Enterprise Risk Management
Key Enterprise Risk Management Focus Areas
Capital & Liquidity Planning
We help institutions strengthen capital and liquidity planning through robust ICAAP, ILAAP, and capital planning frameworks aligned with regulatory expectations and strategic objectives.
Business Continuity & Recovery Planning
Build resilience against disruption with practical continuity and recovery frameworks that strengthen preparedness, governance, and the ability to respond effectively to critical events.
Enterprise Stress Testing & Early Warning
Develop forward-looking stress testing and early warning frameworks to identify emerging vulnerabilities, assess potential impacts, and support timely risk decisions.
Capital & Liquidity Planning
AFS helps financial institutions design, implement, and maintain robust ICAAP and ILAAP frameworks aligned with regulatory expectations and the institution’s business and risk profile. Our approach combines regulatory expertise with practical governance and implementation capabilities.
Our work covers the full ICAAP framework across Pillars 1, 2, and 3, including material risk identification, risk correlations, internal capital assessment, and regulatory disclosure requirements. For ILAAP, we address supervisory expectations across liquidity risk, risk appetite, stress scenarios, survival horizon analysis, LCR, NSFR, intraday liquidity, and funding strategy. We also support macroeconomic scenario design, capital and liquidity stress testing, and Contingency Funding Plan development, testing, and board-level documentation.
Advanced Financial Solutions Delivers
- Full-scope ICAAP and ILAAP frameworks tailored to the institution.
- Capital and liquidity stress testing with scenario and macroeconomic calibration.
- Contingency Funding Plan design, testing, and documentation.
- Regulatory submission and remediation support.
- Ongoing ICAAP/ILAAP refresh and recalibration.
- Board and senior management reporting.
Business Continuity & Recovery Planning
Regulators expect business continuity and recovery plans that are credible, tested, and actionable not documents created solely for compliance. AFS helps financial institutions build and strengthen Business Continuity and Recovery Planning frameworks aligned with applicable regulatory expectations and international standards.
Our approach covers the full resilience lifecycle, from Business Impact Analysis and criticality assessment to recovery strategies, RTO/RPO definition, crisis governance, and testing. We help institutions turn recovery plans into practical frameworks that can be activated when they matter most, while addressing regulatory observations and strengthening the credibility, governance, and testing of recovery arrangements.
Advanced Financial Solutions Delivers
Business Impact Analysis (BIA) and criticality assessment, with RTO/RPO definition by critical business function.
Recovery strategy and capacity assessment, including recovery triggers and escalation frameworks.
Crisis communication and board-level governance.
Tabletop exercises and BCP testing programs.
Regulatory observation remediation and re-submission support.
Enterprise Stress Testing & Early Warning
Enterprise stress testing is a critical component of effective risk management and regulatory supervision. AFS designs and implements stress testing frameworks that combine macroeconomic scenarios, sector-specific risks, and institution-specific vulnerabilities to assess their potential impact on capital, liquidity, and overall resilience.
Our approach covers scenario design, macroeconomic modelling, stress capital quantification, and reverse stress testing to identify the conditions under which capital or liquidity thresholds could be breached. Our analytical capabilities support robust scenario modelling, with outputs integrated into ICAAP, ILAAP, and regulatory submissions.
Beyond periodic regulatory exercises, AFS helps institutions establish Early Warning Frameworks that translate stress-testing insights into ongoing risk monitoring. We develop KRI libraries, threshold calibration, escalation mechanisms, and management reporting to help institutions identify emerging vulnerabilities and act before risks materialize.
Advanced Financial Solutions Delivers
- Macroeconomic stress scenario design aligned with applicable regulatory expectations.
- Sector-specific, idiosyncratic, and combined stress scenarios.
- Reverse stress testing and breach scenario identification.
- Capital and liquidity stress testing with scenario calibration.
- In-house analytical and stress testing capabilities with ICAAP/ILAAP integration.
Turning Risk Appetite Into Actionable Business Limits
AFS helps financial institutions design and operationalize Risk Appetite Frameworks that translate board-level risk tolerance and strategic objectives into measurable thresholds across credit, market, liquidity, and operational risk.
OUR APPROACH
Three-Tier Risk Appetite
Risk appetite across institutional, portfolio, and product levels.
Capital & Loss Thresholds
Capital and loss thresholds supported by stress testing and ongoing risk monitoring.
Concentration & Exposure Limits
Concentration and exposure limits, including portfolio triggers.
Product-Level Guardrails
Product-level guardrails supported by ongoing risk monitoring.
Risk Appetite Statements
Risk Appetite Statement development and alignment with the institution’s risk appetite structure.
Regulatory & Governance Alignment
Alignment with ICAAP, ILAAP, and capital planning, with governance mechanisms for timely escalation when thresholds are breached.
WHAT AFS DELIVERS
Three-Tier Risk Appetite Framework
Across institutional, portfolio, and product levels.
Quantitative Risk Thresholds
Linked to capital and stress-testing outcomes.
Concentration & Risk Migration Limits
Concentration, sector exposure, and risk migration limits.
Product-Level Guardrails
Including ECL and performance thresholds.
Risk & Capital Integration
Integration with ICAAP, ILAAP, capital planning, and stress testing.
Risk Appetite Reporting
Risk appetite dashboards, RAG reporting, and Board Risk Committee reporting.
Risk Appetite Statement Development
Risk Appetite Statement development and board adoption support.
Annual RAF Refresh
Annual RAF refresh, recalibration, and regulatory remediation.
AFS combines deep analytical expertise, robust governance, and rigorous validation to deliver credit rating models that strengthen risk decisions and meet regulatory expectations.
Turning Enterprise Risk Into Strategic Advantage
Our Enterprise Risk Management advisory helps financial institutions build stronger resilience, improve regulatory readiness, and make better risk-informed decisions while creating greater visibility and control across the organization.
Key Outcomes
- Stronger financial resilience through robust capital, liquidity, and stress-testing frameworks.
- Greater regulatory readiness with governance structures aligned to supervisory expectations.
- Better risk-informed decisions through clearer risk intelligence and forward-looking analysis.
- Earlier identification of emerging risks through stress testing, early warning indicators, and ongoing monitoring.
- Stronger alignment between risk and strategy through an actionable Risk Appetite Framework.
- Greater operational resilience through effective continuity and recovery planning.
- Improved enterprise-wide visibility into risks, vulnerabilities, and potential impacts.
- Greater confidence for Boards, management, and regulators through robust, evidence-based risk frameworks.
Ready to Strengthen Your Enterprise Risk Framework?
From regulatory requirements to risk appetite, capital planning, stress testing, and resilience, AFS helps financial institutions build practical frameworks that support better decisions and sustainable growth.
Advisory Expertise Built for Financial Institutions
We combine deep financial-services expertise with practical methodologies and technology-enabled delivery to help financial institutions strengthen risk management, improve lending performance, and prepare for emerging regulatory and business challenges.
Emerging Mandates
Prepare for the risks shaping the future of financial services. We help institutions build practical frameworks for Climate Risk, ESG, AI Governance, Model Risk, and Tail Risk turning emerging requirements into effective risk management.
Credit Lending
Build smarter, more profitable lending strategies. We help financial institutions strengthen credit product design, scoring, portfolio strategy, and decisioning infrastructure to lend confidently and responsibly at scale.
Credit Risk
Strengthen credit risk management with robust, regulator-ready frameworks. We support IFRS 9 model development and validation, ECL governance, portfolio monitoring, and credit rating to enhance risk oversight and regulatory confidence.