The Risk and Regulatory Advisory (RRA) department employs specialists in areas including risk management, governance compliance, and crisis management, who draw on lengthy experience and the most up-to-date information utilising PwC’s global network to respond to the business strategies of clients.
Innovation and the easing of regulations in the finance services sector have on the one hand afforded it more freedom, but at the same time demanded that financial institutions be more disciplined in their activities. The financial authorities are asking for greater customer protection and convenience, as well as enhanced governance and compliance on the part of the financial institutions.
Especially notable recently have been the advances in risk management techniques. These advanced techniques have been incorporated into financial oversight and regulations including Basel II capital accords. In such an environment, financial institutions must firmly integrate risk management techniques into management structures, while also building and implementing appropriate internal control structures. To achieve this requires expert knowledge of risk management procedures, based on a thorough understanding of the rules.
At the same time, financial authorities are encouraging market discipline, in the form of monitoring by external stakeholders such as investors, depositors or insurance policyholders, to correct problems that may exist with the management of financial institutions. In response to this development, financial institutions need to establish structures to appropriately control latent risks, as well as disclosure structures able to divulge risk-related information in a timely and appropriate manner, including strategies to deal with risks that have already been exposed.
Amid such calls for enhanced corporate governance, risk management structures, and disclosure procedures at financial institutions, PricewaterhouseCoopers Aarata makes available specialists in a variety of fields, who draw on the most up-to-date information utilising PwC’s global network and in-depth experience, to provide global standard advisory services.
■Key Service Areas
- Support for the establishment and review of management policies (qualitative aspects) as well as risk calculation (quantitative aspects) of market risk, credit risk, operational risk, integration risk, and equity capital
- Support for the establishment and review of market value assessment methods for financial products using quantitative models
- Support for the establishment and review of management policies and risk calculations for compliance with Basel II (internal rating methods for credit risk, gross profit allocation and advanced measurement of operational risk, compliance with the second and third pillars)
- Advisory services for the advancement of risk management in response to new solvency restrictions
- Advisory services regarding Japanese and overseas regulations affecting financial institutions (financial inspections manuals, financial appraisal systems, compliance with supervisory guidelines, compliance with inspections and directives of supervisory authorities)
- Support for the establishment of corporate governance and compliance policies and for the establishment and implementation of internal audit policies relating to corporate governance and compliance
- Advisory services relating to integration of internal controls for the financial reporting of financial institutions (i.e. compliance with J-SOX) with operational risk management policies
- Support for the establishment and review of policies regarding money laundering
- Investigation and analysis of fraud and/or pending legal matters (support for internal investigative committees regarding litigation, specific scandals or incidents)
