Given the principlesbased nature of the ICAAP, it is clear that their application leaves room for interpretation. The implementation of the ICAAP rules is the result of an interactive process between the banks and the regulators in the different jurisdictions.
With increasing sophistications of operations and added regulatory pressure, Banks periodically get their ICAAP reviewed from third party to benchmark their ICAAP process with best practices.
Our approach for conducting the ICAAP review and GAP encompasses:
- ICAAP Governance and Policies
- Risk Strategy/ Appetite
- Risk Management and Measurement
- Stress Testing
- Capital Budgeting
- ICAAP Documentation
The outcome of this exercise is the detailed report for each Risk area with the above heads
Furthermore, we provide possible areas of improvement along with impact analysis at both the Bank as well as Group level.