Risk Management

By implementing personalized technological solutions, and thanks to the know-how we have achieved in this field, we support our customers through the frequent regulatory changes and the growing expectations of governance on processes:

IFRS 9

New standards will become effective on January 1st 2018, identified by IASB in the IFRS 9, and they require to financial institutions a faster estimation of the expected losses. The purpose is to increase the investors’ trust in the balance sheet of banks and of the financial system. IFRS 9 introduces a new forward looking model for calculating Expected Credit Loss and a new approach to classifying all financial instruments, including derivatives incorporated in other financial instrument. In this way, the users of the balance sheet can better understand the information.

Stress Test EBA

A more and more powerful tool for evaluated capital level of bank are the EBA stress tests. They provide to the authorities a complete view of the robustness of the banking industry. Moreover, they revel to the companies themselves potential emerging risks, weak points, and allow them to take preventive actions.

Solvency II

The Solvency II Directive has created the opportunity to promote a qualitative leap within corporate organization, from a culture of the capital as a pure regulatory requirement turning to a vision focused on optimizing the use of production factors.
In particular:

  • Risk monitoring and quantification;
  • Minimum solvency ratio, both with the standard model and with the internal one;
  • Capital necessary to sustain the minimum solvency level;
  • Periodic reporting activity for the authorities with the purpose of risk monitoring.

We support our customers in implementing EIOPA regulations, especially following the analysis phase, the development and the publication to the authorities of the calculation of capital requirements (Pillar I), ORSA (Pillar II) and the QRT Regulatory Reporting (Pillar III).

The Solvency Directive has also provided to the insurance companies the guidelines for the actuarial evaluation of reserves, the use of statistical methods and the periodic comparison with the benchmarks of the main indicators of the insurance portfolio’s loss ratio. In this way, any company has the opportunity to monitor continuously the processes and the risk management systems. In cooperation with an actuarial study, we have developed skills for the risk insurance field, making possible the implementation of software solutions to support business in all phases of quantification and check of technical provisions.