The new Internal Capital and Risk Assessment, known as the ICARA, is probably the biggest step change for most firms subject to the IFPR regime. For those firms who haven’t previously had to prepare this sort of document at all, such as those previously classified by the regulator as ‘Exempt CAD’ it will present a significant challenge.
What’s the difference between an ICARA and an ICAAP?
For those who have previously prepared an ICAAP – the Internal Capital Adequacy Assessment Process – the ICARA represents a fundamentally different approach to risk management, changing how investment firms should think about and manage risk.
The ICAAP can be a useful place to start in preparing an ICARA for the first time; but as only around a third of it can be easily translated across, a different approach is required for the IFPR regime. The ICARA approaches risk through a more conduct focused lens and places a stronger emphasis on credible recovery actions and wind-down plans, requiring stress testing to be more targeted to firms’ risks.
Our ICARA template
At the basis of our work with existing clients is our ICARA template which we have developed based on the preparation we have done for IFPR with investment firms.
We are now making our ICARA template available as a stand alone offering as well as alongside project management and consulting support.
The template is an ideal starting point for approaching your ICARA.
- Clear outline and layout – ready to populate
- A breakdown of what the regulator is really looking for under each point, based on our experience as ex-regulators and working with clients
- Proportional guidance on each element helping you provide the appropriate level of detail
- Self explanatory if you have not had to prepare an ICAAP in the past
- If you are used to the ICAAP, it uses a familiar language and structure and is easy to transfer your current knowledge
- Prepared to add long-term value to your firm’s approach to risk, as well as fulfilling regulatory expectations
- Free updates to reflect any new guidance from the FCA and a 1 hour workshop to take you through the template.
Get started
Get in touch using the form below and a member of the team will get back you as soon as possible.
