Project Description

FiRisk Consulting led the Prime Brokerage LOB Integration work streams to ensure compliance with US Basel II and III Final Rules. This set of rules requires a financial institution to maintain sufficient capital for solvency and helps identify, manage, and report financial risks.

Business Case

Large banking institutions are mandated under the Basel rules to establish rigorous risk and capital management requirements designed to ensure that the bank holds capital reserves appropriate for the risk the bank exposes itself to through its lending and investment practices. Ultimately, LOB activities are what drives an institution’s risk exposure and RWA and should therefore understand, own, and be accountable (via RWA charge) for these activities.

Project Objectives

Provide BASEL RWA LOB integration leadership, SME and project management for the Prime Brokerage business. The primary objectives of the initiative were to drive and facilitate LOB BASEL compliance, in addition to aiding the LOB in understanding and owning its RWA.

Services Provided

FiRisk Consulting managed and executed the following

  • Ensured BASEL II compliance and be a primary accountable party for demonstrating and defending that compliance
  • Educated and informed the LOB about BASEL II and upcoming BASEL III rules
  • Developed “LOB RWA Dashboard Reporting” to monitor BASEL reporting compliance and potential suboptimal RWA occurrences
  • Advised on and developed optimization strategies to help resolve defects or reduce total LOB RWA