Decisions in the regular ICAAP capital planning require significant time and coordination efforts between several departments
The regular update of the ICAAP capital planning (Internal Capital Adequacy Assessment Process) is usually very time-consuming and requires extensive work in numerous different business areas because responsibilities of the individual elements of the ICAAP are widely allocated. Additionally, the underlying data and calculations for the ICAAP are often only available in decentralized systems which are not interlinked.
Furthermore, the impact of individual changes of input parameters are not evident to the involved parties in time. The lack of impact assessment capabilities lead to many non-purposeful evaluations and countless time-consuming meetings especially when quick ad-hoc analyses are required for the decision-making process.
Over and above, the performed analyses, which are based on historical data and hypothetical assumptions, have to be documented in an audit-proven way.
What impact does a change in the dividend disbursement in t1 have on the subsequent periods t2 and t3 in both the baseline as well as adverse scenarios?
How does a business expansion in segment A that leads to a 0.5% increase in the credit RWA in t1 impact the baseline and adverse scenarios in the subsequent periods t2 and t3?
What impact does an economic downturn including the associated deterioration of the credit portfolio have on the net profit, the net interest income, the RWA as well as the required impairments in t1, t2 and t3 (particularly considering the IFRS three stage model)?
Perform a fast, efficient and decision-relevant ICAAP capital planning process!
With the ICAAP Visualiser, you can simulate the diverse consequences of individual decisions and scenarios instantly and visualize their impact comprehensively for decision makers. This will considerably speed up your decision making process ensuring that the ICAAP is an integral part of your overall management framework.
Our solution seamlessly combines the information from different areas and systems into an integrated calculation. The numerous parameters are used both to forecast the development of the capital ratios for the normative perspective and to calculate the risk-bearing capacity in the economic perspective – including the interaction of the both perspectives.
The ICAAP Visualiser ensures clear traceability, allowing you to meet the strict documentation requirements of regulators and auditors with little effort.
A look at our ICAAP Visualiser
Functionalities and benefits
Make faster and better ICAAP decisions with our visualization of your capital plan.
Direct simulation of scenario impacts of various assumptions on your capital planning, including the simulation of long-term planning horizons (e.g. for ESG scenario analyses in accordance with the ECB Guide)
Flexible handling of a variety of input data and easily adaptable to your system landscape
Modular design allows straightforward extensions, e.g. for the inclusion of different individual assumptions, additional adverse scenarios and even other regulatory requirements (e.g. MREL)
Comprehensible integration of the economic and normative perspectives into an holistic and integral part of the overall management framework
High comparability between different subsidiaries or group entities
Audit-proven documentation of the derivation from the medium-term business plan, the assumptions on internal and external effects as well as the individual scenarios
- Standardized ICAAP Visualiser
- Three workshops (each 90 minutes) on the implementation of the ICAAP Visualiser and the new ICAAP requirements
- Customized technical adaptation of the ICAAP Visualiser
- Gap analysis of your existing ICAAP
- Conceptual enhancement of your ICAAP (e.g. normative and economic perspective, risk inventory process, stress testing framework)
- Supplementary workshops for training purposes or as preparation for supervisory audits
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