Case Study
ICAAP & ILAAP Transformation for Strategic Risk Management
One of the largest Islamic banking institutions and a D-SIB, recognized for scale, innovation, and Shariah-compliant excellence
The business situation
- The bank required enhancements to its ICAAP and ILAAP frameworks to meet evolving regulatory expectations and improve the integration of capital and liquidity risk management. Increased supervisory focus on stress testing, RWA optimization, and capital adequacy planning required stronger alignment with Board-approved risk appetite and improved monitoring of capital and liquidity risks
Our team’s role
Framework Redesign
Redesign of ICAAP and ILAAP frameworks aligned with regulatory expectations
Stress Testing Enhancement
Development of advanced stress testing models covering macroeconomic, market, and idiosyncratic scenarios
Risk Monitoring Enablement
Enhancement of liquidity and capital risk dashboards and governance processes
Strategic Integration
Advisory support to integrate ICAAP and ILAAP with strategic planning, capital allocation, and funding strategies
The value our team added
- Strengthened ICAAP and ILAAP alignment with regulatory guidelines, improving readiness for supervisory review
- Delivered a unified stress testing framework linking capital and liquidity metrics to actionable strategies for RWA optimization and capital augmentation
- Enhanced transparency, governance, and reporting of liquidity and capital risk, enabling better strategic decisions and faster regulatory submissions
Strengthen Capital and Liquidity Governance
From ICAAP and ILAAP redesign to stress testing and strategic integration
Related Case studies
