A leading US trading firm with a vast global trading portfolio, required assistance complying with more stringent risk management and regulatory reporting requirements from U.K. and European regulators. The regulators required enhanced documentation and reporting related to their enterprise risk management framework. They also required additional liquidity and capital risk controls, calculators and the establishment of related regulatory reporting processes.
Over a period of three months, remediation efforts were conducted with the firm’s enterprise risk management committee, key business stakeholders, finance, risk and compliance leaders.
The enterprise risk management framework for the firm was enhanced significantly, including the documentation of its committee charters, board governing principals, risk appetite statements, limits, risk policies and procedures. The operational risk framework was enhanced as were key risk indicator reports and the material risk inventories. Better board MIS, as well as reporting for market, credit, operational risks were established. Capital and Liquidity risk policies were developed and controls for the monitoring and calculation of associated metrics established.