Risk management and regulation

Identifying and mitigating financial risks.

Innovative financial risk management for prudent and efficient operations

Rapid shifts in the global and local economic environment, rising regulatory expectations, and digital transformation pose new challenges to the financial and corporate sectors. In this dynamic context, establishing robust financial risk-management frameworks is essential. Such frameworks not only support compliance but also enable well-founded business decisions and long-term competitiveness.

Our client base encompasses organizations beyond the financial sector’s participants. Within finance, we work with domestic and foreign banks and their Hungarian branches, fund managers, asset managers, investment firms, and fintech companies. Drawing on decades of experience and the application of innovative technological solutions, we help clients achieve regulatory compliance and develop strategies that deliver economic advantages.

How can KPMG help?

Feasibility study; macroeconomic and market analyses

Support for bank business planning and risk-strategy formulation
Preparation of a comprehensive business plan
External review of BUBOR (Budapest Interbank Offered Rate) calculations together with the auditors
Preparation of macroeconomic and market analyses

Operational support and resilience enhancement

Advisory on designing ICAAP, ILAAP, and SREP frameworks; for insurers, Solvency II
Support for preparing crisis-management and recovery plans (BRRD, SRM)
Advisory on resolution preparedness

Supervisory investigations and interactions

Szabályozói jelentések elkészítésének támogatása, felügyeleti vizsgálatokra való felkészítés

Incorporation and securities issuance support

Support for bond issuances and investment funds — feasibility studies; business planning and risk analysis; credit-rating support; preparation of bond documentation in collaboration with multiple KPMG service lines
Support for establishment, and for the expansion or modification of business activities
For the financial sector’s „traditional” supervised institution types (credit institutions, payment service providers, insurers, investment firms, fund management companies, etc.)
For fintech companies

Our key innovation- and technology-related services

Support for developing AI governance and strategy
Compliance program and training
Crypto-regulatory advisory
Management of third-party service providers and outsourcing risks, e.g., advisory related to the DORA (Digital Operational Resilience Act) framework

We believe that risk management is not merely a requirement but also an opportunity. We offer solutions that not only ensure regulatory compliance but also support business innovation. Our goal is for our partners’ compliance to rest on solid foundations while enabling them to pursue new business directions as their needs require.

We offer more than regulatory compliance solutions for the financial and corporate sectors. In every engagement, we strive to understand our clients’ specific needs and develop tailored solutions aligned with them. We work in close cooperation with other KPMG expert teams that provide the required competencies, enabling us to support complex, cross-functional projects comprehensively, including assuming project management where needed. Drawing on the experience of our expert team and, where necessary, the best practices of KPMG’s international network, we deliver practical solutions.

We seek to ensure that meeting regulatory expectations is not a mere box-ticking exercise but delivers competitive advantage, efficiency, and reputational protection for our clients. Accordingly, our services — on request — cover requirements mapping; analysis of organizational and operational impacts; design of internal control systems; and support for the governance and codification of internal procedures, including full project management where needed.

Control environment enhancement; regulatory advisory

Regulatory review, policy revision, and related advisory for all participants in the financial sector
Strengthening compliance functions in line with supervisory expectations
Advisory on control-process optimization
Assessment of the regulatory compliance of the control environment for preventing financial crime, jointly with KPMG’s fraud-prevention and internal-audit experts
Regulatory risk assessment and compliance advisory for digital solutions (e.g., AI, Microsoft Power Apps, and other automation)
Regulatory implementation, in particular:
MiFID II (Markets in Financial Instruments Directive), MiFIR (Markets in Financial Instruments Regulation), EMIR (European Market Infrastructure Regulation), PRIIPs (Packaged Retail and Insurance-based Investment Products)
CRR/CRD (Capital Requirements Regulation/Directive), interpretation and application of Basel standards
Regulatory support for insurers: IDD (Insurance Distribution Directive), PRIIPs, and Solvency II, in cooperation with KPMG’s actuarial experts
Ensuring regulatory compliance with PSD2 (Revised Payment Services Directive), instant payment systems, e-money, and payment services

Ensuring regulatory compliance is not a one-time task but an ongoing, multi-stage process. We have structured our services to accompany clients throughout the full regulatory cycle: from monitoring and assessing legal and regulatory changes, through planning and executing implementation projects, to conducting regular reviews and integrating supervisory expectations. This structured approach enables clients not only to meet requirements but to manage their regulatory environment effectively and sustainably