Details

  • Service: Advisory
  • Industry: Financial Services
  • Type: Business and industry issue
  • Date: 2011/09/30

Financial Services

Our Financial Services professionals can assist you in addressing all your banking, insurance, investment management, retirement funds, medical schemes and stock broking issues and achieving your business objectives.

Recovery and Resolution Planning - Asking the right questions 

Global SIFIs are required to complete their draft recovery plan by December 2011, followed by a draft resolution plan by June 2012. Creating RRPs can highlight significant challenges where the business model and strategy restrict recoverability and resolvability. All SIFIs falling within national frameworks and rules will be subject to local deadlines.

In this two-page document we highlight some of the questions you should be asking, like:

 

  • Have we understood the systemic risk associated with our core businesses and critical functions, including the way we currently aggregate/manage risk and provide operational support cross-border?
  • Have we determined how the pricing structures will flex with any future changes in operating structures and/or capital surcharges?
  • Are we vulnerable to counterparty failure, including indirect exposure via market infrastructure?
  • Do key third party contracts create the necessary resolution flexibility and is internal service provision subject to service level agreements (SLAs) that would operate effectively in the event of a break up?
 

Contact

Contact
Trevor Hoole
Head of Markets: Financial Services
Tel: +27 (0)11 647 7276
trevor.hoole@kpmg.co.za
Share