Banking – Recovery and Resolution Plans

Due to the interconnected nature of financial markets, the failure of just one institution could cause instability. Banks are required to develop Recovery and Resolution Plans (RRPs) which should provide credible actions to prevent insolvency or, should it occur, minimise the negative effects of an institutions’ failure. Our team can assist you in developing an RRP which contains realistic recovery options and execution plans, consistent with the institution’s risk management framework, while complying with the regulatory requirements.

An RRP should provide credible recovery options and execution plans, contain severe stress scenarios and demonstrate that the barriers to its successful implementation are minimised. Producing an RRP can be a significant challenge. However, if constructed correctly, it becomes a valuable tool that an institution’s senior management and board can use to oversee and assess the firm’s business activities, corporate structure, systems and people.

Our team, with extensive expertise in business planning, recovery and resolution, risk management and regulatory requirements, can consider the implications of an RRP for all aspects of your firm’s business.

Our technical knowledge and practical experience allow us to develop a tailored RRP with you that meets the regulator’s expectations.

Our team can advise and support you in the following areas:

Developing procedures and policies governing the approval and implementation of RRPs
Developing and reviewing your RRP to ensure its compliance with regulatory requirements and testing its robustness
Building severe stress scenarios and assessing their impact
Developing recovery options and execution plans
Delivering an RRP briefing to your board and RRP workshops to your senior management

For more information about our capabilities please contact us.