Regulatory
Compliance

We provide end to end regulatory compliance consulting services to our clients in financial sector i.e. from benchmarking of current status of the client with the regulatory guidelines to plugging the identified gaps in the areas of governance, policy/procedures, Modeling to automation of regulatory reports (IT System Implementation).

We execute analytics projects primarily using our proprietary research in the area of data sciences, analytical techniques (from standard statistical techniques like regression analysis to Machine learning based models/techniques), suitable technologies and most importantly based on our domain knowledge of working in the financial sector.

We have extensively worked in the regulatory compliance domain in the following areas.

• Basel II – Credit Risk, Market Risk & Operational Risk
• Basel II – Pillar II – ICAAP & Stress Testing
• Basel II – Pillar III – Disclosure Requirements
• Basel III – Liquidity Risk & Capital Structure Guidelines
• IFRS 9 Requirements
• Other BIS requirements – Risk Data Guidelines (BCBS 239), IRRBB etc

We also provide consulting services to evaluate the 3rd party vendors regulatory products and help our clients in evaluating the regulatory systems. We have worked with all the leading vendors in the regulatory landscape and are well versed with their capabilities to support our clients in making the right decisions.

We also support the local Central Banks in risk compliance related activities such as drafting/customising regulatory guidelines, conducting risk audit of the banks in their jurisdiction, developing standard macroeconomic stress testing scenarios and in developing the risk models such as macroeconomic models, industry specific models and benchmark PD/LGD models based on collective pooling of data by the local banks.

Our ‘Independent Model Validation Index’ methodology has been developed to help the local regulators in benchmarking the performance of models (all types of portfolios) of different banks in its jurisdiction during a year or over the years. Refer ‘Independent Validation” for details of our services. We believe ‘Independent Validation’ is important for meaningful implementation of regulatory reforms and to increase the resilience & quality of risk models, as these models underpin the provisions (IFRS 9) & regulatory capital (Basel II/III), at the core of banking and regulatory reforms.