and governance, we support you throughout the journey to build a framework that is both regulator-ready and operationally effective.
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Elective services
If you only require support with specific elements, such as developing a Risk Appetite Framework, designing governance structures, facilitating workshops, or drafting policies; we’re happy to help. Our services are modular and can be tailored to fit around your internal capabilities and priorities.
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Review & assurance
If your firm has already developed an RMF internally, we can conduct an independent review of the framework’s design, documentation, and implementation. We’ll assess its alignment with regulatory expectations and industry best practices, and offer practical recommendations to enhance its effectiveness and credibility.
Let’s get started
Interested in learning more about how we can support your bank? Whether you have specific requirements or just want to explore our services further, we’re here to help. Please feel free to contact us, and one of our experts will get in touch to discuss your needs and how we can assist
We look forward to working with you!
Why choose us
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We bring deep, practical knowledge of the PRA’s risk management expectations and how to apply them in a proportionate and effective way for small and medium-sized banks. Our insights ensure that your framework is tailored, compliant, and sustainable, without unnecessary complexity or resource strain.
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We’ve helped many banks to assess, develop, and embed their Risk Management Frameworks. This gives us a broad perspective on what works well in practice, and allows us to share real-world examples and industry-tested best practices with your team.
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Our structured and collaborative delivery model ensures an efficient and high-quality engagement. Whether it’s a full framework build or targeted improvements, our approach saves you time, reduces the compliance burden, and leaves you with a usable, enduring solution.
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Our clients consistently value the strong partnerships we build with them. We’re known for being hands-on, accessible, and responsive - providing clear communication, regular updates, and strategic guidance throughout the engagement.
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We produce clear, concise, and regulator-ready documentation, whether it’s risk policies, governance structures, or board papers. Our materials are designed to support internal alignment, withstand supervisory scrutiny, and reinforce accountability across the business.
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Our support goes beyond delivery, we help you embed the framework into your day-to-day operations, from board-level risk appetite to front-line ownership. The result is a risk culture and infrastructure that support long-term resilience and growth.