Banking

Governance sits at the heart of a well-run bank, and getting it right from the outset, or refining it as the institution evolves, is something we have helped a number of LSIs and HPSIs navigate. Our work has included pre-formal board suitability assessments for prospective board members and key function holders, looking at individual and collective suitability, independence of mind, time commitment, and conflicts of interest, with files prepared to support authorisation processes and ongoing supervisory dialogue.

For newly formed banks, we have been involved in shaping the overarching governance structure from the ground up, supporting in the development of board and committee charters across Risk, Audit, Nomination and Remuneration, establishing the three lines of defence model, and defining the reporting lines and delegated authorities that connect the Management Body, control functions, and senior management.

Beyond set-up, we have developed escalation procedures for several institutions, setting clear thresholds and routing for risk appetite breaches, operational incidents, and conduct-related issues. We have also carried out ad-hoc internal audit reviews for local banks on areas such as board effectiveness, committee functioning, decision traceability, and the quality of governance information reaching the Management Body, with findings feeding directly into remediation plans and supervisory responses.

Navigating risk management is a continuous journey, crucial for safeguarding your institution's stability and fostering long-term growth. In today's regulatory landscape, a mix of strong governance and precise risk measurement is essential.

We're here to help you enhance your risk management processes and carry out internal audits to ensure you're aligned with the standards set by the EU and national authorities, like the Malta Financial Services Authority (MFSA).

With extensive experience in assessing credit, market, operational, and liquidity risks, we use frameworks like ICAAP, ILAAP, and Recovery plans. Our collaboration with various institutions has empowered Boards to make informed decisions on risk evaluations and establish a clear strategic path.

Integration of climate and environmental risks

Climate and environmental risks have moved from the periphery of risk management to the centre of supervisory attention, with the ECB and other regulators expecting banks to demonstrate a clear understanding of how these risks affect their business, and how they are managed in practice. Our team has been working alongside banks as they navigate this shift, helping them build the capabilities needed to identify, measure, and steer C&E risks in a way that is both supervisory-credible and genuinely useful internally.

A significant part of our work has focused on materiality assessments, where we help clients identify the climate-related risk drivers their business may be exposed to, across portfolios, geographies and sectors, and translate those exposures into a clear view of what is material and why. Building on this, we have developed stress testing methodologies covering both physical and transition risk scenarios, ranging from acute physical events through to longer-term transition pathways, and tailored to the specific risk profile and data realities of each client.

Beyond identification and measurement, we have also supported banks with the integration of C&E risks into their wider risk management framework, most notably through the embedding of C&E considerations into the Risk Appetite Statement and the calibration of related limits and KRIs. The aim throughout is to move C&E risk management beyond a standalone exercise and into the day-to-day fabric of how the bank takes and monitors risk, so that climate considerations genuinely inform decision-making rather than sitting alongside it.

Staying compliant in today's banking environment is about more than ticking boxes, it requires a clear understanding of supervisory expectations and the ability to translate them into practical, workable solutions. Our team supports banks and financial institutions across a broad range of compliance matters, helping clients interpret regulatory requirements, identify gaps, and put in place the frameworks, policies and controls needed to meet both day-to-day obligations and evolving supervisory priorities.

A significant part of our work involves partnering with compliance officers to shape and deliver the compliance monitoring programme, from defining the scope and risk-based prioritisation through to executing the underlying reviews and reporting findings to senior management. Alongside this, we support clients in drafting and refining policies aligned with banking and financial services rules, and in carrying out targeted assessments to test whether those rules are being followed in practice. Whether the starting point is a specific regulatory concern or a broader uplift of the compliance function, our focus is on delivering advice that is pragmatic, well-grounded in the regulatory context, and built to stand up to supervisory scrutiny.

Behind every capital, pricing or stress testing decision sits a model, and the quality of that model matters. We support banks and investment firms across the full modelling lifecycle, from initial design, development and calibration through to independent validation, documentation, and ongoing use within the risk framework, as well as the model risk governance that wraps around it.

Our experience spans a wide range of model types and client profiles. We have supported investment firms in developing derivative valuation and pricing models for risk management purposes, taking them through methodology design, calibration, and the documentation needed to embed the models within the wider risk framework. In a similar vein, we have worked with a subsidiary of a G-SIB on the development of internal models for EBA stress testing, helping shape the underlying assumptions, data inputs, and the way stress scenarios translate into meaningful portfolio impacts. Across other engagements, we have been involved in the quantification of risks through credit risk models, operational risk VaR models, and IFRS 9 ECL models, covering both development and independent validation and addressing everything from data quality and methodology choices through to back-testing, benchmarking and model documentation.

Beyond individual model builds, a significant part of our work has centred on IRRBB, where we have supported SIs, HPSIs and LSIs in developing forecasting models, guiding clients through behavioural assumptions, scenario design, and NII and EVE projections, and helping ensure the outputs feed naturally into ALM decision-making and regulatory reporting. We also help clients strengthen the model risk governance framework in line with supervisory expectations.

The banking sector is evolving rapidly, driven by changing customer expectations, technological progress, and a more competitive environment. Managing this shift requires a clear strategic vision and the ability to implement it effectively.

Our team blends deep industry knowledge with forward-thinking insights to help banks define and achieve their strategic goals. We assist banks with a variety of strategic and transformation projects, including redesigning business models, digital transformation, improving operating models, and expanding into new markets. Whether you're rethinking your value proposition, simplifying operations, or exploring new growth avenues, we bring a thorough understanding of the banking sector and the practical experience needed to drive real change. Together, we provide tailored strategies and hands-on support to help you adapt to the changing landscape, build long-term resilience, and position your organisation for sustainable growth and success.