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Financial Industry Risk & Regulation

Financial Industry Risk & Regulation

We help financial industry clients through services designed to drive down cost and improve efficiency of existing regulatory frameworks and while assisting in designing, assessing, and transforming enterprise compliance programs to preserve organizational value. Clients may be the subject of a regulatory action or may have identified gaps in their regulatory compliance processes and/or systems. In such cases, we help clients by assessing the causes of regulatory failures; deploying data and analytics to analyze the potential injury or harm; identifying the appropriate remediation approaches; and implementing remediation programs. We help clients to assess, design and implement governance, processes, models, data and technology, and reporting related to liquidity, market, operational and credit risk management. We help organizations assess, design and implement legal entity and booking model structures in order to optimize returns on capital and meet relevant regulatory and business drivers. We help clients assess and evolve their values, beliefs, tone, conduct, and understanding of risk culture.

The global financial crisis, changing regulatory landscape, increasing macro and micro economic pressures together with the evolving technology and globalisation has meant that topics such as Target Operating Model (TOM) are more and more prominent in our client’s mind. Companies must adapt to ensure that they stay ahead of the curve.

The primary purpose of a TOM is to enable the application of a corporate strategy or vision to a business or operation. It is a high level representation of how a company can be best organised to more efficiently and effectively deliver and execute on the organisation's strategy.

Moreover, it provides a common understanding of the organisation by allowing people to visualise the organisation from a variety of perspectives across the value chain as every significant element of business activity is represented. People, processes and technology are key components underlining any TOM and are critical to ensure its success.

Following the global financial crisis, the political, regulatory and supervisory responses have had a significant impact on the financial services industry. While the regulatory landscape keeps on getting evermore complex with the emergence of new supervisory entities, the costs of regulatory transgressions have reached unprecedented levels, making the adoption of a risk-based approach toward regulatory compliance a very risky and questionable decision.

In a global environment, being ahead of all regulatory changes is a challenge that a proactive approach can make more manageable. Our regulatory watch service can help your organisation to free up time and resources, and focus on core compliance activities.

Especially since the financial crisis, financial reporting environment is evolving rapidly. With auditors and supervisory authorities focusing on companies accounting, it is essential for financial institutions to adequately value their assets and liabilities.

Valuation is a complex subject requiring an in-depth understanding of the assets and liabilities, the company and its economic environment, as well as external factors such as the legal and regulatory environment. Adequate valuation needs the right combination of data, assumptions, modelling methodologies and expert judgment.

Deloitte capitalizes on its extensive valuation experience, as well as on its strong modelling capabilities to anticipate tomorrow’s complex issues and provide expertise in valuation of financial assets and liabilities for financial institutions.

With our assurance service offering, we are leveraging our experience  to enhance stakeholder confidence in the decisions that drive markets and organizations. In a rapidly changing and complex world where new regulations and risks emerge all the time, the focus on assurance actively explores new points of view and fresh ways to generate valuable insight.

We develop and offer tailored, innovative, and comprehensive solutions for specific client business needs that may not require the expression of opinions based on professional standards. In particular, at remediation level - in response to enforcement.

In a business environment subject to rapidly changing dynamics, where competition is high and where the amount of data available is growing exponentially, leading companies leverage on predictive capabilities to gain business insights, improve risk management, boost business performance and support strategic decisions.

An additional challenge for FSI industry is that supervisory authorities expect financial institutions to have transparent and auditable models for regulatory, financial and business decision-making purposes.

In an environment of evolving regulatory expectations, our modelling service can help you unlock the potential of your data by making effective use of innovative predictive modelling techniques to improve business performance, processes and risk management.

Within Regulatory and Legal we ensure our automation and digitalization services offering delivers automated and improved business processes that make your organisation more effective and efficient.

We enable our clients to innovate by reconciling human and digital experiences and envision their services by embedding latest trends and technologies.