KPMG iRADAR

The continuous development of legal regulations (e.g. EMIR, MiFID II, AIFMD) and accounting standards (e.g. IFRS 13, IFRS 9) leads to new, increasingly complex requirements on both the buy-side and the sell-side.

In addition, financial institutions are confronted with a new market environment with which market participants have had very little or no experience to date (e.g. prolonged low interest rate environment). This is another reason why regulators and stakeholders are calling for more transparency.

In recent years, it can be observed that financial institutions are fully digitising business processes and further increasing third-party involvement in order to remain competitive in an increasingly cost-oriented environment. Thus, dependence on third-party providers continues to increase, while financial institutions remain responsible for the services provided by third-party providers.

With KPMG iRADAR, KPMG has a market-leading platform that offers a wide range of services to support financial institutions, enabling them to successfully address the challenges mentioned above. The special feature of KPMG iRADAR results from the interaction of the following three elements:

KPMG iRADAR consists of a team of financial market specialists who specialise in quantitative analyses of financial instruments and the associated business processes. By combining these two areas of focus into a single team, we can ensure the delivery of smart as well as efficient solutions to our clients.

By using market-leading technology in conjunction with state-of-the-art D&A methods, we ensure that our customers benefit from our analyses and deep insights, which are developed with the latest scientific and industry advancements.

With the help of KPMG iRADAR, the detailed insights into business processes (e.g. valuation results, level classification) and portfolios of financial instruments (e.g. valuation results, level classification) are translated into unique benchmarking analyses. These analyses enable us to show our clients important insights regarding the position of their business entity in comparison to the peer group and to discuss possible potential.

Thanks to the unique combination of expertise, technology and market knowledge, we at KPMG offer our clients solutions that are tailored to the needs of financial institutions. Our goal is to ensure that you can continue to operate successfully in a challenging market environment.

Appropriate and market-standard valuation and risk models are crucial for the assessment and management of your financial instruments. With our model validation service offering, you receive an independent review of the theoretical and practical appropriateness of the models used, as well as insights into the market via our peer group benchmarking.

Independent verification of the disclosures you make in the financial statements regarding your financial instruments increases your credibility for external stakeholders, including existing and potential investors.

Our scoring-based analysis of business processes enables a quantitative assessment of the process and control landscape as well as benchmarking of processes against best practice approaches. Together with our experts, you can identify potential inefficiencies as well as potential for improvement and use this to determine solutions that are individually tailored to your business entity.

Comprehensive statutory reporting requirements in relation to target funds and the challenge of presenting this through a cost-efficient process have repeatedly presented financial institutions with new issues in recent years. With our Target Fund Hub service, we at KPMG take over the data procurement process and compile the relevant data (e.g. Large Exposure Regulation (GroMiKV), Solvency II, etc.) in an aggregated, quality-assured and timely manner for further processing.

Transparent and externally verified performance is crucial to attract new capital from investors. Therefore, KPMG offers iRADAR verifications with a focus on portfolio performance. Based on our extensive market expertise in this area, we support you in setting up a GIPS®-compliant environment or conduct GIPS® verifications on a regular basis.

With our XVA Assurance service offering, we provide a comprehensive review of your XVA calculation using state-of-the-art modelling techniques as well as benchmarking analyses regarding your XVA methodology.

Ensuring compliance with the new classification and measurement requirements under IFRS 9 is essential for both investors and regulators. With the help of our market-leading IFRS 9 SPPI solution, we offer you the possibility to analyse your financial instruments efficiently and with the necessary expertise to obtain the required certainty about the classification you have made.

KPMG's Valuation Assurance offering for your financial instruments meets the transparency requirements of internal and external stakeholders and underpins the quality and consistency of the valuation of your financial instruments.

Legal and tax requirements impose restrictions on the eligibility of financial instruments for investment assets. KPMG iRADAR offers you pre- and post-screening for your financial instruments on an ad-hoc or regular basis with respect to their eligibility.

The Trade Analytics service enables you to evaluate your trading activities and thus also offers more transparency with regard to your business partners, traders, prices and costs. This unique tool helps you comply with new regulatory requirements such as MiFID/MiFIR and also strengthens your trading desk compliance and risk management function.

Get a high-level overview of how our KPMG iRADAR service works with our workflow infographic.