Ensuring Basel II Compliance
SMS REF #: CS00053
A financial services client required expert advice in meeting all requirements of the recently announced Basel II accord.
The Basel II accord is a set of principles and processes designed to govern the way financial institutions involved in foreign trading activities conduct their capital adequacy affairs. Covering all aspects of reporting and risk management, it was designed to establish a consistent level of international trading service. As such, adherence to the Basel II accord is considered mandatory. SMS was engaged to advise and guide the financial services client to meet the requirements set down in the Accord.
SMS conducted a comprehensive audit of current processes and practices to identify the steps required for compliance.
SMS drew upon 20 years’ change management experience to:
- compare existing processes against what was required for successful compliance
- establish a plan for change to address identified framework ‘gaps’
- identify the client’s capacity to achieve overall compliance
- define key milestones in a staggered timeline of change
SMS developed and implemented a process for change that met all of the stipulations addressed in the new accord.
SMS developed an overall “fit for purpose” plan that:
- tailored the financial services company’s compliance programme to its level of international trading activities
- allowed for the company’s considerable size and scope in compliance activities
- identified and prioritised a range of smaller, more specific projects
With the help of SMS, the financial services company has successfully met all of the requirements in a staggered, gradual process of compliance.
A long term project, Basel II was characterised by a series of dates by which participating financial institutions were required to meet set compliance requirements. The plan put forward by SMS has enabled the financial services company to easily and efficiently meet every deadline to date.