ICARA / ICAAP / ILAAP Support Services

ICARA / ICAAP / ILAAP

Support Services Robust internal assessments of capital and liquidity adequacy are central to supervisory expectations across the EU, UK and global regulatory landscape. Whether operating under the ICARA framework or ICAAP and ILAAP regimes, firms must demonstrate a clear understanding of their risks, financial resource needs, business model vulnerabilities and longterm sustainability. These assessments are not simply regulatory submissions—they are core components of a firm’s risk management and governance architecture. 

Our ICARA / ICAAP / ILAAP Support Services help firms design, implement and maintain internal assessment processes that are proportionate, forwardlooking and aligned with supervisory expectations. We ensure that these frameworks become living, embedded tools that support decisionmaking, rather than static documents produced once a year. 

Internal Capital and Liquidity Adequacy Assessments 

Across jurisdictions, supervisors expect firms to maintain internal processes that: 

• Assess material harms and risks to the firm, clients and the market 

• Evaluate capital and liquidity adequacy under normal and stressed conditions 

• Conduct business model analysis and forwardlooking planning 

• Develop credible recovery and winddown strategies 

• Demonstrate strong governance, oversight and challenge 

• Produce clear documentation that can be reviewed during supervisory engagement 

These expectations apply to firms of all sizes, and the assessment must reflect the firm’s actual risk profile, operational structure and commercial strategy. 

How We Support Your Internal Assessment Process 

Our prudential specialists bring deep experience from regulatory authorities, investment firms, banking institutions and consulting practices. We help firms build internal assessment processes that are technically robust, commercially practical and operationally effective. 

Our support includes: 

• Development of a new ICARA / ICAAP / ILAAP framework — Designing and implementing a full internal assessment process, including governance arrangements, methodologies, financial modelling, stress testing, recovery planning and winddown analysis. 

• Annual review and enhancement — Updating existing assessments to reflect changes in the firm’s business model, risk profile, financial position or regulatory expectations, ensuring the process remains accurate and relevant. 

• Documentation and template provision — Supplying structured templates for reports and workings files, including guidance notes and methodological explanations, followed by a detailed review of the completed materials. 

• Training for senior management and material risk takers — Delivering tailored training sessions to ensure key stakeholders understand the methodologies, assumptions, outcomes and governance expectations associated with the internal assessment process. 

Service Options 

We offer flexible service packages to meet the needs of firms at different stages of maturity. 

Option 1 — Full Development of a New Internal Assessment Process 

This includes the creation of a complete ICARA / ICAAP / ILAAP framework and supporting documentation. Deliverables typically include: 

• Multiyear financial projections and capital/liquidity modelling 

• Winddown planning and cost analysis 

• Stress testing design and scenario development 

• Identification and quantification of material harms and risks 

• Preparation of the full assessment report 

• Completion of any required regulatory questionnaires or submissions 

Option 2 — Annual Review and Update 

This includes a full review of your existing process and documentation, ensuring alignment with current regulatory expectations and business developments. Activities include: 

• Updated financial projections 

• Review of winddown planning assumptions 

• Reassessment of material harms and risk exposures 

• Updated capital and liquidity allocation methodologies 

• Revised assessment documentation 

• Completion of any required regulatory submissions 

Option 3 — Provision of Templates and Guided Review 

We provide structured templates for the assessment report and workings file, including guidance notes. Once completed by your team, we conduct a detailed review and provide feedback for refinement and finalisation. 

Option 4 — Training for Material Risk Takers and Senior Management 

We deliver targeted training covering: 

• Regulatory expectations for internal assessments 

• Core principles and methodologies 

• Stress testing, winddown planning and capital/liquidity analysis 

• Governance, oversight and supervisory review processes 

The Global Advantage 

Our experts combine regulatory insight with practical industry experience, enabling firms to build internal assessment processes that are credible, proportionate and aligned with supervisory expectations. We ensure that your ICARA, ICAAP or ILAAP becomes a strategic tool, supporting resilience, transparency and longterm sustainability.