April 04, 2014

The Capital Market Authority (CMA) of Saudi Arabia mandated the implementation of Internal Capital Adequacy Assessment Process (ICAAP) for ‘Authorized Persons’. These firms typically provide Brokerage (domestic and international), Asset Management (Debt, Equity, Real Estate, fund of funds structure etc. investing across the globe) and Investment Banking (advisory on IPO, rights issues, private placements etc) services.

Aptivaa assisted 7 out of the top 10 Investment firms in developing and implementing the ICAAP within the stringent deadline decided by CMA.

After studying the nature of business and operations of each such firm, Aptivaa delivered the following as part of its advisory and analytics

    ICAAP Policy
    Covering capital planning process including senior management oversight
    Risk Measurement
    Comprehensive assessment, measurement and management processes for Credit Risk, Market Risk, Operational Risk, Concentration Risk, Liquidity Risk, Interest / Profit Rate Risk, Business/Strategic Risk, Reputation Risk, Regulatory Risk (including Shariah risk) etc
    Capital Planning and Forecasting
    Detailed planning and forecasting of capital requirements and resources for the coming 3 – 5 years involving in-depth analysis of business strategy and associated risks
    Stress Testing
    Methodology and analysis of capital requirements under adverse stress scenarios
    ICAAP Report
    Detailed ICAAP Report consistent with the CMA requirements was presented to Senior Management and subsequently submitted to CMA

Aptivaa delivered a dynamic ICAAP Toolkit which enables the firms to undertake the ICAAP activities. The Toolkit is easy to use with transparent workings and flexible for future improvements. Aptivaa conducted the relevant training and knowledge transfer sessions to stakeholder’s from Risk, Finance, Business and Senior Management.