ISDA SIMM Validation Governance Framework for a Global Investment Bank
Global investment bank | Operational transformation | Private sector
The challenge: The Front Office of a global investment bank had missed a regulatory deadline for validating the International Swaps and Derivatives Association Standardised Initial Margin Model after a previous team failed to deliver a solution. New Link Consulting was brought in as a replacement to establish governance, meet the regulatory requirement and put a sustainable framework in place.
What New Link Consulting did: New Link Consulting built and maintained a detailed project plan, engaged subject matter experts across Front Office, Middle Office, Risk and Product Control to define the target operating model, ran workshops to gather business and functional requirements, produced a gap analysis of Initial Margin calculators, performed User Acceptance Testing, and provided detailed tracing between regulatory requirements and business and functional requirements.
The outcome: A robust governance framework with senior stakeholder investment, a validated tool for performing Standardised Initial Margin Model validation exercises, and a clear decision-making process ratified through Steering Committee meetings — enabling the bank to meet its regulatory requirements and manage the programme going forward.
