Following the financial crisis and several high profile incidents in recent years, most companies (particularly those in financial services) face increasing requirements in their risk and compliance management.
As well as coping with functional, organisational and technological change, they need to make improvements in their data, information and IT security to meet these requirements.
While fulfilling current regulations, they need to deal with ones coming down the line in an effective and efficient way. And they usually need to set up a comprehensive security framework, covering data, information and IT security as well as the management of digital identities.
In all three areas of risk management, compliance and security we strive for a holistic, inter-disciplinary approach, using established standards, policies and procedures such as COSO, CobiT or ISO.
We aim to create sustainable value for our customers, beyond just complying with laws and regulations, through the optimisation of their risk, compliance and security processes.
As a provider of leading software solutions for the banking regulatory reporting (ABACUS/DaVinci, FiRE), tax reporting for private clients of banks and investment companies (EasyTax, FiTax) and management reporting (FiMIS) in several European countries, we offer our customers practical implementation skills with proven and well-established products. This is in addition to our sound professional and technological advice.
Working closely with insurance industry representatives, BearingPoint has developed a pan-European reporting solution for Solvency II that covers the standard and local requirements of regulators. It covers all Quantitative Reporting Templates (QRTs) currently defined by the European Insurance and Occupational Pensions Authority (EIOPA) and will be continuously adapted to reflect subsequent regulatory changes.
New and extended regulatory requirements for risk management in reaction to the recent financial crisis – mostly known as Basel III – require swift and professional reactions from banks of all kinds and sizes. Amongst the various areas of financial risk management, the following issues are currently topical.
In recent years the investment services industry has been confronted by a broad set of new regulatory requirements which partially resulted in large implementation projects (e.g. MiFID).
The recent financial crisis showed the importance of risk management for financial institutions. A key success factor of institutions less affected by this crisis was the alignment and adequacy of risk management with their specific business model.
Managing identities and designing authorisation and authentication concepts is one of the main challenges facing CIOs today. This is particularly true for large, complex or multinational organisations.
Guaranteeing the confidentiality, integrity and availability of information assets is one of the most challenging tasks facing businesses today.
A recent German-wide BearingPoint study on AML and fraud prevention measures showed that 75 % of the respondents believe that regulatory requirements will increase with an strong impact on processes, systems, policies, documentation, and training.
All companies, and especially financial institutions, have to identify and measure risks. They have to find models for predicting such risks by analysing historic information and using expert knowledge. Future unavoidable, or sometime deliberately taken losses, need to be anticipated to balance against accruals or equity. Rules and regulations have been established to standardise risk measurement and predictions for financial institutions e.g. SolvV, KWG, MaRisk etc. The regulations are being continually revised (see Basel III, CRD III and CRD IV).
Operational risk is defined as the risk of loss resulting from inadequate internal processes, misbehaviour of people, failed systems or from external events. Current incidents have shown that unlikely events happen and cause serious damage to organisations across sectors.
Risk management processes can be significantly improved in many financial institutions. These processes are as a result increasingly attracting the attention of banking supervision. Their optimization can also help to reduce RWA and regulatory capital, in order to comply with the increased capital requirements of Basel III.