Basel III - Pillar II Risk Evaluation
Main Features
As a result of its relatively open character, many banks underestimate the importance of Pillar 2 which in our view is extremely important particularly for smaller banks operating in less sophisticated markets as it is only through this Pillar that a Bank may demonstrate the thoroughness of its risk management process and the control of actual risks.
In this context, SYSTEMIC undertakes:
- Actual Credit risk assessment
- Concentration risk
- Interest rate risk in the Banking book.
- Liquidity risk
- Risk Correlation
- Stress testing
To this effect, thorough workshops are held with senior management and active discussions are held on all our findings.