Banks and financial institutions have been subject to a far more intrusive and demanding approach by regulators over the past decades.
There has also been a shift in emphasis and focus with Central Banks looking much more closely at data quality, for example. The way in which data is recorded, stored and utilised is now coming in for much greater scrutiny as a result.
How credit risk is modelled is also likely to change greatly in the coming years. Supervisors will impose much more prescriptive models and require banks and financial institutions to move away from the models used up until now.
These and other developments are placing a heavy resource burden on institutions. Not only have they to contend with tightening margins and increased competition from outside of the industry, but they are also subject to more frequent inspections, and ever greater regulatory requirements.
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Why Grant Thornton?
Grant Thornton’s industry leading Prudential Risk team works with clients across the financial services sector on a range of areas including regulatory reporting, regulatory authorisations, on-site investigations, and horizon scanning to provide early warning of upcoming regulatory and supervisory developments.
Of critical importance to our clients is our team’s deep understanding and experience of the issues they face. For instance, when it comes to implementing risk mitigation plans, we know what works, what doesn’t work, and how far clients have to go to meet the regulator’s requirements. That well of past experience of working with clients across the financial services sector as well as with regulators is particularly valuable in the current environment.
Our Prudential Risk team is working with clients to address these issues and develop and implement strategies to manage and mitigate the risks posed by these uncertainties.