Internal Capital Adequacy Assessment Process: Key Points For Non-Executive Directors Of Banks

Ian Kirk, partner and head of Collas Crill's Commercial Department, chaired the panel discussion of the first Guernsey Financial Services Commission-led Internal Capital Adequacy Assessment Process workshop for Non-Executive Directors earlier this year. Here, Ian summarises the key 'take home' points from the workshop for NEDs.

1. The ICAAP must reflect the key risks of the Guernsey bank. Since the turmoil of the financial crisis the focus of both the Commission and the boards of local subsidiaries has shifted away from the financial strength of the group and directly onto the self-sustainability of the Guernsey subsidiary.
2. A key aspect of a NED's role is to ensure that the main risks in the Guernsey bank are indentified, addressed, controlled, and where necessary allocated an appropriate level of capital.