Riskweise builds Internal Capital Adequacy Assessment Process (ICAAP) frameworks for GCC banks — covering Pillar II risk identification and materiality, capital adequacy methodology, governance structures, multi-year capital projections, risk appetite linkage, and SREP submission readiness.
ICAAP frameworks are calibrated to Basel III/IV principles and the supervisory expectations of CBUAE, SAMA, CBB, QCB, CBK and CBO — with explicit linkage between ICAAP scenario assumptions, stress testing outputs, and recovery planning.
Quantification of Pillar II risks not captured under Pillar I — liquidity, IRRBB, concentration, reputation, strategic risk, and others as relevant. Materiality mapping against capital base, with explicit thresholds and governance.
Economic capital computation, buffer design, and stress integration. Multi-year capital projections under baseline and adverse conditions. Methodology paper documents all assumptions, calibrations, and sensitivity analyses for supervisory review.
Policy design, internal oversight, Board approval pathway. ICAAP report and Board pack templates standardised for annual submission cycles. Documentation built to withstand external audit and supervisory examination.
Linkage with strategic planning, profitability targets, and risk appetite. Integration with stress testing scenarios, recovery planning triggers, and dividend / capital action governance — so ICAAP is operationally connected to business decisions, not a once-a-year compliance exercise.
Template preparation, narrative documentation, and regulator engagement. Gap assessment against Basel III/IV and local supervisory expectations, with explicit remediation roadmap where gaps exist.
Yes. All six GCC central banks — CBUAE, SAMA, CBB, QCB, CBK and CBO — require licensed banks to maintain an ICAAP framework, submitted at least annually with Board approval. The level of granularity expected scales with institutional size and complexity. Smaller banks and NBFCs face lighter requirements but still need a defensible framework.
The minimum set typically includes concentration risk, IRRBB (interest rate risk in the banking book), liquidity risk, and strategic / business risk. Most GCC banks also quantify reputation risk, model risk, and compliance / conduct risk. Materiality assessment determines the depth of quantification per risk type — material risks need full economic capital methodology; immaterial risks need documented monitoring with thresholds.
ICAAP and stress testing share scenario assumptions but answer different questions. Stress testing quantifies P&L and capital impact under specific shocks; ICAAP determines whether the bank holds enough capital to withstand those impacts under its specific risk profile. Riskweise builds the two with shared scenario libraries — so the stress test outputs flow directly into ICAAP capital adequacy projections, with no reconciliation gap.
Yes. We prepare the full SREP submission pack — narrative documentation, capital adequacy templates, supporting evidence — and brief the bank team for regulator dialogue. Where gaps exist between current state and supervisory expectations, we develop a remediation roadmap that the Board can approve as part of the ICAAP submission itself.
A first-time ICAAP build for a mid-sized bank takes 14-18 weeks from kickoff to a Board-approved submission pack. Banks updating an existing framework typically run 8-12 weeks. Complex multi-jurisdictional banks with subsidiary consolidation can run 20-26 weeks. The methodology and documentation are reusable across years, so subsequent annual cycles are materially shorter.
The ICAAP model itself is an Excel-based capital adequacy tool with full Pillar II risk quantification, scenario integration, multi-year projection logic, and Board reporting templates. Every formula is open and editable. Methodology, governance, and policy documents are delivered as Word artefacts. The full pack is ready for supervisory review on delivery — no further packaging required.
We respond within one business day. No agency-style discovery process — straight to scope, fit, and what you actually need.
Start the conversation