ICARA
Tools and templates for investment firms

Severe but plausible risk scenario.jpg

RISK FROM SEVERE BUT PLAUSIBLE SCENARIOS

Calculate the Pillar 2 own funds requirement for the risk of harm from hypothetical scenarios.

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AGGREGATE SEVERE BUT PLAUSIBLE RISK SCENARIOS

Calculate own fund requirement given that there is correlation between connected scenarios.

ICARA template

ICARA
TEMPLATE

 

A summary of the key issues to be covered in the Internal Capital and Risk Assessment (ICARA).  

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MARKET RISK -
LOSSES DUE TO CHANGE IN VALUE

Calculate the Pillar 2 market risk due to e.g. FX movements, change in the value of assets.

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OBTAIN CORRELATIONS BETWEEN SCENARIOS

Understand what drives correlations between connected risk scenarios and how sensitive they are.

A scenario assessment template.jpg

TEMPLATE FOR SCENARIO ASSESSMENT

A tested and tried template to assess the impact and likelihood from operational risk events.

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COUNTERPARTY 
RISK - LOSSES DUE TO FAILURE OF C'PARTIES

Calculate Pillar 2 losses to the firm due to failure of counterparties e.g. to settle transactions, make payments, etc.

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SET YOUR EARLY WARNING INDICATORS

Set internal early warning indicators at levels appropriate for your business model.

FCA reporting forms

FCA REPORTING FORMS INCLUDING MIF007 in Excel 

The FCA's reporting forms for investment firms (MIF007) in Excel format