Ever since we started preparing ICAAP (Internal Capital Adequacy Assessment Process) submission reports the two areas where clients had the most questions dealt with estimation of internal capital for strategic and liquidity risk. One client went as far as saying that I don’t want to discuss Pillar I at all. I understand Pillar I. It is Pillar II reporting and risk that is giving me reporting nightmares. Specifically ICAAP Liquidity Risk and Strategic Risk Capital.
Here are two posts done earlier on Finance Training Courses for our clients related to these two missing links:
ICAAP: Estimating Liquidity Risk Capital for ICAAP
ICAAP: Estimating Strategic Risk Capital for ICAAP
Jawwad Farid is a Columbia Business School Alumni, a Fellow Society of Actuaries and the Founder CEO of Alchemy Technologies. Jawwad has been teaching and working with the banking industry on ICAAP frameworks and submissions from early 2007 when the Basel II framework was rolled out in the region. For more detailed material on ICAAP prepared by the same team, please see Sample ICAAP report templates, ICAAP Excel worksheets and a primer on ICAAP as well as our ICAAP Training workshop series scheduled for late March 2011 in Langkawi, Malaysia.