Financial Crime World

Hungary’s Financial Firms Struggle with Compliance Risk Management Amid Increasing Regulatory Demands

Budapest, Hungary - The Evolving Landscape of Compliance Risk Management

In a world marked by unprecedented regulatory complexity and heightened scrutiny, Hungarian financial institutions are facing the daunting task of effective compliance risk management. As the importance of robust frameworks to mitigate potential risks continues to grow, companies must adapt quickly to stay ahead.

The Need for Innovative Solutions

Hungarian businesses are increasingly recognizing the need for innovative solutions in order to remain competitive. According to experts, successful companies will reorganize their operations along the concept of “smart digital finance” (SDF), incorporating cutting-edge technologies such as machine learning and robotic process automation (RPA).

To navigate this complex landscape, Hungarian financial firms are turning to professional services providers with extensive knowledge of local market needs and global expertise. One such firm, KPMG, has assembled a team of 25 experienced professionals dedicated to helping clients identify and mitigate potential risks.

Expertise in Compliance Risk Management

KPMG’s Financial Risk Management Advisory function is designed to support compliance with regulatory requirements while delivering economic benefits. The firm offers a comprehensive range of services, including:

  • Advisory on MiFID II/MiFIR/EMIR/PRIIPs: Providing expertise on these critical regulations to ensure compliance.
  • Basel/CRR-CRD/ICAAP-SREP advisory: Helping clients navigate the complexities of these regulatory frameworks.
  • Remuneration policy-related consulting: Ensuring compliance with remuneration policies and regulations.
  • Supervisory examination, regulatory reporting, and internal audit and compliance functions: Providing expert guidance on these critical areas.

Expertise in Insurance Sector

In the insurance sector, KPMG advises on:

  • Solvency II: Helping clients navigate the complexities of this regulatory framework.
  • Benchmarks Regulation (BMR): Ensuring compliance with BMR requirements.
  • PSD2: Providing expertise on Payment Services Directive 2.
  • Instant payment preparation: Supporting clients in preparing for instant payments.
  • Brexit risk assessment: Helping clients assess and mitigate Brexit-related risks.
  • RegTech due diligence services for fintech companies: Ensuring compliance with regulatory requirements.

Conclusion

With its comprehensive range of services and deep understanding of local market needs, KPMG is well-positioned to help Hungarian financial firms effectively manage compliance risks and stay ahead in an increasingly competitive landscape.