Creating a Successful Roadmap and Framework to Ensure Banks Meet Global Regulatory Requirements
New Link successfully established a governance framework for the client to meet its global regulatory requirements after a previous team failed to assist them before the deadline.
Problem Statement:
The Front Office of a Global Investment Bank were seeking to set up a team that focused on validationg the ISDA Standardised Initial Margin Model (SIMM) in order to maintain global regulatory requirements. The bank missed the regulatory deadline due to the failure of a previous team to produce a solution, New Link Consulting was brought in to replace them.
NLC Engagement:
New Link approached this project by constructing and maintaining a detailed project plan that easily identified the pathway to a successful resolution.
Part of this roadmap was to speak with SMEs in Front Office, Middle Office, and to meet with Risk and Product Control to construct the TOM which was to include cleary defined roles and responsibilities for Interim and Strategic solutions.
New Link conducted workshops with collect business and functional requirements for different areas of the project that required developing. These workshops included sourcing the requirements for the platform that would be calculating the Hypothetical P&L and the validation exercises tha the SIMM model would be compared to.
A GAP analysis was produced to determine which of the Initial Margin caulators would be useful as part of the validation process. Furthermore, User Acceptance Testing was performed to identify development enhancements.
Finally, New Link provided detailed tracing between the regulations and the Business and Functional Requirements, and User Acceptance Testing.
Outcome:
The outcome of this engagement was a robust governance framework and invested senior stakeholders to ensure that all major requirements of the bank were being met and issues were being resolved. New Link’s detailed business analysis resulted in a tool that could be used to successfully perform validation exercises.
New Link was positioned to and succeeded in driving decision-making processes between various teams and functions of the bank that held differing priorities. These conversations were held in Steering Committee meetings to ratify and catalogue these decisions so that the project progressed forward.
