Insights
Articles, guides and reference pages from RiskTAE's partners on UK prudential regulation, capital and liquidity, and hiring senior risk people.
An ICAAP, or Internal Capital Adequacy Assessment Process, is a firm's own assessment of the capital it needs to cover its risks. It is a regulatory requirement under the PRA Rulebook, and the PRA uses it in its Supervisory Review and Evaluation Process to set the firm's Pillar 2A capital requirement.
By Mark Dougherty · 5 min readThe Basel 3.1 output floor stops a firm’s modelled risk-weighted assets falling below a set share of what the standardised approaches would produce. In the UK it starts at 60% on 1 January 2027 and rises every 1 January until it reaches 72.5% on 1 January 2030. It only binds where internal models produce lower...
By Mark Dougherty · 6 min readFor most UK banks and building societies that meet the nine SDDT criteria and expect to keep meeting them, yes. From 1 January 2027 an SDDT holds a Single Capital Buffer of at least 3.5% of RWAs in place of the capital conservation, countercyclical and PRA buffers, works to simplified Pillar 2A methods and updates...
By Mark Dougherty · 6 min readWhen a chief risk officer resigns, a UK bank can put someone into the Chief Risk function (SMF4) without regulatory approval for less than 12 weeks in any consecutive 12-month period, provided the absence was temporary or reasonably unforeseen. Since 24 April 2026, under the PRA’s PS12/26, that cover no longer stops at 12 weeks:...
By Benn Pople · 6 min readBasel 3.1, the PRA's version of the final Basel III reforms, applies to UK banks and building societies from 1 January 2027. It reworks the standardised approaches and phases in an output floor that reaches 72.5% of standardised risk-weighted assets on 1 January 2030.
By Mark Dougherty · 6 min readReference
Practitioner guides for UK bank boards on Basel 3.1 readiness, the SDDT regime, the ICAAP and hiring a chief risk officer, with checklists and sources.
02Dated PRA changes that affect a UK bank's risk function, with a link to the source for each, updated on the first working day of each month.
03Plain-English definitions of the terms UK risk leaders use, including ICAAP, Pillar 2A, SMF4 and the output floor, written by practitioners.
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