Our ICARA model enables our clients to assess their capital adequacy for risk of material harms to clients, the firm and even the wider market.
Our Internal Capital Adequacy and Risk Assessment (ICARA) model enables our clients to assess capital adequacy with respect to activities that may have the potential to cause material harm to clients, the firm and even the wider market. Benefit from our extensive experience of industry approaches and regulatory discussions and feedback. This continuously benchmarked solution is simple to apply and more cost effective than either maintaining an internal solution or using other external vendors.
“elanev support us with the industry benchmark in ICARA scenario modelling. Their approach is intuitive and easy to use. They have a cooperative style sharing their insights and industry and regulatory knowledge.”
Justin, CRO, River and Mercantile Group PLC.
“From first-hand experience elanev have a very intuitive approach that is simple to understand and straightforward to use. It was a pleasure to work with elanev.”
Kashif, Head of Operational & Technology Risk at Santander Asset Management Limited.
We are currently supporting our investment manager clients pivot to assessing risk under ICARA in response to the new IFPR regulation. We are also helping firms respond to the new customers duty proposals and treat customers fairly.
No IT change required – we deploy using our secure sotfware as a service (SaaS) approach.
No GDPR implication – no need for you to share personal identifiable customer information.
Save on OPEX – the elanev ICARA Model removes the need for internal model build and maintenance, helping you to keep associated costs to a minimum.
Experience the benefits of the elanev ICARA Model for yourself. Contact us to arrange for a no obligation demonstration. What’s more, you could be live with our full service within hours.
What is the elanev ICARA Model? The elanev ICARA Model is an online tool designed to help you assess the capital associated with low frequency – high impact risks.
How is it accessed? The elanev ICARA Model is accessed via our secure online portal. We provide you with a simple template to capture model inputs and settings. Upload the template and get a detailed report returned in real-time. The report contains capital estimates, commentary and insights. Repeat the process as often as you like as the model is available 24x7x365.
What type of inputs does the model use? The model can be run using the results of your scenario analysis or from fitting to real data. A variety of modelling options can be selected within the template too. These are explained within an easy to understand technical document. We will support you with your initial set up and provide ongoing support. We also provide training and wider consultancy services as required.
What about our data? We do not store or back-up your data. It is only used to run the model.
Why should we use a model? Regulation requires firms to assess their risks related capital position as part of their ICARA process. The capital held should be sufficient to cover low frequency but high impact events. Recognising that most firms have not experienced such large losses, regulation allows for the application of scenario analysis. Unfortunately, scenario analysis can be prone to uncertainty especially when assessing capital at the required low frequency but high impact levels. Typically, expert judgements overestimate more frequent risks and underestimate remote risk. Modelling scenario analysis outputs helps firms reduce uncertainty in their capital assessments. It provides a very effective mechanism for Risk teams to review and challenge judgements made.
What is the regulatory view on such models? Using the right scenario model to help in the assessment of Pillar 2 capital is viewed extremely positively by Regulators and meets their increasing regulatory expectations.
Is the model validated? Yes, the model is validated according:
1. The technical document contains a set of test batteries that detail the test we perform on the model and the corresponding results
2. The model results have been compared to those from an independent third-party model as part of a client take on process.
3. The model has been presented to regulators and has been party to numerous regulatory reviews. All returned successful.
4. The model methodology benefits from the knowledge and understanding of some 50 plus similar industry models in the UK and EU. This includes model design, build, implementation, development and internal, external and regulatory audits and reviews. Importantly, we have been party to regulatory model feedback and corresponding responses. This placed us in a unique position to develop a market leading approach to risk scenario modelling that meets regulatory expectations in an easy to use and informed manner.
That all sounds expensive. Is it? We base our pricing on a fraction of a single risk modelling FTE which would be required to maintain an internal model. What’s more, our pricing is substantially less than that of a Big-4 Professional Services firm whilst our ICARA modelling insights are more extensive.
Do you provide risk consultancy? Yes, and we can provide wider consultancy services as required.