Basel III Compliance

Bank institutions are preparing for Basel III, which must be operational by 2019. In addition to its extra funding requirements, Basel III requires a focus on effective risk management based on a companywide risk framework and stricter governance. Banks will be held accountable on all of these aspects by their regulatory supervisor.

Basel III seeks to enforce a more reliable, standardized and securely operating, environment for the banking system. The accord advises how much capital banks must set aside to guard the bank against financial and operational risks and liabilities.

Best Practice approach to Basel III compliance

BWise delivers enterprise Governance, Risk Management and Compliance (GRC) solutions for the financial industry and has successfully collaborated with banks to implement a risk-based companywide solution to prepare for Basel III requirements. Based on its experience, BWise has developed a best practice approach, based on standard capabilities of its software, to comply with Basel III. The BWise solution for Basel III enables banks to:

  • Assess and analyze risk
  • Build a companywide framework, with appropriate measures to manage and control material risks on a daily basis

The BWise best practice approach supports:

  • The maintenance of ever-increasing regulations on IT
  • Embedding of operational risk handling, including the gathering of losses and incidents for Advanced Measurement Approaches (AMA) calculation purposes
  • Monitoring the control of issues, findings and action plans for remediation purposes
  • Simplification of the creation and enforcement of one standard risk taxonomy to support a single companywide risk framework

Benefits

With the best practice, process-based approach of BWise for Basel III compliance, banks can:

  • Manage their risks
  • Prove to regulatory supervisors, credit agencies and accountants that material risks are managed
  • Prove how the risks are managed
  • Easily compile and present reports and insights

Banks using BWise have a better understanding and enhanced effective managerial control of their companywide risks. BWise offers savings through less effort to execute companywide risk management. Use of BWise has also resulted in performance improvements and financial benefits, such as less required capital funding.