A benchmark exercise for your ICAAP

Since the introduction of the Internal Capital Adequacy Assessment Process (ICAAP) two years ago, IMS has assisted and guided almost 200 firms in the development of their ICAAP to the standards and detail required by the FSA. We have used this experience to compile an ICAAP checklist which can act as a short benchmarking exercise that firms can use for their own ICAAP.

The ICAAP checklist identifies what we believe to be the key points that should be addressed in an ICAAP, drawing on the emerging clarity of the FSA’s expectations and our close involvement with industry bodies in the development of and response to the ICAAP process.

The latest ICAAP review should do more than brush up the figures, even if your firm’s risks and controls have not changed a great deal. Following the implementation of the FSA’s system and control rules on 1 December 2009, firms need to think more deeply about the liquidity risks within their business, their liquidity policy and risk tolerance, systems and controls and liquidity stresses. ICAAP is a good place to do this.

To view and use the ICAAP Benchmark Exercise please click here.

IMS has worked with many firms to develop their ICAAP either in full, or by helping to develop existing documentation, and usually at a lower cost than the internal time required. If the benchmark shows that your ICAAP needs more than a brush up, or you think your ICAAP and liquidity arrangements could benefit from IMS’ insight,  please contact, Chris Rexworthy, or Jon Wilson.

25 November 2009

Disclaimer