business process modelling ccar reporting

#Business process modelling ccar reporting how to

Regulatory compliance: New regulations and guidance impacting model development and implementation, such as OCC 2011-12, Basel III and CCAR, have increased the burden on model execution platforms.įragmentation of technology: Platforms are increasingly capable of seamlessly integrating with disparate model execution data sources (e.g., Spreading Applications, Customer/Facility/Collateral data sources), reporting / analytics tools and downstream consumer models and systems.Ĭhanges in portfolios: Bank portfolios have been changing in response to product innovation, mergers and acquisitions, and changes in market conditions. User base: In addition to underwriters, model execution platforms support the needs of a diverse user base including model development, model risk management and internal audit teams, and other stakeholders.

Key considerations for model implementation and execution include: Model execution platforms and processes are evolving rapidly to keep pace with business needs. To achieve this, they need to assure sustainable models through effective controls, the three lines of defense approach and independent reviews.

#Business process modelling ccar reporting how to

Governance: Banks must adapt and learn how to comply with new regulations for the long haul in order to drive success.Others also exist that analyze the financial institution’s stability based on the potential future state of the economy. Types of regulations: New forms of regulations are emerging such as Basel III, Volcker Rule, Liquidity Coverage Ratio (LCR) and the Supplementary Leverage Ratio, which provide an overview of the financial institution’s health based on today’s economy.regulatory landscape: Many regulations use the same systems and require similar due dates, resulting in processes becoming interconnected and new models materializing to accommodate these processes. When considering regulatory requirements, common themes include: Capital and liquidity are key levers that regulators use to gauge a financial institution’s health.

There has been a significant regulatory effort to overhaul risk management since the economic downturn.

Empowering the business by using a credit risk rating platformĮvolving U.S.

The importance of internal credit risk rating with a rulebased approach.

Perspectives on operational streamlining.

The increased focus on risk rating platforms used by banks.

It provides an overview of current market trends, and looks ahead to new regulations and what they will demand of risk rating platforms. This article summarizes information provided by Deloitte & Touche LLP and ACTICO during their joint webinar hosted by the Global Association of Risk Professionals (GARP). Banks utilizing the Internal Ratings-Based (IRB) approach for calculating capital requirements must build flexibility into their risk rating platforms to respond quickly to changes in market conditions and regulations. The rapidly evolving bank regulatory environment – particularly Basel II and Basel III capital requirements and stress testing – in addition to ongoing pressure to strengthen internal controls are placing new and costly burdens on credit risk modeling.