Project Description

Provided Subject Matter Expert (SME) support for a Bank’s migration to the next generation of Capital Calculators (Capital Calculators). This included support in 1) the development, documentation and implementation of sustainable processes and procedures and governance, including effective controls, around the Regulatory Capital (B2 & B3), Economic Capital and Line of Business (LOB) Capital calculations and reporting.

Business Case

Large banking institutions are mandated under Basel rules to report capital results within the various BASEL compliant FFIEC schedules. Additionally, they calculate Economic Capital and LOB Capital. The financial institution must be able to demonstrate that they have adequate policies and procedures , and related controls, in place to ensure the accuracy of these capital calculations and compliance with the rules and regulations that govern such calculations. This also requires maintaining a reasonable and sufficient level of evidence to demonstrate their sustainable and compliant process, including adequate documentation related to the processes and procedures and related controls.

Project Objectives

Assisted in the design and implementation of the processes, procedures and controls for the BASEL 2 & 3 Regulatory Capital, Economic Capital and LOB Capital calculations and reporting process. This project was initiated as a result the Bank migrating to the next generation of Capital Calculators capable of calculating and reporting Basel 2 and 3 Regulatory Capital, Economic Capital and LOB Capital.

Services Provided

Managed and executed the following:

  • Designed, documented and assisted in the implementation of the policy and procedures, and related controls for the capital calculations and reporting.
  • Documented end to end (E2E) process flows and related controls
  • Developed Business Requirements Documents, Detailed Calculator Guidebooks, Desk Top Procedures and Control Documentation to insure sustainable processes and procedures and accurate capital calculations.
  • Acted a liaison between the Capital Calculation and Reporting team and the Quality Assurance, Compliance and Internal Audit organizations during their reviews to verify and test of the effectiveness and adequacy of the new processes, policies and procedures, effectiveness of controls and the quality and adequacy of related documentation.
  • Supported Bank associates in the summary and presentation of the new processes, policies, procedures and controls to the Regulators.