Experts in EU capital requirements and banking regulation
CRR/CRD - Capital Requirements Regulation & Directive
The Capital Requirements Regulation (CRR) and Directive (CRD) form the backbone of EU banking regulation. We support you in the complex implementation of these provisions to ensure compliance and optimize capital efficiency.
- ✓Comprehensive compliance with CRR/CRD requirements
- ✓Optimization of capital allocation and risk weighting
- ✓Efficient implementation of the Basel frameworks
- ✓Strategic alignment of compliance measures
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CRR/CRD Compliance
Our Strengths
- In-depth expertise in all aspects of banking regulation and capital requirements
- Extensive experience in implementing CRR/CRD at various financial institutions
- Practice-oriented advisory approach with a focus on efficient and sustainable solutions
- Continuous monitoring of regulatory developments and proactive adaptation of compliance strategies
⚠
Expert Tip
The regular changes to CRR/CRD requirements (currently CRR III/CRD VI) require continuous adaptation of compliance strategies. A proactive approach enables not only compliance with the regulations but also their strategic use in business decisions.
ADVISORI in Numbers
11+
Years of Experience
120+
Employees
520+
Projects
We take a comprehensive approach to CRR/CRD compliance that addresses technical, organizational, and strategic aspects. The focus is on optimizing your regulatory position.
Our Approach:
Analysis of the current compliance situation and identification of action required
Development of a tailored implementation strategy
Support in implementing the required measures
Establishment of robust processes and controls
Continuous monitoring and adaptation to regulatory changes
"Implementing CRR/CRD requirements presents a complex challenge for many of our clients. Through our integrated advisory approach, we succeed not only in ensuring compliance, but also in improving capital efficiency and generating genuine business value."
Andreas Krekel
Head of Risk Management, Regulatory Reporting
Expertise & Experience:
10+ years of experience, SQL, R-Studio, BAIS-MSG, ABACUS, SAPBA, HPQC, JIRA, MS Office, SAS, Business Process Manager, IBM Operational Decision Management
Our Services
We offer you tailored solutions for your digital transformation
CRR/CRD Gap Analysis and Implementation Planning
We identify gaps in your current compliance and develop a tailored implementation plan.
- Comprehensive analysis of existing processes and systems
- Identification of action required across all relevant areas
- Development of a prioritized roadmap for implementation
- Cost-benefit analysis of various implementation options
Optimization of Capital and Liquidity Requirements
We support you in optimizing your capital ratios and liquidity metrics within the regulatory framework.
- Assessment of the current capital and liquidity position
- Identification of optimization potential in risk weighting
- Development of strategies to improve regulatory metrics
- Integration of regulatory requirements into the business strategy
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Our expertise in managing regulatory compliance and transformation, including DORA.
DORA Digital Operational Resilience Act
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Wir steuern Ihre regulatorischen Transformationsprojekte erfolgreich – von der Konzeption bis zur nachhaltigen Implementierung.
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Frequently Asked Questions about CRR/CRD - Capital Requirements Regulation & Directive
How does ADVISORI support the strategic implementation of CRR/CRD requirements to achieve not only compliance but also competitive advantages?
Implementing CRR/CRD requirements is more than a regulatory compliance exercise — it offers strategic opportunities to realign business models and optimize capital allocation. ADVISORI takes an integrated approach that goes beyond mere compliance and treats regulatory requirements as a catalyst for sustainable value creation.
🔍 Strategic dimensions of our approach:
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Business model integration: We analyze the impact of CRR/CRD on your specific business model and identify areas where regulatory optimization can lead to direct competitive advantages.
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Capital optimization: Through precise modeling and analysis of RWA (Risk Weighted Assets), we identify areas of inefficient capital allocation and develop strategies to optimize your capital structures.
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Risk-sensitive pricing: Implementation of risk-based pricing models that transparently incorporate regulatory capital costs into product calculations, enabling profitability improvements.
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Data strategy advantages: Transformation of regulatory data requirements into a strategic asset through integration into the company-wide data management and analytics framework.
💡 Value creation through intelligent compliance:
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Competitive differentiation: Development of regulatorily optimized product offerings that provide clear competitive advantages in the market.
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Cost efficiency: Through integrated systems and automated processes, we significantly reduce the operational burden of compliance and increase cost efficiency.
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Faster time-to-market: Our forward-looking compliance frameworks enable faster market entry for new products by addressing regulatory requirements at an early stage.
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Building trust: A demonstrably robust compliance infrastructure strengthens the confidence of customers, investors, and supervisory authorities, creating long-term relationships.
What specific challenges do the current CRR III/CRD VI changes bring, and how can banks effectively address them?
The introduction of CRR III and CRD VI marks a significant milestone in the evolution of the European banking regulatory framework. These reforms bring far-reaching changes that require strategic adjustments and operational restructuring. ADVISORI offers a structured approach to successfully meeting these challenges.
📊 Core challenges of CRR III/CRD VI:
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Realignment of credit risk measurement: The Fundamental Review of the Trading Book (FRTB) and the revision of standardized approaches for credit risk require comprehensive adjustments to risk measurement methods and models.
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Extended output floors: The introduction of output floors limits the benefit of internal models and requires new strategies for capital optimization as well as parallel calculation methods.
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ESG risk integration: The new requirement to integrate environmental, social, and governance (ESG) risks into capital planning demands new data sources, valuation methods, and reporting processes.
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Operational complexity: The parallel application of various calculation methods and increased disclosure requirements significantly raise operational complexity.
🛠 ️ ADVISORI's integrated solution approach:
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Gap analysis and roadmap development: Systematic identification of all affected areas and development of a prioritized implementation roadmap with clear milestones.
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Model optimization: Review and adjustment of internal models for credit, market, and operational risks, taking into account the new requirements and output floor constraints.
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Technological transformation: Implementation of flexible data architectures and calculation engines that support parallel calculation methods and can integrate regulatory changes in an agile manner.
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Strategic business adjustment: Analysis of the impact on business areas and products, with recommendations for strategic realignment of the portfolio to optimize capital efficiency.
How does ADVISORI help financial institutions effectively implement and optimize liquidity management requirements (LCR and NSFR)?
Liquidity requirements — the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR) — represent central pillars of the Basel framework and require a well-considered balance between regulatory compliance and profitability. ADVISORI supports financial institutions with a comprehensive approach to optimizing these metrics, covering both technical and strategic dimensions.
💧 Integrated approach to liquidity optimization:
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Comprehensive liquidity analysis: We conduct a detailed review of current liquidity structures, identify inefficiencies, and quantify their impact on LCR, NSFR, and overall profitability.
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Balance sheet and business model analysis: Assessment of the impact of various balance sheet items and business activities on liquidity metrics, with a focus on identifying optimization potential.
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Dynamic liquidity modeling: Development of advanced models for forecasting liquidity requirements under various stress scenarios, enabling forward-looking management.
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Product design and pricing: Advisory on the design of products with favorable liquidity characteristics that simultaneously offer attractive terms for customers.
🔄 Operational and strategic optimization:
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Asset-liability management integration: Implementation of an integrated ALM framework that incorporates liquidity requirements directly into strategic balance sheet management.
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Liquidity buffer optimization: Strategies for structuring the HQLA (High Quality Liquid Assets) portfolio that minimize opportunity costs while meeting all regulatory requirements.
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Funding mix optimization: Development of a diversified funding approach that taps stable financing sources while ensuring cost efficiency.
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Treasury transformation: Modernization of treasury functions through advanced technologies and processes that enable integrated management of liquidity, interest rate risks, and capital requirements.
What technology solutions does ADVISORI recommend for the efficient implementation and ongoing compliance with CRR/CRD requirements?
The increasing complexity and level of detail of CRR/CRD requirements place significant demands on the technological infrastructure of financial institutions. ADVISORI pursues a technology-oriented solution approach that employs modern systems and advanced analytical methods to automate, optimize, and future-proof compliance processes.
💻 Technological pillars for efficient CRR/CRD compliance:
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Integrated data architecture: We design and implement a unified data architecture that harmonizes regulatory requirements with internal management needs and creates a consistent, high-quality data foundation.
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Automated calculation engines: Development and implementation of specialized calculation systems that efficiently perform and document the complex capital and risk calculations required under CRR/CRD.
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Regulatory reporting platforms: Integration of modern reporting solutions that automate and validate the entire process from data collection to submission to supervisory authorities.
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Real-time monitoring systems: Implementation of monitoring tools that continuously track compliance with regulatory metrics and provide early warnings of potential threshold breaches.
🔧 Advanced technologies for strategic value:
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AI and machine learning: Use of artificial intelligence to identify optimization potential in capital allocation and to forecast the impact of business decisions on regulatory metrics.
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Regulatory sandboxes: Provision of simulation environments in which new products and business strategies can be tested for their regulatory impact before implementation.
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API-based microservices: Development of flexible, modular solutions that can be easily adapted to regulatory changes and integrated into existing IT landscapes.
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Blockchain for compliance documentation: Use of distributed ledger technologies for tamper-proof documentation of compliance processes and to improve the auditability of regulatory decisions.
What advantages does the implementation of advanced internal models (IRBA, IMA, AMA) offer under CRR/CRD, and how does ADVISORI support their development and validation?
Advanced internal risk measurement approaches under CRR/CRD enable more risk-sensitive capital calculations and offer substantial strategic advantages over standardized approaches. Despite the introduction of output floors, they remain an important instrument for optimizing capital efficiency. ADVISORI supports financial institutions throughout the entire lifecycle of internal models — from initial development through to continuous validation and further development.
📐 Strategic advantages of advanced internal models:
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More precise risk differentiation: Internal models enable a significantly more granular representation of risk profiles than standardized approaches, leading to more risk-adequate capital allocation.
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Business strategy insights: The risk parameters developed for internal models (PD, LGD, EAD) provide valuable insights for portfolio management and business strategy.
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Competitive advantages: Despite output floors, internal models continue to offer significant capital relief compared to standardized approaches in many portfolio segments.
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Cultural transformation: The implementation of advanced models promotes a risk-aware corporate culture and strengthens risk management capabilities.
🧪 ADVISORI's end-to-end support for internal models:
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Model design and development: Conception and creation of statistically robust and supervisory-compliant models, taking into account specific portfolio characteristics and data availability.
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Technical implementation: Support in integrating models into the IT landscape, development of efficient calculation engines, and ensuring data consistency.
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Validation framework: Establishment of a comprehensive validation framework with quantitative and qualitative validation techniques, backtesting methods, and benchmarking approaches.
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Supervisory dialogue: Accompaniment throughout the entire approval process, from preparation of application documents to direct dialogue with supervisory authorities during on-site inspections.
How can the SREP (Supervisory Review and Evaluation Process) be effectively prepared and optimized to minimize supervisory capital add-ons?
The Supervisory Review and Evaluation Process (SREP) is increasingly becoming a central element of banking supervision with direct implications for capital requirements and the strategic room for maneuver of financial institutions. Proactive and structured preparation for the SREP can significantly reduce supervisory capital add-ons and positively shape the relationship with supervisors. ADVISORI offers a comprehensive approach to SREP optimization.
🔍 Key elements of effective SREP preparation:
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Comprehensive self-assessment: Conducting a detailed self-evaluation based on the EBA/ECB SREP methodology prior to the actual supervisory process, in order to identify weaknesses early and address them proactively.
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Risk driver analysis: Identification and quantification of the specific risk drivers in your business model that could potentially lead to higher SREP add-ons, and development of targeted measures to address them.
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Documentation excellence: Preparation of compelling and consistent documentation that demonstrably evidences the robustness of risk management processes, governance structures, and capital planning methods.
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Communication strategy: Development of a clear and consistent communication approach for dialogue with supervisors that convincingly conveys your strategic priorities and risk management capabilities.
⚙ ️ ADVISORI's methodology for SREP optimization:
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Gap analysis and benchmarking: Systematic comparison of your current risk management practices against regulatory expectations and best practices of comparable institutions, to identify optimization potential.
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Risk inventory and quantification: Comprehensive assessment of all material risks taking into account the SREP assessment categories, and development of robust quantification methods for difficult-to-measure risks.
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Governance optimization: Review and strengthening of risk management and governance structures, with particular focus on aspects that are typically assessed critically in the SREP.
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Simulation-based preparation: Conducting SREP simulations and mock interviews to prepare management for direct dialogue with supervisors and to sharpen lines of argumentation.
What are the most important implications of CRR/CRD requirements for disclosure obligations (Pillar 3), and how does ADVISORI support their efficient implementation?
Disclosure requirements under Pillar
3 have intensified considerably under the CRR/CRD framework, presenting financial institutions with complex operational and strategic challenges. The increased granularity, frequency, and public visibility of these disclosures make them an important element not only of regulatory compliance but also of market and stakeholder communication. ADVISORI offers an integrated approach to the efficient and strategic implementation of these requirements.
📊 Key developments in Pillar
3 requirements:
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Increased granularity: The new disclosure requirements demand more detailed information on capital, risk positions, and risk management practices at an institution-specific level.
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Extended subject areas: In addition to traditional risk categories, information on ESG risks, remuneration practices, and new metrics such as TLAC/MREL must now also be disclosed.
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Standardized formats: The introduction of mandatory disclosure formats and templates increases comparability but also places higher demands on data preparation.
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Accelerated timeline: The shortening of disclosure deadlines and the partial requirement for quarterly disclosure intensify the operational pressure on reporting institutions.
🛠 ️ ADVISORI's solution approach for efficient Pillar
3 compliance:
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Integrated data and reporting architecture: Development of a consistent data infrastructure that harmonizes regulatory reporting and disclosure obligations and eliminates redundancies.
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Automation strategy: Implementation of automation solutions for data extraction, validation, calculation, and report generation that minimize manual effort and reduce the risk of errors.
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Narrative optimization: Support in developing precise and consistent explanations and commentary that meet regulatory requirements while supporting the institution's strategic positioning.
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Market comparison and best practices: Analysis of disclosure practices at peer institutions and identification of best practices for the continuous improvement of the institution's own disclosure strategy.
How can CRR/CRD requirements be harmonized with other regulatory initiatives such as BCBS 239, DORA, or ESG regulations to leverage synergies and avoid duplicate implementation efforts?
The increasing complexity of the regulatory environment, with overlapping requirements from various regulatory initiatives, presents financial institutions with considerable challenges. An isolated approach to implementing each individual regulation inevitably leads to inefficiencies, inconsistencies, and unnecessary costs. ADVISORI pursues an integrated compliance approach that identifies and leverages synergies between different regulations.
🔄 Key areas of regulatory convergence and synergies:
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Data management and governance: The data requirements of CRR/CRD overlap significantly with the principles of BCBS 239, the resilience requirements of DORA, and the data evidence obligations of ESG regulations.
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Risk management framework: A harmonized risk management system can simultaneously cover the CRR/CRD requirements for internal models, the BCBS 239 requirements for risk data aggregation, and the climate risk assessments under ESG regulations.
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IT infrastructure and operational resilience: The technological requirements of DORA for operational resilience can be aligned with the operational risk management requirements of CRR/CRD and the data architecture principles of BCBS 239.
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Governance and control environment: An integrated governance framework can simultaneously fulfill the requirements of various regulatory initiatives regarding responsibilities, controls, and documentation obligations.
🧩 ADVISORI's integrated implementation approach:
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Regulatory mapping: Systematic analysis of the various regulatory requirements, identification of overlaps, and development of a consolidated requirements map.
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Prioritized implementation roadmap: Development of an implementation strategy that takes into account the timelines of various regulations and prioritizes common foundational projects.
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Integrated data strategy: Design of a data architecture that creates consistent data foundations for all regulatory requirements and implements uniform data governance.
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Technology consolidation: Recommendation and implementation of technology solutions that are flexible enough to meet the requirements of various regulatory initiatives and avoid unnecessary system redundancies.
How can financial institutions optimize capital planning and management under CRR/CRD to preserve strategic flexibility despite regulatory requirements?
Effective capital planning and management under the CRR/CRD framework requires balancing the fulfillment of regulatory requirements with the preservation of strategic flexibility. ADVISORI supports financial institutions in developing an integrated capital management approach that ensures compliance while simultaneously providing the foundation for sustainable growth.
🧭 Core elements of strategically aligned capital management:
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Integrated capital planning: Development of a comprehensive planning process that aligns regulatory requirements with business objectives and growth strategies, taking multiple scenarios into account.
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Risk-based capital allocation: Implementation of an allocation model that directs capital to the most profitable business areas, taking into account their risk profile and regulatory capital requirements.
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Active buffer management: Establishment of a differentiated buffer strategy that takes into account minimum requirements, Pillar
2 add-ons, and combined buffer requirements while ensuring operational flexibility.
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Capital efficiency optimization: Identification and implementation of measures to reduce RWA and improve capital efficiency without compromising strategic business objectives.
📈 ADVISORI's approach to sustainable capital optimization:
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Multi-dimensional capital planning models: Development of advanced planning models that integrate CRR/CRD requirements, IFRS
9 impacts, ICAAP processes, and stress scenarios.
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Portfolio optimization: Analysis of the existing portfolio structure and identification of restructuring opportunities to improve capital efficiency and profitability.
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Strategic balance sheet management: Advisory on the optimal design of the balance sheet structure, taking into account capital, liquidity, and profitability objectives.
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M&A and structural options: Assessment of acquisition, divestiture, and structural options (such as securitizations, guarantees, or risk transfers) to optimize the capital structure.
What specific challenges do CRR/CRD requirements pose for small and medium-sized banks, and how does ADVISORI support the implementation of a proportional approach?
Small and medium-sized banks face particular challenges in implementing CRR/CRD requirements. While the proportionality principle is enshrined in regulation, its practical application often remains complex. ADVISORI has developed a specialized approach that helps smaller institutions establish an appropriate, cost-efficient compliance framework without compromising on regulatory requirements.
⚖ ️ Specific challenges for smaller institutions:
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Resource constraints: Limited personnel, technical, and financial resources combined with high regulatory complexity represent a fundamental challenge.
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Cost-intensive compliance infrastructure: The implementation of specialized systems and processes for regulatory requirements ties up a disproportionately high share of the budget of smaller institutions.
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Building competence: The difficulty of building and retaining specialized expertise in complex regulatory topics, particularly in areas such as advanced risk modeling or ICAAP.
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Competitive disadvantage: The risk that higher relative compliance costs lead to competitive disadvantages compared to larger institutions that benefit from economies of scale.
🔍 ADVISORI's proportional implementation approach:
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Regulatory essentials analysis: Identification of the genuinely necessary compliance measures, taking into account the specific business models and risk profiles of smaller institutions.
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Simplified methods toolkit: Development and implementation of simplified but supervisory-compliant methods for risk assessment, capital planning, and stress testing that meet proportionality requirements.
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Collaborative compliance models: Advisory on opportunities for cross-institutional cooperation on compliance tasks or the outsourcing of certain regulatory functions.
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Technological efficiency solutions: Implementation of cost-efficient technology solutions specifically tailored to the needs of smaller institutions, offering a high degree of automation at minimal implementation costs.
How does ADVISORI support the preparation and execution of internal stress tests (ICAAP/ILAAP) within the CRR/CRD framework?
Internal stress tests within the framework of ICAAP (Internal Capital Adequacy Assessment Process) and ILAAP (Internal Liquidity Adequacy Assessment Process) have developed into critical instruments of risk management and supervisory compliance. ADVISORI supports financial institutions in developing and implementing robust, business-relevant stress testing procedures that both meet regulatory requirements and deliver valuable strategic insights.
🔬 Core components of an effective stress test framework:
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Integrated scenario development: Design of consistent, plausibly severe but not unrealistic stress scenarios that link macroeconomic factors with institution-specific vulnerabilities.
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Comprehensive risk capture: Development of methods for the comprehensive inclusion of all material risks in stress tests, including difficult-to-quantify risk categories such as strategic and reputational risks.
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Forward-looking analysis: Implementation of forward-looking, multi-year projections that realistically reflect dynamic balance sheet developments and management actions under stress conditions.
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Management integration: Embedding stress test results in strategic decision-making processes, risk appetite formulation, and capital and liquidity planning.
📊 ADVISORI's specialized stress test approach:
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Methodological excellence: Development of statistically robust and economically plausible models for translating macroeconomic scenarios into institution-relevant risk drivers and financial impacts.
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Regulatory alignment: Ensuring full compliance with supervisory expectations from EBA guidelines, SSM manuals, and national requirements without over-compliance.
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IT implementation: Support in the technical implementation of an efficient stress test system that enables flexible scenario simulations and transparent presentation of results.
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Strategic interpretation: Advisory on the meaningful interpretation of stress test results and their translation into concrete management actions and capital planning activities.
What role do ESG factors play in the current CRR/CRD requirements, and how does ADVISORI support banks in integrating sustainability risks?
The integration of environmental, social, and governance (ESG) factors into the CRR/CRD framework marks a significant shift in banking regulation. Sustainability risks are increasingly recognized as material financial risk drivers that require explicit consideration in risk management, capital planning, and disclosure practices. ADVISORI supports financial institutions with a comprehensive approach to this complex transformation.
🌱 ESG integration into the CRR/CRD framework:
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Risk management extension: ESG risks must be integrated into existing risk management frameworks, particularly for credit, market, and operational risks, as well as in the identification and assessment of emerging risks.
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Capital planning and ICAAP: Sustainability risks must be integrated into the ICAAP, including stress tests for climate risks across various time horizons (short-, medium-, and long-term).
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Extended disclosure obligations: ESG-related risks and their management must be transparently presented in Pillar
3 disclosures, including quantitative metrics and qualitative strategy descriptions.
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Governance and oversight: Establishment of clear responsibilities for ESG risks within governance structures and decision-making processes of institutions.
🛠 ️ ADVISORI's integrated ESG compliance approach:
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ESG risk inventory: Systematic identification and assessment of sustainability risks in the institution's specific business model and portfolio, with particular focus on transition risks and physical risks.
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Method development: Design and implementation of robust methods for quantifying ESG risks, including scenario analyses and stress tests for various climate change scenarios.
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Strategic ESG integration: Advisory on strategic positioning in the ESG context, including the integration of sustainability aspects into lending processes and portfolio management.
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Data and reporting structure: Development of a future-proof data infrastructure for capturing, analyzing, and reporting ESG-related information that meets regulatory requirements and enables strategic insights.
How is banking supervision in Europe evolving, and what future requirements for risk management and capital adequacy are to be expected?
European banking supervision is undergoing a continuous transformation process shaped by regulatory developments, market dynamics, and new risk dimensions. ADVISORI closely monitors these developments and supports financial institutions in preparing early for upcoming requirements and securing strategic competitive advantages.
🔮 Key development trends in European banking regulation:
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Basel IV finalization: The full implementation of the Basel IV standards, with stricter output floors and revised standardized approaches for various risk categories, will fundamentally change capital requirements and risk modeling.
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Digital transformation of supervision: The trend toward data-driven supervision with direct access to granular bank data (supervisory technology) will significantly influence transparency requirements and data management systems.
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Climate risk integration: The systematic incorporation of climate risks into all pillars of banking regulation, including specific capital requirements for climate-related risks, is becoming increasingly concrete.
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Consolidation of the single rulebook: The further harmonization of European banking regulation with the goal of a genuine banking union and uniform supervisory practices remains a central guiding principle.
🧠 ADVISORI's approach to preparing for future requirements:
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Regulatory early warning system: Active monitoring of regulatory developments and early analysis of their business implications for your specific institution and portfolio profile.
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Scenario-based strategy development: Development of various regulatory scenarios and flexible strategic adjustment paths that enable a rapid response to changing requirements.
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Future-proof architecture: Design and implementation of data and IT architectures that are agile enough to keep pace with future regulatory requirements without requiring fundamental restructuring.
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Proactive supervisory dialogue: Support in early communication with supervisory authorities regarding planned adjustments and strategic positioning in the context of evolving regulatory expectations.
How can financial institutions effectively implement and optimize counterparty risk management requirements under CRR/CRD?
The management of counterparty risks has gained considerably in complexity and strategic importance under the CRR/CRD framework. With the introduction of the Standardized Approach for Counterparty Credit Risk (SA-CCR) and stricter requirements for CVA risks, financial institutions face the challenge of fundamentally revising their approaches. ADVISORI supports the implementation of effective and capital-efficient counterparty risk management.
⚖ ️ Core elements of advanced counterparty risk management:
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Integrated risk measurement: Development of a consistent measurement approach for counterparty risks that links regulatory requirements (SA-CCR, CVA) with internal economic considerations and provides a basis for strategic business decisions.
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Collateral management optimization: Implementation of advanced collateralization strategies and processes that maximize regulatory capital relief while ensuring operational efficiency.
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Risk mitigation techniques: Systematic assessment and implementation of regulatory-recognized risk mitigation techniques such as netting, hedging, and central clearing, taking into account their cost-benefit profiles.
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Pre-trade analysis: Establishment of processes for assessing the regulatory capital impact of new transactions prior to execution, enabling capital-efficient deal structuring.
🔄 ADVISORI's comprehensive implementation approach:
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Methodical implementation: Support in the correct implementation of regulatory requirements for SA-CCR and CVA, including validation of calculation algorithms and data flows.
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System integration: Advisory on the selection and implementation of suitable IT solutions for counterparty risk management that integrate into the existing risk management infrastructure.
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Process optimization: Redesign and efficiency improvement of processes in counterparty risk management, from data collection through calculation to reporting and strategic decisions.
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Strategic portfolio advisory: Analysis of the existing derivatives and securities financing portfolio and development of optimization strategies that align capital efficiency with business objectives.
What organizational structures and governance models does ADVISORI recommend for effective CRR/CRD compliance?
An effective governance structure is fundamental to the sustainable compliance with CRR/CRD requirements and the strategic integration of regulatory considerations into business decisions. ADVISORI supports financial institutions in developing and implementing optimal organizational and governance models that both meet regulatory requirements and ensure operational efficiency.
🏛 ️ Success-critical elements of effective compliance governance:
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Clear responsibilities: Establishment of unambiguous accountabilities and escalation paths for all CRR/CRD-relevant processes, from capital planning through risk management to regulatory reporting.
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Three lines of defense: Consistent implementation of the three-lines-of-defense model with a clear separation between operational functions, independent risk control, and internal audit, while simultaneously ensuring efficient collaboration.
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Management information system: Implementation of a comprehensive reporting system that provides decision-makers with timely, precise, and actionable information on regulatory metrics and their implications.
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Qualification and awareness: Ensuring adequate expertise at all levels of the organization, from the management board and supervisory board to operational units, through targeted training and awareness measures.
🔄 ADVISORI's practice-oriented governance approach:
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Governance assessment: Comprehensive analysis of existing organizational and governance structures for their suitability for effective CRR/CRD compliance and identification of optimization potential.
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Target operating model: Development of a tailored target model for regulatory governance that takes into account both supervisory requirements and institution-specific circumstances.
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Process and committee structure: Design of efficient decision-making and escalation processes as well as optimal committee structures for managing regulatory topics.
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Implementation support: Support in the practical implementation of new governance structures, including change management, training, and process detailing.
How does ADVISORI support preparation for and management of supervisory inspections in the context of CRR/CRD compliance?
Supervisory inspections in the context of CRR/CRD compliance have increased considerably in intensity, depth, and technical complexity in recent years. Professional preparation and structured management of these inspections are critical to avoiding regulatory measures and establishing a positive relationship with supervisors. ADVISORI supports financial institutions with a comprehensive approach to managing supervisory inspections.
🔍 Key elements of successful inspection preparation:
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Proactive self-assessment: Conducting detailed preliminary analyses on inspection-relevant topics to identify potential weaknesses early and address them before they are identified by supervisors.
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Documentation excellence: Ensuring complete, consistent, and compelling documentation of all relevant processes, methods, and decisions that meets regulatory requirements and ensures traceability.
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Data quality management: Implementation of robust data quality checks and processes to ensure that all information submitted to supervisors is correct, consistent, and traceable.
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Communication strategy: Development of a clear and consistent communication approach for dialogue with supervisors that presents complex technical aspects in an understandable manner and supports the institution's strategic direction.
🛡 ️ ADVISORI's comprehensive support approach:
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Pre-inspection review: Conducting a thorough pre-review of relevant subject areas from a supervisory perspective to identify and address critical points before the actual inspection begins.
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Mock interviews and simulations: Preparation of senior managers and subject matter experts for inspection-relevant discussions and scenarios through realistic simulations and structured feedback.
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Findings management: Support in the systematic analysis, prioritization, and addressing of inspection findings, including the development of compelling action plans and lines of argumentation.
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Regulatory relationship management: Advisory on the strategic design and continuous improvement of the relationship with relevant supervisory authorities, to build and maintain a constructive relationship.
How does ADVISORI address the specific challenges in the area of operational risk under CRR/CRD requirements?
Requirements in the area of operational risk have expanded and been refined significantly with the further development of CRR/CRD. The introduction of the new Standardized Measurement Approach for operational risk (SMA) and the increased focus on cyber and technology risks require a fundamental realignment of operational risk management. ADVISORI supports financial institutions with a comprehensive approach to addressing these complex challenges.
🧩 Core elements of modern operational risk management:
•
Integrated risk taxonomy: Development of a comprehensive, structured classification of operational risks that integrates traditional and emerging risk categories (such as cyber, conduct, compliance, and outsourcing risks) into a coherent framework.
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Data-driven assessment: Implementation of advanced methods for the identification, assessment, and quantification of operational risks that combine both historical loss data and forward-looking scenario analyses.
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Integrated control environment: Design of an efficient, risk-based control framework that optimally links operational controls, management controls, and independent monitoring functions.
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Resilience-oriented management: Transition from a pure loss focus to a comprehensive resilience approach that places resistance to disruptions at the center.
🛠 ️ ADVISORI's specialized implementation approach:
•
SMA implementation: Support in the correct implementation of the standardized approach for operational risk, including optimization of Business Indicator Components and development of robust processes for data collection and validation.
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Advanced measurement strategies: Despite the regulatory move away from complex internal models (AMA), development of advanced internal measurement methods for operational risks that enable more risk-sensitive management and go beyond regulatory minimum requirements.
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Technology-supported risk management: Implementation of modern GRC tools (Governance, Risk & Compliance) and analytics solutions that automate processes, increase transparency, and enable proactive management of operational risks.
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Cyber and IT risk integration: Specific support in integrating cyber and IT risks into operational risk management, including the development of specific measurement approaches and control structures for these increasingly critical risk areas.
How can banks optimize the relationship between risk and return under CRR/CRD requirements while ensuring sustainable profitability?
CRR/CRD requirements have fundamentally challenged the traditional business models and revenue sources of banks. In an environment of rising capital requirements, stricter risk constraints, and intense competition, strategic optimization of the risk-return relationship is critical for sustainable profitability. ADVISORI supports financial institutions with an integrated approach that aligns regulatory compliance with business performance.
📊 Strategic levers for risk-return optimization:
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Risk-adjusted performance measurement: Implementation of advanced RAPM methods (Risk-Adjusted Performance Measurement) such as RAROC or RORAC that explicitly incorporate regulatory capital costs into profitability assessments and enable risk-adjusted management.
•
Portfolio optimization: Systematic analysis and realignment of the business portfolio based on risk-adjusted returns, with particular focus on reducing RWA-intensive but low-yield exposures.
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Strategic pricing: Development of pricing frameworks that transparently incorporate regulatory capital and liquidity costs into product calculations and ensure risk-adequate pricing.
•
Balance sheet structure optimization: Strategic redesign of the balance sheet structure with a view to an optimal balance between regulatory requirements (capital, leverage, liquidity) and earnings potential.
🔄 ADVISORI's comprehensive optimization approach:
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Business model assessment: Comprehensive analysis of the existing business model taking into account regulatory requirements, market developments, and own strengths, with concrete recommendations for strategic adjustments.
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Regulatory efficiency improvement: Identification and implementation of measures to optimize regulatory metrics without restricting business potential, through structural adjustments, improved data quality, and advanced risk measurement methods.
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Integrated performance management: Development of a comprehensive management framework that links regulatory KPIs with financial and strategic objectives and creates consistent incentives at all organizational levels.
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Digital transformation: Advisory on the strategic use of new technologies to simultaneously reduce regulatory costs and open up new revenue sources, for example through process automation, data-driven decision-making, and innovative digital business models.
How can financial institutions make regulatory reporting under CRR/CRD more efficient and automated?
Regulatory reporting under CRR/CRD has evolved into a highly complex, resource-intensive process that presents financial institutions with considerable operational challenges. The continuously rising requirements for granularity, frequency, and quality of reporting data require a fundamental redesign and extensive automation of the underlying processes and systems. ADVISORI supports financial institutions in transforming their regulatory reporting into an efficient, future-proof functional area.
🔄 Key elements of an optimized reporting framework:
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End-to-end process integration: Design of seamlessly integrated processes from data collection through calculations to report generation and submission, with clear responsibilities and control points along the entire process chain.
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Data governance and quality: Implementation of robust governance structures and quality assurance mechanisms that ensure the correctness, consistency, and traceability of all reporting data.
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Granular data foundation: Development of a unified, granular data foundation for all regulatory and internal reporting requirements that avoids redundant data collection and establishes a consistent single source of truth.
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Flexible reporting architecture: Development of a modular, adaptable system and process architecture that can respond quickly to regulatory changes and enables the continuous integration of new requirements.
🤖 ADVISORI's approach to reporting automation:
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Process analysis and optimization: Detailed analysis of existing reporting processes, identification of inefficiencies, and development of optimized process designs with maximum automation and minimal manual interfaces.
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Technological modernization: Advisory on the selection and implementation of modern reporting solutions and architectures, from specialized regulatory reporting platforms to innovative RegTech approaches such as RPA (Robotic Process Automation) and AI-supported data validation.
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Integrated data modeling: Development of consistent, regulatory-compliant data models and taxonomies that meet both external reporting requirements and internal management needs, creating a unified data foundation for all reporting purposes.
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Automated controls and validations: Implementation of systematic, largely automated control and validation mechanisms that ensure data quality and process stability while minimizing manual review effort.
How do the requirements for significant institutions (SI) and less significant institutions (LSI) differ under CRR/CRD, and how does ADVISORI support the implementation of proportional approaches?
The differentiated treatment of significant institutions (SI) and less significant institutions (LSI) in the European banking supervisory system represents a central pillar of the proportionality principle. While the fundamental CRR/CRD requirements apply to all institutions, there are considerable differences in supervisory practice, the level of detail of regulatory requirements, and implementation timelines. ADVISORI supports both groups of institutions with tailored approaches that take into account their specific regulatory requirements and challenges.
🔍 Key differences in requirements:
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Supervisory jurisdiction: SIs are subject to direct supervision by the ECB within the SSM framework, while LSIs are primarily supervised by national supervisory authorities, with the ECB retaining an overarching supervisory function.
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Methodological depth: The methodological requirements placed on SIs are typically more detailed and demanding, particularly in areas such as ICAAP/ILAAP, risk management models, and stress tests.
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Reporting scope: SIs have more extensive, more granular, and more frequent reporting obligations, while LSIs can benefit from certain reliefs, particularly regarding detailed supplementary requirements.
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Inspection intensity: SIs undergo more intensive, more frequent, and more in-depth supervisory inspections — from OSIs to deep dives and thematic reviews — while inspections of LSIs are often more focused and risk-based.
⚖ ️ ADVISORI's differentiated advisory approach:
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SI-specific expertise: For significant institutions, we offer in-depth expertise in meeting the demanding ECB requirements, preparing for intensive inspection processes, and strategic positioning in the SSM context.
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LSI-optimized solutions: For less significant institutions, we develop proportional implementation approaches that meet regulatory requirements without creating overly complex structures, making optimal use of limited resources.
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Proportionality advisory: Support in the targeted use of proportionality discretions in regulatory implementation, based on a detailed analysis of the individual institution and risk profile.
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Evolutionary approach: Accompanying growing institutions on their path from LSI to SI, or within the LSI category to a higher priority tier, with a focus on timely, gradual adjustment of governance and compliance structures.
Success Stories
Discover how we support companies in their digital transformation
Generative KI in der Fertigung
Bosch
KI-Prozessoptimierung für bessere Produktionseffizienz
Fallstudie
Ergebnisse
Reduzierung der Implementierungszeit von AI-Anwendungen auf wenige Wochen
Verbesserung der Produktqualität durch frühzeitige Fehlererkennung
Steigerung der Effizienz in der Fertigung durch reduzierte Downtime
AI Automatisierung in der Produktion
Festo
Intelligente Vernetzung für zukunftsfähige Produktionssysteme
Fallstudie
Ergebnisse
Verbesserung der Produktionsgeschwindigkeit und Flexibilität
Reduzierung der Herstellungskosten durch effizientere Ressourcennutzung
Erhöhung der Kundenzufriedenheit durch personalisierte Produkte
KI-gestützte Fertigungsoptimierung
Siemens
Smarte Fertigungslösungen für maximale Wertschöpfung
Fallstudie
Ergebnisse
Erhebliche Steigerung der Produktionsleistung
Reduzierung von Downtime und Produktionskosten
Verbesserung der Nachhaltigkeit durch effizientere Ressourcennutzung
Digitalisierung im Stahlhandel
Klöckner & Co
Digitalisierung im Stahlhandel
Fallstudie
Ergebnisse
Über 2 Milliarden Euro Umsatz jährlich über digitale Kanäle
Ziel, bis 2022 60% des Umsatzes online zu erzielen
Verbesserung der Kundenzufriedenheit durch automatisierte Prozesse
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