Banking entities face hectic days in the regulatory field, since the process of implementing Basel III standards has triggered rethinking, documenting and formalizing certain definitions of the strategic scope; and implement them in your risk management. Concepts such as the business model, risk profile, and risk appetite; Today they are discussed daily at the tables of the comptrollers, risk, planning and treasury managers of the banks. The above, due to the requirements of the IAPE (Effective Asset Self-Evaluation Report) and the ILAAP (Liquidity Adequacy Evaluation Process); They use these definitions as input, and ask to articulate self-evaluations and management frameworks from them that must be established over time. Many times the answers are leveraged on corporate definitions of their foreign parent companies, but the insurmountable issues are their application in the model, planning and risk profile at the local level.
If you want to know more about the topic, we invite you to read the following note: