Managing prudential risk is a critical issue for financial services firms. The regulatory frameworks are complex and the underlying risks are fundamental to the returns firms generate, as well as to their ability to safeguard the interests of customers and markets.

The prudential risk landscape has evolved rapidly in recent years and there is little prospect of this changing in future. Regulators continue to strengthen expectations for risk and governance standards which underpin effective prudential risk management.

How can we help

With extensive experience in dealing with prudential risk matters, our team of specialists can offer support and assistance to help you comply with regulatory requirements and also manage their commercial impact on your business.

RSM’s prudential risk team has skills and experience across banking, consumer credit, asset management, insurance and payments sectors. Our teams are focussed on listening to and understanding how prudential issues impact our clients’ business. This helps us work with them to deliver technically robust and commercially pragmatic solutions.

We work with first-line management teams, risk functions and internal audit teams across all stages of the business lifecycle, from start-up and authorisation, through organic and inorganic growth phases, as well as remediation and exit planning:

• Implementation: we offer support to analyse key regulatory documents like the ICAAP, ILAAP and ICARA, as well as the full suite of prudential regulatory returns (e.g. COREP, Liquidity, MIFIDPRU returns) to ensure they are robust and compliant with the relevant regulatory rules.
• Assurance: we work with risk and internal audit teams to provide technical expertise, benchmarking and industry insight where and when it’s needed. Our team includes skilled internal audit practitioners who are experienced in the delivery of technical prudential reviews on a co-source and full outsource basis.
• Horizon scanning and change management: we support firms to identify and respond to the impact of regulatory changes like MIFIDPRU, Basel 3.1 and the forthcoming ‘Strong and Simple’ banking regime.
• Prudential risk advisory: we are proud to act as trusted advisors to a wide range of FS firms. The constantly evolving prudential landscape obliges firms to continually reassess regulatory requirements. Our expertise supports firms to make sense of these issues by providing an ‘on call’ advisory relationship which can be supplemented by periodic deep dive reviews on a call off basis.
• Regulatory due diligence and transaction structuring: throughout the M&A process we can help reduce execution risk on the buy and sell side by offering commercially grounded prudential due diligence, as well as advice on transaction structuring and group reorganisations to improve regulatory capital efficiency, release trapped cash and capital and streamline regulatory structures.

If you would like to find out more about how we can support your firm, please contact James Roberts.