Pricing Risk Framework

Tightening regulations on pricing practices in Hong Kong and Singapore have introduced significant regulatory risks for banks. A robust Pricing Risk framework is key to ensuring pricing adherence. Our approach combines best practice frameworks with an in-depth analysis of your entire value chain and benchmarking against regulatory requirements and industry standards.

Are you asking yourself

Do our bank’s processes meet the regulatory expectations of the Monetary Authority of Singapore (“MAS”) Information Paper published on February 2020?
What are the key success factors in building a robust pricing framework?
How can we adapt our current control framework to ensure Pricing transparency and adherence especially for bespoke/discount pricing?
What are the control metrics in place to support an effective pricing framework?
Do we have the right data and insights to proactively monitor risk areas and take corrective actions?

What you will get from us:

Insights on the industry best practices on pricing risk control framework and governance.
A robust control framework with tailored risk metrics to address pricing related risks such as operational risk, compliance risk, user behavioral issues etc.
An effective pricing governance that affords management oversight, steers issue resolution while acting as a body for escalation and risk acceptance.

Our Approach

Interviews

Interviews are conducted with SMEs, Product Managers, Risk Managers and LoD1/2 using structured questionnaires to gather insights on the 6 tenets to regulatory adherence.
Workshop Series

Insights are shared across business functions to identify systemic issues in systems and processes, define control metrics and forums for risk escalation and acceptance.
Gap Analysis

Existing processes and controls are benchmarked against a checklist of baseline regulatory requirements and industry standards to identify gaps.
Recommendations

Recommendations leading to short- and long-term improvements to address gaps and/or weaknesses in guidelines, framework and policies are derived.
Roadmap

An implementation roadmap following a structured approach is developed to address and manage pricing-related risk.

Get inspired by our latest insights

Will Hong Kong Regulators Broaden the Scope of Monetary Benefits Disclosures in 2021?

Since the initial monetary benefit requirements introduced by the Hong Kong regulators, several other circulars have followed that have clarified the regulatory expectations on how the Code of Conduct should be interpreted.