LiRAN - What problem are we solving?

JWG has modelled the capabilities required to ‘know your exposure’:

  • Strategy and financial resources: The infrastructure, policies and procedures to identify, measure and monitor risks and maintain the appropriate level of financial resources required by risk regimes (i.e., capital and liquidity)
  • Model requirements: The ability to assess the adequacy of the resources held and the sources of risk to those resources
  • Data management and reporting: systems that meet requirements to demonstrate the ongoing adequacy of the firm’s internal controls 
  • Governance and assessment: ability to assess the type and quality of the financial resources under risk scenarios
  • Supervisory review: ensuring the firm’s resources, controls, stress testing and planning are adequate for supervisory assessment

Priorities, heatmaps and issue league tables are being developed for the new risk operating model through our research programme and events.