Financial services– Risk and compliance solutions
HCLTech’ Risk & compliance solutions team helps banks and financial services institutions in mitigating the challenges arising from the impact of dynamic regulations, financial crime, cybersecurity threats and emerging technologies.
Risk has taken a new dimension after the global financial crisis of 2008 in which huge losses from over-the-counter (OTC) derivatives caused the global financial services upheaval.
The Basel Committee on Banking Supervision (BCBS) initiated the Fundamental Review of the Trading Book (FRTB) in the years following the financial crisis of 2007-2009, with the aim of completely revising the approach to calculating risk-based capital requirements for trading activities (i.e., market risk capital). BCBS introduced the so-called “Basel II.5” package of reforms. This included a significant increase in the market-risk capital standards for banks while increasing the overall quantum of capital required for market risk.
Banks have subsequently been asked by regulators to carry out improved risk measurement and de-risk their exposures to counterparties. Financial markets typically face financial risk due to changes in interest rates, foreign exchange rates and commodity and asset prices. This increases the possibility of default by individual companies and consequently the sectors they operate in.
We serve our banking clients worldwide to ensure compliance with risk frameworks stipulated in the Basel Accords. By implementing both qualitative and quantitative approaches in financial risk management, HCLTech protects economic value in the trading and holding of financial instruments by pricing, tracking, reporting and exposing its risks.
Recognized by Everest as a leader in its peer group and also in enterprise risk management in the financial services industry, HCLTech’ Risk & compliance services offer RegTech compliance solutions for banks. These tailor-made solutions enable our clients to tackle financial crime and be fully compliant with the respective laws, regulations and the codes of conduct applicable to their banking activities. Through innovative solutions, we support financial services clients to mitigate the risk of legal or regulatory sanctions, material financial loss or loss in reputation.
Business situation
Challenges and opportunities
Solution building blocks
Credit, market, liquidity, stress testing
Capital, MIFID 2 transactions, AIFMD, IFRS17
KYC and client onboarding, AML
Process risk management and assurance, processes analytics
GRC tools, data security and privacy, IAM
BCBS 239, risk and finance alignment, big data implementation and analytics
Infrastructure operations, cloud security and support, application operation and support, application development and maintenance, COTS product implementation and managed business services (BPO)