Successful Management of Special Audit by Multiple Regulators at a Major European Bank

A major European bank faces a comprehensive audit conducted simultaneously by the Bundesbank, BaFIN, ECB, and Bank of Italy. LKPU takes charge of the BCM/ITSCM/DR project, overseeing various aspects such as technical conception, regulator communication, vendor management, and technical test support.

• Develop a comprehensive project plan to address the findings related to business continuity management (BCM) and disaster recovery (DR) as part of the findings program.
• Ensure all necessary actions and improvements are identified, planned, and executed within the project scope.
• Prepare and conduct operational and strategic steering committee meetings, facilitating effective communication, decision-making, and progress tracking.
• Utilize these meetings to address key issues, align strategies, and ensure successful project implementation.
• Manage cross-divisional and cross-country emergency tests, including the relocation of the trading center to the emergency location.
• Ensure the smooth execution of these tests, evaluate their outcomes, and implement necessary improvements.
• Perform end-to-end process analysis and documentation for various banking areas, including private banking, investment banking, retail banking, corporate banking, and relevant areas in CFO, CRO, CSO, CIB, and CEO.
• Conduct testing of these processes to identify vulnerabilities and enhance their resilience.
• Present and reconcile all project results with the foreign parent company, sister companies, and IT providers, ensuring transparency and alignment across entities.
• Address and resolve findings and actions identified by internal and external auditors, ensuring compliance and necessary improvements.
• Process and address requirements and measures from foreign supervisory authorities that have relevance for the bank’s German subsidiaries.
• Ensure timely and appropriate response to these requirements, facilitating compliance and regulatory alignment.
• Prepare responses to special inquiries from BaFin, including the preparation of cover letters for the management board.
• Provide accurate and comprehensive information to address the inquiries effectively.
• Develop monitoring and risk management tools to enhance the bank’s ability to monitor and manage BCM/DR-related risks effectively.
• Establish a robust framework for risk identification, mitigation, and reporting.
• Analyze and consolidate business impact analysis (BIA) data to gain insights into potential vulnerabilities, dependencies, and areas of improvement.
• Utilize this analysis to strengthen the bank’s resilience and enhance its risk management capabilities.