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Risk management framework & Risk appetite

Risk management framework and associated risk appetite statement that is proportionate to the complexity and type of bank forms the basic building block for the board’s oversight and governance. This establishes a joined up approach to managing risk across the entire bank.

Risk management framework & risk appetite

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Dear CRO letter - Thematic review of private equity related financing activities – April 2024

On April 23, 2024, the Prudential Regulation Authority (PRA) published the outcomes of a thematic review of banks' risk management practices related to private equity (PE) financing activities. This article summarises the key areas of improvement and provides specific action points that small- and medium-sized banks may consider as part of their risk management practices.

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Dear CEO Letter - Non-systemic firms’ recovery planning thematic review - 2024

On the 15th May 2024, The Prudential Regulation Authority (“PRA”) published the outcomes of a thematic review it conducted on the recovery planning capabilities in a Dear CEO letter. This article summarises the key areas of Improvements and provides specific action points that small- and medium-sized banks may consider as part of the recovery planning process.

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Solvent exit planning for non-systemic banks (SS2/24)

PRA in the supervisory statement SS2/24 outlines requirements around solvent exit planning and execution. This article summarises the requirements and provides specific action points that small- and medium-sized banks can consider to implement these requirements.

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How can we help you?

How can we help you?

Katalysys has helped the board and management team of a number of small- and medium-sized banks in developing their enterprise risk management framework and defining the risk appetite statement. These will be is fit-for-purpose and specifically suitable for small- and medium-sized banks business model. The key areas that we can help are:-

  • Develop the risk management framework, which is specific to the bank and not a generic framework

  • Review the risk management framework in light of recent regulatory requirements and industry best practice

  • Conduct board workshops and brainstorming session to establish the risk appetite, and then articulating it from both a quantitative and qualitative aspect.

  • Review the existing risk appetite statement in provide our observations based on the banks business model, regulatory requirements and industry best practice.