Risk Management

Risk Management

The Competence Center Risk Management combines expert knowledge regarding risk function in a comprehensive solution portfolio. The financial institutions receive solid technical advice and competent support for the implementation of their risk management from targens.

The optimal risk analysis
with the targens Competence Center

The Competence Center consultants understand the requirements of financial institutions, always act in tune with the market and work on new innovations continuously. With targens help, the detection, measurement, control and reporting of your risks (incl. credit risk, market risk, liquidity risk, non-financial risk) are optimised. In addition, targens supports customers with regulatory requirements and processes in the credit, market and back office areas sustainably.

The procedure is based on best practices

The offering from targens follows process based on best practices, which is precisely tailored to each financial institution. The consultant offers gap/needs analyses for technical requirements (incl. CRR III, LOaM, ESG), process optimisations (incl. reporting, control architecture) and implementation-oriented consultation (incl. standard software, DQM/BI tools, RPA/AI).

The targens consultant endeavours to be proactive in helping shape the future of risk management. This means they are in a position to provide customers with the optimal solution at all times. With targens, customers receive everything from specialist conception to technical implementation from one provider.

The optimal solution for customers

Our Expertise

The targens experts support customers with the following topics:

The minimum requirements for risk management (MaRisk) represent administrative regulations required for interpreting standards. The Federal Financial Supervisory Authority (BaFin) specifies requirements for the organization, management and controls of banks. The latest version also accounts for the ESG risks. Compliance with MaRisk is mandatory and is checked as part of the annual audit. BaFin regularly adjusts the MaRisk with amendments.

The Capital Requirements Regulation (CRR) is an EU regulation that defines the capital requirements for credit institutions and investment firms. The overarching goal of the CRR is to strengthen the stability and integrity of the financial system by ensuring that these companies have sufficient capital to absorb risks and meet their obligations.

The Capital Requirements Directive (CRD), on the other hand, is an EU directive that sets the minimum capital requirements for banks. The CRD establishes the international standards of the Basel Committee and serves to ensure that banks have sufficient capital reserves to absorb risks and ensure the continued existence of the bank. In contrast to the CRR, which is EU law and also applies directly nationally, the CRD is to be transferred indirectly into national law.

The EBA guidelines (European Banking Authority) operationalize supervisory regulations and have the status of a recommendation for the majority of European banks. They are intended to harmonize compliance with minimum standards for risk management practices by banks and other financial service providers within the EU. For the institutions supervised by the ECB (Significant Institutions – SIs), the EBA guidelines are adopted directly in supervisory practice.

Regulatory Technical Standards (RTS) are an instrument of the European Commission to operationalize existing EU legislation. The European Commission can commission the European supervisory authorities (EBA, EIOPA and ESMA) to develop technical standards that further refine, specify and define the framework for implementation.

Other risk management topics

Climate risk management consists of methods and processes aimed at identifying, assessing and controlling the effects of climate change on a company's business processes. This includes the analysis of climate risks, such as droughts, floods, storms, global warming and the development of risk reduction and adaptation measures to climate change.
Climate risk management comprises three main steps:

  • Risk identification
  • Risk assessment
  • Risk control and reduction

    • Effective climate risk management not only reduces potential damage, but also opens up opportunities, for example through investments in renewable energies or the development of products and services that are geared to the requirements of climate change. Successful climate risk management therefore requires a holistic approach and close cooperation between different areas within a company.

    Risk reporting serves to create and transmit information about opportunities and risks in the form of a risk report. It aims to create transparency about the risk situation, to support the preparation of decisions regarding risk control measures and to enable risk monitoring. Internal risk reporting forms the basis of risk management and the risk policy of every financial institution. Ideally, it is part of the internal processes so that measures can be taken immediately in the event of changes.

    Services

    Our Competence Center Risk Management offers the following services:

    We carry out efficient analyses to identify possible gaps between our customers' internal data and processes and the requirements of regulatory changes (EBA / MaRisk etc.) and to derive recommendations for action. In addition, we support the coordination and creation of the action/project plan to close the gaps within the organization. We attach great importance to integrating all relevant areas and departments into the project structure in order to ensure the greatest possible transparency and to achieve the project goals.

    In order to offer our customers the best possible support, we carefully consider the potential impact of regulatory changes before they are introduced. This includes reviewing strategic aspects, IT systems, processes and models using structured process maps and architecture analyses. In this way, we can optimally prepare our customers for the upcoming changes and support them end-to-end during implementation.

    Planning is the key to success. That is why we support our customers in evaluating the status quo of the implementation of regulatory requirements in order to uncover discrepancies at an early stage and identify potential for improvement. This allows us to ensure that the necessary results are achieved.

    We support our customers in the creation of communication documents, argumentation aids and the rectification of audit findings from internal auditing, auditors or supervisory authorities. We support them in preparing individual and tailor-made implementation decisions in order to ensure a smooth audit process.

    Just contact us.

    The consultants of the Competence Center would gladly like to help you.

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    risikomanagement@targens.de
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