Risk is fundamental to the financial services industry. Whether it is an investment banker underwriting a share issue, a commercial banker making a loan, an insurer writing a policy or a fund manager running a portfolio they are all evaluating, pricing and managing risk.
Modern financial institutions need sophisticated tools and techniques to manage and mitigate these risks while at the same time maximizing the return on capital deployed in support of this activity.
Basel II and Solvency II are significant in that they are changing the rules of the game and is increasing the need for an integrated, enterprise-wide approach to risk management.
Financial Services is arguably the most highly regulated industry in the world. The regulatory landscape is ever changing. Regulatory risks and issues are key external drivers in the financial sector's strategies, processes and organization.
Increasingly, the trend towards international regulation calls for cross-border responses.
KPMG can help prevent, mitigate, manage and address regulatory failings.
Our approach is also to help maximize business advantage from regulatory challenges.
The global investor community is demanding higher standards of accountability, behavior and performance, particularly in light of recent business failures.
Both industry and governments are responding with reforms that will serve to strengthen financial management, reporting and corporate governance.
This ever-changing business environment has brought additional requirements for more comprehensive performance reporting, looking beyond the numbers to non-financial indicators. Increasingly, to receive the confidence they need from the capital markets, companies will be expected to explain their values, responses to business risks, and the link between objectives and performance.
New standards are also being proposed in most major countries that will modernize and help rebuild confidence in financial reporting. Financial statements will become more transparent, using new concepts, such as fair value reporting.
Market reform will force companies to re-examine their corporate governance processes and procedures to ensure appropriate oversight. Board members will have to be independent and competent. Audit Committees will have to work more closely with senior management and outside auditors to ensure the quality, completeness, and integrity of their corporate reporting.
Financial companies face complex tax regulation and related issues such as:
- Minimizing foreign taxes and maximizing tax credits.
- Establishing and managing inter-company pricing policies.
- Complying with varying international tax reporting requirements.
- Anticipating and addressing the effects of tax policy changes.
In this global marketplace and environment of complex changing regulation, KPMG member firms provide multinational tax services in a effort to provide superior quality and a broad range of services to our multinational clients.
We offer services such as customer relationship management, organizational and operational redesign, business process audit and reengineering. We also provide support in setting up shared service centers and in development of operating call centers. Furthermore, we are specialized in interpretation and implementation of various regulatory frameworks. We offer support in Basel II implementation and preparation for validation.