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Financial Institution Risk Management in Luxembourg: A Complex Landscape

Risk and complexity are inherent parts of the financial industry. New technologies, cyber threats, regulatory requirements, and changes in accounting and tax rules pose significant challenges to institutions. However, risk management professionals can help develop best practices to identify, measure, manage, reduce, and report risks.

PwC Luxembourg Services

PwC Luxembourg offers a range of services to support financial institutions, including:

  • Risk Management Governance Framework: Guidance on risk management frameworks, including ICAAP/ILAAP, and support in developing recovery plans.
  • Regulatory Reporting Solutions: Assistance with regulatory reporting production, review, and challenge of reports, and implementation of new regulations.
  • Regulatory Services: Guidance on upcoming regulatory changes, gap analysis against regulatory requirements, and development of policies and procedures.
  • Digital Solutions and Data Management: Co-implementation of risk management tools, assistance in selecting digital solutions, and validation of implementation.
  • Risk Management Vendors Solutions: Support with complex tasks such as regulatory reporting, risk measurement, stress testing, operational risk, and data management.

The Regulatory Framework for Risk Management in Luxembourg

The regulatory framework for risk management in Luxembourg is complex and constantly evolving, driven by EU regulations such as:

  • Banking Package
  • Capital Requirement Directive and Regulations (CRD IV/CRR)
  • Bank Recovery and Resolution Directive (BRRD II)
  • Single Resolution Mechanism Regulation (SRMR II)

PwC Luxembourg provides guidance on these regulations, as well as other international standards and guidelines.

Conclusion

PwC Luxembourg supports financial institutions in navigating the complex landscape of risk management regulations and guidelines. Our experts provide guidance on EU regulations, international standards, and best market practices to help institutions develop effective risk management frameworks and maintain accuracy in their reporting.