ICAAP: Internal Capital Adequacy Assessment Process
A firm’s Internal Capital Adequacy Assessment Process is also referred to as an ICAAP. Whilst the ICAAP is a process, this must be reviewed and documented at least annually.
Firms must have suitable governance, management capability, systems & controls in place to enable them to verify their internal capital adequacy at all times with regards to any risks they may potentially face.
Firms are responsible for ensuring that they have suitable governance in place along with the processes, procedures and methodologies to enable them to verify their internal capital adequacy at all times with regards to the risks they may face. This is referred to as the Internal Capital Adequacy Assessment Process or ICAAP for short.
Furthermore, firms must also be able to support their assessments and evaluations in this regards by having complete and detailed documentation to support their structured approach. This documentation must be reviewed at least annually by the Board and may be requested by the regulator as part of their Supervisory Review & Evaluation Process (SREP).
If your firm would like information on our ICAAP support services such as assistance in examining your ICAAP to ensure it is appropriately assessed for your current business plan and activities or assistance in documenting this review, please contact us. Our experienced ICAAP Consultants would be happy to help, so send an enquiry or telephone today.