Recovery and Resolution Planning

A number of international initiatives have recently been developed, aimed at avoiding a recurrence of the financial crisis and its brutal impact on real economies. Through international cooperation and the coordination of macro-prudential regulation regimes, there is an attempt for the first time to:

  • Accurately measure interconnectedness (and the potential for contagion and domino effects) within and between financial systems.
  • Encourage banks to think more clearly and objectively about threats to their viability (how to remain a ‘going concern’ in extremely adverse circumstances) and
  • Improve the ability of regulators to ‘resolve’ (close or dispose of) firms which are ‘gone concerns’ quickly, without recourse to taxpayer support and without disruption to critical economic functions such as payment systems.

RRP Development and A Manageable Approach

KnowCo’s extensive experience in capital and liquidity risk management enables us to provide strong support to our clients in preparing their RRPs. We take into consideration the nature and size of the organisation, and develop proportionate yet rigorous plans and analyses, aimed at fully meeting regulatory expectations.

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